HRM POLICIES AND

PROCEDURES
 DEFINITION
“A plan of actions that act as a reference point for
managers in their dealing with employees”.
Eg: employees have to come to office at 9 a.m and in
uniform
• They have to work in shifts
• Have to undertake training
• Canteen food at 50% concession
• Transportation benefits
 WHY ADOPT POLICIES
For the following benefits:
1. To ensure consistency in the organization-
favoritism and discrimination minimized.
2. Continuity of action is ensured though top mgt.
changes.
3. Serves as a std. of performance.
4. Builds employee motivation and loyalty.
5. Helps to resolve intra personal, inter personal
&inter group conflicts
 FEATURES OF HR POLICIES
• Must be stable.
• Consistent over years and dept.’s and same
category of employees.
• Should not be rigid
• Must reflect the goals and values of the
organisation.
• must be integral part of the overall corporate
philosophy of the company.
• Related to objectives
 Cont.
• Easy to understand.
• Precise
• Based on facts- not on personal feelings
• Written format
• Clarity
• Communicated to all
• Uniformity
• Participation of subordinates
• Acceptability
• Sound policy- resolves conflicts
 FORMULATING HR POLICIES

5 principal sources have to be considered:

• Past practices of the organization.
• Prevailing practices in rival companies
• Attitudes and philosophy of top mgt.
• Attitudes and philosophy of middle and lower
level employees of the company.
• It should be formulated based on potentiality
of the employees.
 HRM PROCEDURES
• Policies are general instructions. Whereas
procedures are specific applications.
• It is a well thought out course of action.
• Prescribes the manner of work.
• Action guidelines.
• Derived from policies.
• Policies defines broad areas whereas
procedures shows the sequence of activities
within the area.
 FUNCTIONS OF HR DEPARTMENT

• Sets general and specific mgt. policies for

human resource.
• Selecting the right man for right job- requires
proper forecasting and budgeting.
• Vocational guidance and placement of
employees.
• Training and development of employees-
inside and outside the concern.
 Cont.

• Appraisal of employees potential and

performance- based on it promotion, transfer,
demotion, layoff.
• Job analysis, evaluation and grading.
• Establish wage rates, review and
readjustment…
• Administration of various welfare
programmes.
 Cont.
• Create good environment for employees to
work.
• Brings co-operation among employer and
employee.
• Maintain better industrial relations.
• Maintain contact with trade union.
• Reviewing and auditing manpower
requirements.
• Carry out research on employee behaviour.