Need for personnel policy

The reason for formulating personnel policy is basically two:-

a) To have a formal statement on corporate thinking which will serve as a guideline for action

b) To establish consistency in the application of the policies over a period of time so that each one in the organization gets a fair and just treatment

Reasons for personnel policies

I. The basic need and requirements of both an organization and its employees require deep thought .The management is required to examine its basic convictions as well as give full consideration to practices in other organizations.

II. Established policies ensures consistent treatment of all personnel throughout an organization .Favoritism and discrimination are thereby minimal.

III. A certainty of action is assured even though the top management personnel may change. The tenure of the office any manager is finite and limited but the organization continues and along with it continues the policies, and this continuity of policies promote stability in an organization.

IV. Because the specify routes towards selected goals ,policies serves as standards /measuring yards for evaluating performance .The actual results are compared with policies.

V. Sound policies help to build employees enthusiasm and loyalty. This is when they reflect established principles of fair play and justice, and help people to grow within an organization.

VI. They set patterns of behavior and permit participants of plan with greater degree of confidence.

VII. Policies are “control guides for delegated decision making “. They seek to ensure consistency and uniformity in decisions on problems “that recur frequently and under similar but not identical circumstances”.

Principles of Personnel Policies

In designing personnel policies the management must balance the needs, goals, objectives, and values of both the employees and the organization. Since these policies are rules of conduct, they are based on the following principles:

I. Put the right man in the right place –This is by careful selection and placement to make sure that he is physically, mentally and temperamentally fit for the job he is expected to do and that the new employee may be reasonably expected to develop into desirable employee so that “there will be the minimum of square pegs in the round holes’.

II. Train everyone for the job to be done –So that they qualify for better jobs; their accomplishments are limited to their ambitions and abilities, to ensure that they do their work very efficiently.

III. Make the organization a coordinated team –Through proper coordination and administration of different departments and divisions, so that there is a minimum amount of friction and unproductive or unnecessary work. This calls for proper planning and organization control and direction of the entire organization without destroying the initiative of the individual employee.

IV. Supply the right tools and the right conditions for work – for the better the tools, facilities, and working conditions the larger the output produced with the same human effort at lower costs. So that ultimately, higher wages maybe paid and more good jobs provided.

V. Give security with opportunity incentive recognition - In order that he may stick to his job, each employee should have sound incentives for work such as fair compensation, recognition for results achieved, reasonable security, and opportunity and hope for advancement in the organization.

VI. Look ahead, plan ahead for more and better things – superior products should be produced and distributed and this should be attractive and meet the demands of consumers. This calls for a research policy for continuing product planning and development.

Thus, the principles should ensure that equity and justice are accorded to all employees, that wages and salaries are adequate and fair; that every employee has scope for development to the limit of his capabilities; that fairness is guaranteed in maintaining discipline and that these principles are followed without discrimination against any grade of employees.