by (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.
Effective HR Policies
For making the HR policies more effective, it is necessary that they are established in accordance with good standards. They should be reviewed from time to time. There should be a set of standards to check the effectiveness of a particular HR policy.
Michael J. Jucius has suggested some guidelines to check whether a policy will be effective or not.
According to him, the checks or guidelines may be whether the policy is based upon a careful analysis of the objectives and ideals of the company; whether it is definite, unambiguous, complete and accurately stated; whether it is reasonably stable and not subject to change because of temporary changes in existing conditions; whether it has sufficient flexibility to handle normal variations in changed conditions; whether it is related to policies of other sections of the company so that proper balance of complementary policies is established; and whether it is known and understood by all who must work with it or are affected by it. In case the answers are in affirmative, it means the policy would be good and vice versa.
HR policies must match employee expectations. Policies aiming to cultivate inclusion must match up with the daily reality of employees.
Through its new research report, ‘The Day-to-day Experiences of Workplace Inclusion and Exclusion’, Catalyst, a USA-based non-profit organisation that promotes inclusive workplaces for women, discovered three critical lessons about employee experiences:
(a) inclusion and exclusion happen at the same time for many employees
(b) inclusion is really difficult to grasp and define.
(c) exclusion is powerful and easy to recall.
Through its cross-regional study, the report captures the voices of employees across 42 organisations in 5 countries Canada, China, India, Mexico and the USA to better understand their everyday interaction. The three critical lessons Catalyst discovered often create a dilemma for many leaders because they must both create inclusive cultures while rooting out exclusionary behaviours.
HR policies should also be periodically reviewed. This will help determining which HR policy needs to be dropped or changed or whether there is a necessity of having an additional policy.
For this, Michael J. Jucius has suggested a variety of appraisal methods such as all policies should be subject to some, if not extended, evaluation annually; some policies should be reviewed at specific times such as when collective bargaining agreements must be renegotiated; policies of each department may be reviewed when budgetary requests are made; spot or overall appraisal of policies may be made by outside consultants (this could be done after trouble develops, but preferably, it should be a constructive preventive measure); policies should be subject to review when the desirability is indicated by employee suggestions, employee grievances or unsatisfactory reports on employee performance or behaviour; and policies should be subjected to review whenever a company plans a major expansion or contraction, a change to a new location or a change of methods.
Thus, we find that Michael J. Jucius has very aptly suggested certain tests to check if the policy will prove good or not. Similarly, a variety of appraisal methods suggested by him for effecting periodical review of policies and introducing changes wherever necessary have got immense practical utility.
Advantages
The following advantages are achieved by setting up HR policies:
- They help managers at various levels of decision making to make decisions without consulting their superiors. Subordinates are more willing to accept responsibility because policies indicate what is expected of them and they can quote a written policy to justify their actions.
- They ensure long term welfare of employees and makes for a good employer-employee relationship as favoritism and discrimination are reduced. Well-established policies ensure uniform and consistent treatment of all employees throughout the organization.
- They lay down the guidelines pursued in the organization and thereby minimizes the personal bias of managers.
- They ensure prompt action for taking decisions because the policies serve as standards to be followed. They prevent the wastage of time and energy involved in repeated analyses for solving problems of a similar nature.
- They establish consistency in the application of the policies over a period of time so that each one in the organization gets a fair and just treatment. Employees know what action to expect in circumstances covered by the policies. Policies set patterns of behavior and permit employees to work more confidently.
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