Friday, May 6, 2011

Personnel Policy

Policies are those plans which define the limits within svhich decisions regarding the achievement of the objectives of the organisations can be taken. A policy is a general guideline for decision making. It sets up boundaries around decisions, including those that can be made and shutting out that cannot. In so doing it channelises the thinking of the organisation members so that it is consistent with the organisational objectives. One company defines policies as "guides which chart the course of an organisation and governs its activities towards the achievement of the purposes for which it was set up, so policies are characterised as "rules of actions”

In the words of Geogte R. Terry. 'Policy is a verbal, written or implied overall guide, setting up boundaries that supply the general limits and direction in which managerial action will lake place."

In the words of Yoder, 'A policy is a predetermined selected course established as a guide towards accepted goals and objectives....... Policies define the strategy of management campaign. They establish the framework of guiding principles and facilitate delegation to lower level and permit individual managers to select appropriate tactics or programmes."

So policies are characterized as "rules of action" or guide to thinking and action. Policies deal with show to do" the work. they do not dictate terms to subordinates. They only provide a framework within which decision can be made by the management in different areas. Thus. we hear about personnel policy recruitment policy, price policy. advertisement policy etc.

Need for Personnel Polley

Policies are the basic rules established to govern functions so that they are perforrned in line with the desired objectives. Further policies speed up decision malting at lower levels because subordinates need not consult their superior frequenfly. In addition to these personnel policies ore also required due to the underrnentioned reasons

(i) Policies ensure uniformity election in respect of various matters at various organisational points this makes action more predictable.

(ii) Policies give a practical shape to the objectives by elaborating and directing the way in which the predetermined objectives are to be attained.

(iii) Policies make the consistent treatment of all the employees in the concern. So in order to reduce favouritism and discrimination policy fremulation becomes necessary,.

(iv) Through fair policies morale of the employees can be raised. This helps them to grow within the organisation.

(v) So personnel policies are the life blood for the successful functioning of Human Resourcess Management.


Objectives of Personnel Policies

According to Morris W.C., "The policy of an organisation is o clear cut statement of its aims and objectives, setting out what is to be achieved. This restricts the subordinates rom performing functions that are supposed to be undesirable from management point of view. Further personnel policy binds the subordinates to a decision made automatically under a policy. Generally personnel policies are Formulated in order to achieve the following objectives

(1) Policies are predetermined and therefore, whenever there is a problem in future, the pre- determined policies help the subordinates to make quick decisions, which also save time and labour.

(2) To maintain consistency In decision making of the personnel. As policies determine the limits of taking decisions in respect of each officer and make them conscious of the fact that they should not take decisions contrary to the policies laid down.

(3) To ensure competent manpower for the organisation by making appropriate policies for all levels of management.

(4) To create of sense of participation and belongingness among employees by effectively delegating the human relation aspects of personnel function to the line mangers.

(5) To create, coordination. co-operation and understanding in the working of all the departments. This facilitates the manager to take similar decisions in similer situations on the basis of policies.

(6) To create favourable conditions of employment and to provide security of employment to workers.

(7) To ensure the protection of interests of the employees on the job.

(8) To motivate the workers by recognising and rewarding their achievements. This is done further by providing them monetary and non-monetary incentives.

(9) To provide a broad framework within which growth may develop on an orderly basis

So M general aims of the personnel policies are to ensure fair treatment to all workers, recognition of achievement of workers. providing reasonable economic and social security to the workem, to promote the workers though training etc. So the personnel policies attempt to increase the satisfaction and motivation among workers. Hence the personnel policy must be implemented by all levels of management. The manager's function includes the obligation to always live up to the principles of the personnel policy and to secure compliance therewith.

Types of Personnel Policy

Generally policies can be categorised into two parts major policies and minor policies. In major policy attempt is made to cover over-all objectives, procedure and control which affects the company as a whole. These are formulated by the Board of directors. These policies provide/establish a framework within which the remaining policies are made to achieve the objectives. Whereas minor policies are made for specific function or part of the organisation. Such policies are made within the limits prescribed by major policies.

Further the subject matter of the policies varies from industry to industry end with its management structure. economic and social conditions of a company etc. According to the different requirements policies are divided into two groups

(A) Organisational Grouping of Policies

(B) Functions Grouping of Policies

(A) Organisational Grouping of Policies

(i) General Company Policy : This applies to the entire organisation and is formulated by top level management. For example, it the top level manager decides. as a matter of policy. that promotion in the organisation will be on the basis of seniority. then in ail the departments promotion will be allowed on the basis of seniority alone.

(II) Internal Policies : These policies are made for the internal functioning of the company. These are made to create coordination among different departments and units of the organisation. These can be vertical or horizontal. Vertical policies are made so as to guide the tower level of management, white dealing with other levels of management. Whereas hodzontal policies guide the functioning and relations of the same levels.

(ill) Centralised Policy :This type of policy is specifically applied by those companies which have different locations of their business. They make the major policies for their main office. But at the same time some autonomy is given to their local units with respect to their respective conditions.

(B) Functional Grouping of Policies

These policies are formulated for the special functions of business or department. Its relation is only with a particular department instead of the entire organisations. For example the production policy. the marketing policy, financial policy, personnel policy etc. So these policies guide the managerial functions of personnel planning, organising. staffing, directing and controlling. These policies are further Mated to the procurement, development and maintenance functions of personnel management. All these policies help for the proper utilisation of the manpower of the company.


Principles of the Personnel Policy

As we know that personnel policies serve as a road map lor managers. They provide guidelines to the managers and workers while working in the concern. So while designing personnel policies, the management must balance the needs. goats, objectives and values of both employers and employees. They niusi be based on some sound principles. Principle is generally a fundamental statement or truth providing a vide lo the thought or action. They are the basic truth which explain the relationship between cause and effect. So certain basic principles must be followed while preparing personnel policies. Some Important pencil:des are being laid down here

(i) Policies must be simple. easy to understand and iinplement. The clarity and soundness of the policies will make organisation functioning strong and effective.

(ii) Policies must provide a sound foundation for the achievement of the objectives of the organisation. h must contribute towards the economic success of the company.

(iii) Policies must be in writing and should be communicated to every concerned person. It should always be written in the words which are not vague. This prevents the unnecessary confusion among the workers.

(iv) A policy must have the virtue of stability because It is formulated to guide the managers for a long time. At the same time it should be flexible enough to change according to the changed circumstances.

(v) Policies must be forrnulated alter consultation with all those persons who are to make use of them. This leads to the high degree of acceptability of policies among workers. Then they will enthusiastically support them in the attainment of the objectives.

(vi) Periodic review of the policies must be made. As there are always changes taking place in the external and internal environment of all the orgenisations. So for adjustments in the policies on the basis of these changes periodic review must be made.

(vii) Policies must be framed in such a way to make the organisation a co-ordinated team. This must be done through proper coordination and administration of different departments and divisions,

(viii) Policies must be realistic othetwise they will adversely affect the efficiency of the workers, which in turn, will make the achievement of the objectives of the organisation difficult.

(ix) Policies must be made from the long-run point of view also They should look ahead. plan ahead for more and better things.

So. the policies of a company/organisation should show just behaviour towards all employees. Proper consultation and involvement of the employees should be done. With the cooperation of the employees the objectives of the organisations can be easily obtained.


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