Handling of conflict, employee grievance and counseling are very common problem of organizations particularly factories with a large number of work force. The problems are considered to be very critical and complex HR issues which need high degree of focus from the part of management. Attaching importance to handle these issues professionally are very important. Resolving the issues with less importance may lead an organization to serious IR problem resulting to huge financial loss. The impact of the hidden cost of all these issues is highly significant in declining employee productivity of an organization.