HRM POLICIES AND PRINCIPLES

Ø  HRM POLICIES AND PRINCIPLES
HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT

• PERSONNEL POLICIES
• ARE BROAD GUIDELINES AS TO HOW THE OBJECTIVES OF A BUSINESS ARE TO BE ACHIEVED WHILE THE OBJECTIVES PROVIDE THE ENDS WHICH A MANAGER SHOULD TRY TO ACHIEVE ,POLICIES PROVIDE THE GUIDELINES WHICH HE SHOULD KEEP IN VIEW WHILE ACHIEVING THE OBJECTIVES.
• PERSONNEL POLICIES LAY DOWN THE DECISION MAKING CRITERIA IN LINE WITH THE OVER ALL PURPOSE OF THE ORGANIZATION IN THE AREA OF HUMAN RESOURCE MANAGEMENT.
• PERSONNEL POLICIES ARE THE GUIDELINES THAT AN ORGANIZATION OR COMPANY CREATE TO MANAGE ITS WORKERS.
• IT COVER THE PRINCIPLES AND RULES OF CONDUCT GOVERNING THE DEALING OF THE ORGANIZATION WITH ITS EMPLOYEES AND CREATE SUITABLE ENVIRONMENT FOR THE ADMINISTRATION OF PERSONNEL PROGRAMMES.
• 
  DEFINITION
• EDWIN B FLIPPO,” A POLICY IS A MAN MADE RULE OR PREDETERMINED COURSE OF ACTION THAT US ESTABLISHED TO GUIDE THE PERFORMANCE OF WORK TOWARDS THE ORGANIZATION. IT IS TYPE OF STANDING PLANS THAT SERVES TO THE GUIDE THE SUBORDINATES IN THE EXECUTION OF THEIR TASKS.
• KOONTZ AND O DONNEL,”POLICIES ARE GENERAL STATEMENTS OR UNDERSTANDING WHICH GUIDE OR CHANNEL THINKING IN DECISION MAKING OF SUBORDINATES.
• FEATURES

1. EXPRESSION OF INTENTIONS OF TOP MANAGEMENT
2. STATED IN BROAD TERMS
3. LONG LASTING
4. DEVELOPED WITH THE ACTIVE PARTICIPATION OF ALL EXECUTIVES
5. POLICY IN WRITING
6. LINKED WITH OBJECTIVES

• TYPES OF POLICIES

1. FUNCTIONAL POLICIES : FOR THE KEY AREAS OF THE ENTERPRISE LIKE PRODUCTION,PURCHASE,FINANCE,PERSONNEL ETC
2. INTERNAL POLICIES:-INCLUDE THOSE INITIATED BY THE MANAGERS AT VARIOUS LEVEL TO GUIDE THE SUBORDINATES. SUCH POLICIES ARE CLOSELY RELATED TO THE ORGANIZATIONAL OBJECTIVES.

a)       BASIC POLICY:-USED PRIMARILY BY TOP MANAGEMENT. APPLICABLE TO THE WHOLE ORGANIZATION

b)       GENERAL POLICY:-IT AFFECT MIDDLE LEVEL MANAGERS. MORE SPECIFIC

c)        DEPARTMENTAL POLICY:-HIGHLY SPECIFIC IN NATURE AND APPLICABLE AT THE LOWEST LEVEL.

3. EXTERNAL POLICIES:-TO MEET THE PRESSURES AND REQUEST OF OUTSIDE FORCES
4. APPEALED POLICIES: FORMULATED ON THE SUGGESTION AND COMPLAINTS RECEIVED FROM THE EMPLOYEES.
5. STATED OE EXPLICIT POLICIES:-WRITTEN FORM AND PART OF THE ENTERPRISE MANUAL
6. IMPLIED POLICIES:-NOT RECORDED IN WRITING BUT THEY ARE INFERRED FROM THE BEHAVIOR OF THE MANAGERS.

• WHY??????

1. GUIDE FOR REPETITIVE ACTIONS IN MAJOR AREA OF BUSINESS
2. STATEMENT OF COMMONLY ACCEPTED CRITERIA OF DECISION MAKING
3. GUIDELINES ARE PROVIDED TO LOWER LEVEL OF MANAGEMENT
4. ENSURING OF PROMPTNESS OF ACTIONS

• BENEFITS

1. GUIDELINES ARE PROVIDED TO LOWER LEVEL OF MANAGEMENT
2. DEALING WITH CONFIDENCE
3. QUICK ACTION
4. CONSISTENCY IN DECISION MAKING
5. SECURE COORDINATION
6. SAVE TIME AND EFFORTS

• LIMITATION

1. BRING RIGIDITY IN THE ORGANIZATION
2. NOT SUITABLE FOR NON RECURRING PROBLEMS
3. NO SUBSTITUTE FOR HUMAN JUDGEMENT
4. POLICY MAY BECOME OUTDATED WITH THE PASSAGE OF TIME

• FORMULATION OF PERSONNEL POLICIES
• IN FORMULATING PERSONNEL POLICIES:-

1. SPECIFY CLEARLY THE AREA NEEDING POLICIES
2. NEEDS IN VARIOUS AREAS OF PERSONNEL MANAGEMENT SUCH AS RECRUITMENT,SELECTION,TRAINING ETC
3. A COMMITTEE MAY SET UP

• STEPS FOR FORMULATION OF POLICIES

1)       PRELIMINARY INVESTIGATION:-

a)       LABOUR LEGISLATION

b)       SOCIAL VALUES AND CUSTOMS

c)        EMPLOYEES’S ASPIRATIONS

2)       ENVIRONMENT SCANNING

3)       IDENTIFICATION OF POLICY AREA

4)       ANALYSIS OF ALTERNATIVE POLICIES

5)       PARTICIPATION OF LOWER LEVELS

6)       APPROVAL OF TOP MANAGEMENT

7)       IMPLEMENTATION OF POLICY

8)       POLICY APPRAISAL

• FEATURE OF SOUND POLICY

1)       CLEAR

2)       CONSISTENT WITH PUBLIC POLICY

3)       UNIFORMITY

4)       HIGH LEVEL OF ACCEPTABILITY

5)       SOUND BASE

6)       FREQUENTLY REVIEWED AND EVALUATION

• POLICY IN VARIOUS PERSONNEL AREAS
• EMPLOYMENT POLICY:-

1)       RECRUITMENT POLICY

2)       SELECTION POLICY

3)       PLACEMENT AND ORIENTATION POLICY

• TRAINING AND DEVELOPMENT:-

1)       BASIS OF TRAINING AND IDENTIFICATION OF NEED ASSESSMENT

2)       TYPES OF TRAINING

3)       PROGRAMMES OF EXECUTIVE DEVELOPMENT

• TRANSFER AND PROMOTION POLICIES:-

1)       PROMOTION POLICY

2)       RATIONAL AND PERIODICITY OF TRANSFER

• COMPENSATION POLICY:-

1)       MINIMUM WAGES AND SALARIES

2)       INCENTIVE PLANS

3)       PROFIT SHARING

4)       NON MONETARY REWARDS

• INTEGRATION AND HUMAN RELATIONS POLICIES

1)       HANDLING OF GRIEVANCES

2)       RECOGNITION OF LABOUR UNIONS

3)       WORKER’S PARTICIPATION IN MGMT

4)       WORKING CONDITIONS AND WELFARE POLICIES:

5)       SAFETY PROGRAMMES

6)       TYPES OF WELFARE SERVICES