1. HUMAN RESOURCE POLICIES

1 MEANING OF HUMAN RESOURCE POLICY
Definition of HR policy:
HR policies can be defined as broad stated statements that guide an organization when making
decisions in managing their people. They define the philosophies and values of the organization
on how people should be treated, and from these are derived the principles upon which managers
are expected to act when dealing with HR matters. HR policies therefore serve as reference
points when employment practices are being developed, and when decisions are being made
about people. They help to define ‘the way things are done around the organization’.
HR policies should be distinguished from procedures. A policy provides generalized guidance on
the approach adopted by the organization, and therefore its employees, concerning various
aspects of employment. A procedure spells out precisely what action should be taken in line with
the policy.
Characteristics of a good HR policy:
A good HR policy should be;
1. Based on objectives: they should assist in attainment of the organizational objectives.
2. Clear; should not give room for misinterpretation.
3. Expressed in written form to assist in compliance, training and future reference.
4. Based on careful consideration of the resources available and environment of the
organization.
5. Revised regularly but stable.
216. Communicated to concerned persons so that they understand and implement the policy. This
can be done by conducting regular meetings to give information on the policies, immediate
giving oral instructions, use of booklets and bulletins, conferences and seminars etc.
7. It must conform to the norms of behavior and ethical standards.
8. Should be uniformly applied to all members in an organization to avoid discrimination.
Types of policies:
1. Organizational and functional policies.
Organizational policies are overall policies for an organization which are formulated by the top
management. Functional policies are made for specific functions or departments.
2. Originated or appealed or imposed policies.
Originated policies are formulated by top management on their own initiative to guide the
actions of the subordinates and then put in writing in form of a policy manual. Appealed policies
are formulated by the management on appeal/ request by their employee while imposed policies
are formulated because factors imposed on the organization by external forces.
3. General and specific policies.
General policies are stated in broad terms and they give freedom to departments to make
decisions based on those broad terms. Specific policies are defined and limit freedom of action.
4. Written and implied policy
Written policies are those that are documented while implied policies are got from the behavior
and conduct of the members of the organization especially those in the top management.
Sources of HR policies:
There are many sources from which an organization may get policies from. These sources
include:-
1. Past practices of the organization.
2. Competitors.
3. Knowledge and experiences from day to day personnel problems.
224. Employees suggestions and complaints.
5. State/ government requirements.
6. Economic and social changes in a country.
7. Extent of influence of trade unions.
8. Objectives of the organization.
9. Ethical standards / social responsibility.
Human resource principles applied in formulating HR policies:
A principle is a statement of basic fact that has been tested through experiment or experience.
When preparing policies, The HR principles below are applied;
1. The incentive principle: states that to increase productivity of the workers, incentives should
be given whether in monetary or nonmonetary terms.
2. Workers should be given a chance to participate or be involved in decision making.
3. Principle of communication; Employee must be given appropriate information regarding
activities, objectives, immediate and future plans of the organization.
4. Principle of compensation; states that workers should be paid a reasonable, equitable and
fair amount of wages depending on nature of work, level of education, management policy,
government regulations.
5. Principle of team work (Espirit de corps); states that efforts should be made to develop team
work and cooperation among workers.
6. Principle of right conditions of work; Workers should be provided with right tools and
equipment to make the work easier, increase production as well as productivity.
7. Principle of self-development; means giving employees an opportunity to improve
themselves through career guidance and training programmes.
8. Principle of dignity of labour; All jobs should be treated with dignity because they
contribute to achievement of organizational objectives.
9. Principle of security; All jobs must have a degree of security and stability.
233.2 IMPORTANCE OF HUMAN RESOURCE POLICIES
HR policies are important in an organization because;
1. HR or employment policies help to ensure that when dealing with matters concerning
people, an approach in line with corporate values is adopted throughout the organization.
2. They serve as the basis for enacting values i.e. converting espoused values into values in
use.
3. They provide frameworks within which consistent decisions are made, and promote equity
in the way in which people are treated.
4. Because they provide guidance on what managers should do in particular circumstances they
facilitate empowerment, devolution and delegation.
5. They assist in long term survival of an organization.
6. Helps demonstrate both internally and externally that the organization meets requirements
for diversity; ethics and commitment as well as compliance with legal frame work of the
country and corporate governance.
7. They also help to shape organizational culture.
3.3 AREAS COVERED BY HUMAN RESOURCE POLICIES
HR policies can be expressed as overall statements of the values of the organization. The main
points that can be included in an overall policy statement and specific policy areas are set out
below.
(a) Overall policy:
The overall policy defines how the organization fulfills its social responsibilities for its
employees and sets out its attitudes towards them. It is an expression of its values or beliefs
about how people should be treated. The formation of an institution is marked by the making of
value commitments, that is, choices which fix the assumptions of policy makers as to the nature
of the enterprise, its distinctive aims, methods and roles’. The values expressed in an overall
statement of HR policies may explicitly or implicitly refer to the following areas:
x) Equity:
24Treating employees fairly and justly by adopting an ‘even handed’ approach. This includes
protecting individuals from any unfair decisions made by their managers, providing equal
opportunities for employment and promotion, and operating an equitable payment system.
(ii) Consideration:
Taking account of individual circumstances when making decisions that affect the prospects,
security or self-respect of employees.
(iii) Organizational learning:
A belief in the need to promote the learning and development of all the members of the
organization by providing the processes and support required.
(iv) Performance through people:
The importance attached to developing a performance culture and to continuous improvement;
the significance of performance management as a means of defining and agreeing mutual
expectations; the provision of fair feedback to people on how well they are performing.
(v) Work-life balance:
Striving to provide employment practices that enable people to balance their work and personal
obligations.
(vi) Quality of working life:
Consciously and continually aiming to improve the quality of working life. This involves
increasing the sense of satisfaction people obtain from their work by, so far as possible, reducing
monotony, increasing variety, autonomy and responsibility, and avoiding placing people under
too much stress.
(vii)Working conditions:
Providing healthy, safe and so far as practicable pleasant working conditions. One of the
dilemmas facing all those who formulate HR policies is how to pursue business-led policies
focusing on business success, and also fulfill the obligations to employees in such terms as
25equity, consideration, work-life balance, quality of working life and working conditions. It may
be difficult to express these policies in anything but generalized terms, but employers
increasingly have to recognize that they are subject to external as well as internal pressures.
(b) Specific policies:
The specific policies should cover the following areas: equal opportunity, managing diversity,
age and employment, promotion, work-life balance, employee development, reward,
involvement and participation, employee relations, new technology, health and safety, discipline,
grievances, redundancy, sexual harassment, bullying, substance abuse, smoking, AIDS, and e
mails.
i) Equal opportunity
The equal opportunity policy should spell out the organization’s determination to give equal
opportunities to all, irrespective of sex, race, creed, disability, age or marital status. The policy
should also deal with the extent to which the organization wants to take ‘affirmative action’ to
redress imbalances between numbers employed according to sex or race, or to differences in the
levels of qualifications and skills they have achieved.
(ii) Managing diversity
A policy on managing diversity recognizes that there are differences among employees and that
these differences, if properly managed, will enable work to be done more efficiently and
effectively. It does not focus exclusively on issues of discrimination, but instead concentrates on
recognizing the differences between people. The concept of managing diversity ‘is founded on
the premise that harnessing these differences will create a productive environment in which
everyone will feel valued, where their talents are fully utilized, and in which organizational goals
are met’.
Managing diversity is a concept that recognizes the benefits to be gained from differences. It
differs from equal opportunity, which aims to legislate against discrimination, assumes that
people should be assimilated into the organization, and often relies on affirmative action. A
management of diversity policy could: acknowledge cultural and individual differences in the
26workplace; state that the organization values the different qualities people bring to their jobs;
emphasize the need to eliminate bias in such areas as selection, promotion, performance
assessment, pay and learning opportunities; focus attention on individual differences rather than
group differences.
(iii) Age and employment
The policy on age and employment should take into account the following facts: Age is a poor
predictor of job performance. It is misleading to equate physical and mental ability with age.
More of the populations are living active, healthy lives as they get older. The policy should
define the approach the organization adopts to engaging, promoting and training older
employees. It should emphasize that the only criterion for selection or promotion should be
ability to do the job; and for training, the belief that the employee will benefit, irrespective of
age. The policy should also state that age requirements should not be set out in external or
internal job advertisements.
(iv) Promotion
A promotion policy could state the organization’s intention to promote from within wherever this
is appropriate as a means of satisfying its requirements for high quality staff. The policy could,
however, recognize that there will be occasions when the organization’s present and future needs
can only be met by recruitment from outside. The point could be made that a vigorous
organization needs infusions of fresh blood from time to time if it is not to stagnate. In addition,
the policy might state that employees will be encouraged to apply for internally advertised jobs,
and will not be held back from promotion by their managers, however reluctant the latter may be
to lose them.
(v) Work-life balance
Work-life balance policies define how the organization intends to allow employees greater
flexibility in their working patterns so that they can balance what they do at work with the
responsibilities and interests they have outside work. The policy will indicate how flexible work
practices can be developed and implemented. It will emphasize that the numbers of hours
worked must not be treated as a criterion for assessing performance. It will set out guidelines on
27specific arrangements that can be made, such as flexible hours, compressed working week, term
time working contracts, working at home, and special leave for parents, career breaks and
various kinds of child care.
(vi) Employee development
The employee development policy could express the organization’s commitment to the
continuous development of the skills and abilities of employees in order to maximize their
contribution and to give them the opportunity to enhance their skills, realize their potential,
advance their careers and increase their employability both within and outside the organization.
(vii) Reward
The reward policy could cover such matters as: providing an equitable pay system; Equal pay for
work of equal value; paying for performance, competence, skill or contribution; sharing in the
success of the organization (gain sharing or profit sharing); The relationship between levels of
pay in the organization and market rates; The provision of employee benefits, including flexible
benefits if appropriate; The importance attached to the non-financial rewards resulting from
recognition, accomplishment, autonomy, and the opportunity to develop.
(viii) Involvement and participation
The involvement and participation (employee voice policy) should spell out the organization’s
belief in giving employees an opportunity to have a say in matters that affect them. It should
define the mechanisms for employee voice, such as joint consultation and suggestion schemes.
(ix) Employee relations
The employee relations policy will set out the organization’s approach to the rights of employees
to have their interests represented to management through trade unions, staff associations or
some other form of representative system. It will also cover the basis upon which the
organization works with trade unions, for example, emphasizing that this should be regarded as a
partnership.
(x) New technology
28A new technology policy statement could state that there will be consultation about the
introduction of new technology, and the steps that would be taken by the organization to
minimize the risk of compulsory redundancy or adversely affect other terms and conditions or
working arrangements.
(xi) Health and safety
Health and safety policies cover how the organization intends to provide healthy and safe places
and systems of work.
(xii) Discipline
The disciplinary policy should state that employees have the right to know what is expected of
them and what could happen if they infringe the organization’s rules. It would also make the
point that, in handling disciplinary cases, the organization will treat employees in accordance
with the principles of natural justice.
(xiii) Grievances
The policy on grievances could state that employees have the right to raise their grievances with
their manager, to be accompanied by a representative if they so wish, and to appeal to a higher
level if they feel that their grievance has not been resolved satisfactorily.
(xiv) Redundancy
The redundancy policy could state that it is the organization’s intention to use its best endeavors
to avoid involuntary redundancy through its redeployment and retraining procedures. However,
if redundancy is unavoidable those affected will be given fair and equitable treatment, the
maximum amount of warning, and every help that can be provided by the organization to obtain
suitable alternative work.
(xv) Sexual harassment
The sexual harassment policy should state that: Sexual harassment will not be tolerated.
Employees subjected to sexual harassment will be given advice, support and counselling as
required. Every attempt will be made to resolve the problem informally with the person
29complained against. Assistance will be given to the employee to complain formally if informal
discussions fail. A special process will be available for hearing complaints about sexual
harassment. This will provide for employees to bring their complaint to someone of their own
sex if they so wish. Complaints will be handled sensitively and with due respect for the rights of
both the complainant and the accused. Sexual harassment is regarded as gross industrial
misconduct and, if proved, makes the individual liable for instant dismissal. Less severe penalties
may be reserved for minor cases but there will always be a warning that repetition will result in
dismissal.
(xvi) Bullying
An anti-bullying policy will state that bullying will not be tolerated by the organization and that
those who persist in bullying their staff will be subject to disciplinary action, which could be
severe in particularly bad cases. The policy will make it clear that individuals who are being
bullied should have the rights to discuss the problem with a management representative or a
member of the HR function, and to make a complaint. The policy should emphasize that if a
complaint is received it will be thoroughly investigated.
(xvii) Substance abuse
A substance abuse policy could include assurances that: Employees identified as having
substance abuse problems will be offered advice and help. Any reasonable absence from work
necessary to receive treatment will be granted under the organization’s sickness scheme provided
that there is full cooperation from the employee. An opportunity will be given to the employee to
discuss the matter once it has become evident or suspected that work performance is being
affected by substance-related problems. The employee has the right to be accompanied by a
friend or employee representative in any such discussion. Agencies will be recommended to
which the employee can go for help if necessary. Employment rights will be safeguarded during
any reasonable period of treatment.
(xviii) Smoking
The smoking policy would define no-smoking rules including where, if at all, smoking is
permitted.
30(xix) AIDS
An AIDS policy could include the following points: The risks of infection in most workplaces
are negligible. Where the occupation involves blood contact, as in hospitals, doctors’ surgeries
and laboratories, the special precautions advised by the Health and Safety Commission will be
implemented. Employees who know that they are infected with AIDS will not be obliged to
disclose the fact to the company, but if they do, the fact will remain completely confidential.
There will be no discrimination against anyone with or at risk of acquiring AIDS. Employees
infected by HIV or suffering from AIDS will be treated no differently from anyone else suffering
a severe illness.
(xx) E-mails
The policy on e-mails could state that the sending or downloading of offensive emails is
prohibited, and that those sending or downloading such messages will be subject to normal
disciplinary procedures. They may also prohibit any browsing or downloading of material not
related to the business, although this can be difficult to enforce. Some companies have always
believed that reasonable use of the telephone is acceptable, and that policy may be extended to e
mails. If it is decided that employees’ e-mails should be monitored to check on excessive or
unacceptable use, then this should be included in an e-mail policy which would therefore be part
of the contractual arrangements. A policy statement could be included to the effect that ‘The
company reserves the right to access and monitor all email messages created, sent, received or
stored on the company’s system’.