The maintenance of harmonious industrial relations within an industry depends on the extent of promotion and maintenance of discipline in the organizations. No organizations can grow and prosper without effective disciplinary system. Discipline on account of employees means complying with the predefined rules and regulations of the organization. It is a form of training that enforces organizational rules. Conduct problems arise from the employees who fail to follow the code of conduct of the organization. These employees are most often affected by the disciplinary system of the organization. Such employees are often called problem employees. The problem employees comprise a small number of employees, but they are the ones who cause the most disciplinary situations.

If employers fail to deal with problem employees, negative effects on other employees and work groups may result.

Some common disciplinary issues caused by problem employees include absenteeism, tardiness, productivity deficiencies, pilfering, alcoholism, insubordination, misuse of equipments and other company resources, and negligence. The goal of discipline is behavior modification, that is, to modify unacceptable behavior and misconduct.