FORMULATION AND

ESSENTIALS OF SOUND
POLICIES
INTRODUCTION
 A policy is a guide for making decisions. If a decision
provides help for decisions in other situations, it is said to
be a policy decision, because it sets an example and
provides some guide for decision making in future.

 Personnel policies guide action. They offer the general

standards based on which decisions are reached. The HR
policies serve as a road map for managers on various issues
such as recruitment, selection (on merits), promotion
(performance parameter shall be the key) and
compensation.
FEATURES OF AN EFFECTIVE PERSONNEL
POLICY

 It is related to personnel objectives of the company and is explained to all.

 It is a gist of previous experience in form of guidelines that help managers
in decision making process. It serves as a standing plan which can be used
repeatedly for solving problems of recurring nature.
 It prescribes limits and yardsticks for future actions.
 It is an important management tool that helps management to transfer
some decision making to lower levels of organization.
 It is reasonable and capable of being accomplished.
 It helps in achieving the co ordination of organizational members and
provides more accurate prediction about the actions and decisions of
others.
 It should be just fair and equitable to internal and external groups.
FORMULATION OF PERSONNEL POLICIES

 FACT FINDING
 COLLECTING DATA
 SPECIFYING ALTERNATIVES
 APPROVAL BY TOP MANAGEMENT
ESSSENTIALS OF PERSONNEL POLICIES

 DELEGATION
 UNIFORMITY
 BETTER CONTROL
 STANDARDS OF EFFICIENCY
 CONFIDENCE
 SPEEDY DECISIONS
 COORDINATING DEVICES