HR POLICY

A policy is a general statement or a body of understanding which guides thinking and

actionin decision-nnaking. A policy provides advance information and predictable decisions
ersonnel policy is a tor situations which are repetitive or which occur widely throughout the organisation. A HR
alal comnitment of the Poy Sa toal commitment of the organisation to act in a specified way while dealing with
wganisation to act in a its employees. It gives an assurance that decisions made wll be consistent, fair and in line
priticd way while with the objectives of the organisation. HR policies, generally, deal with HR selection,
dcaling with its
mployees.
compensation, benefits, union relations and public relations.
Essential Characteristics of A Sound HR Policy
The main features of a good HR policy are a follows :
I. The policy should be clear, precise and easily understandable. The objectives
should be explicit from a look at the policy.
2. It should be in writing so that it can be properly understood. Awritten policy will
be used for reference purpose also, It also avoids confusion or misunderstanding,
if any, from its interpretation.
3. HR policy should protect the interests of all parties in the organisation i.e.
workers, consumers, entrepreneurs, government and the community.
4. It should be supplementary to overall policy of the organisation. It should help in
achieving organisaional goals.
5. A policy should not be rigid. It requires adjustment according to the changing
situations from time to time.
6. The policy should be responsive to the prevailing situation and environment. For
example, if there is a thinking of taking workers' representatives into Board of
Directors, the policy should not oppose this idea.
workers so that
7. It must provide two-way communcation between management and
the later are kept informed about latest developments in the organisation. The
reaction of employees to the policy may also be conveyed to top management
from time to time.
concerned parties. It should have the
8. A HR policy should have the support of all
employees also.
support of top management and be acceptable to
the organisation even though some
9. A policy should be uniform throughout conditions. Some variations
adjustments may be allowed as per the needs of local
compensation, benefits etc.
may be allowed in policies relating to staffing,
purpose of HR relations.
10. It should affirm the long range
 These things are

POLICIES in getting from

OBJECTIVES OF HR right plan to be followed directive jn tha e
thought of as the serve as a
HR policies are wants togo. Business policies main aims and
business is to where it business enterprise. The
of HR objectives
organisation and control of
policies should be the following : the organisation to fulfill or carry out its main
enable
1. HR policy should
objectives.
should be designed in such a way that a healthy competition and
2. HR policy better results m2v A
cooperation among workers may be promoted and
efective
achieved.
3. HR policy should aim at the best and the maximum use of available human
resources. Individual development of workers is not much advantageous to the
organisation unless they are used in the best possible manner.
4. HR policy also aims at good employer--employee relations. Nothing is
unless there are good industrial relations. possible
5. HR policy should aim at
employee satisfaction also, Individual satisfaction is
linked to the monetary and non-monetary
to the workers. This
ensures
incentives provided by the organ1sanol
attitude of the management good wage and salary
towards the administration. The general
6. HR
Due recognition given to
the
workers should be reflected by HR
policies work will
union activities.should protect the interests of the promote cooperation and loyalty.
7. HR
policies workers and recognise the trade
organisation. should provide the
8. HR
policies should seek to
9. HR
opportunities for promotion to workers within the
lo yaltpoly toiciethes should aim toprovide job security to
10. HR
pol ici e s or gani sat ion andpromote and develop workers. the
should
creating mutual faith provide an also among the among workers a Sense ot

PRINCIPLES OF HR execut
among those who efficient ives a
sense of responsibility.aims at
HR POLICIES work in consul
the tive service which
organisation.
workingofDolcondi
icies should be
tions,
iandmpact change on give desproipergned to
responsibilities ofpeopltradee, encourargecogniprotimoton e forcommon
work inandterest,
Create safe
safe and healthy
unions. employee dCComplishment, recogs
and the functions
based on thePoCes are the rules of conduct of the organisations, therefore, these should be
following principles:
Tneple of Common Interest. The Principle of common interest must be given due
Ogion in designing HR policies. Employees musthave a chance for a better standard
OT hving, better security and opportunity to live a fuller and better life. In reurt, uie
elmpioyer must be able to get the maximum possible return. A successful organisation
should contribute substantiallyto the national exchequer and create prosperity all around.
Z. Principle of "Right Man in the Right Job. Principle of 'right man in the right job
ensures that through a careful selection and placement, right man is put in the right place.
The selected employee should be physically, mentally and temperamentally fit for the job he
1S expected to do. Thisprinciple ensures that there will be minimum number of square pegs
in round holes.

3. Principle of Development. The organisation must provide ample opportunities tor

the training and growth of employees. HR policies should lay down rules for the
opportunities for development to those who are willing to contribute something to the
prosperity of the organisation and to sacrifice their time and efforts for undergoing training
to improve themselves on the job.
4. Principle of Recognition of Work and Accomplishment. There must be a direct
relationship between work and accomplishment. In order that the employee should stick to
his Job, he should have sound incentives for work such as fair compensation, recognition
advancement in the
for results achieved, reasonable security and opportunity and hope for
organisation.
unions play an important
5. Principle of Recognition of Trade Unions. As the trade
management must recognise
role in the development of industrial relations, therefore, the
amicable settlement of the disputes
them. The HR policies should incorporate the clause for
collective bargaining.
with the trade unions through negotiations and be
Employees' representatives should
6. Principle of Participation in Management. organisation so that they may realise
the
given participation in decision making bodies of workers. If the decisions regarding HR
management and
their responsibilities towards the employee's representatives, there shall be
better
affairs are taken in the presence of
improved morale.
employee satisfaction and resist change, which may be pleasant or
Change. Employees always
7. Principle of be prepared by the management well in
employees should
unpleasant. Therefore, the warranted. This may be done through
bulletin
changes as and when management
advance to face the
and newspapers, committee meetings, union
should be reflected in HR policies
boards, company magazines
management viewpoint
meetings etc. In this regard,
 The assessImment

ADVANTAGES OF HR POLICY
Following are some of the advantages of HR policy
1. Helps Managers. A policy is a guide for managers. Everyday they deal with
employees and take decisions about their placement, promotion, training etc. They will take
decisions as per the policy guidelines without consulting superiors. Policy helps managers in
their day to day working.
 2. Prompt Action. Whenever an action is required, it can be taken without any elay.
The guidelines are available in the shape of a policy and decisions can be taken with in that
framework.
3. Avoids personal Bias. Apolicy sets the limits beyond which amanager cannot go. I
is used similarly in same situations at different times. There is little scope for personal bias
because managers cannot go beyond the scope of a policy.
4. Ensures Long-term Welfare. A HR policy ensures long-term
welfare of employees.
The policies lay down measures to be undertaken for the welfare of
HR. Managemen
cannot shirk responsibility from providing amenities and facilities
5. Awareness Among
outlined in thepolicy.
Employees. The employees know their proper place
organisation. This gives them awareness and confidence while working in the organ1saio
Human Resóure

mportant asset of an organisation,.

tangible andCarliving
eful
INTRODUCTION resourCes are

olaning
most
resource is the becausSe human
Human need of
human
resources is
essential
company. There is always a
emplovers commitment for
organisation. UncertaintyOverstaffing
of the well as from or
resources employeesas
and dynamism
Mermns HR planning
association bothfrom
couldcreate
demands quick
issues for the
productivity
responsefrom
Manpower planning requires minuteto minute
the
organisation. HR both Cost as well as
planning. Strategic
is
planning
a
in
business
an
lays great
uasndseeir,safg
henc
sed interchangeably. it
HR planning as one of the
technology andthe
important parameters of strategic planning process.
beginning of all HR processes. emphapslianming
HR
is astrategic different things to different people.
However.
its ultimate objective, the most effective use of scarCe thtalent.
exists onmeans
HR planning
agreement e HR geer
importance due to the technological changes and
planning has attained utmost
replacement is not like removing the damaged
the scarcty ß
skilled manpower. Manpower humans are similar.
replacing with another. Since no two HR should know in advance the Nowadays spare-part an
require people with specialised skills
So that the
and
right kind of person can be
the requirement oi
selected
organisations
the nature of manpower. for the poSt. HR
planning is thus, a process whereby the organisation's manpower requirement is
by deliberate and systematic action to mobilise reasonable balance with the demandsmaintaGiinet
it is difficult oplan the right kind of people at the right time, proper planning will ensure
that the expectations are not to a large extent. HR planning involves consider:h
uncertainty and it's not ascience and mistakes are bound to occur. However. the use ofHD
planning assists the organization to foresee changes and identify the trends in safing
resources and to adopt HR policies to avoid major HR problems.
The terms 'human resource planning and 'manpower
planning are generally used
interchangeably. Human resource planning is not a substitute for manpower planning
Rather the latter is a part of the former i.e. manpower
resource planning. In this chapter, these planningis integrated with huma
two-terms are used synonymously.
DEFINITIONS
The following
resource planning : definitions will help to understand properly the concept of human

According to Eric W. Vetter, "Human resource bywhicha

management
position tois detdesired
ermines how an organisation planning is the process
the right manpower should move from its Current manpower
things whinumber c h
and the right position.
kinds Throuh
of people at planning
to have
a management
Strives
timetodo
result
long range benefit." both the in the right places, at the right maximum

Accor d in g to
and assuring that Dale S. Beach,
org anisation and the individual receiving the

determinity

whiavaiclhablprovi
the "Human
e at the proper organisation will haveresource of
planning is a procesSqualifiedperson
de satisfacçontimes,for theperforming jobsS adequat
an
e number of enterpriseand
According to Leon C. Meginson, Human
apprcoiachent individuals which resource
meet the planning is an integration
needs of the

theely developed andinvol ved. "

to
suffi supplpertoyforofmiadequat
tofasksorganisational ng planning aspects motivated people to perform thedutiesand
Orderto
have1

required meet members." of the personnel function in

organisational objecives and satisfy the individual
needs
and
goas
I DI IR NT
3.2
important asset of an organisation.
INTRODUCTION
Carel
human resources is essential most
resource is the because human resources are tangible and living unik
need of
Human
1s
always a
company. There well as from
employers.commitment for lant
could
resources
both from
the
createofproductivity Overstaffing
issuesforasthe organisation Uncertainty and dynam1SIm
employees in b
association
and manpower planning demands quick response fromthe organisation. HR is both a cost aS well as an asS,

planning. Strategic planning in business

strategic planninglaysprocess
greA empha
planning
The terms HR minute parameters of
are used interchangeably. requires minute to the important
HR planning
as one of
the beginning of all HR processes.
meansanddifferent things to different people. However,
technology
HR planning
is a strategic
ultimate objective, the most effective use of
agreement exists on its importance due to the
planning has attained
utmost technological
replacement is not like
changes SCartche e len
and
skilled manpower.
Manpower removing
similar
the damaged scac
replacing with another.
with
Since
specialised
no tWo humans are
Nowadays ihe Spoarrgea-NpaiSA
skills and HR should know in advance
the
require people
the nature of manpower. So that the right kind of person can be selected
the organisation's manpower requirement
planning is thus, a process whereby mobilise
for the requreTposR .R
is
demaTnmdsan.taStn:,g
action to reasonable balance with
by deliberate and systematic the
the right time, proper planning
it is difficult to plan the right kind of people at
extent. HR
that the expectations are not to a large planning involves
uncertainty and it's not a science and mistakes are bound to
planning assists the organization to foresee changes and
0ccur. However. the
identify the
Consitert:
use of i
resources and to adopt HR policies to avoid major HR problems. trends satig in
The terms 'human resource planning and manpower planning are generaly e
interchangeably. Human resource planning is not a substitute for manpower nlanin
Rather the latter is a part of the former i.e. manpower planning is
integrated with hum:
resource planning. In this chapter, these twe-terms are used synonymously.
DEFINITIONS
The following definitions will help to
resource planning : understand properly the concept ot mu
According to Eric W. Vetter, "Human resource planning is the process by which
management determines how an organisation should move from its current manpone
position to its desired
the right number and the manpower position. Through planning a management strivestotokad
things which result in bothrightthe kinds of people at the right places, at the right time
the mavimu
long range benefit." organisation and the individual receiving
and According to Dale S. Beach, "Human resource planning is aproces ofdetermuinig
assuring that the
available at the proper
which provide organi
times, sation
performing jobs anwhichadequate
will have meet thenumber p
needs ofof thequalitied
cterprisen
AccordingsattoisfactLeonion forC. theMeginson,
individual"Human
s resource planning IS anintearaa
approach to performing the planning aspects involved.
of the personnel function in Ordertohae!
suffi
taskscirequired
ent suppltyo ofmeetadequately develoobjectives
organisational ped and motivated
and satisfypeople to performleeds
the individual thedutandigui
esb
of organisational members."
 Human Resource Planning
According to G.
utilisatiOn, imprOvementStainer, "Manpower ofplanning
and preservation an
is the strategy for the acquisition,
aimed at coordinating the requirements for and organisation's human resoule
employees." the availability of different types o
According to Bruce P. Coleman, "Manpower planning is the
manpower requirements and the means for meeting those process of determmm
out the integrated plan of the requirements in order to cary
organisation."
According to E. Geister, "Manpower planning is the process including
developing and controlling by which afirm ensures that it has the right forecasting.
and the right kind of people at the right places at number of peopie
are economically most the right time doing work for which tney
useful."
FEATURES OF HUMAN RESOURCE PLANNING
A discussion of various
definitions brings out the following features of human resource
planning :
1. Well Defined Objectives. The objectives of the
and operating planning may form the objectives of human
organisation in strategic planning
resource planning. Human
resource needs are planned on the basis of the company's goals. Besides, human
resource
planning has its own objectives like developing human resource, updating technical
expertise, career planning of individual executives and people, ensuring better commitment
of people and so on.
2. Determining Personnel Needs. Human resource planning is related to
the
determination of personnel needs in the organisation. The thinking will have to be done in
advance so that the persons are available at a time when they are needed. The organisation
may also have to undertake recruiting, selecting and training process also.
3. Having Manpower Inventory. It includes the inventory of present manpower in the
organisation. The manager should know the persons who will be available to him for
undertaking higher responsibilities in the near future.
4. Adjusting Demand and Supply. Manpower requirements have to be planned well in
advance as suitable persons are not immediately available. In case sufficient persons will not
be available in future then efforts should be made to start recruitment process well in
advance. The demand and supply of personnel should be seen in advance.
5. Creating Proper Work Environment. Besides estimating and employing personnel,
manpower planning also ensures that proper working conditions are created. People should
like to work in the organisation and they should get proper job satisfaction.
NEED FOR HUMAN RESOURCE PLANNING
Human resource planning is viewed as foreseeing the human resource requirements of
an organisation and supply of human resources. lts need can be assessed from the following
resource planning points:
eded for foreseeing
human resource
1. Determining the number of persons to be employed at a new location
ements of an
If organisations overdo the size of their workforce it will carry surplus or underutilised
Isation and supply of staff. Alternatively, if the opposite misjudgment is made, staff may be overstretched,
n resources.
making it hard or impossible to meet production or service deadlines at the quality level
expected.
wan Resource Planning
context are :
normally asked in this understanding
The questions the
developmentinterrelation
improved through
can output be technological
doebetwsern this
How and ? What
productivity, work organisation
numbers?
mean for staff establish workforce requirements ?
can be usedto considered 2
What techniques arrangements been
work
Have more flexible
needed staff is to be acquired ?
Howthe define workforce
applied to any exercise to
The principles can be relocation, or the opening of new factory or office.
a
requirements, wheher
it be a business start-up,
highly skilled
theretention staff
2. Retaining
Issues about may not have been to the fore in recent years, but all its needs is
for organisations to lose key staff to realizethat an understanding of the pattern of turnover

is needed.
turnover
monitor the extent of employee
discover the reasons for it
establish what it is costing the organisation
organisations.
compare loss rates with other similar
of how many good onalk.
Without this understanding, management may be unaware
through the bill for separation
staff are being lost. This will cost the organisation directly capability.
recruitment and induction, but also through a loss of long-term
taken to rectify the
Having understood the nature and extent of turnover steps can be
reasons for the
situation. There may be relatively cheap and simple solutions once the
problem is
turnover of employees have been identified. But it will depend on whether the
peculiar to the organisation, and whether it is concentrated in particular groups (eg by age.,
gender, grade or skill).
3.Managing an effective downsizing programme
An all too common issue for managers, is how the workforce can be cut painlessIy,
while at the same time protecting the long-term interests of the organisation ? A questou
made all the harder by the time pressures management is under. both because of busliess
necessities and employee anxieties. HR planning helps in these issues by considering
the sort of workforce envisaged at the end of the exercise
the pros and cons of the different routes to get there
howthe nature and extent of wastage will change during the run-dow
the utility of retraining, redeployment and transfers
what the appropriate recruitment levels might be. benefitofvarious
Such an analysis can be
methods of reduction can be presented
to senior managers So that the costestablished.
assessed, and the time taken to meet targets
4. Where will the next
generation of managers come from ?
Many senior managers are
traditionalcareer

paths disappear. They have had to troubled by this issue. They have seen Buttheyrecognize
that while this may have dealt bring in senior staff from elsewhere. solvedthelonger
from
term question of with a short-term skills it has not coome
shortage,
Toaddress these nmanagerial supply: what sort, how many, and where willthey
questions one must understand :
 resources".
human iture
n ojectives s mphasised
2. The According required, The
5. 4. 3 i human
Technological
ees organisations.
changes.distribution
also resource
turnover tionswhichHuman Despite need
planning.skills,
becauseLarge specified Anticipate
ProvideControl the tune.
ForecastEnsureEnsure of main
Assess
tionHuman in
resources with
humanobjective
required.require and is qualification
number
for to lead surplus proper
human
resource unavoidable
in resource planning of growing human Sikula", period.
tim e future adequate matching
mes seasonal physical 4.3 the resource
aorganisations. timehuman
change changes
It
of
of to impact requirements or use ofresources
production
is resourceNEED supply
plann1ng
human fluctuations
planningensures employees unemployment, future the available
resources shortage, of skillhaving
or and existing planning
in and mnental ultimate of requirements
of the and capabilities planning FOR enterprise technology of human planning. 4.2
an is resourceskills and These even smooth is to if of manpowerOBJECTIVES
tion. also globalisation also who already
select any, human are
services beneficial. in ailments, purpose/objective human resource
needed of cause
businessessentialsupply retire, there inAND needs of to:
planning
employees, to and to
organisation
carry deployed on human resources as
resources accomplish
in
and a need die, IMPORTANCE has
so train jobs and planning
usher constant are in of been
order
that
in Voluntary workers the to
leave on as
the and resources when
management the
be works. to in in OF
toenables as in ebb face shortage maximise required
requiremnents with the
well change examples is of the organisational toHRP
required. is
meet organisations,
replaced realised human
and quits, -without
of Hence organisation. organisation.
availabledifferent have
as marked
the
organisations change of additional
techniques. flow of
in discharges, human for OF resource the an
needs by th e
the factors interruption. he future for accurate
in in rise
or need the HRP over levels goals.
of method the new resources human
the in become following human
xpansion leading planning
return a of
work workforce for specified skills.
numberto These marriages, employees. resources.
number In
cope of human on resource other
changesproducts force to incapacitated wireasons:
th
and with of workforce investment is
period words, of
employ in turnover Human resource
required to employ
diver many promo relate over
such may and the
a of
 LaitlIl diU
eaucaiOnal rerormS, geograpmiCal

PROBLEMS IN HUMAN RESOURCE PLANNING

Human Resource planning is not always successful and the main problems are described
below :
1. Accuracy of Forecasts. Manpower planning involves forecasting the
demand and
supply of human resources. Thus, the effectiveness of planning depends upon the accuracy
of forecasts. If the forecasts are not cent per cent accurate, planning will not be hundred
percent accurate. Inaccuracy increases when departmental forecasts are merely prepared
without critical review.
2. Identity Crisis. Many human resource specialists and the managers do not
understand the whole manpower plann1ng process. Because of this, there is generally an
identity crisis. Till the specialists develop a strong sense of purpose, planning cannot be
effective.
3. Support of Top Management. Manpower planning requires full and wholehearted
support from the top management. In the absence of this support and commitment. it would
not bepossible to ensure the necessary resources, cooperation and support for the success of
the manpower planning.
4. Resistance from Employees. Employees and trade unions resist manpower planning.
They feel that this planning increases their overall workload and regulates them through
productivity bargaining. They also feel that it would lead to wide spread unemployment,
especially of unskilled labour.
E Insufficient Initial Efforts. Successful human resource planning flourishes slowly
andgradually. Sometimes sophisticated technologies are forcefully introduced just because
competitorshave adopted them. These may not be successful unless matched with the needs
and environment of the particular enterprise.
 6. Management Information Systen. Effectiveness of planning depends upon dhe
.18 Human Resource Planning
Indian
mOst of the industries,
reliability of the
information system
intormationsystem.
has not fully
In
developed. In the absence of
reliable data it humawouln dresoute
efective planning. general estimates of
possible to have
7.
Uncertainties, It is risky to depend
environnnent.
upon
Absenteeism, turnoer, seasonalmanpower
in
he Yace
efmacorploysimem,
technological changes
changes and market fluctuations are the uncertainties which Serve a
in the
of rapid discounts are made for
constraintsto manpower
planning. Alhough
correctly. these
factors cannot be estimated while
8. Expensive yet these
the plan, and Time Consuming. Manpower planning is an expensive
Rnpower planning preparing
nerally sufers for (wo planning feeling that it
Employers may resist manpower
Des of problems, one
erent

the
bacause

second comes
consuming process.
blems of forccasting cost of manpower.
partCoordination
the 9. with other
of the manpower
Managerial Functions. There is generally a tendency on
planners to remain aloof from other operating managers and to
increases the
m human weakncss.
world. To be effective manpower
become totally absorbed in their own planning
integrated with other management functions. must be
10. Unbalanced Approach. Many human resource experts give more
the quantitative aspect of manpower to ensure that there is adequate flow of
out of the organisation. They overlook the qualitative aspects like career
people importance
in
on
and
planning, skill levels, morale etc. are overlooked by them. Such developmentapproachand
unbalanced
affects the effectiveness of manpower planning.
Thus, manpower planning suffers from two types of problems. One is inherent her
of problems of forecasting and the second comes from human weaknesses.
SUGGESTIONS FOR MAKING HUMAN RESOURCE PLANNING EFFECTIVE
Some of the suggestions for making Human Resource
below: planning effective are as given
1.Integration with Organisational Plans. Human resource planning must be
with organisational plans. It must be based on the balanced
requires development of good communication channels organisational objectives and plans. This
the human resource
planners. between organisation planners and
2. Period of
needs and Manpower Planning. Period of the planning should be appropriate to the
enterprise as circumstances
of the
well as the anticipated enterprise in question. The size and structure of the
3. Proper changes must be taken into
organised. Organisation.
If possible, To be effective, the consideration.
function should be properly
should be constituted to within the human resource planning committee
adequate focus anddepartment, Separate cell or
levels. provide a
to coordinate planning various
Work at
4.Support of Top
must have the full Management . To be planning
support
essential to ensure the of the top effective in the long run, manpower
managementis
planning.
5.
necessary management
resources, .The Support from top
cooperation and for the
ofthe success

of Imanpower
nvolvement of
nnerS ofonly.OperatToinbeg Executives.it Human
suppol. function
efforts on theplapart resource planning is not
a
coordinated
effective.
understanding of the processoperatandintgherebyexecutives. requires active participation and
improve o
help to
reduce Such participation will
 6. Efficient and Reliable Information System. To facilitate human resource planing.
an adequate data base must be developed for human resources.
7. Balanced Approach. The human resource experts should give equal importance to
both quantitative and qualitative aspects of manpower. Instead of matching existing people
with existing jobs, stress should be laid on filling future vacancies with right people.
Promotions should also be considered carefully. Career planning and development, skill
levels, morale etc. should be given due importance by the planners.

ESSION PLANNING