What are the factors that should be taken into consideration while formulating HR policies?

HR policies are also defined as that body of principles and rules of conduct which govern the enterprise in its relationship with employees.

Such a policy statement provides guidelines for a wide variety of employ­ment relationships in the organization. The purpose and significance of the HR policies hardly need any elaboration.

Every organization needs policies to ensure consistency in action and equity in its relation with employees.

Policies serve the purpose of achieving organizational goals in an effective manner. HR policies constitute the basis for sound HRM practices. Moreover, policies are the yardstick by which accomplishment of programmes can be measured.

Human Resources policies are generalised guidelines on employee management, adopted by consensus in an organisation to regulate the behaviour of employees and their managers or supervisors.

As for the dichotomy between an HR policy and a procedure, they can be compared to a human being and the shadow. Both are inseparable and as shadows set the outlines of a human being, so do procedures set the outlines of an HR policy.

Learn about:-  1. Introduction to HR Policy 2. Meaning of HR Policy 3. Contents  4. Steps  5. Essentials  6. Half-Way House Approach  7. Employees’ Participation in Policy Formulation.

8. Committee Approach to HR Policy Formulation 9. Communication of the HR Policies 10. Implementation 11. Policies in Various HR Areas.

HR Policies: Meaning, Steps, Formulation, Implementation and Procedure

HR Policies – Introduction

A policy is a guide for repetitive action in major areas of business. It is a statement of commonly accepted understanding of decision-making criteria. Policies are set up to achieve several benefits. By taking policy decisions on frequently recurring problems, the top management provides the guidelines to lower level managers.

It will permit decisions to be made in similar situations without repeating the reasons and expensive analysis required initially to state the policy. Policies help managers at various levels to act with confidence without the need of consulting the superiors every time. This will also ensure promptness of action.

The starting point in all managerial relationships with employees is the managerial policies. It incorporates the philosophy of the top management. The human resource philosophy of DLF, for instance, is stated as the manage­ment of people begins with ideas, implicit or explicit, as to the purpose, goals, and intentions in their employ­ment. On the basis of such objectives, policies outline the courses to be followed.

On the basis of such policies, programmes are developed by the management to pur­sue the objectives. Carrying out the programmes result in certain practices. Policies declare what is intended; they describe what is proposed. Practices describe how policies are being implemented.

A company may have adopted a policy of providing training for all employees as a means of preparing them for promotion. To imple­ment this policy, it may have developed an extensive training programme. The programme may include job training for new employees, supervisory training for foreman and supervisors, and management development for members of the management group. In the supervisory training programme, it may include role playing as one of the many training practices.

Human resource policies are not something that can be considered in isolation. It is an integral part of the whole policy structure of the enterprise. There is an organic unity in policies. Such a unity pre­vents unnecessary duplication and promotes unity of action. Weakness in any one of the major policies tends to weaken the effectiveness of other policies. Similarly, a weakness in human resource policies may weaken effectiveness of all other organizational policies.

Efficient utilization of resources depends a great deal upon:

(1) The efficiency of personnel operating and handing the resources,

(2) The image of the management in the minds of employees, and

(3) The relations between the management and the workers.

These are dependent on the management policies bearing on the human relations. A statement of the management’s intention concerning people or formulation of a policy on HR is, thus, needed in every organization. HR policies provides guidelines for a wide variety of employment relations in the organiza­tion.

These guidelines identify the organizations intention in matters of recruitment, selection, promotion, development, compensation, motivation, and otherwise leading and directing employees in the working organization. HR policies serve as a road map for the manager.

HR policies are also defined as that body of principles and rules of conduct which govern the enterprise in its relationship with employees. Such a policy statement provides guidelines for a wide variety of employ­ment relationships in the organization.

These constitute guides to action, and serve as a roadmap for the management in decision-making. It represents the HR philosophy of the management, which in turn reflects the fundamental beliefs, ideals, and views held by the management with respect to the treatment of individuals at work. The policies are subject to change as organizational and human values changes.

The purpose and significance of the HR policies hardly need any elaboration. Every organization needs policies to ensure consistency in action and equity in its relation with employees. Policies serve the purpose of achieving organizational goals in an effective manner. HR policies constitute the basis for sound HRM practices. Moreover, policies are the yardstick by which accomplishment of programmes can be measured.

Policies are also regarded as ‘setting governing regulations or norms’. It is the basis of control. The emphasis in it is on the regulatory aspect. Policies as a guide to managerial control work in a cyclical fashion.

Appraisal of HR programmes as regards recruitment, selection, training and development, com­pensation, collective bargaining, and other human resource activities must rely largely on policies as a measuring stick.

The conceptualization of HR policies as an aid to management requires formulation of overall and subsidiary policies, that is, organization-wide policies such as general company policies, administrative policies for top executives, operational policies for the guidance of low-level managers who execute plans and programmes, on the one hand, and subsidiary policies relating to the overall policies, on the other. A written declaration of such policies is considered to be of great importance in promoting uniformity and consistency in the management approach.

HR Policies – Meaning

Human resource policies are the formal rules and guidelines that businesses put in place to hire, train, assess, and reward the members of their workforce. These policies, when organised and disseminated in an easily used form, can serve to anticipate many misunderstandings between employees and employers about their rights and obligations in the organisation.

Human Resource practices imply the customary way of operations and behaviour, translating idea into action, and knowledge of how something is usually done. In simple terms, it is to apply principles or policies.

Some methods utilised by human resources department staff are called “best practices,” meaning the way an employment action is handled is the recommended way according to human resources experts. For example, a human resources best practice is conducting an HR audit each year to determine if human resources processes are helpful to the company.

Another best practice is providing new employees with a formal orientation session where they are fully aware of the company, its philosophy and mission. A company known for its human resources best practices is most likely the leader among its competition and typically has a high level of employee satisfaction.

Best practices in human resources are shared with other human resources practitioners as an industry-accepted way of doing business from the HR perspective.

Human Resources policies are generalised guidelines on employee management, adopted by consensus in an organisation to regulate the behaviour of employees and their managers or supervisors. As for the dichotomy between an HR policy and a procedure, they can be compared to a human being and the shadow. Both are inseparable and as shadows set the outlines of a human being, so do procedures set the outlines of an HR policy.

“HR policies may be defined as guidelines, procedures, codes and regulations adopted by management to guide workplace activities within acceptable limits, which are communicated through a summarised statement called policy statement and implemented through instructions referred to as policy directives.”

The human resources department develops the introduction to the set of policies and guidelines and explains the importance of the policies. Policies about performance appraisals, fair employment practices, appearance and behaviour are just a few of the several policies contained in an employee handbook.

The handbook is distributed to new employees on the first day of work and is typically discussed during informal or formal orientation sessions. Employers expect employees to fully understand the policies; a signed form to acknowledge the employee has received and understands the employment policies is contained in the employee’s personnel file.

From the above definitions and explanations, it is quite clear that HR policies outline what and how HR professionals undertake their day to day activities in the workplace. Because every HR action and activity in the workplace today is highly regulated and has legal, human rights and discriminatory implications, it is important that such actions be regulated and directed strictly. This is what makes HR policies very important and necessary in every business environment today.

Another reason why HR policies are extremely important in the workplace today is that it sets the direction an organisation wants to take in the management of its employees. Business management practice requires that an organisation adopts a distinct approach towards managing employees and getting the best out of them. So surely, a solid HR policy is a must for every business today.

Unfortunately, most HR practitioners pass off their Conditions of Service or Employee Manuals or Handbooks as HR Policies. These documents should or are rather, derivatives of the comprehensive collection of all HR Policies (HR Policy Manual). Contracts of Employment, Conditions of Service, Employee Handbooks are all or should all come from the HR Policy.

In HR Operations, policies are developed to cover areas of the HR function which are considered strategic to the achievement of specific HR and organisational objectives. These may include HR Planning and Outsourcing, Recruitment, Training and Development, employment Contracts Negotiations and Administration, Employee Performance and Exit/Termination Process Management.

In HR Administration, the services functions of HR become the focus of policy making. HR Services such as employee welfare (Health and Safety) including annual leave administration, Employee Attendance, Pensions fund Management, Logistics Administration, Cleaning and Sanitation. Sometimes, the function also covers transportation administration, rest house management and protocol services.

In HR Governance, policies are developed to focus on compliance and enforcement of the various policies developed. Policies are also put in place under HR Governance to evaluate performance in accordance with agreed objectives and set targets for the HR function as a strategic business unit as well as the business as a whole. It is based on this information that HR audit systems are developed.

HR Policies – Major Outlines of the HR Policy of a Medium-Sized Organisation

An HR department primarily deals with recruitment and selection, training and development, job evalu­ation, wages and incentives, and labour welfare policy. Hence, an HR policy should have brief but com­plete statements on all the points referred to earlier.

The major outlines of the HR policy of a medium-sized organisation may be as follows:

i. Recruitment and selection policy – To procure suitably educated and efficient personnel by offering those tempting wages, good working conditions, safety and security, and better future prospects.

ii. Training and development policy – To make available all possible facilities for the training and development of employees to enable them to do their job efficiently and to prepare them­selves for future promotions; to take effective steps including training and development pro­grammes to equip the employees in the latest techniques of production, management and so on; to get the performance appraisal done; and to provide adequate opportunities and facilities for the development of employees.

iii. Job evaluation, wage and incentive policies – To determine reasonably good wage rates and dearness allowance, and to work out incentive plans for workers after undertaking job evalu­ation and other necessary steps and also keeping in view the prevalent wage rates for similar jobs in other industries.

iv. Labour welfare policy – To improve industrial relations by evolving a suitable machinery for the settlement of disputes; to encourage mutual negotiations; to prepare and execute labour welfare programmes; and to arrange all possible facilities for the health, education and other welfare programmes.

However, there is no rigidity with these elements. These elements can be contracted or expanded depending upon local conditions and other social and political factors. Even sub-policies can be pre­pared for each of these elements, if need be. These elements and statements are just the guidelines. Adjustments are always possible.

HR Policies – Steps in Designing HR Policy

In developing HR Policies, there should be clear and consistent statements of the organization’s policies regarding to all conditions of employment and procedures for their equal and fair implementation.

In order to fulfill this objective, policies and procedures should be made on following guidelines or steps:

1. Clear and specific, yet flexible enough to meet the changing conditions.

2. Compliance with all appropriate law and regulation.

3. Agreement with one another and reflection of an overall true and fair view approach to all employees.

4. Identify the purpose and objectives which the organization wish to attain regarding to its Human Resources department.

5. Analyse all the factors under which the organization’s HR policy will be operating.

6. Examining the possible alternatives in each area which the HR policy statement is necessary.

7. Implementation of the policy through the development of a procedure to support the policy.

8. Communication of the policy and procedures adapted to the entire organization.

9. Auditing the policy so as to reveal the necessary areas requiring change.

10. Continuous revaluation and revision of policy to meet the current needs of the organization.

11. Gain understanding of the corporate culture and its shared values.

12. Analyse existing policies: both written and unwritten existing policies.

13. Analyse external influences as HR policies are subject to the influence of many legislation, regulations and authorities, thus the codes of practice issued by the professional institutions, should also be consulted.

14. Assess any areas where new policies are needed or existing policies are inadequate.

15. Check with managers, preferably starting at the top, on their views about HR policies and where they think could be improved.

16. Seek the view of employees about the HR policies, especially to the extend for which they are inherently fair and equitable and are implemented fairly and consistently.

17. Seek the view of the union’s representatives.

18. Analyse the information retained in the previous steps and prepare the draft policies.

To be more effective, the HR Head must consult, discuss and agree policies with management and union representatives.

Some Other Steps in Formulation of HR Policies:

1. Identify the Areas:

The areas where HR policies are needed are to be identified. Important areas of HR like recruitment, selection, training, compensations must have specific policies clearly spelt out. If need arises, additional policies may have to be formulated for dealing with newer HR issues.

2. Collecting Data:

After selecting the areas, relevant information should be collected for facilitating policy formulation. The company’s records, past practices, industry practices and top management policies should be studied. The organizational culture and employee aspirations should also be taken into account while formulating policies.

3. Evaluating Alternatives:

Once data have been collected, various alternative policies can be designed. Each alternative has to be evaluated in terms of their contribution towards the desired objectives. The policies should be for the betterment of the existing HR system and formulated in congruence with other organizational policies. The policies should be finalised after discussion with those people who are directly affected by its implementation.

4. Communicating the Policy:

The policy details should be conveyed to all the workers throughout the organization. Policy manual, in-house journals, notice boards, intranet, etc., can be used to create awareness among employees at various levels. Special communi­cation programmes can be conducted to inform all the concerned people about the new policy.

5. Evaluation of the Policy:

Policies should be evaluated regularly at periodic intervals to ascertain their effectiveness. The actual policy results should be compared with predetermined standards to check if the policy was successful in achieving its objectives. Policies may be reviewed at the organizational level, or outside experts may be invited to review it.

Assessment of existing policies is especially important during crises like labour strikes, lock outs, mass employee grievances, labour union unrest, etc. It is also necessary when company plans to bring about large scale changes like expansion, diversification, adoption of new technology, etc.

HR policies should be designed to promote common interest, create safe and healthy working conditions, give proper recognition for work and accomplishment, recognize impact of change on people, encourage employees’ participation and recognize the functions and responsibilities of the trade unions.

HR Policies – Essentials of an HR Policy Statement 

HR policies facilitate in achieving the organizational objectives, and also ensure a consistent treatment of employees, thereby minimizing the scope of favoritism and discrimination. This ensures efficient utilization of human resources within an enterprise.

The National Industrial Conference Board, USA, has defined HR policies as a ‘written statement of an organizational goal and intent concern­ing matters that affect people in the organization’. According to this view, policies are stated in broad and long-range terms that express or stem from the philosophy or belief of the organizations top authority.

(1) HR policies must be an expression of belief or intent and reflect the philosophy of the top man­agement. It should be stated in a clear and understandable manner leaving no scope for any ambiguity. The policy statement should ensure an alignment of HR objectives with the corporate objectives.

(2) It must have long-range implications, and also meet the requirements of today and tomorrow.

(3) It should be developed with an active participation of the top management.

(4) The development of policies should be steered by a committee of senior executives headed by the chief executive.

(5) The primary function of the HR executive is to serve in a ‘staff’ capacity, feeding in ideas and pushing the project along. Due care should be given to its (policies) formulation.

(6) The HR policies must be approved by the highest authority in the organization, i.e., the Board of Directors.

(7) The policy statement should cover all the functional areas of HRM.

(8) It must be in writing; otherwise it is not likely to be taken seriously. Writing ensures uniformity of application, provides something concrete to base on, and should appeal if there is any disagree­ment as to what the policies are. It also serves as a valuable means of instructing new employees and supervisors. The written policy statement should contain three basic parts, namely, objective, procedure, and definite assignments of specific responsibility to individuals.

Appley has stated ‘readiness to commit oneself to a written policy indicates bigness. Readiness to alter policy with changing conditions in favour of a wise course of action is indicative of greatness’. Readiness to alter policies with changing conditions in favour of a wise course of action implies making the policies more flexible and dynamic. The element of flexibility must be built into the policy statement. Hence, the policies must be stated in a broad sense with a long-term perspective.

HR Policies – Half-Way House Approach to the HRM Policies 

To remove the practical difficulties associated with writing HRM policies, a half-way house approach is often suggested. This approach represents an evolutionary stage in the development of the policies and can easily be adopted by organizations in India, where the HRM function, in general, is still in a developing stage.

Due to practical difficulties involved in writing personnel policies, many organizations consider it virtually impossible to write a complete set of policies at one time; hence, there is need for a half-way house approach. This approach does not require setting up policies on all matters at the same time, but requires matters to be taken up in the process of evolution.

In this approach, managers are provided with less rigid personnel guides representing approved management thinking and an approved framework for action. These guides are subject to revision as circumstances dictate.

Such guides represent all the criteria that a policy statement must fulfil, which include the following:

(1) They are expressions of belief.

(2) They are stated in broad terms.

(3) They are developed through high level of thinking and participation.

(4) They are approved by the highest authority in the organization.

(5) They are in writing.

But such guides differ from policies in one respect; whereas policies have long-range implications, per­sonnel guides are essentially short term in character.

Personnel guides, in the sense of policies in transition, reflect management thinking and provide the basis for personnel decisions but provide no guarantee that the basis would be the same for 5 or 10 years from now.

This approach to the HRM policies offers the advantages that go with built-in flexibility, for person­nel guides are subject to change leaving the door open for better guides. But this flexibility may give rise to problems if personnel guides are subject to abrupt and frequent changes without justification; in that event they are worse than no guide at all, for they may be misleading.

HR Policies – Employees’ Participation in Policy Formulation 

HRM is an integral part of overall management, and operates through the management group as a whole, in so far as every manager has certain HR activities to per­form. Thus, participation at different levels is invariably required in personnel policy formulation. The HR professionals assist the chief of an organization in formulating the policies at different levels, and the line management in implementing it.

The success is achieved when the policies so formulated are prac­ticed by the line. Needless to point out, HR professionals should serve the needs of the line management. There must be a close co-ordination between the personnel and the line people.

In an enterprise, one finds employees at different levels. Participation by those who will apply the policies in their day-to-day activities is desirable both at the initial formulation stage as well as revisionary stages. The nature of duties performed by people at each level is different from those of others. What can be applied to executives cannot be applied to workers at the plant level. Hence, HR policies should be broad enough to be applicable to people at various levels of employees in the organization.

Joint policy making is one of the essentials of sound policy formulation. Policies which are jointly formulated by the people concerned are more practicable and flexible to apply.

Human resource policies begin with identifying the areas requiring such policies; after which steps should be taken to collect the necessary facts, both from internal and external sources. The various policy alternatives should then be identified, resulting in the choice of the most appropriate ones.

The policies then are approved by the top management authority of the organiza­tion. They should then be communicated throughout the enterprise in the form of in-house journals, booklets, policy manuals, notice boards and meetings, and discussions. This would result in getting the required support of the employees.

HR Policies – Committee Approach to HR Policy Formulation 

The practices with respect to policy formulation are noted to differ from enterprise to enterprise. Some of the organizations formulate HR policies through a management conference consisting of the man­aging director, technical director, and director personnel; some do it through a technical committee consisting of functional heads or through an executive committee.

In many organizations, policy for­mulation is noted to be done through a personnel policy committee or personnel committee. HR poli­cies were also noted to have been formulated by the line executives, for instance, director or general manager or the mill manager either by himself or in consultation with functional heads and personnel professionals.

Regarding the composition of the personnel policy committee, it is generally noted to be constituted both by functional executives as well as executives in the personnel and industrial relations departments. The composition is restricted to persons in the managerial cadre. Participation of subordinates/non- managerial employees normally is noted to be nil.

The following personnel/HR matters are known to be included in the agenda of the committee:

(1) Selection and training,

(2) Labour relations,

(3) Incentives,

(4) Work periods, vacations, and hours,

(5) Wages and salaries,

(6) Appraisals,

(7) Promotions and transfers,

(8) Grievances and employees’ discipline, and

(9) Others—suggestions, transportations, etc.

The agenda of the meeting is noted to differ from enterprise to enterprise depending upon the nature of the organization and the process of production or technology employed. For instance, incentives may not find a place in the agenda where the process of production is completely automatized, and indi­vidual productivity is difficult to measure. So may be the case with training and development, where only trained people having only on the job experience were employed.

The functions of the personnel policy committee are as follows:

(1) Framing the overall HR policies,

(2) Serving as an advisory and recommendatory agency in respect of HR policy formulation,

(3) Dealing with matters other than HR policies, and

(4) Assuming implementing responsibility.

HR Policies – Communication of the HR Policies 

The human resource policies must be known and understood before they can be fully affected as guides to action. Not only should the policies be communicated to all concerned, but an educative programme should teach them how to handle various personnel and human resource problems in the light of the developed policy statement.

To be effective, the policies ought to be communicated as widely as possible. If the values represented in the policies are a positive reflection of the values of employees, the commu­nity, and the management, there should be no hesitancy about preparing written statements to be made known to those who apply the policies and those who will be covered by the same.

If the supervisory staff at each level is conversant with the companies’ policies, communication to the employees may be said to have been accomplished. However, to be sure, it may still be desirable to directly inform the employees about policies through published booklets setting forth rights, privileges, and responsibilities.

The morale, efficiency, and the degree of harmony within an organization are closely related to be the effectiveness or otherwise of its communication system. If the communication system is faulty, rumors, inaccuracies, suspicion, and unrest will prevail among the employees; whereas a comprehensive system of communication will encourage a feeling of trust and interest in the affairs and the development of the organization.

In addition to oral or face-to-face communication between the management and the employees, there are a great many other aids to improve communication within the organization. These include employees’ handbooks, personnel bulletins or manuals, sending letters to interested parties, holding meetings for com­munication, posting on bulletin boards, special booklets/handouts, and house journals.

Employees’ hand­outs are found to be a valuable source of information to all new entrants to an organization. They provide the employees with details of the conditions of employment, hours of work, holiday scheme, and pen­sion; basic safety regulations within the company; rules concerning security and protective clothing, and methods of wage payment together with a description of the company policies in promotion, transfer, and dismissal. Mini-handbooks also give a brief history of the company together with a description of its product, raw material, and markets.

Suggestion schemes, properly organized can also be a valuable channel of communication, paying dividends to both the companies and their employees. If suggestions are to serve any useful purpose, certain fundamental rules should be observed.

Careful planning is necessary to ensure that each sugges­tion gets proper consideration; the employees putting forward a suggestion must receive a reasonable explanation, if it is not accepted; the management and supervisors should encourage employees to sub­mit their ideas and perhaps, most important of all, realistic awards should be given for accepted sugges­tions, the amount bearing a definite relationship to the actual saving achieved by the implementation of the suggestions.

HR Policies – Successful Implementation of HR Policy

The successful implementation of an HR policy depends much on the management. In case the inten­tions of the management are good, there is every possibility of the successful implementation of the policy. It is a matter of common knowledge that in industrial organisations, both executive and judiciary powers rest in the hands of the management.

Hence, in the case of any difference of opinion on any clause of the policy, it will be better if the matter is entrusted to a third party who may be an impartial man or body. In this way, the trade union leaders will feel satisfied and a climate of harmony will be sustained.

Simply to implement a policy impartially is not sufficient. It should also appear to be impar­tial. In case the management has to depart from the declared policy in any matter due to its unusual or emergent nature, it will be in the fitness of things if the management explains the background of that case, reasons for taking an exceptional view and justifies its stand in a convincing manner.

If the trade union leaders are also taken into confidence, then it will be still better. Besides, the policies should change with the passage of time depending on the change in the objectives, targets, values and principles of the organisation. Necessary changes should be effected only after soliciting the views, advice and sug­gestions of the representatives of the employees and the well-known experts of the field concerned.

Otherwise also, the policies should be reconsidered periodically, say after every three years or so, and if need be, changes should be effected to make it more meaningful and effective. The moment the management feels that the declared policy is not serving the desired purpose, it should be revised, amended or dropped as the situation demands.

To secure effective implementation of the HR policies, it is desirable that employees at different levels understand the policies in the same sense as the management does. Conflicts arise when employers take policies to mean something different and interpret it differently; making policies understood is a joint responsibility. Line managers have a key role in doing this.

The personnel/HR manager has to play an important role in this respect. The role of the factory managers and the immediate supervisors is equally important. The basic responsibility largely would lie on the frontline managers, for it is they who are responsible for policy implementation; HR professionals can give guidance, but it is the line managers who are on the spot, and have to make decisions about the people.

HR Policies – 6 Important Policies in Various HR Areas 

Personnel policies must cover all areas of human resource management.

Usually policies are framed with regard to all functions of human resource management as stated below:

1. Employment Policies:

(i) Minimum hiring qualifications and experience.

(ii) Preferred sources of recruitment.

(iii) Reservation for different groups.

(iv) Employment of relations of existing personnel.

(v) Reliance on various selection devices such as tests, reference checks, and interviews.

(vi) Placement of new employees, and

(vii) Orientation of new employees.

2. Transfer and Promotion Policies:

(i) Rationale of transfer.

(ii) Periodicity of transfer.

(iii) Promotion of existing staff.

(iv) Length of service required for promotion.

(v) Qualifications and merits required for promotion.

(vi) Weightage to seniority and merit in promotion.

3. Training and Development Policies:

(i) Frequency of training and development programs.

{ii) Basis for training.

(iii) Types of training, viz., on-the-job or off-the-job.

(iv) Programs of executive development.

(v) Career advancement.

4. Compensation Policies:

(i) Minimum wages and salaries.

(ii) Methods of wage payments.

(iii) Individual incentive plans.

(iv) Group incentive plans.

(v) Employee Stock Option Plan (ESOP).

(vi) Profit sharing.

(vii) Non-monetary rewards.

5. Integration and Human Relations Policies:

(i) Employee discipline.

(ii) Handling of grievances.

(iii) Recognition of employees’ unions.

(iv) Employees’ participation in management.

(v) Suggestion scheme.

6. Working Conditions and Welfare Policies:

(i) Kinds and standards of working conditions.

(ii) Number and duration of rest intervals.

(iii) Overtime.

(iv) Types of leaves.

(v) Safety program.

(vi) Types of welfare services.

(vii) Financing of employee services.

There may be so many other personnel policies in addition to the above cited examples. The top management while designing personnel policies must take the human resource or personnel manager into confidence because he is the person who is mainly concerned with performing the human resource functions and implementation of human resource programs and policies.