Weakness in any one of the major policies tends to weaken the effectiveness of other policies. 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. Participation of subordinates/non- managerial employees normally is noted to be nil. Appley has stated ‘readiness to commit oneself to a written policy indicates bigness. The practices with respect to policy formulation are noted to differ from enterprise to enterprise. 1.2 An appropriate amount of planning and effort should go into the development and review of a policy before it is presented for approval. 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. 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. After selecting the areas, relevant information should be collected for facilitating policy formulation. Compliance with all appropriate law and regulation. 4 External Factors that Affect Human Resource Management. The policy details should be conveyed to all the workers throughout the organization. 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. Stability of Dividends 7. Dividend Pay-Out (D/P) Ratio 8. In order to add support and value to the advancement of the firm, Human Resources professionals should have deeper understanding of the business so to serve as in-house consultants to management, enhance and perform functional competencies. The overriding critical factor in recruiting is hiring employees likely to succeed and stick around. 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. Disclaimer 9. Implementation of the policy through the development of a procedure to support the policy. Carrying out the programmes result in certain practices. 2. iv. There are a number of ways to communicate policies and procedures to employees: Human Resource Policy and Procedures Manuals. Useful Notes on the Process of Chromosome Replication. Businesses depend on human resources departments to manage key functions related with employee relations, hiring and compensation. This paper identifies the factors companies need to consider when formulating human resource strategy and describes the implementation and monitoring of such strategies in two U. S. corporations: Caterpillar and Graphic Controls. Such guides represent all the criteria that a policy statement must fulfil, which include the following: (3) They are developed through high level of thinking and participation. 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. Strategic human resource management is different from traditional human resource management in its focus on organizational outcomes, its integration of the various functional areas of human resource management, and its concern with more macro perspective on the topic. So may be the case with training and development, where only trained people having only on the job experience were employed. The main purpose of formulating the HR policy is to assist the top executives in reaching the decision in a given situation. All businesses have an internal and external environment. (8) It must be in writing; otherwise it is not likely to be taken seriously. Lorange (1998) stated that human resources are becoming the key focus of strategy implementation and reiterated that people, not financial resources, are the key strategic resources in strategy implementation. Mesolithic Culture Excavated Sites–Findings Revealed! The human resources department of a company must be well versed in current management trends, and stay up to date in terms of emergent strategic orientations. 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. They should then be communicated throughout the enterprise in the form of in-house journals, booklets, policy manuals, notice boards and meetings, and discussions. The role of the factory managers and the immediate supervisors is equally important. (iv) Employment of relations of existing personnel. In case the intentions of the management are good, there is every possibility of the successful implementation of the policy. Employees’ Participation in Policy Formulation. The composition is restricted to persons in the managerial cadre. Policies which are jointly formulated by the people concerned are more practicable and flexible to apply. 4 External Factors that Affect Human Resource Management. Share Your Essays.com is the home of thousands of essays published by experts like you! Important areas of HR like recruitment, selection, training, compensations must have specific policies clearly spelt out. In … 2. HR policies facilitate in achieving the organizational objectives, and also ensure a consistent treatment of employees, thereby minimizing the scope of favoritism and discrimination. Public Policy And Factors Influencing Public Policy Making 1.1 Leading scientists, scholars and writers ... policy making within the human – ecological system. Both are inseparable and as shadows set the outlines of a human being, so do procedures set the outlines of an HR policy. The field has progressed significantly, however, inadequate definitions and spare theoretical development continue to plague it. In simple terms, it is to apply principles or policies. It is the top management which has the final authority to decide whether a policy adequately represents the organisation’s objectives or not. It is necessary to secure active participation of those who are to use and live with the policies. This will also ensure promptness of action. After the necessary information has been gathered and the alternatives examined, the HR department can begin the actual work of formulating the written expressions of the company’s HR policy. Joint policy making is one of the essentials of sound policy formulation. There must be a close co-ordination between the personnel and the line people. Explain the role of the human resources department. As managers adopt a strategic perspective toward human resources, they need to be sensitive to their labor market and employee's attitudes and needs, to the profile of jobs in their companies and jobholder's training and skills, and to key factors that will affect strategic management in their own firms. HR policies provides guidelines for a wide variety of employment relations in the organization. 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. Hence, an HR policy should have brief but complete statements on all the points referred to earlier. Contents 4. Once data have been collected, various alternative policies can be designed. Having a clearly spelled-out course of action for a specific situation can help … 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. An external scan should consider the opportunities that exist which can be advantageous to the department. 8. It is a matter of common knowledge that in industrial organisations, both executive and judiciary powers rest in the hands of the management. 3. Understanding the type of culture that prevails within a firm is important in order to formulate appropriate HR policies and strategies. 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. A committee or a specialist may be assigned the task of collecting the required information from inside and outside the organisation. (6) The HR policies must be approved by the highest authority in the organization, i.e., the Board of Directors. Legal, Contractual Constraints and Restrictions 4. Nature of Earnings […] This planning and review process goes on in a cyclical manner until a positive result can be obtained. The various policy alternatives should then be identified, resulting in the choice of the most appropriate ones. General policy: If suggestions are to serve any useful purpose, certain fundamental rules should be observed. Before publishing your articles on this site, please read the following pages: 1. Image Guidelines 5. Content Guidelines 2. ADVERTISEMENTS: This article throws light upon the top ten factors for consideration of dividend policy. 1. The human resource policies and procedures of the company are made for the advantage and benefit of the company employees and their employment. Working Conditions and Welfare Policies: (i) Kinds and standards of working conditions. The nature of organization, the production... 2. Advantages & Disadvantages of Human Resource Planning. As the company faces challenges in the competitive landscape (see Porter’s Five Forces Analysis of Walmart Inc.), human resource development can increase business resilience, especially in supporting growth against firms like Amazon (Read: Porter’s Five Forces … Content Filtrations 6. 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. Introduction to HR Policy 2. Such knowledge will enable the management to decide whether there is a need to restate or reformulate the policy. Special communication programmes can be conducted to inform all the concerned people about the new policy. TOS4. Check with managers, preferably starting at the top, on their views about HR policies and where they think could be improved. To control the cost aspect of human resources. The human resources department develops the introduction to the set of policies and guidelines and explains the importance of the policies. These constitute guides to action, and serve as a roadmap for the management in decision-making. 1. The success is achieved when the policies so formulated are practiced by the line. 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. (vi) Weightage to seniority and merit in promotion. The strategic plan of the organization defines the organization’s HR needs. Choosing a relevant title is very important to create the policy and procedure of the company as it is the first step to developing a suitable HR policies. A staff expert, a first-line supervisor, a UN ion leader or a rank-and-file employee may voice the need for revision of an existing policy. 4. And of course it doesn’t. Copyright 10. 12. (iii) The attitudes and philosophy of the top management. As for the dichotomy between an HR policy and a procedure, they can be compared to a human being and the shadow. 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 policy statement should ensure an alignment of HR objectives with the corporate objectives. Human Resource Planning b. Recruitments c. Human Resource Management d. Human Capital Management View Answer / Hide Answer Continuous revaluation and revision of policy to meet the current needs of the organization. 6. From time to time the policy should be evaluated in terms of experience of those who use it and of those who are affected by it. Less Government Interference in the Business – The government interference in terms of number of days to set up business, number of forms to be filled and the regulations therefore h… Similarly, a weakness in human resource policies may weaken effectiveness of all other organizational policies. HR policies constitute the basis for sound HRM practices. Usually policies are framed with regard to all functions of human resource management as stated below: 1. A human resource … Agreement with one another and reflection of an overall true and fair view approach to all employees. Mini-handbooks also give a brief history of the company together with a description of its product, raw material, and markets. A real education programme should be set up to teach people how to handle various personnel problems in the light of this newly formulated 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.”. Policies serve the purpose of achieving organizational goals in an effective manner. It will permit decisions to be made in similar situations without repeating the reasons and expensive analysis required initially to state the policy. Implementation 11. Policies are required in various areas of personnel management such as hiring, training, compensation, industrial relations etc. Each alternative has to be evaluated in terms of their contribution towards the desired objectives. Conflicts arise when employers take policies to mean something different and interpret it differently; making policies understood is a joint responsibility. From its beginning as personnel administration, the human resources field has evolved into a … This website includes study notes, research papers, essays, articles and other allied information submitted by visitors like YOU. 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. Discuss the human resources management responsibilities of all managers. It is the basis of control. These types of regulations influence every process of the HR department, including hiring, training, compensation, termination, and much more. 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. Personnel policies must cover all areas of human resource management. The more your team understands and supports the plan, the more empowered they will be to help the company achieve its goals. 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. ii. However, when well done, HR management pays dividends. Policies are also regarded as ‘setting governing regulations or norms’. 4. The policies should be for the betterment of the existing HR system and formulated in congruence with other organizational policies. 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. 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’. Hence, the policies must be stated in a broad sense with a long-term perspective. Every organization needs policies to ensure consistency in action and equity in its relation with employees. Communication of the HR Policies 10. ADVERTISEMENTS: Everything you need to know about the factors affecting human resource planning. The demand pattern (i.e. If you're seeing little actual ROI for an open social media policy, consider establishing guidelines and monitor how it impacts workflow. (1) HR policies must be an expression of belief or intent and reflect the philosophy of the top management. (iii)... 2. While many human resources department are self-contained entities within a larger organization, there are a number of internal and external factors that HR practitioners must deal with to effectively manage the company's most valuable resources -- people - and to sustain a productive workforce. The morale, efficiency, and the degree of harmony within an organization are closely related to be the effectiveness or otherwise of its communication system. Such a policy statement provides guidelines for a wide variety of employment relationships in the organization. It incorporates the philosophy of the top management. Human Resources Management: The Field and Its Environment Chapter 1 Learning Outcomes After studying this chapter, you should be able to: Define human resources management and describe its objectives. In general, the purpose is to align employment needs and recruitment to the goals of the organization. Business management practice requires that an organisation adopts a distinct approach towards managing employees and getting the best out of them. 5. Communication of the policy and procedures adapted to the entire organization. There is an organic unity in policies. Best practices in human resources are shared with other human resources practitioners as an industry-accepted way of doing business from the HR perspective. a policy regarding receiving complaints will require a set of procedures detailing how complaints will be handled). In general, human resources planning needs to take into account the amount of flexibility in terms of hours, dress code and formality tolerated by the company. The basic factors that influence policy formulation are 1. These elements can be contracted or expanded depending upon local conditions and other social and political factors. (v) Reliance on various selection devices such as tests, reference checks, and interviews. Line managers have a key role in doing this. HUMAN RESOURCE AND DEPARTMENTAL PLANNING A GUIDE TO INTEGRATION AND ALIGNMENT External Scan The external scan focuses on identifying those external factors that may affect workforce capacity, given known operational needs and emerging issues. Learn about:- 1. Human Resource Planning - MCQs with answers - Part 1 1. Adjustments are always possible. Both are inseparable and as shadows set the outlines of a human being, so do procedures set the outlines of an HR policy. Welcome to Shareyouressays.com! 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. When choosing a problem, the person should consider how familiar they are with it, how well the understand the basic principles, and whether the topic interests them. sales requirements) 3. Diversity of culture and its impact on human resource policies has become an important topic of discussion. Without a proper contingency plan in the event of employee failure, a whole project can fall apart. Human resource planning is a continuous process. The functions of the personnel policy committee are as follows: (2) Serving as an advisory and recommendatory agency in respect of HR policy formulation, (3) Dealing with matters other than HR policies, and. Human resource is one of the crucial resources and regarded as assets of an organization in order to perform certain tasks, duties and responsibilities in a job entrusted by the management so as make an organisation productive. Chapter 12 - Formulating extension policy. 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. Employment Policies: The business’ goals – that is its strategic imperatives – sit at the heart of any HR strategy and in order to align business and HR needs one key question must to be answered, “Can your organisation’s internal capability deliver its business goals?”This is where HR receives most criticism. To meet the needs of expansion and diversification programmes. Factors Influencing Recruitment Process Given its key role and external visibility, recruitment is naturally subject to influence of several factors. There are two different parts of human resource (hr) policies, first half of the human resource policies and procedures are formulated on the basis of their source and second half of the human resource policies are provided on the basis of their description. A statement of the management’s intention concerning people or formulation of a policy on HR is, thus, needed in every organization. Practices describe how policies are being implemented. The company’s records, past practices, industry practices and top management policies should be studied. Manufacturing organizations are more complex in this respect than those that render services. Another best practice is providing new employees with a formal orientation session where they are fully aware of the company, its philosophy and mission. Gain understanding of the corporate culture and its shared values. Examining Policy Alternatives: On the basis of data collected, alternatives are appraised in terms of … 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. Cost of living, a major factor to consider when determining compensation, is largely dependent on location and, more specifically, the cost of housing. (i) Minimum hiring qualifications and experience. Political factors include areas such as: i. 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. While writing the policy, emotional phrases should be avoided. These may include HR Planning and Outsourcing, Recruitment, Training and Development, employment Contracts Negotiations and Administration, Employee Performance and Exit/Termination Process Management. Simply to implement a policy impartially is not sufficient. 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. HR policies constitute the basis for sound HRM practices. Walmart’s human resource managers optimize the business and its workforce, effectively addressing issues and criticisms. 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