Personnel Policy

After the establishment of objectives of personnel management, personnel policies are to be formulated. Policies are general statements that guide thinking and action in decision making.

Definition of personnel policy:

Personnel policies guide action. They offer the general standards or parameters based on which decisions are reached. They serve as a road map for managers on a number of issues such as recruitment (the job for physically challenged only) selection (selection based on merit only) promotion (performance leads to promotion) and compensation. Important features of an effective personnel policy can be broadly outlined as:

1) It is generally derived from the personnel objectives of an organization.
2) It summaries past experience in the form of useful guidelines that help managers to speed up the decision making process. It helps managers as well as subordinates to dispose of repetitive problems in a consistent manner without getting into trouble. It serves as a standing plan that can be put to use repeatedly while solving problems of a recurring nature.
3) As a guide to executive thinking it permits managers to transfer some of the recurring problems to subordinates. In a way, a personal policy is an important management tool that facilitates some transfer of decision making to lower levels of organizations.
4) It helps in achieving coordination of organizational members and help predict more accurately the actions and decision of others.


Tata Steel’s Personnel Policy >>>

The personnel policy of Tata Steel, as contained in the Statements of objectives, is given below. The company tries to take care of its employees.

1) By a realistic and generous understanding and acceptance of their needs and rights and by having an enlightened awareness of the social problems of the industry.
2) By providing adequate wages, good working conditions, job security, effective machinery for redressal of grievances and suitable opportunities for promotion and self development through in company and external programs.
3) By treating them as individuals giving them a sense of self respect and better understanding of their role in the organization and satisfying their urge for self expression through a closer association with the management.
4) By creating a sense of belonging through human and purposeful activities as an integral part of human relations ensuring their wiling cooperation and loyalty.

Personnel Procedures and Programs:

Policies do not include detailed statements describing specifically how the policy is to be implemented. Policies are implemented by procedures. A procedure is a well thought out course of action. It prescribes the specific manner in which a piece of work is to be done. Procedures are called action guidelines. They are usually derived from policies. Where policies define a broad field, procedures show a sequence of activities within that area. The emphasis is on chronological step by step sequence of required actions. For instance, a student is required to complete several customized steps in order to register himself for courses in a university. The basic purpose of procedures is to spell out clearly the way one has to go about doing something.

Further, personnel rules and programs help in translating procedures into concrete action. They spell out specific required actions or non actions allowing no discretion.

Personnel programs are complex sets of goals, policies, procedures rules steps to be taken, resources to be employed and other elements necessary to carry out a given course of action. As a single purpose Meta plan they show the major steps needed to achieve an objective, which will be responsible for each, and the appropriate term for carrying it out. A program thus is a comprehensive plan covering a large territory.