FORMULATING HR

POLICIES
 POLICIES
COMPANY POLICIES HR POLICY

•  Are broad guides for •  Is a plan of action that

action. serves as guide particularly
in matters related to
•  Define the responsibility
employee selection, hiring
of supervisors & and firing, fringe benefits,
managers in their jobs. training & development,
•  Indicate the best method evaluation, promotion,
of conducting any portion emotion, transfer, wages
of work at hand. and salaries, grievances,
discipline, medical care,
•  Assist in employee
hospitalization and
problem-solving and retirement.
decision-making.
CLASSIFICATION
GENERAL SPECIFIC

•  Applies to the entire •  Applies to a particular

organization and then department of division or
defined by an unit.
implementing policy
statement for a specific
department or division.
CLASSIFICATION
•  AS TO ORIGIN
•  AS TO LEVEL IN THE ORGANIZATION
•  AS TO FUNCTIONS OR ACTIVITY GROUPINGS
CLASSIFICATION
•  AS TO ORIGIN
a.  Imposed policies are those required by the
government such as laws, rules, procedures and
administrative orders.
b.  Appealed policies are formulated when a subordinate
endorses to his superior matters not covered by the
existing policies. The decision or instruction given to
the subordinate becomes an appealed policy and will
serve as a guide on matters of similar nature in the
future.
c.  Originated policies are those originated by the BOT or
top executives for the guidance of all parties: the
stockholders , management members, customers and
employees.
CLASSIFICATION
•  AS TO LEVEL IN ORGANIZATION
a.  BASIC POLICIES. These are policies formulated at
the start of the business, but they may be amended to
cope with changing conditions. They are broadly
stated and serve as guides for all.
b.  GENERAL POLICIES. These policies are used by
middle management. They consist of specific guides
in line with the basic policies.
c.  DEPARTMENT POLICIES. These policy statements
are intended to guide those in lower management in
carrying out the general policies and eventually the
basic policies of the organization.
CLASSIFICATION
•  AS TO FUNCTIONS OR ACTIVITY GROUPINGS
a.  Human Resource Policies
b.  Financial Policies
c.  Production Policies
d.  Sales Policies
DESIRABLE HR POLICIES
OF AN ORGANIZATION
HR POLICIES
1  The organization believes it is
good business to promote good
employee relations. The most
important assets of the
organization are capable and
satisfied employees.
HR POLICIES
2  Applicants for employment will
be considered solely on the
basis of fitness, ability and
desirability for the work at hand.
HR POLICIES
3  An employee of the
organization, through either
initial appointment or promotion
will have to undergo probation
from a minimum of 3 months to
a maximum of 6 months.
HR POLICIES
4  The organization shall pay fair
and equitable compensation in
accordance with the principle of a
“fair day’s pay for a fair day’s
work”. The organization shall
maintain leadership in
compensation in comparison to
the usual industry rates.
HR POLICIES
5  Good employee benefits will be
offered to meet the needs of the
employees.
HR POLICIES

6  Working conditions will be

constantly improved in
accordance with good
community practice.
HR POLICIES
7  It shall be the policy of the
organization to recognize
outstanding work and unusual
progress and development.
HR POLICIES
8  Promotions will be made with
proper consideration as to
ability, merit and length of
service. It is the organization’s
policy to fill all vacancies
whenever possible by promotion
or transfer of present
employees.
HR POLICIES
9  The company Union will be recognized
as an organization that is endeavoring to
improve the social and economic status
of those it represents. The company or
organization will deal with its officers and
those they represent sincerely and
considerately and on business-like basis
with a view to developing the greatest
mutual confidence and respect.
HR POLICIES
10 Contracts which the Organization
has entered into with the Union
on hours of work, rates of pray,
and other conditions of
employment will be administered
strictly in accordance with the
intent of their provisions.
GUIDELINES
For Effective HR Policy Formulation
HR Officer/Manager
• Represents the management in
administering, implementing and
interpreting HR policies.
• S/he must know how a policy is made
and administered.
• S/he must ensure that the policies are
compatible with current business
conditions, CBA trends, and
government regulations.
HR POLICY formulation:
1.  TOP MANAGEMENT may
formulate and issue it. When the
top executive is presented with a
problem, his decision becomes a
policy. The result is an originated
policy which is usually broad in
scope and may be detailed or
specific.
HR POLICY formulation:
2.  BY A COMMITTEE, BOT, or
KEY PERSONS in the
organization.
HR POLICY formulation:
3.  Certain PRACTICES,
PROCEDURES, ACTIONS and
PRECEDENTS that have been
consistently followed for
sometime, crystalize into
policies.
HR POLICY formulation:
4.  MEMORANDUM issued by TOP
EXECUTIVES for the guidance of
his subordinates on certain
matters can be sources of policy.
HR POLICY formulation:
5.  ADMINISTRATIVE ORDERS
and PROCEDURES or
CONTRACT SPECIFICATIONS
are called imposed by policy.
HR POLICY formulation:

LOWER LEVEL INITIATED

EFFORTS MAY ALSO LEAD TO
POLICY FORMULATION WHEN
COMMUNICATED UPWARD TO
TOP MANAGEMENT.
CHARACTERISTICS OF
GOOD HR POLICIES
POLICIES:
1.  Should reflect objectives and plans.
2.  Should be consistent.
3.  Should be flexible.
4.  Should be distinguished from rules and
procedures.
5.  Should be in writing.
6.  Should be taught.
POLICIES:
7.  Should be controlled.
8.  Should be stable.
9.  Should be consistent within the company
at all levels and departments.
10. Must be sincere.
11. Must be realistic.
GUIDES TO EFFECTIVENESS
OF POLICIES
IMPORTANT GUIDES
1.  Flexibility.
2.  Comprehensiveness
3.  Coordinative.
4.  Ethical.
5.  Clarity.
 POLICY MUST LEAD TO THE
GOAL.
IF NOT, IT SHOULD BE REVISED.
POLICIES MUST BE SUBJECT TO CONTINUAL RE-EXAMINATION.

ULTIMATE TEST OF POLICY EFFECTIVENESS

USES OF POLICIES
USES
1. To inform the public,
customers and others of the
philosophy of management of
an organization for their
guidance in dealing with the
organization.
USES
2.  To serve as a guide on labor
relations.
USES
3.  To enable executives to
make decisions or take
actions on matters under
their jurisdiction.
USES
4.  To justify the actions of
executives on problems
presented to them for
decision.
USES
5.  To provide uniformity and
consistency in action.
USES
6.  To enable executives to
delegate more routine
matters to their subordinates.