Personnel Policy

Chapter 1

Resource Person: Mir Shai Mazar Baloch

Personnel Policy
Person- Individual human being Personnel- People employed in an organization/ staff of an
organization The body of persons employed by or active in an organization, business, or service. An administrative division of an organization concerned with the body of persons employed by or active in it and often acting as a liaison between different departments Program- An ordered list of events to take place or procedures to be followed; a schedule. Blend of HR objectives, policies & procedures (Overall plan for HR) Policy- A plan of action. A policy statement contains general philosophy & principles regarding concern matter. Guide for action (frame work). Procedure-A set of established forms or methods for conducting the affairs of an organized body such as a business, club, or government. It is a Chronological sequence of steps in order to accomplish means of policy. Method to carry out policy. 2

 Personnel Policy- A policy which deals with

directives & guidelines regarding HR of an organization. Personnel policy is designed to provide managerial and supervisory staff with uniform knowledge in order to assure equitable and consistent application of the policies. It is the responsibility of each manager and supervisor to administer these policies consistently and impartially to promote the equitable treatment of employees.
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Affirmative Action Plan

Affirmative action refers to policies that take factors
including "race, color, religion, sex or national origin into consideration in order to benefit an underrepresented group, usually as a means to counter the effects of a history of discrimination. The focus of such policies ranges from employment and education to public contracting and health programs. Affirmative action is action taken to increase the representation of women and minorities in areas of employment, education, and business from which they have been historically excluded. The EEO (Equal Employment Opportunity is a part of Affirmative Action Plan and legislation in this regard know EEL (Equal Employment Legislative)

Purpose of Affirmative Action

Affirmative action is an attempt to
promote equal opportunity. It is often instituted in government and educational settings to ensure that minority groups within a society are included in all programs. The justification for affirmative action is to compensate for past discrimination, persecution or exploitation by the ruling class of a culture, or to address existing discrimination

Importance of Personnel Policy

I. To bring uniformity & continuity in work II. Standard of Performance III. Stability in actions IV. Loyalty among workers V. Provides guideline for HR planning VI. Ensures discipline VII. Compliance with government legislation
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Personnel Policy Formulation

Policies are not created in vacuum. There are five 1. 2. 3.

principle sources to determine the contents and meaning of policies. Past practices in organization Prevailing practices among other companies of same nature in a region. Attitude & philosophy of board of directors and top management. Attitude & philosophy of middle & lower management. Day to day problems faced by organization
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4.
5.

Kinds of Personnel Policy

1. 2. 3. 4. 5. 6.

Idealistic Personnel Policy Realistic Personnel Policy Flexible Personnel Policy Inflexible Personnel Policy General Personnel Policy Specific Personnel Policy

Effect of Environmental Factors Upon Personnel Policy

Environmental Scanning and Analysis

SCANNING

ANALYSIS

ACTION

Legal consideration The Economy

Mkt

EXTERNAL ENVIRONMENT INTERNAL ENVIRONMENT

Staffing

Labor Force

OPS

Employee & Labor Relations

Human Resource Development

technology

Safety & Health

Fin.
Customer

HR Management Functions

Compensation & Benefits

OFA

Completion

Share holder

Unions

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 Labor Force Legal

The External Environment Components

Competition Customers Technology Economy

Considerations Society ( Social Responsibility) Unions Shareholders

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The External Environment: Proactive Versus Reactive

Reactive Response:
response to change Proactive Response:

Action taken in

Action taken in anticipation of change

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The Internal Environment

Mission Nature of Business Corporate Culture Management Style of Upper Managers

Employees Labor-Management
Agreement

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Implementation of Policies

Formulation of policy Approval by higher authorities Formatting policy Communication of policy with all concerns Implementation

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Role of Personnel Department

Policy Initiation & Formulation Advice Services Controlling & Monitoring of Deviations

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Entrepreneurs philosophy

Management/leadership styles Autocratic- Centralized authority, unilateral decisions without input from employees, power is with chair only. Democratic style- delegated authority, participative decisions. Laissez-faire style- complete freedom to employees to make decision and complete work in whatever way it fits. Consensus- Every one has to agree. Either convince or get convinced. Transactional Style- compromising relationship between leadership & subordinates. Give & take. Contingency style- policies are made with provision to change according to situation. 17

Functions (Scope) of Personnel Policy/HRM

1.Staffing

5.Employee & Labor Relations

Functions of Personnel Policy/HRM

2.Human Resource Development

4.Safety & Health

3.Compensation & Benefits

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1.Staffing

Process through which an organization ensures that it

always has the proper number of employees with the appropriate skills in the right jobs at the right time to achieve the organizations objectives. It includes Job Analysis Personnel planning Recruitment Selection

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Job Analysis
it is a process to identify and determine in detail the particular job duties and requirements and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made about data collected on a job. The Job; not the person An important concept of Job Analysis is that the analysis is conducted of the Job, not the person. While Job Analysis data may be collected from incumbents through interviews or questionnaires, the product of the analysis is a description or specifications of the job, not a description of the person.

Personnel Planning
process which anticipates and maps out the consequences of
business strategy on an organization's human resources. This is reflected in planning of skill and competence needs as well as total headcounts. The decisions are fundamental to an organization. If the implications are major, strategic decisions are taken at the centre of the business. The role of the personnel planning function is twofold: 1. To participate in the decision process by providing information and opinion on each option, including: recruitment costs, consequences on morale, availability of skilled staff within the organization, availability of suitable people in the job market time constraints 2 To support line managers dealing with the people consequences of implementing the decision. Information already gathered provides the basis for a human resource plan

Recruitment
Process of identifying and hiring best
qualified candidate (from within or outside of an organization) for a job vacancy, in a most timely and cost effective manner. Recruitment involves the utilization of organizational practices to influence the number and types of individuals who are willing to apply for job vacancies). Recruitment can focus on the internal labor market (i.e., pursuing staff already employed by the organization) or the external labor market (i.e., pursuing applicants from outside the organization). Internal candidates can be recruited through internal job postings.

Selection
Once the potential applicants are identified, the next step is to
evaluate their qualification , qualities, experiences, capabilities, etc. and make the selection. It is the process of offering jobs to the desired applicants. Selection means choosing a few from those who apply, It is picking up of applicants or candidates with requisite qualifications and qualities to fill jobs in the organization. Selection Process include 1) Initial screening interview 2) Application blank or application form 3) Written examination & other selection tests 4) Comprehensive interview 5) Medical examination 6) Checking the references 7) Final employment decision & Placement

The Difference between Recruitment & selection

Recruitment is the process of searching for
prospective and it helps to create a pool of applicants from which certain required number is selected. Selection is the process of choosing the most suitable candidates from those who apply for the job. It is a process of offering jobs to desired candidates.

 Major Personnel function that consist not only of

T&D but also individual career planning, developing activities and performance appraisal. HRD is composed of Training Development Career planning Career Development Performance Appraisal
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2.Human Resource Development

3.Compensation & Benefits Consist of all direct, indirect, financial & non financial rewards given to employees in return of their services. Pay - Money that a person receives for performing a job Benefits Additional Financial rewards in addition to base pay including paid vocations, sick leave, insurance etc. Non financial Rewards The Job The Environment
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4. Safety & Health Safety involves protecting employees from injuries caused by work related accidents. Health refers to employees freedom from physical or emotional illness. 5. Employee & Labor Relation Deals with employee employer relationship & dealing with labor unions

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