NOTES
Self-Instructional
Material 29
Human Resource Policy
organization’s intentions in recruitment, selection, promotion, development,
compensation, etc. HR policies serve as a road map for managers.
Simply issuing a written statement of HR policy does not automatically make
it policy. For the policy to be issued is one phase; when it is accepted, understood
and used as a guide to decisions in actions, that is another phase. HR policies must
be known and understood before they become guides to action. HR policies should
receive a broad distribution, so that anyone who wishes may review the policy
and the policy may become the positive reflection of the values of employees and
management. Thus, HR policies refer to principles and rules of conduct, which
govern the employees in the attainment of the organization objectives.
HR policies:
(i) Provide determined course of rules or actions
(ii) Provide a positive declaration and a command to an organization
(iii) Suggest the values and viewpoints, which dominate the organization’s
actions
(iv) Provide the standard or ground for the decision
(v) Guide the performance of objectives
4.2.2 Need for HR Policy
A policy is a formal statement on corporate thinking, which serves as a guideline
for action. It is meant to establish consistency in the application of the policies over
a period of time so that each one in the organization gets a fair deal. HR policy
needs to be specifically created because of the following reasons:
1. The management is required to examine its basic convictions as well as give
full consideration to practices in other organizations.
2. Established policies ensure consistent treatment of all personnel throughout
an organization. Favouritism and discrimination are thereby minimised.
3. The tenure of any manager is finite and limited but the organization continues
and along with it continues the policy; and this continuity of policy promotes
stability in an organization.
4. Policies serve as standards or measuring yards for evaluating performance.
The actual results can be compared with the policies to determine how well
the members of an organization have lived up to their professed intentions.
5. Policies are control guides for delegated decision-making. They seek to
ensure consistency and uniformity in decisions on problems that occur
frequently.
4.2.3 Factors Influencing HR policy
The following factors will influence the HR policy of an organization:
1. Laws of the Country:The various laws and legislations pertaining to labour
have to be taken into consideration. Policies should be in conformity with
