HR Policies
HR policies are also defined as that body of principles and rules of conduct which govern the enterprise in
its relationship with employees.
Such a policy statement provides guidelines for a wide variety of employment relationships in the
organization. The purpose and significance of the HR policies hardly need any elaboration.
Every organization needs policies to ensure consistency in action and equity in its relation with employees.
Policies serve the purpose of achieving organizational goals in an effective manner. HR policies constitute
the basis for sound HRM practices. Moreover, policies are the yardstick by which accomplishment of
programmes can be measured.
Human Resources policies are generalised guidelines on employee management, adopted by consensus
in an organisation to regulate the behaviour of employees and their managers or supervisors.
As for the dichotomy between an HR policy and a procedure, they can be compared to a human being and
the shadow. Both are inseparable and as shadows set the outlines of a human being, so do procedures set
the outlines of an HR policy.
HR Policies: Meaning, Steps, Formulation, Implementation and Procedure
HR Policies – Introduction
A policy is a guide for repetitive action in major areas of business. It is a statement of commonly accepted
understanding of decision-making criteria. Policies are set up to achieve several benefits. By taking policy
decisions on frequently recurring problems, the top management provides the guidelines to lower level
managers.
It will permit decisions to be made in similar situations without repeating the reasons and expensive
analysis required initially to state the policy. Policies help managers at various levels to act with confidence
without the need of consulting the superiors every time. This will also ensure promptness of action.
The starting point in all managerial relationships with employees is the managerial policies. It incorporates
the philosophy of the top management. The human resource philosophy of DLF, for instance, is stated as
the management of people begins with ideas, implicit or explicit, as to the purpose, goals, and intentions in
their employment. On the basis of such objectives, policies outline the courses to be followed.
On the basis of such policies, programmes are developed by the management to pursue the objectives.
Carrying out the programmes result in certain practices. Policies declare what is intended; they describe
what is proposed. Practices describe how policies are being implemented.
A company may have adopted a policy of providing training for all employees as a means of preparing
them for promotion. To implement this policy, it may have developed an extensive training programme. The
programme may include job training for new employees, supervisory training for foreman and supervisors,
and management development for members of the management group. In the supervisory training
programme, it may include role playing as one of the many training practices.
Human resource policies are not something that can be considered in isolation. It is an integral part of the
whole policy structure of the enterprise. There is an organic unity in policies. Such a unity prevents
unnecessary duplication and promotes unity of action. Weakness in any one of the major policies tends to
weaken the effectiveness of other policies. Similarly, a weakness in human resource policies may weaken
effectiveness of all other organizational policies.
Efficient utilization of resources depends a great deal upon:
(1) The efficiency of personnel operating and handing the resources,
(2) The image of the management in the minds of employees, and
(3) The relations between the management and the workers.
These are dependent on the management policies bearing on the human relations. A statement of the
management’s intention concerning people or formulation of a policy on HR is, thus, needed in every
organization. HR policies provides guidelines for a wide variety of employment relations in the organization.
HR Policies – Major Outlines of the HR Policy of a Medium-Sized Organisation
An HR department primarily deals with recruitment and selection, training and development, job evaluation,
wages and incentives, and labour welfare policy. Hence, an HR policy should have brief but complete
statements on all the points referred to earlier.
The major outlines of the HR policy of a medium-sized organisation may be as follows:
i. Recruitment and selection policy – To procure suitably educated and efficient personnel by offering
those tempting wages, good working conditions, safety and security, and better future prospects.
ii. Training and development policy – To make available all possible facilities for the training and
development of employees to enable them to do their job efficiently and to prepare themselves for future
promotions; to take effective steps including training and development programmes to equip the employees
in the latest techniques of production, management and so on; to get the performance appraisal done; and
to provide adequate opportunities and facilities for the development of employees.
iii. Job evaluation, wage and incentive policies – To determine reasonably good wage rates and
dearness allowance, and to work out incentive plans for workers after undertaking job evaluation and other
necessary steps and also keeping in view the prevalent wage rates for similar jobs in other industries.
iv. Labour welfare policy – To improve industrial relations by evolving a suitable machinery for the
settlement of disputes; to encourage mutual negotiations; to prepare and execute labour welfare
programmes; and to arrange all possible facilities for the health, education and other welfare programmes.
HR Policies – Steps in Designing HR Policy
In developing HR Policies, there should be clear and consistent statements of the organization’s policies
regarding to all conditions of employment and procedures for their equal and fair implementation.
In order to fulfill this objective, policies and procedures should be made on following guidelines or
steps:
1. Clear and specific, yet flexible enough to meet the changing conditions.
2. Compliance with all appropriate law and regulation.
3. Agreement with one another and reflection of an overall true and fair view approach to all employees.
4. Identify the purpose and objectives which the organization wish to attain regarding to its Human
Resources department.
5. Analyse all the factors under which the organization’s HR policy will be operating.
6. Examining the possible alternatives in each area which the HR policy statement is necessary.
7. Implementation of the policy through the development of a procedure to support the policy.
8. Communication of the policy and procedures adapted to the entire organization.
9. Auditing the policy so as to reveal the necessary areas requiring change.
10. Continuous revaluation and revision of policy to meet the current needs of the organization.
11. Gain understanding of the corporate culture and its shared values.
12. Analyse existing policies: both written and unwritten existing policies.
13. Analyse external influences as HR policies are subject to the influence of many legislation, regulations
and authorities, thus the codes of practice issued by the professional institutions, should also be consulted.
14. Assess any areas where new policies are needed or existing policies are inadequate.
15. Check with managers, preferably starting at the top, on their views about HR policies and where they
think could be improved.
16. Seek the view of employees about the HR policies, especially to the extend for which they are
inherently fair and equitable and are implemented fairly and consistently.
17. Seek the view of the union’s representatives.
18. Analyse the information retained in the previous steps and prepare the draft policies.