Areas of HR Policies in Organisation

Human resource policies begin with identifying the areas requiring such policies; after which steps should be taken to collect the necessary facts, both from internal and external sources. The various policy alternatives should then be identified, resulting in the choice of the most appropriate ones.

An Organisation has no appropriate HR policy, the HR manager should convince the Chief Executive of the need of a HR policy. Policies are required in various areas of human resource management since areas are hiring, training, compensation, industrial relations, etc. A staff expert, a union leader, a first-line supervisor, or a rank-and-file employee may voice the need for revision of an existing policy.

In organizations where business policies are driven by employee strengths in terms of their un­derstanding of business opportunities and their confidence to cope with the challenges of creating a niche for themselves, the task of executing a business policy becomes much easier. It becomes easy because the business policy has already factored the areas of organizational issues that could pose a challenge and made adequate resource provisions including the time to achieve the business goal.

As such when strate­gically designing the HR policy, the company should consider the emerging technological scenario and opportunities that such change may provide in all important areas of HR functions.

The areas of internal HR environment critical to the success of any new HR policy are employee number and their com­petencies, organizational structure and power relations between different groups, employee belief, value and organizational culture, managerial experience, expertise and philosophy on the use and role of HR.

  1. Employment Policies:

(i) Minimum hiring qualifications and experience.

(ii) Preferred sources of recruitment.

(iii) Reservation for different groups.

(iv) Employment of relations of existing personnel.

(v) Reliance on various selection devices such as tests, reference checks, and interviews.

(vi) Placement of new employees, and

(vii) Orientation of new employees.

  1. Transfer and Promotion Policies:

(i) Rationale of transfer.

(ii) Periodicity of transfer.

(iii) Promotion of existing staff.

(iv) Length of service required for promotion.

(v) Qualifications and merits required for promotion.

(vi) Weightage to seniority and merit in promotion.

  1. Training and Development Policies:

(i) Frequency of training and development programs.

{ii) Basis for training.

(iii) Types of training, viz., on-the-job or off-the-job.

(iv) Programs of executive development.

(v) Career advancement.

  1. Compensation Policies:

(i) Minimum wages and salaries.

(ii) Methods of wage payments.

(iii) Individual incentive plans.

(iv) Group incentive plans.

(v) Employee Stock Option Plan (ESOP).

(vi) Profit sharing.

(vii) Non-monetary rewards.

  1. Integration and Human Relations Policies:

(i) Employee discipline.

(ii) Handling of grievances.

(iii) Recognition of employees’ unions.

(iv) Employees’ participation in management.

(v) Suggestion scheme.

  1. Working Conditions and Welfare Policies:

(i) Kinds and standards of working conditions.

(ii) Number and duration of rest intervals.

(iii) Overtime.

(iv) Types of leaves.

(v) Safety program.

(vi) Types of welfare services.

(vii) Financing of employee services.

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