Personal Policy

PERSONNEL POLICY

Nature – Objectives – Characteristics – Steps/

Sources of policy formulation – Test of sound policies

Personnel policies are the principles or objectives established by a company for the guidance of the management in its relationship with employees. These are “statements of the goals or aims and objectives which define the intentions of the organization with respect to manpower management”. In short, it is a statement of intention committing management to a general course of action.

WHY ADOPT DEFINITE PERSONNEL POLICIES?

a)        Established polices assure consistent treatment of all personnel throughout the organization.

b)        Continuity of action is assured even though top management personnel change.

c)        Policies serve as a standard of performance. Actual result can be compared with the policy to determine how well the members of the organization are living up to professed intentions.

d)        Sound policies help to build employee enthusiasm and loyalty. This is especially true where the policies reflect established principles of fair play and justice and where they help people grow within the organization.

CHARACTERISTICS OF GOOD PERSONNEL POLICY

First, it should be clearly stated so that there can be no question as to what it proposes.

Secondly, it should be consistent with public policy.

Thirdly, it should presumably be uniform throughout the organization. Variations cause misunderstanding among employees.

Fourthly, it should be understood and interpreted in a uniform manner throughout an organization.

Fifthly, it should be appropriate, that is, well chosen in terms of the total situation faced by the individual management. Policy cannot simply be copied from another organization. Differences in communities or in types of employees may justify special policies.

Sixthly, it should be communicated to all who are responsible for seeing that they are implemented.

Seventhly, it should be in writing.

Eighthly, it should conform to the Government regulations.

Ninthly, it should be definite. Ambiguity and uncertainty are destructive of the organization morale.

Tenthly, it should be stable yet possess sufficient flexibility to meet changing conditions.

Eleventhly, it should recognize individual differences in capacities, interests, ambitions and the desire for job security.

Lastly, it should give due regard to the interest of all personnel the workers, the consumers the public and the owners of the capital.

STEPS IN POLICY FORMULATION

There are three steps for policy formulation. These are as follows:

1.    Statement of Objectives

The top management should state in general terms the personnel policy and then follow it with a more elaborate description of specific goals. The statement should express the management’s interpretation of the worker’s position in the organization. The workers should not be regarded as creatures who can be bought, used and disposed of rather they should indicate the philosophy of the management towards the workers which should be clearly understood by all concerned. The specific aspects of personnel management such as recruitment, development, promotion etc. have little value until management’s general objectives are known and understood.

2.    Setting up of Program and Procedures

Personnel policy relates to the manner of guiding labour-management relations with an enterprise; and the philosophy of this relation is manifested in the policy to effectuate the policy, it should be adopted to follow the program. The program and procedures should be stated in easy language and made understandable to the workers. The program and procedures referred to may cover selection, unemployment, promotion, wage, payment, discharge and evaluation.

3.    Placing Somebody in Charge of The Administration and Execution of the Personnel Policies

Policies are of little value unless some one is charged with the responsibility for their proper application. Initially, the responsibility lies with the top management, which, in turn, delegates the authority to line executives, usually the Personnel Manager. The Personnel Manager re-delegates it to lower level executives such as Foreman, supervisors, etc.

TEST OF SOUND POLICY

A number of yardsticks may be applied to determine the reasonableness of specific policies. Most obvious to much management is the test of consistency with the fundamental objectives of the business and the employment relations philosophy of its Managers. Any policy fails to confirm to these objectives should be questioned.

Another test involves the consistency of policy with organized social objectives. A policy contrary to such goals is clearly not sound. For example, policy contemplating the hiring of children for dangerous jobs is unsound, as it is a policy of ignoring health hazards.

Such examples imply a third test-consistency with legislation. A policy that justified illegal action is clearly unsound.

Another and perhaps the most widely applicable test of policy is its effect on employment relationships. The prime requisite of manpower management in the individual firm is its ability to secure the enthusiastic team work, personnel development and effective utilization of all employees. If it fails to do that it is less than successful. Any policy that interferes with attainment of this objective is inappropriate. This is the acid test of each phase of manpower or labour policy.

SOUND OF POLICY FORMULATION

Policy formulation is a continuing process because new and modified policies are constantly being adopted and must be integrated with each other and older polices.

Ideas for charges in or expansion of labour policy may and should some from a variety of sources. The may originate with rank and file employees. Expressions of employee dissatisfaction or of the need for additional policy may be gained from the reports of supervisors, suggestion systems, attitude surveys, publications and other plant or implant communication systems. Employee reactions to present or proposed policy may be solicited through interviews including exit interviews or may be apparent in union publications or letter to the Editor of the employee magazine.

Supervisors are an important source of suggestions on manpower policy may become quickly apparent to them, as may an unfilled need for policy. They may route their suggestions upto the line through the several echelons of supervision or they may make direct suggestions to representative of the employee relations staff.

Another major source of suggestions for change is the experience of other firms.

Another source is the many conferences arranged by local and national professional associations and University Industrial Relations Centers.

Grievance and arbitration on contract interpretation frequently disclose deficiencies in policy and suggest desirable changes. Records of similar developments in other organizations may be helpful in suggesting desirable modifications of policy. One of the most common bases for revision of labour policy is the continual review or audit maintained by the employment relations department in which deficiencies in both policies and practices are disclosed.

The employment relations staff is responsible for collecting investigating, evaluating and formulating all suggestions for changes in labour policy. These may require study, including comparisons with policies tried or in effect in similar firms.

On the basis of such evaluation, and with careful regard for interrelationship between proposed and existing policies, the employment relations staff presents its recommendations for policy changes. They may be made in a memorandum that indicates reasons for each detail of the staff recommendation. They go to the top Executive of the company and if he so desires, to the board of directors. In the board, policy may be further studied by special committees of Board members before final action is taken. On the basis of recommendations from such committee or otherwise, the board determines major or basis policy and makes such determinations final.

Personel policies, like business policies in general, are dynamic changing to meet the current situation. Although they are dynamic to meet fundamental changes, the nevertheless should posses a large measure of stability. Stable personnel policies ten to dispel uncertainty and foster a feeling of security among the employees.