2. “ A policy is a man-made rule of pre-
determined courses of action that is
established to guide the performance of work
towards the organisation objectives.”
“ Policies are statements of the organisation’s
over-all purposes and its objectives in the
various areas with which its operations are
concerned- personnel, finance, production,
marketing and so on.”
3. HR Policies are:
1) The keystone in the arch of management and
the life-blood for the successful functioning of
the personnel management for lasting
improvement in labour relations.
2) The statements of Intention indicating an
agreement to a general course of action and
3) A positive declaration and a command to
an organisation translating the goals into
selected routes and dictating practices and
4. Objectives of HR Policies:
1) Fulfillment of the organisational object.
2) Informing the employees about the policies.
3) Development of sincere sense of duty within the
4) Providing adequate and trained personnel at all levels.
5) Protection of the common interest of all parties.
6) Establishment of mutual confidence and avoidance of
7) Opportunity for growth who are willing to learn and
8) Recognition of work and accomplishments by offering
5. Peter Drucker says:
“The management must gear its
policies and objectives in such a
fashion that the employees
perform their work. It implies a
consideration of human being as a
resource having psychological
properties, abilities and limitations
requiring same amount of
engineering attention as any other
resource. And it is the
management alone that can
satisfy the requirements of
6. Characteristics of sound HR
1) Definite, positive, clear and easily understood by
2) It should be in writing in order to preserve loss.
3) Reasonably stable but not rigid i.e. periodically revised.
4) Balanced with the kind of reputation the enterprise
wants to build up.
5) Recognise the desire of workers.
6) In the best interest of all parties- employer, employee
and public community.
7) Based on careful analysis of all the available facts.
8) Must provide a two-way communication between
employer and employees.
7. Types of HR Policies:
There are two types of policies:
1) Functional policies- are grouped for
different categories of personnel. ex:
management dealing with personnel
planning, organising and controlling.
2) Centralised policies- are framed for
companies with several locations. They are
formulated at head office and apply
throughout the organisatio.n
Policies are further classified as:
1) Major policies- pertaining to the over-all
objectives, procedures and control which
affect an organisation as a whole. Ex:
product, financing, org. structure, plant
2) Minor policies- cover relationships in a
segment of an organisation, with
considerable emphasis on details and
procedures. Such policies are the outgrowth
of major policies and preserve their unity of
9. Forms of delivery of HR
1) Written standard practice, procedures issued to cover
company policies, with supplements to cover changes.
2) Booklets, bulletins, issued to new employees setting
forth rights, privileges and responsibilities.
3) Verbal instructions from immediate superiors.
4) Group meetings of new employees convened regularly.
5) Union contract
6) Company paper or house organ, giving details about
7) Conference conducted as a part of executive training
10. Steps in HR Policy designing:
1) Initiating a policy.
2) Uncovering of facts by the personnel department.
3) Recommending a policy to the top management and eliciting
the views of all concerned.
4) Putting down a policy in writing.
5) Explaining and discussing the proposed policy with
members of the organisation.
6) Adopting and launching it.
7) Communicating it to employees at all levels.
8) Administering it.
9) Initiating follow-up action on it.
10) Evaluating it.
11) Reformulating the policy.
11. Tata steel’s Personnel Policy
The statement Objectives of the Tata Iron &
steel Co. Ltd. Gives a clear cut policy
towards its employees:
1) By a realistic and generous
understanding and acceptance of their
needs and rights.
2) By proving adequate wages, good
working conditions, job security, an
effective machinery for redressal of
grievances and suitable opportunities
3) By treating them as individuals, giving
them a sense of self-respect.
4) By creating a sense of belongingness
through human and purposeful
activities as an integral part of human
12. Accomplishment of HR Policies through Various
Human Resource Forecasting and planning
Employment and related facts
Training and development of employees
Management Development Programmes
Wage & Salary administration Programmes
Employee benefits & services
Handling of Employee problems