Personnel Policies

Personnel Policies: Objectives, Principles, Sources,

and Other Information!
According to Dale Yoder, ‘policy is a pre-determined selected course— established as a

guide towards accepted goals and objectives.

A personnel policy should have two types of objectives viz., general objectives, and specific

objectives. General objectives express top management’s philosophy of human resources

whereas specific objectives refer to specific activities like staffing, training, wages, and,

motivation.

Objectives:
1. Optimum Use of Human Resources:
Every organization tries to make use of the available human resources to the best of their

capabilities. Right men should be selected for the right jobs. With the help of personnel

policies, jobs are defined and the responsibilities of the personnel are specified so that there

are no square pegs in the round holes.

2. Training Of Everyone:
The other main object of personnel policies is to train and develop everyone so as to make

them competent for doing their job. Only a trained worker can do his job efficiently. The

personnel policies must encourage healthy and constructive competition among the

workers and also provide an opportunity for the development and growth of an individual.

3. Sound Industrial Relations:

Personnel policies aim at creating sound industrial relations and tend to establish conditions

for mutual confidence and understanding. Workers are encouraged to put forward

constructive suggestions and are given participation through joint management councils and

works committees. All this leads to industrial peace. Many operational problems are avoided

by having well-formulated policies.

4. Payment of Fair Wages:
Personnel policies must aim at ensuring the employees that they will be given fair wages for

the work done by them.

5. Security of Employment:
One of the objectives of personnel policies is to provide security of employment to the

workers. Such policies provide an efficient consultative service that aims at creating mutual

faith among those who work in the enterprise. All types of doubts relating to the loss of

employment are cleared from the minds of workers. Thus, social as well as economic

security is provided to workers.

6. Respecting Human Dignity:

Personnel policies ensure fair treatment to all irrespective of caste, color, and creed and aim

at respecting human dignity. Workers are offered good and healthy working conditions.

Principles of Personnel Policies:

According to Scot and others “carefully defined personnel policies serve

as a stabilizing influence to prevent the waste of energy in the following

programs, not in harmony with the company objectives”.

Due to the importance of personnel function in the management, it

becomes essential to formulated personnel policies.

These policies are formulated keeping in mind the

following principles:
1. Principle of Right Placement:
There is a common saying that there should be square pegs for the square holes and round

pegs for the round holes. Only those persons should be selected who are physically and

mentally fit for the job so that they can become our ‘asset’ in the future.
2. Principle of Development:
All workers should be given the opportunity to develop so that their monetary position as

well as their social status is enhanced. Workers tend to be more sincere and hardworking
when they are aware of the chances of promotion in the organization.

3. Principle of Participation:
This principle states that we should consider the organization a coordinated team. If

workers participate in the formulation of policies, a large number of problems that arise due

to misunderstanding can be avoided.

4. Principle of Mutual Interest:

The workers should feel that the interest in management is common with the

workers. This will provide motivation to the workers to put in hard work which will entitle

them to earn higher wages and non-monetary benefits.

5. Principle of Good Working Conditions:

Workers should be given better tools, good working
conditions, and adequate wages and there should be an
impartial appraisal of their work.

6. Principle of Flexibility:
A personnel policy must be such that it can be changed
with the change in circumstances. Technological changes
are taking place at a very fast speed in the industries and
for that reason a constant review of such policies is
necessary.

In a nutshell, personnel policies should contain the

principle of justice as well as equity and must be fair to all
employees.
Sources of Personnel Policies:
The following are the principal sources of Personnel
Policies:
1. Traditions and past experience.

2. Personnel Policies of similar concerns.

3. The philosophy of the Board of Directors.

4. Suggestions of employees.

5. Labour Legislation and policies of the Government.

6. Trade Union and collective bargaining.

7. Objectives of the organisation.

8. International conditions.

9. Business environment.

10. Day to day experience of dealing with personnel problems.

Contents of Personnel Policy:

The following matters are covered in the personnel
policies followed in India:
1. Recruitment or hiring of employees.

2. Manpower planning and development.

3. Training programs.
4. Absenteeism.

5. Hours of work.

6. Conditions of employment.

7. Overtime.

8. Lay-off, termination of services, and welfare.

9. Wage policy, motivation, and incentives.

10. Recognition of trade union, collective bargaining, and worker’s participation in

management.

11. Promotion, demotion, and transfer.

Personnel policies are formulated by the personnel manager but the top management is

ultimately responsible for giving sanction to such policies. Workers should be informed

about such policies either in group meetings or through the booklets.

Personnel Policies:
A personnel policy must cover all areas of manpower
management. Usually, personnel policies are framed
with regard to:
1. Recruitment and Selection (Employment) Policy:
(i)Minimum qualifications required in prospective employees

(ii)The sources from where labor supply will be available

(iii) Selection tests.

2. Promotion policy
3. Training policy. It covers
(i) Induction

(ii) Types of training.

(iii) Training of executives.

4. Wage policy. It includes:

(i) Minimum wages

(ii) Non-financial incentives

(iii) Incentive plans

(iv) Bonus, profit sharing, etc.

5. Demotion and termination policy

6. Working conditions and motivation policy
7. Welfare policy
8. Integration policy:
It covers:
(a) Processing of grievances

(b) Recognition of unions

(c) Worker’s participation in management.

In order to communicate the personnel policy, a brochure

may be published. In certain cases, a policy manual may
be distributed to managers, supervisors, and employees. If
any employee has any confusion, a discussion can follow
where all their questions should be answered
satisfactorily.

Introduction to Human Resource

Development
With the advent of technology, human resource management has undergone
significant expansion and development in recent years. Emerging technologies,
trends, paradigms, and, most importantly, the demand for perfection and aptness
in the business landscape have greatly influenced how Human Resources (HR)
functions.

But what do you understand by human resource development in modern

corporations? Today, advanced HR practices are essential to minimise challenges
and maximise productivity. It encompasses various practices and strategies to
enhance employee growth, organisational effectiveness, and overall success. In
this article, we will explore what an integrated HRD system is and how it helps
organisations achieve better business results.

What Is Human Resource Development

(HRD)?
Human Resource Development (HRD) is a comprehensive framework that focuses
on developing employees' capabilities to meet current and future organisational
needs. It includes training, performance management, career development, talent
management, and succession planning.

An integrated HRD system helps shape organisational commitment, competencies,

and culture, aiming to provide a competitive advantage. Modern enterprises highly
admire the integrated HRD mechanism from an organisational standpoint. It
specifically aims to motivate and develop employees' managerial, technical, and
behavioural proficiencies, values, and mindsets, enhancing their overall
performance and contribution to the organisation at the highest level.

What is the need for HRD?

Implementing HRD practices within an organisation offers several advantages. First
and foremost, it equips employees with the necessary skills and knowledge to
perform their roles effectively. This leads to improved productivity, job satisfaction,
and employee engagement. Additionally, HRD helps organisations attract and
retain top talent by offering opportunities for growth and development. It fosters a
learning culture and creates a supportive environment that encourages innovation
and creativity. Moreover, HRD contributes to succession planning, ensuring a
pipeline of skilled individuals ready to assume key organisational roles.

Benefits of Human Resource Development

There are several benefits of human resource development. Here are the top 5
benefits of HRD:

 Enhanced employee performance: HRD initiatives, such as training

and development programs, equip employees with new skills and
knowledge, enabling them to perform their roles more effectively.

 Improved employee satisfaction and engagement: When employees

feel valued and supported through HRD initiatives, they are more likely to be
satisfied with their jobs and be actively engaged in their work.

 Increased organisational effectiveness: HRD aligns individual goals with

organisational objectives, ensuring that employees are working towards
common goals and contributing to the organisation's overall success.

 Better talent retention: Offering opportunities for growth and

development through HRD initiatives help organisations retain their top
talent and reduce employee turnover.

 Facilitates succession planning: HRD identifies high-potential employees

and prepares them for future leadership roles, ensuring a smooth transition
and continuity within the organisation.

What are the Challenges of Human

Resource Development?
While HRD brings numerous benefits, organisations often face challenges in its
implementation. These challenges of HRD include:

 Budget constraints: Allocating sufficient resources for HRD

initiatives can be challenging, particularly for small and medium-
sized enterprises with limited budgets.

 Resistance to change: Implementing new HRD practices may face

resistance from employees who are reluctant to embrace change or fear
their job roles may be impacted.
  Measuring effectiveness: Evaluating the impact of HRD initiatives can be
challenging. Organisations need to establish effective metrics and
measurement systems to assess the success of HRD interventions.

 Keeping up with evolving trends: HRD professionals must stay updated

with the latest industry trends, technologies, and best practices to ensure
the effectiveness and relevance of their development programs.

HRD Functions
HRD encompasses various functions that contribute to employee development and
organisational success. These functions include:

 Training and Development: Providing employees with the necessary

knowledge and skills to excel in their roles through training
programs, workshops, and e-learning platforms.

 Performance Management: Establishing performance goals, conducting

performance appraisals, and providing feedback to enhance employee
performance.

 Career Development: Creating career growth and advancement

opportunities through mentoring, coaching, and succession planning.

 Talent Management: Identifying and nurturing top talent within the

organisation, focusing on their development, and ensuring a robust talent
pipeline.

 Organisational Development: Implementing strategies to enhance the

overall effectiveness of the organisation, such as change management,
culture-building, and employee engagement initiatives.

Reasons for Implementing an Integrated

HR System
The implementation of an Integrated HRD system, which aligns all HR processes
and practices, offers several advantages:

 Streamlined processes: An integrated system eliminates silos and

enables seamless information flow across HR functions, enhancing
efficiency and reducing administrative burdens.

 Data-driven decision-making: Integrated systems provide comprehensive

data and analytics, enabling HR professionals to make informed decisions
regarding recruitment, training, performance management, and talent
development.
 Improved employee experience: Integrated HR systems provide self-
service portals, empowering employees to access and manage their
personal information, leave requests, training modules, and performance
reviews.

 Enhanced compliance and accuracy: Integrated systems help ensure

compliance with employment laws, maintain accurate employee records,
and automate routine HR tasks, reducing the risk of errors and non-
compliance.