. What is Personnel Policy? Describe the important personnel policies that affect the job of a Personnel Manager. Ans.

A personnel policy is a plan of action, a set of proposals and actions that act as a reference point for managers in their dealings with employees. Personnel policies constitute guides to action. They furnish the general standards or bases on which decisions are reached. Their genesis lies in an organizations values, philosophy, concepts and principles. Personnel guide the course of action intended to accomplish personnel objectives. A policy is a guideline for making wise decisions. It brings about stability in making decisions. A policy is a stance, often a choice made between two or more alternatives, such as the choice between promoting employees on than basis of merit versus promoting them on the basis of seniority.

Example:

HRM Policy in Indian Railways

One of the personnel objectives of Indian Railways is to provide equal employment opportunities to the people of minority sections. Personnel policy of Indian Railways relating to the above objectives is to fill 15% and 7.5% of the vacancies from those candidates belonging to Scheduled Castes and Scheduled Tribes respectively.

The Health & Safety Policy: The policy statement should be a declaration of the intention of the employer the health and safety of his employees. It should emphasize four fundamental points 1. The safety of employees and the public is of paramount importance. 2. that safety will take precedence over expediency

3. that every effort will be made to involve all managers, supervisors and employees in the development and implementation of health and safety procedures 4. That health and safety legislation will be compiled within the spirit as well as the letter of the law.

Recruitment Policy: In order to have consistency throughout an organization, it is necessary to lay down certain principles as guidelines for both management and staff. The basic principle is the organizations attitude towards filling vacancies, whether from within or outside. If the organization is strongly unionized it is probable that a policy or promotion from within wherever possible is agreed with the unions. It takes care of providing the right man for the right job at the right time. Recruitment policy takes into consideration the governments reservation policy, policy regarding sons of the soil etc. Personnel policies regarding merit, internal sources, social responsibility in absorbing minority sections, women etc.Recruitment policy commits itself to the organizations personnel policy like enriching the organizations human resources, motivating the employees through internal promotions, improving the employees loyalty to the organization. While formulating a recruitment policy the following factors should be taken care of by the Personnel manager:

1. 2. 3. 4. 5. 6. 7.

Government Policies Personnel policies of other competing organizations Organizations personnel policies Recruitment sources Recruitment needs Recruitment cost Selection criteria and preference

Working Conditions Policy: This policy deals with the hours of work, shift, holidays, and retirement benefits.

Pay Allowances & deductions Policy: It defines the rules and eligibility for payment of different allowances. It also states the heads of deductions applicable.

Leave Policy: The Leave policy defines the sickness rules, the leave allowed every year which includes casual, special, earned, holiday leave. LTA payment etc. The Maternity Leave benefits etc.

Work Rules Policy: It defines the work load, use of materials, equipment and machines.

Disciplinary Policy: This policy defines the code of conduct to be followed by every employee in his workplace. It defines the business ethics that are expected to be followed by every employee. It clearly states the consequences to for violating such rules.

Grievance Policy: It defines the procedure to be followed to address any grievance that an employee may wish to address.

Social Benefit Policy: Most of the organizations have some social benefit scheme which is defined under this policy.

Superannuation/Pension Policy: The employees need to be taken care after superannuation too. The policy for the same and the procedure for availing pension are also defined.

Gratuity/PF Policy: The rules for gratuity are defined under this policy. It includes eligibility etc and the maximum about that will be paid. In Pf it defines the process of availing loan/ withdrawing/transferring the PF as the case may be applicable.

Housing loan Policy: Some Cos take care of their employees housing needs too. They give them subsidiary in interest on housing etc. Or they provide them with a house too. The eligibility and deduction of HRA etc., if the co. provides the house etc. is all defined.

Promotion Policy: This is one of the most important policies. A well defined promotion policy will keep the employees motivated and achieve the Cos goals for the betterment of the Co and self too.

Transfer Policy: The guidelines for transfer etc are defined here. This policy becomes a very important document of reference in banks etc where transfers are done on a frequent basis.