Importance of Strategic HR Policies to Maintain Workplace Harmony

09/12/2020 0 By indiafreenotes

(i) Facilitates decision-making. Policy helps managers at various levels to act with confidence without the need of consulting the superiors every time. It gives them alternatives to choose from.

(ii) Promptness of action: When situations arise that call for decisions, policy will ensure prompt action within the overall framework of the objectives of the organisation.

(iii) Consistency of action: Effective policies ensure uniform and consistent treatment of all employees throughout the organisation. Sound personnel policies are, therefore, an essential base for sound personnel practices. Policies provide the base for management by principle as contrasted with management by expediency.

(iv) Continuity and stability: Written policies are a means of transmitting the company’s heritage from one generation of executives to another. There would be stability in decision making in the organisation even if some key executives retire or leave the organisation.

(v) Better control: Policy provides a rational and continuous system of achieving results which facilitates better control.

(vi) Eliminates personal hunch and bias: Clearly laid down policy liberates decision-maker from his personal bias and self-interest.

(vii) Welfare of people: By removing momentary and hasty decisions, policy ensures long-term welfare of people involved in the organisational activities.

(viii) Confidence in employees: Policy makes the employees aware of where they stand in relation to the organisation. This will create confidence in them.

Limitations of HR Policies:

HR policies may suffer from some limitations which are as follows:

(i) Policies are repeatedly used plans. They bring about rigidity in operations as they leave no room for initiative by the subordinates.

(ii) Policies may not cover all the problems. Sometimes, unforeseen situations arise which are not covered by the existing policies.

(iii) Policies are no substitute for human judgement. Policies only delimit the areas within which decisions are to be made.

(iv) Policies may not be ever-lasting as they lose their utility with the changes in the internal and external environment of the business.


  • Key to Managerial Functions:

Planning, organizing, leading, directing, and controlling (POLDC) are the five managerial functions that need HR for their execution. Human resources help in the accomplishment of all these managerial activities effectively and efficiently. Therefore, staffing becomes a key to all managerial functions.

  • Efficient Utilization:

With the emergence of the concept of the global village, handling HR efficiently has become an impor­tant function in the industry. Large organizations need huge HR to execute their job effectively. As such, the staffing function has emerged as a critical organization process.

  • Motivation:

Irrespective of their levels, organizational citizens need motivation. The staffing function, in addition to putting the right men on the right job, also comprises various motivational programmes. It is essential to launch financial and non-financial motivational schemes, including incentive plans. Therefore, all types of incentive plans become an integral part of staffing function to satisfy both intrinsic and extrinsic motivation.

  • Better Industrial Relations:

Stability, smooth running, and growth of a concern depend on the quality of interpersonal relations; especially on the relation between the management and unions. Members from the unions and asso­ciations form a collective bargaining forum. A strong relation between them helps taking decisions collectively. Furthermore, human relations can become even stronger through effective control, clear communication, and effective supervision and leadership.

  • Higher Productivity:

Productivity levels increase with the efficient utilization of resources in the best possible manner. Productivity is enhanced by minimizing wastage of time, money, efforts, and energies. Alternatively, cost reduction, value engineering, method study and work measurement, and other techniques help to enhance productivity. Human resource and its related activities/systems such as performance appraisal, / training and development, remuneration, further settle on productivity.

The importance of human resource planning are as follows:

  1. Human resource planning helps in finding out surplus and shortage of manpower in the organization. Hence it creates reservoir of talents;
  2. It leads to systematic employee development and prepares people for future;
  3. It is useful in finding out the deficiencies in existing manpower and providing corrective training;
  4. It is helpful in overall planning process of the organization;
  5. It facilitates the expansion or contraction of scale of operations;
  6. It helps in preparing appropriate human resource budget for each department or division, which helps in controlling manpower costs; and
  7. It plays a major role in succession planning for the key personnel in the organization.

When man is considered as a resource, it is understood, he has some potential characteristics, which can be used to organizational needs in the path of fulfilling the organizational, social and national goals. Manpower or Human resource can be considered as the total knowledge, skills, creative abilities, talents and aptitudes of an organization’s work force, as well as the values, attitudes and benefits of an individual involved.

Among the resources used for production i.e. materials, machines, methods, money and manpower, the most important M is manpower resource. When considered as a resource, it is valuable asset of the organization. Hence, planning for manpower is as important as planning for other resources.

Manpower planning or Human Resource Planning is synonymous. It is forecasting future manpower requirement to cater the needs of the organization. It involves of making an inventory of present manpower resources and assess the extent to which these resources are employed optimally. It consists of projecting future manpower requirements and developing manpower plans for the implementation of the projections.