A QUICK INFORMATION GUIDE

HUMAN RESOURCE
POLICIES
A deeper look into the meaning and importance of
HR Policies in the Corporate World

Avnika Pandita
20BC565
Section K
Agenda
KEY TOPICS DISCUSSED
IN THIS PRESENTATION

The Meaning of HR Policies

Features of Sound HR Policies

Need of HR Policies

Scope of HR Policies

Benefits of HR Policies

Limitations of HR Policies

Formulating HR Policies

Some Essential HR Policies

The Meaning of HR
Policies

Human resource policies are the formal rules and

guidelines that businesses put in place to hire, train,
assess, and reward the members of their workforce.

These policies, when disseminated in an easily used

form, can serve to anticipate many misunderstandings
between employees and employers about their rights
and obligations in the organisation.
 Features of Sound
HR Policies
Relationship to Planned Formulation
Organisational and Balance
Objectices
Those functions or HR Policies must be made by
activities which do not a careful and planned
contribute to the formulation process since they
achievement of objectives are relatively permanent
should be eliminated. features.
There must be a balance
between stability and
flexibility. Periodic reviews
should also be done.
Clarity and Consistency
Not leave any scope for
ambiguity and uniform policies
to diffuse the problem of
misinterpretation.
The policy should provide
consistency in the operation of
all organizational functions.
Written and Properly
Communicated
A clealy-specified written
policy works better than the
one which has to be
interpreted by te
organisation's members.
Also, it is easier to
communicate which is
necessary to serve the
purpose for which they were
formulated.
 Types of HR Policies
On the basis of Source:

Originated Implicit Imposed Appealed

Policies Policies Policies Policies
Appealed policies arise
These are the policies These are the policies Policies are sometimes
because the particular
usually established by which are not formally imposed on the
case is not covered by
the senior managers expressed; they are business by external
the earlier policies. In
in order to guide inferred from the agencies such as
order to handle some
their subordinates. behavior of managers. government, trade
situations,
They are also known as associations and
subordinates may
Implied Policies. trade unions.
appeal for their
formulation.
On the basis of Description:
General Policies
These policies do not
relate to any specific issue
in particular and are
therefore called general
policies. General policies
are formulated by an
organization's leadership
team.
Specific Policies
These policies are related
to specific issues like
staffing, compensation,
collective bargaining etc.
Specific policies must
confirm to the pattern
laid down by the general
policies
 Need of HR Policies
To Delegate Authority
Achieve the Objectives of the
Organization
HR policies help executives at
Policies guide the employees to various levels of decision centres
take action for achieving the to act with confidence without

To Bring Uniformity in Decisions

objectives of the organization. consulting the superiors every
Hence, they must be known and time. HR policies give a
HR policies furnish the general
well understood by everyone in manager liberty to choose the
standard on which decisions are
order to concentrate efforts on alternatives provided and to
taken. Various line authorities
the objectives. decide upon the action.
take decisions in an
organization keeping in view the
HR policies. Thus, uniformity of
action is maintained in similar
cases.

To Achieve Better Control
HR policies specify relation­ships
among organization,
management and workers.
Therefore, each group works for
the achievement of the larger
objectives of the organization
as standards
without any policy conflicts.
of a group may be evaluated by
To Create Confidence among
Employees
HR policies provide the workers
a security against exploitation
To Evaluate Efficiency
and create confidence in
employees who may know where
HR policies serve they stand in the organization.
in execution of work. Efficiency
its performance in the light of
the policy.
 Scope of HR Policies
1 2 3 4
Employment Training and Transfers and Compensation
Development Promotions
Policies concerning with Attitude towards Job Evaluation System
Rationale of Transfer
recruitment, selection Training Minimum Wages and
and separation of Periodicity of Transfer
Executive Development Salaries
employees. Promotion in the
Programme Method of Wage


Organisation
Orientation of New Payment
These policies should Seniority required for
Employees Profit Sharing and
provide mandatory promotion
Objectives of Training incentive Plans
guidelines for: Channels of Promotion
Opportunities for Career Non-Monetary Rewards
Qualifications Development Procedure for Getting
Selective Devices Methods of Training Payment
Basis Condition of Payment
Sources
Reservation
Probation
Layoff
 Scope of HR Policies
5 6 7
Working Conditions Employee Service and Industrial Relations
Welfare
Handling of Grievances
Working Hours Types of Facilities Recognition of Trade
Shift Work Housing Union
No. of Breaks and Intervals Transportation
Suggestion Schemes
Overtime Work Medical Facilities
Discipline and Conduct
Leave Rules Education of Ward
Rules
Safety Rules and regulations Group Insurance
Credit Facilities
Workers' participation
Social Security in Management
Employee Discount

Finance
Motivation
 Facilitates Decision Making

Benefits It gives them alternatives to choose from and the confidence to act
without needing to consult the supervisors everytime.

of HR Policies 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.
HOW HR POLICIES
HELP ORGANISATIONS Consistency of Action
Effective policies ensure uniform and consistent treatment of all
employees throughout the organisation.

Continuity and Stability

Written policies are a means of transmitting the company’s heritage

from one generation of executives to another.

Better Control
Policy provides a rational and continuous system of achieving results
which facilitates better control.

Confidence in Employees
Policy makes the employees aware of where they stand in relation to
the organisation. This will create confidence in them.
Policies are Repeatedly Used Plans
Limitations of HR
They bring about rigidity in operations as they leave no room
for initiative by the subordinates.
Policies
WHEN HR POLICIES
Policies may Not Cover All the Problems
BECOME ROADBLOCKS FOR
Sometimes, unforeseen situations arise which are not covered by ORGANISATIONS
the existing policies.

Policies are Not a Substitute for Human

Judgement
Policies only delimit the areas within which decisions are to be
made.

Policies may Not be Ever-Lasting

They lose their utility with the changes in the internal and
external environment of the business.
Formulating HR Policies
THE FOLLOWING STEPS SHOULD BE TAKEN WHEN
FORMULATING OR REVISITING HR POLICIES

Gain understanding of the corporate culture and its shared values

Analyze existing policies: both written and unwritten
Analyze external influences like legislation, regulations, authorities etc.
as HR policies are subject to their influence
Assess any areas where new policies are needed or existing policies
are inadequate
Check with managers on their views about HR policies and where they
think could be improved.
Seek the view of employees about the HR policies, especially to the
extent for which they are inherently fair.
Seek the view of the union's representatives.
Consult, discuss and agree on policies with management and union
representatives.
 Updated Confidentiality
Policy

At Will Employment
Drug and Alcohol Policy
Policy

Anti-Harassment and
Non-Discrimination Policy Some Safety and Health Policy

Essential
Sexual Harassment HR Policies Remote Workers Policy
Policy

Employment Meal and Break

Classifications Policy Periods Policy

Leave and Time-Off

Benefits Policy
Bibliography
www.yourarticlelibrary.com

www.wikipedia.org

www.slideshare.net
THANK YOU !