HR POLICIES & EVOLUTION OF HRM @ Introduction @ Coverage of HR Policies % Need for HR policy @ HR Policies in India: Current @ Definition scenario © ‘Types of HR policy _# Personnel function Vs HRM @ HN Policies: Benefits & Traditional HR Vs, Modern HR Limitations @ Growth of HRM in India @ Characteristics of sound HR policy @ Case study: Dirty business, Bright Bm ag ideas . INTRODUC Human resource policy/personnel policy (both terms used interchangeably) ofa company isa formalsetofrules, procedures and guidelines that govern the company's s with its employees. It sets behavioural, ethical and professional codes that employees are expected to abide by. Itis developed, generally, with middle management and other employees. HR department is responsible for compiling, maintaining and administering the HR policies ofa company. The basic pose of a formal HR policy is to prevent misunderstanding between employ- wes and employers about the rights and obligations of a workplace, It provides a frame of reference to understand what pected of employees in the workp and they can expect from their employers. When formulated in a proper way, HR policy would serve as a one-stop shop for employees looking for information on various company policies such as recruitment, promotion, compensation, training, health, safety, anti-discrimination, anti-harassment, vacation, retirement, ete, Itis generally documented on a company’s Intranet and is accessible to all employees at all times in the form of a printed Policy Manual as well. Policy manuals typical- nconsultation 24HR POLICIES & EVOLUTION OF HRM 25 ly divide policies into subjects or categories. Each policy contains the rule itself, the purpose of the rule and what the penalties are for disobeying it. Having HR policies in place for employees keeps the workplace organised. Without policies, employees will have no way of knowing what their company’s rules are, such as how many vacation days they are entitled to each year. Some companies require their employees to sign a statement agreeing to abide by the HR policies. This statement goes into their personnel record and serves as proof that employees understand the rules of the organisation. THE NEED FOR HR POLICIES HR policies address issues that are important to the organisation's mission or oper- ations. They ensure the company complies with pertinent legislation and adheres to terms of collective agreements. Thus, policies must be regularly reviewed and updated to remain current. HR policies encourage fair and consistent treatment of employees. Policies on hiring, discipline and termination, for example, ensure that all managers follow the same process. HR policies provide the framework for managing staff, while allowing managers to respond and adapt to individual sit- uations. HR policies serve as a guide to employees on how to conduct themselves in the workplace. They provide rules on how employees should perform their jobs and interact with one another. Established norms of behaviour contribute to creating a positive work environment for all. Establishing consistency across the organisation will help employers maintain order in the workplace. HR policies also serve to protect employers in the court of law. If employees bring their employers to suit, the court may look to the company’s HR policies to protect the organisation (or protect the employee if HR policies are deficient). DEFINITION. (HR 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 anumber of issues such as recruitment (the job, for example, reserved for physically challenged only), selection (selection based on merit only), promotion (performance leads to promotion) and compensation (only star performers would get performance bonus, not everyone). Important features of an effective personnel policy can be broadly outlined a: i, It is generally derived from the personnel objectives of an organisation. \ii-itsummaries past experience in the form of useful guidelines that help man- agers to speed-up the decision making process. jii_AS a guide to executive thinking it permits managers to transfer some of the recurring problems to subordinates. ive Tt helps in achieving coordination of organisational members and predicting more accurately the actions and decisions of others.26 HUMAN RESOURCE MANAGEMENT TYPES OF HR POLICIES e Senne mi tare —<——$—————— ~ ee These may be classified into several categories depending on (i) their sourcg (originated, appealed and imposed) (ii) scope (general or specific) and (ii) form, (written or implied). These may be stated thus: @ Originated policies: These are established by top management deliberately so as to guide executive thinking at various levels @ Appealed policies: These are formulated to me peculiar situations which have not been covered by the earlier policies, Such requests usually came from subordinates who fail to handle the cases baseq on guidance offered by existing policies. @ Imposed polices: These are formed under from external agenci such as government, trade associations and unions. @ General policies: They reflect the basic philosophy and priorities of the top managementin formulating the broad plan for mapping out the organisation's growth chart. @ Specific policies: These policies cover specific issues such as hiring, reward- ing and bargaining, Such policies, however, should be in line with the basic framework offered by the general policies. ¢@ Written orimplied policies: implied policies are inferred from the behaviour of members ( such as dress code, gentle tone while talking to customers, not getting angry while at work etc.). Written policies, on the other hand, spell out managerial thinking on paper so that there is very little room for loose interpretation. BENEFITS OF HR POLICIES Policies, as useful instructional devices, offer many advantages to the personnel working at various levels. These are: \_@ Delegation: They help manceers operating at different levels to act with confidence without the need for consulting superiors every time. __ © Uniformity: They increase the chances of different people at different levels ofthe organisation making similar choices, when independently facing similar situations. They make the actions of organisational econsistent. __# Better control: Aspersonnel policiesspecify therelationship shared between the organisation, managementand its employees, they allow members to work towards achievement of the objectives of the organisation without friction/ conflict, paving the way for better control. __% Standards of efficiency: Policies can also serve as i xecution of work. They enable the management to see if they have been translated into action by various groups in the organisation or not. In the light of the actual performance, existing policies may be subjecte ent. ce} = _HR POLICIES & EVOLUTION OF HRM 27 \w Confidence: Policies make. loyees aware of where they standin the organisation and create confidence in them while confronting routine and recurring problems. They reduce chances of misinterpretation, misrepresen- tation and friction, Handling Employee Concerns: Many companies have written procedures for handling employee complaints, whether they are internal, informal complaints or allegations made about the employer to enforcement agencies. The benefit of this policy is to document your company’s co, 4 ii a’ rac- ices and how suc! are resolved. These policies also benefit employees because they provide important information about workplace communication in the event an employee is unsure of who he/she contacts to discuss any concerns or problems. Workplace Safety: In a time when more than worker safety in the performance of his/her job is the primary issue addressed in safety policies, employers distribute policies that address matters such as workplace violence. These types of policies are generally discussed in detail with employee groups; an emergency evacuation _— policy isn't effective if you don’t discuss it until the eimergency happens. Another benefit to having a human resources safety policy i ce to federal ite guidelines for workplace safety. Organisational Structure: An introduction to the human resources policy manual explains the organisational structure, what departments fulfil which expectations and company leadership. In the introductory section, many employers also explain the company philosophyasitis related to customer service, co-workers, leadership and business ethics. Ethics statements are extremely popular, especially in a world where social responsibility is observed by a large number of the population. This section of a human resources policy manual may also state the company’s compli- ance with federal, state and local anti-discrimination laws. NP peedy decisions: Policies can speed up decision making by providing a blanket framework within which personnel decisions can be made. They summarise past experience. Coordinating devices: HR policies help in achieving coordination. If organ- isational members are guided by the same policies, they can predict more accurately the actions and decisions of others. They ensure a steady course of action and prevent unwarranted deviations from planned operations. -Obstacles in Administering HR policies The factors which obstruct the implementation of HR policies are: @ Manytimes managersarereluctantin fallow palicyguidelines forthey restrict the scope of managerial work and curtail executive freedom. @ Often confli een impli jolicy statements espe- cially on employment matters. For example, a policy of promoting employees28 HUMAN FLSOURCE MANAGEMENT on the basis of merit only (expressed) may be sabotaged by unserupulous managers by promoting ‘yes men’ (implied) @ HR policies demand constant revision, modification ind re ever, they are characterised by considerable inertia Once persist and become unalterable, In the absence of review and appraisal, it would be difficult to break the eyele and effect a desirable policy change. @ HR policies are not easy to communicate, From the time policies are initiated tothe time they are us , there is always the danger of falling into ‘generalities and pleasantries’ ructuring, How stablished, they Since policies rant freedom to managers as to what is to be done ina particular situation, there is always the ger of some gers strictly adhering to rhetoric and others deviating from the path excessively. A manager may be more liberal than was orig: and vice versa. In general, ‘the extra margin’ of liberty may or may not prove to be an investment in the Jong run, o In order to overcome these obstacles, it is necessary to understand the ba policy formulation and revision, It would be pertinent to look into the ess¢ of a sound personnel policy at this stage. CHARACTERISTICS OF A SOUND HR POLICY While developing sound HR policies, management should pay attention to the following: ees to objectives: Policies must be capable of relating objectives to func- tions, physical factors and company personnel. ~¢ Easy to understand: Policies should be stated in definite, positive, clear and understandable language. _@ Precise: Policies should be sufficiently comprehensive and prescribe limits and yardsticks for future action. a hilin well as flexible: HR policies should be stable enough to assure peo- ple that there will not be drastic overnight changes. They should be flexible enough to keep the organisation in tune with the times. __¢ Based on facts: HR policies should be built on the basis of facts and sound judgment and not on personal feelings or opportunistic decisions. Appropriate number: There should be as many personnel policies as nec- essary to cover conditions that can be anticipated, but not so many that they | become confusing or meaningless. | + hast fair and equitable: Personnel policies should be just, fair and equitable to internal as well as external groups. For example, a policy of recruitment from within may limit opportunities to bright candidates from outside; and a policy of ‘recruitment from outside only’ would limit promotional avenuesHR POLICIES & EVOLUTION OF HRM 29 to promising internal candidates. To ensure justice, it is necessary to pursue both the policies scrupulously and to apply them carefully. Reasonable; HR policies must be reasonable and capable of being accom- plished. To gain acceptance and commitment from employees, they should be ‘conditioned by the suggestions and reactions of those who will be affected by the policy’. @ Review: Periodicreview of HR policies is essential to keep in tune with chang- ing times and to avoid organisational complacency or managerial stagnation. For instance, if the current thinking is in favour of workers’ participation in management, the personnel policy should be suitably adjusted to accommo- date the latest fad, accepted by many in the organisation. HR policies, to be sound, should also have broad coverage in addition to satisfying the above conditions. Hence, it would be appropriate to discuss the coverage of personnel policies here. COVERAGE ORT RECUIGIESE ‘The coverage of personnel policies has been cla HRM by Michael Armstrong and is outlined as: ‘sified on the basis of functions of a. Social responsibility ~~ Equity: Treating employees fairly and justly by adopting an even-handed approach. ~~ Consideration; Considering individual circumstances when decisions affect the employee's prospects, seniority or self-respect. © Quality ofwork life: Increasing the interestin the job and organisation by reducing monotony, increasing variety of responsibilities and avoiding stress and strain, b. Employment policies: Provision of equal employment opportunities involves - selecting the candidates based on job requirements and encouraging them to put in their 100%. . Promotion policies: Promotion policies should reconcile the demands of employees for growth and the organisation’s demands for fresh and much more promising talent. Promotion policy should be fair and just to all. d. Development policies: Policies should cover the kind of employees to be trained, time span of training programmes, techniques, rewarding and awarding system, qualifications and experience of the trainer, encouraging the employees for self advancement, etc. These policies also cover areas like career planning and developrrent, performance appraisal, organisational _ e. Relations policies: Relations policies cover different aspects of human rela- tions like: policies regarding motivation, morale, communication, leadership30 HUMAN RESOURCE MANAGEMENT styles, grievance procedure, disciplinary procedure, employee counselling, et¢ These policies also cover the areas of industrial relations like union recogni tion, union representation, collective bargaining, prevention and settlement of industrial disputes and participative management. In order to be effective they must be written on the basis of authentic information available from different sources. HR POLICIES IN INDIA: CURRENT SCENARIO wa As things stand now, any issue regarding labour is treated as a politically sensitive issue. The field is bombarded with a variety of chaotic, strangulating, overlapping and often contradictory laws that require a thorough overhaul. Most of these piec- es of labour legislation seem to have outlived their existence. The reasons for the sordid state of affairs could be catalogued thus: 1. Absence of exit policy: The number one demand of the industry exposed to global competition is with regard to ‘exit policy’. Industrialists and entrepre- neurs of mid and small scale units are unanimous in their demand for having greater freedom in choosing appropriate numbers for running their units. The Industrial Disputes Act, 1947 comes in the way of retrenching surplus staff when the employer is faced with recessionary conditions - arising out of factors over which the employer has very little control. If the freedom to hire and fire is missing, then the employer is overburdened with problems of various kinds such as having to feed the staff who cannot be put to pro- ductive work because of outdated skills, living with a constant fear of having to draw the shutters down because of lack of cost competitiveness, finding it extremely difficult to innovate and thereby outwit competition by not having the flexibility to even outsource quality work from specialist agencies, etc. Labour Reforms in India: A healthy beginning (May 2020) The government proposes to take the 40 different central labour laws and 100 state laws and merge them into four codes. The first of these proposed new codes will regulate wages; the second will define industrial relations; the third will look into occupational safety, health, and working conditions; and the fourth, most importantly, will regulate social security. The broad goal is to improve and ensure ease of doing business in India. The four codes have been drafted and put out in the public domain for a while now. The three codes on wages, industrial relations and occupational safety have ensured that employers get a sense of heightened ease of doing business. However, the impact on the worker is uncertain. Trade unions, however, have opposed the changes quite vociferously in recent times. Workers have a reason to feel vulnerable. Under the changes envisaged in the Industrial Relations Code, only firms that employ more than 300 workers need government approval to fire its staff (revised upwards from the earlier limit of 100 workers). Strikes are on the way to getting almost banned, with strict provisions on notice periods and harsh penalties for defaulters. Minimum wages willnowberevised onlyHR POLICIES & EVOLUTION OF HRM 31 once every five years, and the code is also rather vague on interstate differences and on payment for overtime work. Initiatives of Central government @ Under Payment of Bonus Amendment Act, eligibility limit for payment of bonus enhanced from ¥ 10000/- to % 21000/- per month and the Calculation Ceiling from & 3500/- to % 7000/- or the minimum wages. @ Payment of Wages (Amendment) Act, 2017 enabling payment of Wages to employees by Cash or Cheque or crediting it to their bank account. @ Child Labour (Prohibition and Regulation) Amendment Act, 2016 pro- vides for complete ban on employment of children below 14 years in any occupation or process. @ Maternity Benefit Amendment Act, 2017, increases the paid maternity leave from 12 weeks to 26 weeks. @ The Employee Compensation (Amendment) Act, seeks to rationalize penalties and strengthen the rights of the workers under the Act. @ The Payment of Gratuity (Amendment) Act, 2018, provides flexibility to . the Central Government firstly to increase the ceiling limit of gratuity to such amount as may be notified from time to time and secondly to enhance the calculation of continuous service for the purpose of gratuity in case of female employees who are on maternity leave to such period as may be notified from time to time. Vide Notification dated 29th March, 2018, the ceiling limit_ of gratuity has been increased from % 10 Lakh to 20 Lakh and this period of maternity leave for calculation purpose has been enhanced from 12 weeks to 26 weeks. Governance Reforms Ministry has notified “Ease of Compliance to maintain Registers under various Labour Laws Rules, 2017” on 21st February 2017 which has in | effect replaced the 56 Registers/Forms under 9 Central Labour Laws and_ made thereunder in to 5 common Regis \s. This will save efforts, costs and lessen the compliance burden by various establishments. Model Shopsand Establishments (RE&CS) Bill, 2016 has been circulated toall States/UTs for adoption with appropriate modification. The said Bill inter alia provides for free Establish: fi i it icti ing/closing ti s empl ing night shifts if adequate safety provisi ~@ Under Industrial Employment (Standing Orders) Act, 1946, the category i.e. Fixed Term Employment, with all Statutory Benefits, has been extended to all Sectors to impart flexibility to an establishment to employ people to meet the fluctuating demands, vide the Industrial Employment (Standing Orders) Central (Amendment) Rules, 2018.32 HUMAN RESOURCE MANAGEMENT @ Ministry has also notified Rationalization of Forms and Reports under Certain Labour Laws Rules, 20170n 28.03.2017 for reduction of number of Forms/Returns under 3 Central Acts/Rules from 36 to 12 by reviewing redundant and overlapping fields. @ Unified annual return - “Unified Annual Return returns have been made mandatory in respect of the these Central Labour Acts [the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Maternity Benefit Act, 196] the Payment of Bonus Act, 1965, the Industrial Disputes Act, 1947] on the Shram Suvidha Portal”. (https://labourgov.in/labour-law-reforms) <2. Corruption: Inthe name of enforcing various legislative measures the factory inspectors extract their pound of flesh from employers every now and then, Most employers do not even bother to pay the minimum wages to workers, especially to those working in small and medium enterprises. (In the days gone by, over 85 per cent of manufacturing jobs were with companies that employed fewer than ten people!) For years together, they cook the numbers with a view to avoid health, insurance and social security benefits to work- ers. The provisions of various pieces of labour legislation, as a result, remain strong only on paper. ~3. Workforce in informal sector ignored totally: Over ninety per centoflabour force in India work in the informal and unorganised sector. The Unorganized Social Security Act, 2008 of course was enacted with a clear intent to extend social security benefits to workers in the unorganised sector. However, in the rt e absence ofa. written and enforceable contract between the employer and the is no way tolend ing hand to the unorganised wi ce, 4; Equal pay for equal work not followed: Even in the organised sector, the inciples of equity and natural justice are not followed by most employers, Asa result you have first, second and third class citizens working in the same plant and getting paid vastly different sums for performing similar kind of work. The Contract Labour (Regulation and Abolition) Act, 1970 clearly mandates employers to extend ‘same work, same pay’ (along with social se- curity benefits as well) rule to both permanentand contract workers working — ues Car es in reality this is rarely put into practice even inrepi panies. 5. Organised sector is no better: Recent violent incidents in the Manesar Plant of Maruti indicate that the problem of hiring temporary workers not getting their due - despite putting in years of service. In the name of lean manufac- turing ifemployers resort to hiring through contractors and deliberately plant seeds of distrust between regular and temporary workers, the industrial relations climate would worsen day by day. It is true that organised industry is impacted due to high variability in demand, and in sync with market trends they need to hire more people in the times of peak demand and discharge surplus staff during the lean periods. However, ina labour surplus and capitalHR POLICIES & EVOLUTION OF HRM 33 hungry country like India, such a policy would give unquestioned power to greedy employers who would be exploiting the vulnerability of workers who fail to organise themselves effectively. The existing labour lawsalso encourage sprouting up ofas many unions as possible withina plant orindustry - spoiling the show completely. Inacountry of over 100 billion, the labour policy initiatives cover only 7 percent of employees in the organised sector and the remaining 93 per cent outside the safety net. There is an urgent need to rectify this pathetic situation. The outdated labour laws should be consigned to flames. There is an urgent need to take a refreshing _ fresh look at the way the rules and regulations governing labour policy have to be framed and implemented - keeping the changed rules of the game in mind. _ PERSONNEL FUNCTION VS HRM __ Over the years, the Personnel function has maneel a lot. It was, more or less, a clerical job. Personnel people had a limited role to play in organizations. They were expected to maintain records of people working in a company. When required, they had to appraise performance, offer legal advice, put out fires and serveas policemen overseeing work from close quarters. Personnel department was regarded as a ‘cost centre’. (A cost centre is a division or department within the organisation that brings no revenue or profit—it only costs money for the organization to run this function). Now there is a complete reversal of roles. Modern HR people wear many hats. They slip into diverse roles such as change agent, integrator, trainer, educator, developer, counselor, coach, mentor and a problem solver. They participate in the decision making process at the highest level. They exchange notes with functional heads, project teams and mingle with the rank and file. They are treated with re- spect and dignity. Far from being a cost centre, the HR department is being viewed as a valuable investment, a kind of an irreplaceable, outstanding asset with great promise and potential to yield concrete results for years to come. Let us capture ional HR and modern HR thus: the differences icons a 21 | r TRADITIONAL HR VS. MODERN HR Personnel Management: Human resource management: ‘Traditional Roles Modern Roles 1. Welfare administrator 1, Change agent 2. Policeman 2, Integrator with team building skills 3. Appraiser 3. Trainer, Educator, Developer 4. Advisor 4. Employee champion 5. Legal consultant 5. Counsellor, mentor, coach 6. Fire fighting 6. Problem solver and innovator 7. Mediator |_7. Strategic partnera 34 HUMAN RESOURCE MANAGEMENT Taditional Personnel practice 1. Administrative role 2. Reactive, painfully slow and fragmented initiatives j | 3. Separate and isolated from company mis: sion 4. Production focus, emphasis and orienta- tion Functional organisation 6. Individuals encouraged, singled out for praise, recognition and rewards Bureaucratic rules, regulations, proce- dures; tight division oflabour and special- isation 8. People as expenses; HR is a cost centre 9. Results at the cost of people Modern HR practice 1. Strategic, key, important role 2. Proactive, fast, rapid and integrated initia. tives Key part of organisational mission aw Service orientation and customer focus Process based organisation 6. Cross functional teams; team work and ability to get along with people is most important 7. Organic, flexible; willing to go that extra mile inorder todeliverresultsand succeed 8. People askey investments/prized posses- sions and most important assets: HR is a valuable investment 9. Results with and through people; HUMAN RESOURCE MANAGEMENT: ORIGINS AND GROWTH The field of HRM as it currently exists represents a crystallization of a variety of historical and contemporary factors: The industrial revolution: During this period machines were brought in; technology made rapid progress; jobs were more fragmented where the worker did only a small portion of the total ind specialization increased speed and efficiency but left workers with dull, boring and monotonous jobs. Workers were treated like ‘glorified machine tools’. Employers were keen to meet production targets rather than satisfy workers’ demands. Government did very little to protect the interests of workers, 2. Scientificmanagement: To improve efficiency and speed F W Taylor advoca- ted scientificmanagement. Scientificmanagementis nothing but a systematic analysis and breakdown of work into its smallest mechanical elements and rearranging them into their most efficient combination. In addition to the scientific study of the task itself, pgsioraresied tnacinciv dual alesse dda chases ug oearecy etches Pvstesr sand manlalyy shouldbe excluded. Employees should also be trained carefully by supervisors to ensure that they performed the task exactly as specified by prior scientific analysis. A differential piece rate system was also advocated by Taylor to pro- vide an incentive for employees to follow the detailed procedures specified by supervisors. 3. Trade unionism: Workers joined hands to protect against the exploitative tendencies of employers and the prohibitive, unfair labour practices throughHR POLICIES & EVOLUTION OF HRM 35 unions. Unions tried to improve the lotof workers through collective bargain- resolving the grievances of workers rel: rking condi ~4cHuman relations movement: The famous Hav e experiments con- ducted by Elton Mayo and his Harvard colleagues during 1930s and 1940s demonstrated that employe roductivity was affected not only by the wa the job was designed and the manner in which employees were rewarded economically. but by certain seeialand psychological factors as well. The hu- ‘ale implementation of behavioural science techniques in industry for the first time which included supervisory. See nasi atop yl con ces [oc Bie grammes to strengthen the bonds betweerTabour and management and_ selling programmes whereby emplo encouraged to discuss both work and personal problems with trained counsellors. The movement was also influenced by the growing strength of unions during the late 1930s and 1940s. The rise onism during this period was due to the passage of the Wagner Act which gave workers the | i arga i with Pi matters concerning, wages, job security, benefits and many other conditions of work. ‘5 Human resources approach: The Human Resources Approach recognizes the fact that each employee is unique and wants to be treated differently, People do not dislike work basically. People show a keen desire to achieve goals if the work is structured appropriately, People can use discretion; exercise self direction and self control if they are allowed to work freely. A manager's basic job is to Spent nies, naib ora the service of organisational goals, Even ordinary people can achieve extraordinary things if the work climate is good and there is recognition for meritorious performance. Most principles of HRM are based on the human resources approach only. GROWTH OF HRM IN INDIA Overthe years, the HRM function has undergone rapid transformation. The reactive nature of the job has given way to a proactive approach, HRM has gained stature and strength and is being increasingly viewed as a function of great importance in offering strategic direction to a company. HR managers are made to shift gears, change hats and adapt continually in order to deliver superior results, leveraging on the strengths and capabilities of employees. The various phases in shaping the growth of HR function may be summarized thus: phase: Though it is said that P/HRM a discipline is of recent growth, it Fee acta abt tract 4800 ALC YO% xa: Zicdcrcrn wage ‘rate and incentive wage plans were included in the Babylonian Code of Ham- asearly as 1650 B.C. had originated the - principle of of labour and they understood labour turnover even in 400 B.C. The sp and related concepts of organisation were man relations movement led to the wide38 a HUMAN RESOURCE MANAGEEINT 250 BC. and the Chaldeans had incentive Well understood by Moses around 12 is book Avthasastra) made eplanss sound 400 B.C, Rautilya.in India (in ht rvarious concepts Tike joba analysts, select Legalphase: The carly roots of HRM in India could be traced back tothe periog after 1920, The Royal commission on labour in 1931 sugge ted the appoint. sa spokesperso; montotlabour officer to protect workers’ INU . oflabour Aer independence, The Factories Act, 1948, made it obligatory fo, factories emploving S00 or more workers. “In view of legal compulsions and the enumeration of duties the entire approach of organisations toward their personne! was to comply with the laws and keep the welfare offic 's busy with routine functions” Meanwhile two professional bodies, the Indian tustinuteof Pessonnel Management (1PM) Kolkata and the Nationalnstitute of Labour Management (NILM) Mumbai have come into existence in 1950; Welfare phase: During the 1860s the scope of personnel function h panded a bit, covering | rw ©, participative management, industri, harmony, ete. “In this period, the human relations moveme! esthad also had its impact on Indian organisatiot he legalistic preoccupations slowly gave way to harmonious industrial relations and good HR practices. Development phase; [n 1960s and 70s the HR professi ed more on developmental aspects of human resources. The emphasis was on striking a harmonious balance between employee demands and organisational require- -ments, HRD has come to occupy a cent ge and a focal point of discussion in seminars, conferences and academic meets. The two professional bodi 1PM and NILM, were merged to form the National Institute of Personnel Management (NIPM) at Kolkatta. The following tables capture the picture more accurately TABLE 2 GROWTH OF HRM IN ic ee iain’ YEARS Clerical job Welfare adm inistrator, Policem: Labour welfare, industrial | Administrative job | Appraiser mediator le- relations, personne! ad- galadvisor, fire fighting ministration Developmentorientedjob | Change agent, trainer, integrator, educator Pro-active, growth ori- | Devel uunsellor, ‘grains through human | ented job ea assets solverHR POLICIES & EVOLUTION OF HRM 37 Period Emphasis ef Status Roles Post 2000 | Cost cutting and quality | Survivalofthefittest—full | Compete with the best improvement to survive in | focusonensuringsurvival | and win the economic jungle and growth @ Reorganizing and restructuring phase: Companies have started recog- nizing—during the 1980s-- that human resources are the most important assets of an organisation. A healthy work climate is essential for people to develop their potentialities fully. Employee commitment would enhance if organisations are able to match organisational requirements with employee skills, knowledge and experience ina satisfactory manner. Where HRD (total involvementand full participation ofan individual in his job and life) becomes a way of life, organisations begin to enjoy a kind of competitive ‘edge’ and begin to show superior performance. @ LPG Era; During the 1990's, organisational restructuring and cost cutting efforts have started in a big way-thanks to the pressures of liberalization, privatisation and globalisation (LPG era) forcing companies to focus attention one loyee ca abilities roduct, service ali s eed response, customer ction etc. shortay es of workers The issue of workforce diversity has assume the cultural, religious social, regional backgrounds of workers, especially in global sized companies. ¢ Economic value of HR: Post-2000, most organisations are pitted against global companies-wherever they are—and made to compete with the best. Theresult: HRisnota luxury buta (compelling) competitive necessity. Most companies have realized the importance of creating a healthy work climate in order to attract, develop and retain talent. They have also recognizing the need to keep employees healthy and happy in order to serve customers well. Good HR practices, it is being increasingly realized now, are essential for attracting and retaining talent. Good HR practices enhance employee contributions and help a company run ahead of competition. SUMMARY NN @ HR policies offer an appropriate and legally enforceable framework for man- aging staff. They also help employees to exhibit behaviours that are in sync with norms, practices and policies. Sound HR policies help managers delegate work, bring uniformity of action and ensure better control @ HR policies cover lot of ground in an organisation, depending on necessity and requirements.3B ° HUMAN RESOURCE MANAGEMENT In India the Government has formulated various pieces of labour ley sislation with a view to bring order and discipline in industrial units. Most of the, however, remain on paper due to Jack of enforcement machinery. The personnel function has undergone rapid changes over the ye: I a clerical job initially, a kind of record keeping and policing activity. The pep, sonnel department was treated as a cost centre. When organizations grew jn size and the headcounts increased everywhere, workers started demanding more from management. HRM as we see today isallabout treating people with respect and dignity and giving workers their due share in the organizationa} cake. HR in India passed through some distinct stages. TI arly phase saw the emergence of a discipline and control oriented practices, followed by the stage where compliance with the rule book was stressed. The welfare phase was the result of workers demanding more from management before put. ting their best foot forward. From the 1970s and 80s there is a gradual shift towards the developmental phase where HR managers are playing the roles of a coach, developer, mentor, counsellor, problem solver etc eRe eK 6. . What is personnel policy? Describe the important personnel policies that affect the job of a personnel manager . Explain the coverage of personnel policies. Describe the qualities of a sound personnel policy . Explain how HR policies help in management of human resources. Define HR policies and discuss their nature and importance. Write short notes on: 1. HR Policy initiatives by Government of India since 1990s 2. Obstacles in administering personnel policies Trace the origins of human resource function, What are the principal differ- ences between traditional HR and modern HR? '. Critically examine the evolution and present state of human resource man- agement in India.HR POLICIES & EVOLUTION OF HRM 39 DIRTY BUSINESS, BRIGHT IDEAS: SOL CLEANING SERVICE ‘The Company in a dirty business a8 Enter the business playground called SOL Cleaning Service, Europe's mostadmired compa- nies. The office explodes with colour, creativity and chaos, The walls are bright red, white andyellow. Employees walk around oddly shaped, crazily designed conference tables freely, holding portable phones (also yellow) in their hands. This is the story of a company that’s into the least glamorous business-industrial cleaning to be precise — that works like a high-energy, fast-paced, knowledge driven company whose employees scrub hospital floors, sweep grocery aisles and make hotel beds. Liisa Joronen, 52, SOL's chairman and owner, rightly says that “life is hard, work is hard”, Having understood this, she feels that you must be happy with yourself before you make others happy. The mostly wildly successful company started off in January 1, 1992 with 2000 employees, 1500 customers and revenues of $35 million. The employee count is increasing at amazing speed and so are the revenues, making it one of the most admired companies in Europe. In Finland, and increasingly across Europe, SOL isn’t just a company. It's an icon of what it takes to win in the new world of business. In an industry notorious for low wages, high turnover and lousy service, SOL stands miles ahead of competition and has proved that you don't have to be glamorous to be a cutting edge. It has combined radical innovation with disciplined execution while trying to build a dirty business from scratch. Let's examine, how. Work can be fun [A] Believing that it’s possible to turn cleaner’s hard work can be made interesting; Joronen has built SOL's culture around optimism and good cheer. Its cleaners wear red and yellow jumpsuits that reinforce the company’s upbeat image. A yellow happy face is the company’s logo which is plastered on everything from her blazer to the company’s stationery to its most important budget reports. You find fun and freedom everywhere. There are no titles orsecretaries at SOL, no individual offices or set working hours. The company eliminated all perks and status symbols. Most days, despite her membership in one of Finland's wealthiest families, Joronen commutes to work on her (bright yellow) bicycle. Her mantra is simple: “Kill routine before it kills you.” There are no low-skill jobs. SOL's consciously tries to convert cleaners into customer-service specialists through systematic training covering seven modules, each of which would consume four months and end with a rigorous exam. There are many ways to skin a cat. Likewise there are in- numerable ways to polish a table or shampoo a carpet. Employees, therefore, learn about time management, budgeting, people skills. The whole attempt is to change mindsets, imploring them to make use of their brains as well as their hands. By upgrading its people, SOL upgrades its business. Employees set own targets and aim for the sky At SOL decentralisation is a way of life. The company’s supervisors work with teams to set targets, hire people and negotiate deals with the customers. They setreally tough, ambitious and unrealistic goals — when allowed to do things on their own. In SOL’s case employees40 HUMAN RESOURCE M. Joronen says, “They set targety auld set for them. And because they se vatellite studios and employees Working rrecoveringall expenses alise them with a vengeance re for themselves that are higher than what you we them, they hit them.” Across Finland, SOL has 23 therein makes hat they have enough toreward th ed tight metrics not only set goals but a mselves afte Loose organisations n Liisa Joronen believes in autonomy, but she's performanceis measured along tight performance bene jmarks. Onceacontractis obtained, ed remain alongside the team that does the cleaning re updated monthly ~ reflecting to time. Joronen makes sure that also a stickler for accountability. Employee the salesperson would visit the site work. Individual cleaners carry “qual theiractual performance as rated by customers from time the loose organisation is well supported by good measurements. quires cutting-edge technology Who says a “low-end” business has to bea low’ tech business? Laptops and cell phones are standard equipment for all supervisors at SOL, freeing them to work where they want, how they want. Inside the office (whether at SOL City or any of the 23 studios), there's almost no room for paper. So the company stores all critical budget documents and performance reportson ts intranet, along withtraining schedules, upcoming events, and company news, Asophisticated sales database, also on the Intranet, trac ksall ofSOL's existing customersand high-priority target accounts, when they were last contacted, by whom, and what promises were made. “We use computers more than most computer companies,’ Joronen says, Ten years ago, we couldn't have done what we do today." (Adapted from Gina Imperato’s report on SOL from www.solfi) lity passports” that a Great service re fastcompany.com; company website Beles sets 1. Whatare the key management actions that help SOL to car enthusiasm and commitment? 2. Keeping SOL's case in the backg in hard, low-skilled jobs? 3, Doyou think that SOL is an icon of what it takes to win in the new world of business? Explain. ry out their jobs with zeal, round, how would you help workers find satisfaction