The differences between policies and procedures can be summarized as follows: Policies guide of decision making, while procedures drive actions. Policies leave some room for managerial discretion, while procedures are detailed and rigid. Policies are an integral part of organizational strategies, while procedures are tactical tools. Policies are generally formulated by top management, while procedures are laid down at lower organizational levels in line with policies. Policies are more evergreen than procedures. Procedures change more frequently, because they should be adaptable to the changing operational environment and technological advancements. Differences between Policy and Procedure
HR POLICY HR policies are the principles or objectives established by a Company for the guidance of the management in its relationship with employees. HR policy is one of the most important aspects of running a business. Creating a human resource (HR) policy is one of the most important aspects of running a business. A formal, written human resources policy can aid in communication with employees, assist managers and help avoid litigation. In other words, Human Resource policies are systems of codified decisions, established by an organization, to support administrative personnel functions, performance management, employee relations and resource planning. In short, it is a statement of intention committing management to a general course of action
Objectives of HR Policy To provide fair, acceptable & efficient leadership; To provide an opportunity for expansion & voice in management; To strengthen & appreciate the human assets continuously by providing training & developmental programs; To provide facilities & conditions of work & creation of favorable atmosphere for maintaining stability of employment; To attain an effective utilization of human resources in the achievement of organizational goals, etc 5
HR policies serve as a resource for dealing with various situations that occur in the workplace. They encourage managers to treat employees fairly and consistently. Policies on hiring, termination, performance evaluation and disciplinary action provide managers with the framework to manage staff. So HR policy is important and adopt in an organization. Human resources policies provide the framework by which employees are expected to behave in the workplace . The importance of HR Policy as follow. Coming on Board Workplace Rules Fairness Importance of HR Policy
Improved Chain of Command Expense Reimbursement Terminations Clear thinking Uniformity and consistency of Administration Continuity and Stability Orientation and Training Delegation of Authority Prompt Decision Making Standard of Performance Employee Morale and Loyalty. Importance of HR Policy
Established polices assure consistent treatment of all personnel throughout the organization. Continuity of action is assured even though top management personnel change. 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. 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 Importance of HR Policy
The characteristics of a good HR policy While developing sound personnel policies management should pay attention to the following things: Related to Objectives: Policies must be capable of relating objectives functions, physical factors and company personnel. 2. Easy to Understand: Policies should be stated in define, positive, clear and understandable language. 3. Precise: Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future action. 4. Stable as well as Flexible: Personnel policies should be stable enough assure people that there will not be drastic overnight changes. They should be flexible enough to keep the organization in tune with the times.
The characteristics of a good HR policy 5. Based on Facts: Personnel policies should be built on the basis of facts and sound judgment and not in personal feelings or opportunistic decision. 6. Appropriate Number: There should be as many personnel policies as necessary to cover conditions that can be anticipated, but not so many policies as to become confusing or meaningless. 7. Just, Fair and Equitable: Personnel policies should be just, fair and equitable to internal as well as external groups. 8. Reasonable: Personnel policies must be reasonable and capable of being accomplished. To gain acceptance and commitment from employees, the policy should be conditioned by the suggestions and reactions of those who are affected by the policy.
The characteristics of a good HR policy 9. Review: Periodic review of personnel policies is essential to keep in tune with changing times, and to avoid organizational complacency or managerial stagnation. It should be clearly stated so that there can be no question as to what it proposes. Â It should presumably be uniform throughout the organization. Variations cause misunderstanding among employees. Â It should be understood and interpreted in a uniform manner throughout an organization. Â 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.
The characteristics of a good HR policy It should be communicated to all who are responsible for seeing that they are implemented. It should be in writing. Â It should be consistent with public policy. It should conform to the Government regulations. It should be definite. Ambiguity and uncertainty are destructive of the organization morale. It should be stable yet possess sufficient flexibility to meet changing conditions. It should recognize individual differences in capacities, interests, ambitions and the desire for job security. 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 Setting Statement of Objectives Setting up of Program and Procedures Identifying the Needs 4) Gathering Information ( Information may be gathered from any of the following sources) Past practice in the organization. Prevailing practice among the companies in the community and throughout the nation in the same industry. The attitudes and philosophy of the top management. The attitudes and philosophy of middle and lower management. The knowledge and experience gained from handling countless problems on a day-to-day basis.
STEPS IN POLICY FORMULATION 5) Examining Policy Alternatives 6) Putting the Policy in Writing 7) Getting Approval 8) Communicating the Policy 9) Evaluating the Policy
Contents of HR Policy 1. Our Company Introduction Welcome Letter from the President Company History Company Objectives/Mission Organization Chart Statement of Growth, Profit, and Business Plan Statement of Commitment to Employees Continuity of Policies - Right to Change or Discontinue Acknowledging Receipt of Policy Manual Acknowledging Electronic Receipt of Policy Manual
Contents of HR Policy (contd.) 2. Employment Policies Recruitment Announcement of New Positions Employee Selection Process Employment Eligibility Verification — Forms Immigration Law Compliance Equal Opportunity New Hire Rehire
Relatives Return to Work after Serious Injury or Illness Employee Orientation Confidentiality of Company Information Conflict of Interest Medical Evaluations and Interviews Disability Accommodation Outside Employment Grievance Procedure Contents of HR Policy (contd.)
Gratuities to Government Employees or Officials Gratuities to Customer or Supplier Representation Inventions and Patents 3. Employment Status & Records Anniversary Date and Reinstatement Reinstatement Employment Classifications Access to Personnel Files Consent to Release Information Background Checks Contents of HR Policy (contd.)
Authorization to Provide Information Performance Review and Salary Merit Increases Performance Improvement Job Descriptions Equal Pay 4. Employee Benefits Vacation Child Care Holidays Workers' Compensation Insurance Contents of HR Policy (contd.)
Sick or Personal Leave Voting Jury Duty Military Service Bereavement Leave Relocation of Current or New Employees Temporary Assignment Allowance Professional Memberships Health Insurance Health Benefits Continuation (COBRA) Contents of HR Policy (contd.)
Short-term Disability Insurance Long-term Disability Insurance Life Insurance Employee Assistance Program Flexible Spending Account Employee-Incurred Expenses and Reimbursement Mileage Reimbursement Travel Reimbursement Required Management Approval Contents of HR Policy (contd.)
Contents of HR Policy (contd.) Injured On the Job Emergency Instructions Employee Privacy Workplace Search Policy Workday Smoking Meal and Rest Periods Non-Business or Social Visits Use of Company Vehicles Use of Rental Car on Company Business Emergency Closings Flextime
Telecommuting Compressed Workweek Cell Phone Policy Telephone Use Medical Leave of Absence Family Leave, Parental Leave and Pregnant Employees Family Leave Pregnant Employees Leave of Absence and Military Leave Visitors Recreational Activities–Sponsorships Contents of HR Policy (contd.)
Code of Conduct Substance Abuse Drug and Alcohol Policy Drug Testing Attendance Dress Code Sexual Harassment Workplace Violence Workplace Emergency Plan Political Activities Contents of HR Policy (contd.)
7. E-Policies General Principles User Responsibilities Access to Information Technology Resources Abuse of Information Technology Resources Unauthorized Use and Sanctions Digital Millennium Copyright Act Management Access to Technology Resources E-mail Policies Contents of HR Policy (contd.)
Spyware Policy Internet Usage Policy Content Filtering Internet Access and Administration Making Company Purchases over the Internet Virus Protection Internet Security Internet Miscellaneous Disaster Recovery Policy Contents of HR Policy (contd.)
To be effective, a policy must meet the following seven criteria: Policy is an expression of belief. Policy is always stated in broad terms. Policy must be long-range. Policies must provide for today, tomorrow and a decade from now. Policy must be developed through the active participation of top management. Policy must be approved by the organization's highest authority. Policy must be inviolate. Policy must be in writing. Seven Criteria
Organizations should have HR policies as they ensure the following benefits: The work involved in formulating HR policies requires that the management give deep thought to the basic needs of both the organization and the employees. Established policies ensure consistent treatment of all personnel throughout the organization. Favoritism and discrimination are, thereby, minimized. Continuity of action is assured even though top-management personnel change. Policies serve as a standard of performance. Sound policies help build employee motivation and loyalty. Sound policies help resolve intrapersonal, interpersonal and intergroup conflicts. Why Adopt HR Policies?
Our attitude towards employment and hiring at Volvo Vostok is based on the HR policy presented below. Encouraging diversity: At Volvo Vostok it does not exist a stereotype ideal employee. We want our co-workers to use their individual qualities in order to find new and original approaches to solving problems. Team spirit : We aspire to create a company culture promoting a continuous exchange of experiences, creative thinking and the use of different approaches in the process of solving a task. Professional growth : We challenge our employees with tasks that demand maximal commitment and offer those how do well great career opportunities. Reward : The corporate employee reward policy provides favourable conditions and individually adjusted rewards based on results. Training : We give our employees the possibility of further professional growth, using both internal and external resources. HR Policies: Volvo Vostok