Module - 2

Human Resource
Policies & Procedures
 Learning Objectives

Introduction to the Module

Understanding Policies and their Importance

Difference between Policies and Procedures

Human Resource Policies and their Importance

Considerations in Developing an HR Policy

Major Types of HR Policies with Highlights

Conclusion & Wrap - Up

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 What are Policies?
• A policy is a guiding principle used
to set direction in an organization.
It can be a course of action to guide
and influence decisions.
• It should be used as a guide to
decision making under a given set
of circumstances within the
framework of objectives, goals and
management philosophies as
determined by the company senior
management.

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 Why Develop Policies?
• Policies are developed to help staff and management teams run the
organizations.
• In best use situations, policies play a strategic role in the light of the
mission and objectives of the company.
• So they become the media by which management plans, rules,
intents and HR processes become documented and communicated
to all staff.
• Carefully drafted and standardized policies and procedures save the
company countless hours of management time.
• Policies help to organize and announce management's plans for
growth, and they communicate the company's investment in its
employees by explaining employee benefits and workplace issues.

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 Types of Policies
There are really two types of policies:

• The first are rules frequently used as Employee Policies.

• The second are mini-mission statements frequently
associated with procedures.

A policy in a procedure acts as a mini-mission

statement containing the customer of the policy, it’s purpose,
and a key performance indicator (KPI) to communicate how
users know the procedure is working.

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 Categories of Policies

Distributive policies
• Distributive policies extend goods and
services to members of an
organization, as well as distributing the
costs of the goods/services amongst
the members of the organization.

Regulatory policies
• Regulatory policies or mandates limit
the discretion of individuals and
agencies, or otherwise compel certain
types of behavior.

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Policy Process Life Cycle

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 Policy v/s Procedures
POLICY:
A policy is a guiding principle used to set direction in an organization.

• A Policy is a predetermined course of action established as a guide toward

accepted objectives and strategies of the organization. It is at much higher
level than a procedure.

PROCEDURE:
A procedure is a series of steps to be followed as a consistent and repetitive
approach to accomplish an end result.

• Procedures are methods and they are ways of carrying out a policy.

Together they are used to empower the people responsible for a process
with the direction and consistency they need for successful process
improvement.
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 What are Procedures?
• A procedure is a particular way of accomplishing something.
• It should be designed as a series of steps to be followed as a
consistent and repetitive approach or cycle to accomplish an
end result.
• Once complete, you will have a set of established methods for
conducting the business of your organization, which will come
in handy for training, process auditing, process improvement,
or compliance initiatives.

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 Procedures and Forms
• Many people confuse procedure with policy.
• Forms may be part of a procedure.
• Procedures can be developed on how that
interview should be conducted while a form
or checklist can help assure and document
that a particular exit interview was carried
out according to policies and procedures.
• The connection of policy-to-procedure-to-
form raises another important point: policy
development needs to be coordinated with
procedures and forms management.

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 What are Human Resource Policies?
Human resource policies are systems of codified decisions,
established by an organization, to support administrative
personnel functions, performance management, employee
relations and resource planning.

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 Purpose of HR Policies

• HR policies allow an organization

to be clear with employees on:

– The nature of the organization

– What they should expect from the
company
– What the company expects of them
– How policies and procedures work
at your company
– What is acceptable and
unacceptable behavior
– The consequences of unacceptable
behavior

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 Policy as a Tool for Empowerment
• Policies can actually empower employees.
• Policies also provide staff with a degree of freedom
within defined boundaries.
• Good policies enable staff to execute their duties.
• They are free to act within the limits set by policy,
without constant managerial oversight.
• Policies empower staff to do the right thing.

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 Necessary Elements in HR Policies

• Each policy should include all the

elements needed for easy revision and
effective implementation:

– Carefully researched policy language,

– Thorough analysis of underlying
management issues, and
– Comprehensive legal documentation with
clear explanations.

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 Considerations for HR Policies

• Consider:
– Current laws.
– Industry practices.
– Any collective agreements that affect
your organization.
– Issues that address important
concerns and support what your
organization represents.

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 Analyze Each Potential Policy
– How have we handled this issue in the past?
– Does the size of our workforce justify having a policy about
this issue?
– Are we willing to invest the time it takes to keep the policy
up to date?
– What do we hope to accomplish with this policy? What are
the outcomes?
– Will this policy foster something our organization believes
in ?

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 Qualifications of a Good Policy Writer
Good Choices

• Someone with writing and editing skills who

has the time and mobility to interview users
and customers
• Someone who has worked on process
improvement projects
• Someone with excellent organizational skills
and a passion to write documents that can be
understood by the targeted audience
• Analysts, Subject Matter Experts, Leads,
Supervisors, and some Managers

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 Weak Policy Writer
Weak Choices

• Individuals who write business letters

and correspondence but have never
(or infrequently) written policies or
procedures
• Individuals who have the knowledge
but don’t have the time
• Individuals that take content from
others and format it in their own
style but don’t interview users to
ensure the content is correct

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 3 C’s of Policy Writing
Clarity, Conciseness, and Coherence:

• Anyone who is reading a policy manual

wants it simple and straightforward.
• Clear writing is understandable and easy to
read.
• If your writing has clarity, your reader will
immediately grasp your meaning; he will
not have to stop and figure out your
meaning

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 Drafting the Policy
• Drafting the Policy :

– Policy name
– Effective date of policy and date of any revisions
– Approval status
– References
– Purpose of the policy
– Main policy statement
– Definitions of any key concepts or terms used in policy
– Eligibility or scope
– Positions in the organization responsible for
implementing and monitoring the policy
– Procedures for carrying out the policy

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 Policy & Procedure Components
Title:
• Name the policy in a meaningful way. Remember that the company
will have many policies. Each title needs to clearly define to the
reader what the policy addresses.

Effective Date:
• Usually the month and year the policy takes effect is sufficient. If it's
critical, also enter the day.

Last Updated:
• Only applies if this is an update to an existing policy.

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 Policy & Procedure Components
Policy Scope:
• A generic statement including to whom the policy applies.
Example: This policy applies to all employees with customer
contact.

Reason for Policy:

• Self explanatory.
Example: This policy is required in order to standardize
documentation of customer complaints and to ensure resolution.

Policy Content:
• Give specifics of the policy. This includes what needs to be done, not
how to accomplish it.

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 Policy & Procedure Components
Procedure:
• Give specific instructions on how the policy is to be carried out or
accomplished.

Appendices
• Attach or link any forms to which the Policy & Procedure refers.

Additional Information:

• Written By: Individual responsible for writing Policy & Procedure.

• Approved By: Names of Stakeholders
• Policy Owner: Individual responsible for content of Policy & Procedure.
• Policy Contact: Include name, telephone number, and email address of
department that is the primary contact for questions and assistance.

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 ISO 9000 System Format
Ø Title (Name of the policy)
Ø Background (About the service)
Ø Purpose and Scope (What the service does and who the service is for)
Ø Policy Statement (What the service believes)
Ø Procedures (Getting the service right for you)
Ø Performance Indicators (How we know if we’re doing a good job)
Ø Review (Checking we’re doing a good job)

Title (Name of the policy)

A title page includes:
Ø Name of the company
Ø Policy title
Ø Date the policy was written
Ø Date the policy should be reviewed
Ø Actual date the review was conducted

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 The Beginning and The End

• At – Will Disclaimer
The Beginning
• General Disclaimer

• Acknowledgement of Receipt
The End
• Employer Copy & Employee Copy

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 Policy Review & Approval
Policy Review

• Every organization that develops policies needs a review process.

• Here are four possible forms of policy review feedback:
1. The draft seems fine with no further comments.
2. In general the draft seems fine with a few minor exceptions.
3. The draft policy is unacceptable and needs major changes to be effective.
4. No opinion.

Policy Approval

• After review, the Policy is ideally submitted to a higher committee –

like a board of directors, trustees, officers, or the CEO for final
approval.

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 Creating the Policy Manual
• Whether you are updating an old set of policies or creating
new policies a valid need should exist for each policy.
• Ensure that the issue is not already adequately addressed
elsewhere in existing policies.
• Policy creation is a form of research. Research is an ongoing
aspect of keeping policies up to date.
• The policy manual should be a living document very dynamic.
• It includes a complete set of all Company Policies with due
approvals and version references.

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 Distribution of Approved Policy Manual
When a policy or policy manual has been
approved it is time to distribute the
document. You can do this either as a
printed document or via electronic
distribution (email or Web site).

Printed Manual
• The printed manual must be made
available to all employees of the
organization for its full value to be
realized .

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 Major HR Policies
• Workforce Management
• Hiring & Recruitment
• Training & Development
• Compensation & Benefits
• Performance Management
• Time & Attendance
• Code of Conduct
• Equal Opportunity & Employment
• Anti - Harassment & Anti - Discrimination

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 Workforce Management Policy

•Payroll & benefits

•HR administration
•Time & attendance
•Career & succession planning
•Talent management
•Learning management
•Performance management
•Forecasting and scheduling
•Workforce tracking and emergency assist

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 Time and Attendance Policy
• Should include Work timings, lunch time,
travel time, waiting/idle times overtime,
relevant legislation, local agreements and
the contracts of individual employees –
including work-life balance guidelines.

• Different types of leaves of absence

should be included :
– Medical Leave of Absence
– Parental Leave of Absence
– Family Care Leave of Absence
– Personal Leave of Absence etc

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 Time Away From Work
A. Attendance and Punctuality
B. Vacation
C. Personal Days
D. Sick Days
E. Accommodations (Disability/Religious/ Others)

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 Hours of Work Considerations

A. Business Hours
• Regular hours
• Special days/late nights
• Inclement weather

B. Making Schedules/Changing Schedules

• How are schedules established?
• Can they be altered by employee agreement (switching) or is
manager approval needed?
• Posted, circulated electronically

C. Telecommuting/Flex Time

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 Recruitment & Hiring Policy

· Recruiting Sources
· Selection and Hiring Procedures
· Offer Letter
· Reference Checking
· Background Investigations
· Rejecting An Applicant
· Equal Employment Opportunity
· Physical and Educational Requirements
· Medical Inquiries and Examinations

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 Addressing Sources of Recruitment
• Internal Sources • External Sources
– Retrenched Employees – Placement Agencies/ Consultants
– Retired Employees – Campus Recruitments
– Dependent of deceased employees – Off-campus Recruitments
– Internal Job Postings – Employees working in other orgs
– Promotions – Employment Agencies
– Demotions – Referrals
– Moving across verticals – Walk-Ins

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 Key Aspects of T & D Policy
• Introduction/definitions/scope (purpose and reach of policy)
• Cultural/philosophical (values, vision, ethos, guiding principles, etc)
• Legal (health and safety, discrimination, etc)
• People (where people stand in organizational priorities, input, care, etc)
• Methods (career development, succession)
• Systems/tools (training manuals, knowledge and information management
• Process/operations (how T&D relates to operations)
• Financial (planning, budgets, prioritization, etc)
• Responsibility/authority (how T&D is managed, enabling voluntary and extra
T&D)
• Social responsibility (CSR, ethics, environment, sustainability, diversity)
• Review and measurement (accreditation, qualifications, independent audit,
etc)

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 Compensation and Benefits Policy
• Employee benefits in kind are various non-wage compensations provided
to employees in addition to their normal wages or salaries.
• Some of these benefits are:
– HRA
– LTA
– Medical Reimbursement
– Insurance (health, dental, life etc.)
– Conveyance
– Retirement Benefits
– Profit sharing etc.
• The Compensation policy should state the proportion of fixed and
variable components.
• The policy should be formulated considering the tax implications.

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 Payroll Practice Considerations
A. Timekeeping /Reporting
B. Overtime
C. Pay Periods
D. Bonuses/Commissions
E. Deductions – mandatory and voluntary

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 Employee Benefit Considerations
A. Another disclaimer!
B. Eligibility
C. Right to modify
D. General overview – leaving flexibility
E. Reference to master documents
F. Special Laws

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 Performance Management Policy
· Performance Appraisal
· Frequency of Appraisals
· Informal Discussion
· Significant Events
· Supervisor Training
· Factors to be Appraised
· Supervisors’ Recommendation and Documentation
· Action Plan
· Performance Goals
· Employee’s Opportunity to Comment
· Final Review
· Timing of Evaluations
· Accurate and Fair Evaluations
· Negligent Evaluation and Performance Review Defamation

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 Grievance Redressal Policy
Objective:

• To create a work environment, which would be free of

hostility and try breed in a work culture which propagates a
free and open thought process, encouraging growth and
harmony free from encumbrance of force.

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 Code of Conduct Policy
Objective:

• The objective of code of conduct is to create a safe equal and

ambiguity less work environment.
• It is just as essential that employees act in a professional
manner and extend the highest courtesy to co – workers,
visitors, customers, vendors and clients.
• Various policies like dress code, use of company
communication, open door etc
• Clear in definitions and terms
• The operating authority and the consequences of violation of
policy

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 Equal Employment Opportunity Policy
A. Commitment to equal opportunity
B. Any special programs
C. Application to all facets of employment

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 Anti-Harassment &
Anti-Discrimination Policies
A. Zero tolerance
B. Addresses Sexual Harassment also
C. Include sample prohibited behavior – they are
prohibited even if they are not illegal
D. Complaint procedure with several avenues for
reporting
e.g., Supervisor, HR, Hotline, anonymous reporting,
dedicated website
E. Investigation
F. No retaliation

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 Advantages of Good HR Policies
• Curbing litigation
• Communication with employees
• Communication with managers and supervisors
• Time Savings

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 HR Policy Challenges
• Time/money to create and administer
• Impersonal, regimented
• Focus on rights/entitlements
• Can’t cover every situation

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Thanks!