Human Resource Policy


                      Human resource policy is guideline to HR action. It is the most vital element of corporate policy since it is concerned with codified decisions, established by an organization, to support administrative personnel functions, performance managementemployee relations and resource planning. Apparently, Human resource policy is concerned with proper use of human resources required for under taking activities in order to achieve corporate goals and objectives. It provide an organization with a mechanism to manage risk by staying up to date with current trends in employment standards and legislation.The same kind of human resource is not appropriate for all kinds of organization. A particular organization has to assemble and develop manpower keeping in view with its panned and projected activities. For example, a railway company has to develop different kinds of human resource compared to an air lines company. Manpower requirements of a steel mill is different from that of a bank. So, the major task of HR manager is to make policies relating to the type and need of the organization.While projecting manpower requirement, skills requirement of today and tomorrow has to got to be considered. Besides ,technological development and allied industries within the country and outside have got to be kept in mind. HR managers will also have to be alert about the changes taking place in the values and expectations of the people and changing patterns of paid holidays and recreation facilities in order to match going rates of wages,salaries and payments in cash and kind. The cost of selecting and recruiting manpower will also have to be kept under review because of their probable financial implication.Purpose of Human Resource Policy HR policies allow an organization to be clear with employees on

  • The nature of the organization
  • What they should expect from the organization
  • What the organization expects of them
  • How policies and procedures work
  • What is acceptable and unacceptable behavior
  • The consequences of unacceptable behavior

Essential features of Human Resource Policy As policy is guide to action to be undertaken by the concerned managers, HR policy should contain the following characteristics:

  • HR Policies must be capable of relating objectives functions, physical factors and company personnel.
  • HR Policy should be written in clear and unambiguous language so that it is positively understood by everybody in the organization.
  • HR Policy should be flexible to cater to the needs of changing conditions of the business environment which is difficult in case of rigid policy.
  • HR Policy should be balanced with the kind of image the company wants to develop having reference to social and human needs and goals of a market economy.
  • Personnel policies should be just, fair and equitable to internal as well as external groups.
  • HR Policy should give due importance to the interests of the community along with the interest of employers and employees.
  • The Policy or any other developments of the policy should be well communicated to the employees who have to accept it.
  • Periodic review of personnel policies is essential to keep in tune with the emerging values and expectation of the changing world.