The first and most important element is the existence of code of conduct. This is important because for an organization to talk about discipline there must be rules that determine how they should behave. If management fails to establish work rules it will be on weak grounds with the arbitrator if an employee does something wrong. In addition these rules should be reasonable in regard to orderly, efficient and safe operation of employers’ business as well as the performance of employees. Management cannot establish rules that do not relate to or violate employees’ rights. There should be clarity of the rules and discipline measures to be taken.