Ibllcis

descrption revealn tlhe followng rh

ThelorcOMg tetntea of hnn rapteo
resoWec polleies
obfccttvcs of|the ognisntlon.
Human resource polleieN ure general lulemet of bt tal
Being uides lectsto1-ukg, they lways preNlelertndug
nteynn lrn
diseretlon.
rcsourCC polleies
rellect the recogntscd intentiotns of top
(ii)
Hu:
withr r d to (hc lhunan tgenent
rcsoIrces ol 1lhe orginisat ion. They ronit:tn the
principles of condut wh:ch nre to govern the otanlsatlon's deallngs with
ciployecs,
(i) Human rcsourcc polleies arc slianling plans. They can be usdain and
iagain as standing answers to problcIs of a rccurring nature. They are long
lasting.
(w) Responsibilityfor formulating hunan resourcc pollcies Ites with the human
rcsource department and thc top management. Human resource polic ses
re formulated by the human resource departmnent in consultation with
he line nanagers. But the policies so formulated require approval of top
management.

4.2 Need and Importance of Human Resource Policies

od for human resource policies arises basically from the fact that in order to
n the human resource and overall objectives of the organisation, a corporate
Cind is required which will guide decision-making at operating level. The
hous cooperation of employees can be achieved through a just and fair
Ptment to all. Human resource policies provide the basis for uniformity and
onsistency. Sound human resource policies set the tone for proper administration
thuman resourCe programmeS SO as to achieve the objectives of the organisation.
Sound human resource policies provide the following benefits:
Clear Thinking. The actual process of writing down a human resource policy
helps to clarify management thinking. The management is required to examine its
asic convictions and gve full consideration to practices in other organisations. The
Cop executives become aware of gaps, contradictions and vagueness in existing
policies.
(ii) Uniformity and Consistency of Administration. Well-established policies
ensure uniform and consistent treatment of all employees throughout the organisation.
human
Buch policies help to minimise discrimination and favouritism. Sound
esource policies are, therefore, an essential base for sound human resource
ractices. Policies provide the base for management by principle as contrasted with
management by expediency.
(t) Continuity and Stability. Written policies are a means ofThe transmitting the
company's heritage from one generation of executives to another. accumulated
Visdom in a company is lost when its top management team retires, dles or resigns.
Fut if the wisdom is retained in the form of written policies, succeeding generations
 4.4 Human Resource Mana9Ee
predccCssors, Sie
of managrrs rn gutn from the cxpcrieucc of their
PiCCs prootes stalbility in he organlNntlon.
(0) Scnse of Security. Writlen
humun rcsOurcc pollcics
lecisioIs On huInarn rCsOurcC mattcrs. provide
Pollcics set advankve
Employcepas l ern
Infornatton and prcdctable covcrcd by lhc pollcics,
Wnat tlon to cxpect in ctrCumstancCs confidentv,
of behaviour md permlt cmployccs l0 work morc
principle replaccs manaLemcnt by cxpcdicncy. Arbltrary actions
a rcsult, cmployccs fecl a sense of sccurily.
(D) Dclegation of Authority. Human rcsource poltcics are guldes
on problens that rccur frcqucntly. They hclp a manager to
Manmiagnimemsendt.
are

to
t
A

delcgatc
Subordinates are morc willlng to acccpt responsibility becausc pollcies decsi
authmy.m
is cxpcctcd of tlhem, Thcy can quote a writicn policy to justify their
passing on both sidcs ís miniised. Thc superior is freed from repetitive
cOnsuming decisions and can give more time to key matters.
1ndiactcioandatn.e whnBuk
(vi) Orientation and Training. Written human resource policies
tim
as guides for orientation and training of new employees. can be ud
(vii) Teamwork and Loyalty. A well-prepared set of human
enables employees to see the overall picture and how their actions resourCe
relatepolices
to
organisation's goals. Participation of employees in policy formulation the
mutual understanding throughout the organisation. As principles of
justice. policies help to build up employee morale and standards
loyalty.
fair prploamoty andes
(viii) Control. Human resource policies serve as or
evaluating effectiveness of human resource management. yardsticks
Policies
for
management by exception. facilitate
(ix) Prompt Decision-mnaking. Carefully defined human resource policies ex
as guide for making-decisions on routine and repetitive issues. They prevent
wastage of time and energy involved in repeated analysis for solving problems of
similar nature.
Formulation of policies, however, involves time and cost. Frequent revision
policies is necessary to keep them up-to-date. Detailed and comprehensive policies
may curb creative thinking and lead to rigidity in administration.
4.3 Types of Human Resource Policies
Human resource policies may be classified in several ways. On the basis of their
source, policies may be classified into originated, appealed and imposed policies.
On the basis of their scope, polices can be general or specific. According to ther
form, policies may be written or implied.
(i) Originated Policies. These policies are established formally and deliberately
by top management. Senior executives initiate such policies to guide their subordinates
(ii) Appealed Policies. These policies are formulated on requests of subord
nates who want to know how to handle some situations. The need for such a policy
arises because the particular case in not covered by the earlier policies.
(iit) imposed Policies. An organisation accepts these policies due to pressu
of external agencies like Government, trade association, trade union, etc. For exaTIp
um.n Resource Pollcies
o
boly below he nle of 45
the Relories Aet.
Gcncral fourtecn years wll be
(iv) Policies. Thwse employed Is adopted
"ular. 13:ather hey
repreNCnIpolieies lo
R
. n e n t . or lhe banlc not rrlate to any Nperific issue tn
levels exiIpl', cncouTlng worketnphilo)souhy
is a geeral poliev. to
nnd pr lorities ol o
all Spcciflc
(v) Policics.Tlhese
rtteipate in deciston-making
wmpcusialion, collective barlnin,polices
ptlern l:aid down lby Cie. AIl relate
to spec ific
1s4uesconform
I1ke staffing,
rod
,d the general spectfie poll les must to the
ittenor Implicit
Policics. policcs.
l'lhese polietes are ulerred from
mial4S. or
exmjle. in tlie abscncc of the behaviour
(hc. Way auyt1lng
n cnlerprise can be n
infrrcd frOm writitig, prormot ieon pollcy of
Such policics tend (o pr
morc flexible thanootio118 have been made.
be
writtcn policics.
Scope or Coveragc of
matter of human
lluman Rcsourcc Policics
he subjcct rcsourcc pollcics is as wide as the
csource management. In most sCope of human
unctions of human resource companics, policlcs are cstablished regarding various
managcment which are as
1 Employment. All
policies concerning recrultment,follows:
temployees are inciuded in this function. Employmentselection, policies
and separation
lear guidelines on the following points: should provide
(a) Minimum hiring qualifications.
(b) Preferred sources of recruitment.
(c Reservation of seats for scheduled castes,
persons and ex-servicemen. scheduled tribes, handicapped
(d) Employraent of local people and relations of existing staff.
(e) Reliance on various selection devicas such as
university
interviews, reference checks, physical examination, etc. degrees, tests,
In Basis (length of service or efficiÃncy)to be followed in discharging an employee.
(g) Probation period.
(h) Layoff and retiring,
2. Training and Development
(a) Attitude towards training Whether it is regarded as a device to overcome
specific problems or as a continuing relationship between superior and
subordinate.
(b) Objectives of training,
(c) Opportunities for career development.
(d) Basis of training,
(e) Methods of trainingOn the job or Off the job.
WProgrammes of executive development.
(g) Orientation of new employees.
3. Transfers and Promotions
(a) Rationale of transfer.
 uman Reource
(b)
Irolety of transler. Manag men
TOmotn fronn whtn or outalde tlhe
otgamIAillOh.
(a) STniorily rrquurcd lor promoflon.
( ) Rclutive wrinhtau:c to sculorlty and mcrlt in
(n Sentorty rigglhta, Promoon.
(z)
Channels of
4. Compensation promotion.
(a) Job
cvaluntion
(b) Mininum wagcssystcm.
nd salaric9.
(c) Method of
wage
(d) Profit shariny andpaymenl.
(e) Non-monctary incentive plans.
rewards.
W Exccutive stock
(g) option plan.
Procedure for gctting pay.
) whether to pay prcvailing or more than prcvailing
5. Working Conditions salary scales.
(a) Working hours.
(b) Number and duration of rest
(c) Overtime work. intervals.
(d) Shiftwork.
(e) Safety rules and
) Leave rules. regulations.
6. Employee Services and
(a) Types of
Welfare
services-housing, transportation, medical facilities, education of
children, group insurance, credit
at discount, company stores, facilities, purchase of company's products
(b) social security, etc.
Financing of
(c) Incentives to employee services.
motivate.
7. Industrial Relations
(a) Handling of
(b) Recognition grievances.
of trade union.
(c) Suggestions schemnes.
(d) Discipline and conduct rules.
(e) Workers' participation in
Emnployees' news sheet andmanagement.
house journals.
4.5 Formulation of Human
Resource Policies
The process of policy formulation involves
the
1. Identifying the Need. First of all, the following steps:
are identified. policies are required in various areas requiring human resource policy
areas of
such as hiring, training, compensation, industrial human resource management
policy or revision of an existing policy may be voicedrelations, etc. Need for a new
by the company's staff or by a
trade union.
HutlltllResoure lees 47

Gathering Information. Oce hr necd or polley hus beeo ar rptred, the

(olletneceNSTy lwt lo s fonmbaton. A comtlee or a njrcal1st
2.
t:ask ol (olleeng the requlhedl ulomon fron Insle and
oryanisilion. lhe h u nreNOurcc lepartnent whould ntudy the
thedocuncnts,iand1ast practIeCs, NUrvey previatlhng pr ctes nthe inlustry.
knnowledycand CNDerience glucd fronn binding humin reource protblems
roplcnsdeand. outside the coupanyniy be intervrwed. I ts necessary to monitor
the
thoroughly the internal nd exlernal environnnent of the rm. Sprcal
prcdict
should be pid
to0 atlitudes anl phtlosophy of top mimagement, orlal
md of
atleution
and valucs, aspirations employees, l:abour legisl:ation, ctc. Widesprcad
CUstonns discussiOns l (bis slage arc helpful in developng sound hunan
consullialionand
rcsourccpolicies.
the basis of data collcctcd, altcrnatives
Examining Policy Alternatives. On
3. of their contributions to organisational objectives. It is
appraiscd in terms
seCure active participation of those who are to use and live with the
are
ncccSsaryto then put in writing in approprlate form.
The ch0scn policy is
policies. Approval. The human resource department will send the policy draft
Getting has the final
4.
time to top management for its approval. To managementorganisation's
atthe
right
to decide whether
a policy adequately represents the
authority
objectives.
Policy. be communicated
The approval policy needs tomeetings
E Communicating the and other
the organisation. Policy manual, house journals, programme
throughout
be employed tor this purpose. In addition, an educational
hodsmay enunciated policy.
arranged to teach people how to apply the evaluated in
may be
Policy. From time to time the policy should be
E Eyaluating the it and of those who are affected by it.
thnose who use difficulty with a policy
terms of experience of be considered. Any serious
Pnvironmental changes should also reported to the top management. Such knowledge
should be reformulate
along with suggestions whether there is need to restate or
manageinent to decide
uill enable the
a policy:
the policy.
following questions may be asked to evaluate
The
policy statement?
(a) How clear is the policy is consistent with public policy?
(b) To what extent the reflect the company's philosophy?
(c) How well the policy is understood in the organisation?
(d) How well the
policy
has been interpreted and applied?
the policy
(e) How consistently effects and costs of the policy?
the
( What has been the policy to an ideal
policy?
(g) How much close is
Human Resource Policies
of Sound
4.6 Essentials resource policy are as follows:
human objectives
requirements ofa good human resource
1ne main contribute to
resource policy should
whole. It should be based on the
I. A human as a
the organisation most valuable asset of any organisation.
and objectives of
beings are the
phlosophy that human
 4.8 Iluman Resource Managrment

2. lt ahould be atatcd iu elcuf, cdetnite and cAally undcrstoocd terms so ,

wlhut t DropoNCA to nehievc I8 cvielent. Only a clcar jpollcy
3.
RCrve as a guiie to thunking and cdectalon-tnaking,
It
tatcmcnt an
should be in writing ns fur as pos9iblc. "This IsncccsHAry to
policy cnsurepreserve the
ngntnst loss, to prevent misuncderstanding and to
4.
of npplication.
Il should be rcasonably stablc and long l9ting, Changes in a
unlformity
be made only when csscntial and at alrly largc intervals.
policy should
5. It slhould bc flexiblc so as to takc carc of individual diIfercnccs and
be rcvicwcd and reviscd
pcriodically.
situational
rcalitics. Thercforc, a policy should bc statcd in broad terms and it
should
6. A policy should give due regard tointerests of all the parties-the
?.
employees and the general publlc. employe,
It should be consistent with the overall phllosophy and objectives of he
organisation as well as with labour laws and public policy.
8. It should be formulated with active participation of executives, supervisore
and workers at all levels and trade unions.
9. It should move from the authoritarian leadership style to
participative style
In other words, it should encourage self-development at all levels.
10. It should be based on careful analysis of facts as well as sound
11. It should be just, fair and eguitable to internal as well as
judgement
external groups. It
should be based on consistency in treatment to all employees without any
favouritism or discrimination. Human resource management shOuld not be
personal. However, a good human resource policy should recognise
individual differences and respect human dignity.
12. It should be reasonable and capable of being executed. It
should also
recognise individual differences among people.
0000000000000000
SUMNAR
1. Human resource policies refer to policies concerning human
resource matters.
2. Human resource policies are general and long lasting, reflecting the
intentions of the organisation. objectives and
3. Clear thinking, uniformity, continuity, security,
delegation, orientation and training
teamwork, and control are the main advantages of human resource policies.
4. Originated, appealed, imposed, general, specific, written and imnplied are the main types
of human resource policies.
5. Human resource policies cover all the functions of
human resource management.
6. Policy formulation process consists of need classification, data
collection, evaluation of
alternatives, getting approval, communicating and review stages.
7. A gOod human resource policy should be clear,
objective-oriented, long lasting, flexible.
Written, consistent, just and fair and reasonable.
 Nature and Scope oft Human Re wus Resource
Human Nrsoure
Human
ellare Resourct
SchemesHuman
Operate
Punctions Socal
Security

Mantenance Records
Research
Health Safety Autit

Satisfaction
Job ofParticipation
Motivation BargainingManagementEmployees Discipline
Redressal
GrievanceCollective
Integation Confliet
Managemnent.
Management
Salary
and
Wage
Eviuation Administration
Job
Compensation and
Bonus
Incentives
Resource
Resource Payroll
Human
Human Development
and
Performance
Planning
Career
Development Functions
of
of Appraisal
Development Training
Executive
Functions

1.2.
Fig.
Human
Resource
Separation
TransferPromotion
Job
Analysis Recruitment
Procureinent
Planning Selection Induction
Placemnent

Managerial
Functions
Organising Controlling
Planning Directing