Human Resource Policies Meaning, Features

Human resource policies are continuing guidelines on the approach of which an organization intends to adopt in managing its people. They represent specific guidelines to HR managers on various matters concerning employment and state the intent of the organization on different aspects of Human Resource management such as recruitment, promotion, compensation, training, selections etc. They therefore serve as a reference point when human resources management practices are being developed or when decisions are being made about an organization’s workforce.

A good HR policy provides generalized guidance on the approach adopted by the organization, and therefore its employees, concerning various aspects of employment. A procedure spells out precisely what action should be taken in line with the policies.

Each organization has a different set of circumstances and so develops an individual set of human resource policies. The location an organization operates in will also dictate the content of their policies.

The dictionary meaning of policy is a “plan of action” and that “Plan” is a policy. According to Flippo ‘policy’ is a man-made rule of pre-determined course of action that is established to guide the performance of work toward the organisation objectives. It is a type of standing plan that serve to guide subordinates in the execution of their tasks. Yoder observes, A policy is a pre-determined, selected course established as a guide towards accepted goals and objectives. In general, policies constitute guides to action.

They offer the standards based on which decisions are reached. They serve as a road map for managers in the organisation. Therefore, it is the responsibility of top management to formulate and develop a basic creed which should contain a clear-cut statement of the possibility.

HR policies can also be very effective at supporting and building the desired organizational culture. For example, recruitment and retention policies might outline the way the organization values a flexible workforce, compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year.

Feature 1. Employment:

Policies concerning with recruitment, selection and separation of employees.

These policies should provide mandatory guidelines for:

(i) Qualifications: Minimum hiring qualifications.

(ii) Selection Devices: Dependence on various selection devices such as university degrees, tests, interviews, reference checks, physical examination, etc.

(iii) Basis: Basis (length of service or efficiency) to be followed in discharging an employee.

(iv) Sources: Preferred sources of recruitment.

(v) Reservation: Reservation of seats for scheduled castes, scheduled tribes, handicapped persons, and ex-servicemen.

(vi) Local Employment of local people and relations of existing staff.

(vii) Probation: Probation period.

(viii) Layoff: Layoff and retiring.

Feature 2. Training and Development:

(i) Attitude: Attitude towards training-whether it is regarded as a device to overcome specific problems or as a continuing relationship between superior and subordinate.

(ii) Executive Development: Programmes of executive development.

(iii) Orientation: Orientation of new employees.

(iv) Objectives: Objectives of training.

(v) Development: Opportunities for career development.

(vi) Training: Basis of training.

(vii) Methods: Methods of training-on-the-job or off-the-job.

Feature 3. Transfers and Promotions:

(i) Rationale: Rationale of transfer.

(ii) Periodicity: Periodicity of transfer.

(iii) Promotion: Promotion from within or outside the organisation.

(iv) Seniority: Seniority required for promotion.

(v) Weightage: Relative weightage to seniority and merit in promotion.

(vi) Seniority: Seniority rights.

(vii) Channel: Channels of promotion.

Feature 4. Compensation:

(i) Evaluation: Job evaluation system.

(ii) Wages: Minimum wages and salaries.

(iii) Mode: Method of wage payment.

(iv) Profit Sharing: Profit sharing and incentive plans.

(v) Non-monetary: Non-monetary rewards.

(vi) Executive: Executive stock option plan.

(vii) Procedure: Procedure for getting payment.

(viii) Condition: Whether to pay prevailing or more than prevailing salary scales.

Feature 5. Working Conditions:

(i) Time: Working hours.

(ii) Duration: Shift work.

(iii) Breaks: Number and duration of rest intervals.

(iv) Extras: Overtime work.

(v) Leave: Leave rules.

(vi) Safety: Safety rules and regulations.

Feature 6. Employee Services and Welfare:

(i) Types: Types of services-housing, transportation, medical facilities, education of children, group insurance, credit facilities, purchase of company’s products at discount, company stores, social security, etc.

(ii) Finance: Financing of employee services.

(iii) Motivation: Incentives to motivate.

Feature 7. Industrial Relations:

(i) Grievances: Handling of grievances.

(ii) Trade union: Recognition of trade union.

(iii) Suggestions: Suggestions schemes.

(iv) Discipline: Discipline and conduct rules.

(v) Participation: Workers’ participation in management.

(vi) Journals: Employees’ news sheet and house journals.

• They provide clear communication between the organization and their employees regarding their condition of employment.
• They form a basis for treating all employees fairly and equally.
• They are a set of guidelines for supervisors and managers.
• They create a basis for developing the employee handbook.
• They establish a basis for regularly reviewing possible changes affecting employees.
• They form a context for supervisor training programs and employee orientation programs.

The significance of HR policies can be highlighted with the help of the following points:

1. Sound basis for decisions: HR policies offer a sound basis for taking decisions with regard to HR problems. Once a policy has been laid down, any executive can take a decision easily on the basis of that policy.
2. Facilitate meaningful and effective HRM: Once HR policies are framed and declared, every­body knows the course of action with regard to different HR problems. Hence, there will be least confusion and HRM will be more effective.
3. Restrain discrimination and undesirable behaviour towards employees: With the declara­tion of HR policies, the management cannot discriminate with the employees. It has to main­tain a standard behaviour towards all.
4. Restrain injustice: After the declaration of HR policies, practically no scope is left for the management to exercise its discretion or sweet will. Hence, even biased management cannot take undesirable decisions.
5. Help in decentralisation of authority: HR policies ultimately lead to decentralisation of power and authority. As a policy matter, the middle-level or lower-level HR staff may be del­egated authority in certain spheres. This eases the job of senior or top-level management.
6. Distinguish policy from procedure: Although some HR executives know how to tackle the employees, they often confuse a policy with a procedure. A policy is meant for general guid­ance, whereas a procedure is the implementation of the policy on a particular problem.

A manager should know the distinction between policies, rules and procedures. Many of the companies’ policy manuals are often a mishmash of policies, rules and procedures. According to Harold Koontz and Cyril O’Donnell, some policies are rules and recognised as such; other so-called policies are really procedures designed to channel action, not thinking.

Therefore, for good planning, good human and industrial relations; and also for workable delegation of authority, it is necessary that these three types of guidelines, namely policies, rules and proce­dures, must be carefully and correctly separated.

vii. Save time: As the HR policies serve as guidelines, there is no need of analysing and discussing all problems separately and individually. The problems can be grouped together and solved according to guidelines contained in the HR policies.

viii. Bring continuity and uniformity: Once the policies are formed, whether these are in the field of finance, or human resources, or sales, or distribution and so on, there will be no difficulty if the manager is replaced by a newcomer. Thus, the policies bring continuity and uniformity which, in turn, encourage the morale and faithfulness of the workers.

Help in accomplishing the organisational goals: As the formation and declaration of HR policies lead to the contentment among workers, they offer their willing and effective coopera­tion in accomplishing the desired objectives of the organisation.