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Class Session 2 --- Principles & Policies Outline Line and Staff relationships
Difference between Policies & Principles
Policies--- Should we adopt them ???Benefits / Aims / Objectives of Personnel Policies
Personnel Department--- Its Organization -Responsibilities & Place in the Organization
Guidelines to formulate Policies ,Types of Policies, Matters to be included in Policy Formulation
Line & Staff Relationships in Organizations Relationship which the managers in an organization deal
with one another are classified into two categories
Line and staff
Line Relationship - authority and responsibility
Receiving and giving instructions or orders. Important as one gets work done through people.
Staff Relationship –giving and taking of advice
Line Staff Relationships in Orgn
General Mgr
Mkt Mgr Fin Mgr HR MgrProd.Mgr
Dy Mgr
Dy Mgr Dy
Mgr Dy Mgr
Officer
Sales
Officer Officer
Officer
Yellow – Staff Relationship
Black – Line Relationship
Asst
Officer
AsstAsst
Organization of Personnel Department
1. Its concerned with the relationships of management to employees
2. Its concerned with the relationships of employees to employees in all matter
3. Personnel department is staff department and has a structure of line type
4. Organization of personnel function depends on the size, structure, range and depth of actions, needs, capacities, nature and location of organization.
5. The degree to which the organization takes personnel function seriously
• Scale of operations large – a separate department is essential
Organizational Structure Personnel Department
Organizational Structure Personnel Department
Personnel Department
Personnel Department
Eg- Hospitals
Personnel Department Eg-FMCG Colgate Palmolive
Levels of Management 3
HR Dept
Vice President HR
3 Managers ( Functional & General
Employees
Personnel Department -g- Pharma cos Merck
Organization Structure
Levels of Management 3
HR Dept Structure Vice President HR
Sr. Executive HR
Executive HR
Responsibility of Personnel Specialist
Human Resource PlanningFormulation of Programmes & ProceduresEmployee Health & Safety ProgrammesTraining and Development of PersonnelWage & Salary Administration Good Labour Management Relations – Grievance handling Employee Benefit ProgrammesPersonnel Research Personnel Audit & Review Work
Airport Authority of India
Functions of Personnel Department Formulating policies & procedureManpower PlanningTraining & DevelopmentRecruitment & PromotionService ConditionWage & Salary AdministrationPAS & CounselingFormulation of various welfare schemes
Functional Chart of AAI
Regional HQ
ChairmanSecretary
Corporate HQ
Airports
Dep't under Board Members OPS Finance Per &A Planning
Corporate HQ
Projects
Vigilance
Commercial
Land Mgmt
Public Relations
Finance & A/cs
Internal Audit
Consultancy
Personnel Department Indian Oil Corporation
Executive Dir HR
GM HR
DGM
HRDT&D
HR/Personnel Dept Shoppers Stop
Officer HR
Asst Mgr
Corporate Mgr HR
Training Analyst
Training Manager
VP HR
Mastek A mix of functional & Matrix Organization
3 Center Heads
Corporate HR Manger
Mastek Development Cell
Personnel Mgmt OD Training Career Path
Oberoi Hotels
Sr.VP HR
Director HR
Training Human Resource
Summary
HRM is a tool that helps managers to plan, recruit, select,
train, develop, remunerate, motivate and make maximum
utilization of human and non human resources for the
organization and society at large.
“One machine can do the work of fifty ordinary men. No machine can do the work of one extraordinary man.”- Elbert Hubbard
Principles Principles are fundamental truths related to
management of Human Resource established by research, investigation and analysis, generally applicable to all organizations.
Henri Fayols’s 14 Principles of Management
Division of Work, Authority, Discipline ,Unity of Command, Unity of direction, Centralization Order, Equity, Espirit De Corps ,Stability of Personnel , Initiative , Remuneration, Individual interest
Some Personnel Principles:
Principle of individual development Principle of free flow of communication Principle of participation Principle of fair remuneration Principle of incentive Principle of scientific selection – right person Principle of Team spirit
Some Personnel Principles
Principle of lean enterprise –create product or service that has value to customer is of perfect quality & delivery on time
Eg – Dabbawalla’s -Their Principles.. Work is Worship Manav seva me bhagwan seva milti hai Unity is strength
Principle of poka –yoke – which means error proofing processes
Personnel Policies
Personnel policies are statements of personal objectives of an organization and provide a broad framework within which decisions on personal matters can be made without reference to higher authorities.
They lay down the criteria for decision making in the field of personnel management.
Purpose of Principles
Principles act as a guide to the managers in formulating policies, programmes, procedures and practices.
They help in solving various personnel problems
Difference --Policies & Principles Policies Principles
A PLAN of Action A fundamental truth established by research, investigation and analysis
A statement of intention , more specific, and commits the management to a definite course of action
Many principles have been established by practice, experience , and observation
It does not spell out a detailed procedure
Are facts which cannot be altered
A well drafted policy should be flexible and broad enough for it to be applicable to varying situations
They come handy in solving many vexing problems since they are universally true.
Difference --Policies & PrinciplesPolicies Principles
It is a guide for managerial decisions and actions
A guide for managers in formulating policies,programmes,procedures and practices
Vary from organization to organization
Applicable to all organizations since they are universally true.
Policies must be stable. Are facts so they would remain facts only
Policies must reflect goals & values of the organization existing.
Principles do not reflect goals and values of the organization
Policies Principles
Some egs. –
Policy of hiring people
Policy on terms and conditions of employment- layoffs, strikes, remuneration hours of work, promotion, housing, uniform, medical assistance etc
Some egs –
Reuters Values Employee DiversityBuilding on our longstanding principles of integrity and freedom from bias, we value diversity.
Eg ---Privacy Policy of TCS
Recruitment Policy of TCS is an equal-opportunity employer
Personnel policy of ABB India – states that each employee would understand his role, take responsibility, and develop him according to the changing needs of job profile and organization.
Should Organizations Adopt Policies ??
Benefits / Aims / Objectives of Personnel Policies
Basic needs of both organization and employees taken care of.
Consistent treatment to all the employees
Stability & Security of work environment
Standard of Performance
Builds employee loyalty and motivation
Resolves Conflicts -- intrapersonal and interpersonal
Guidelines to formulate Policies
Sources for determining the content and meaning of policiesPast Practice in the organization
Prevailing practice in rival companies
Attitudes and philosophy of founders of the company, directors and top management
Attitudes and philosophy of middle and lower management
Knowledge and experience gained from handling countless personnel problems on day-to-day basis
Policy Formulation is an essential pre-requisite for manpower planning.
Identifying the need – The areas where policy has to be formulated identified. Need for a new policy, revision, or an existing policy is voiced by the staff and members of organization
Gathering Information – thru past & prevailing in industry , knowledge and experienced gained from handling problems on day-to-day basis.
Examining Policy Alternatives- involving people who use the policy and live with the policies
Getting Approval – from the top management at right time.
Communicating the Policy - to staff through journals, in house magazines, circulars, meeting, educational programmes etc
Evaluating the policy – after the policy is framed it should be evaluated after a certain time period
Types of PoliciesJucius has identified 2 types
Functional or Organizational – policies which are grouped for different categories of personnel eg- for the mgmt dealing with planning, organizing & controlling etc.
Centralized – are planned for companies with several locations and are formulated at the Head Office
Major Policy – pertain to overall objectives, procedures and control which affect an organization as a whole. They are formulated by the Board of Directors and framework is established within which major executives for the remaining policies necessary to carry out the major objectives of an organization.
Minor Policy- cover relationships in a segment of and organization with considerable emphasis on details and procedures.
Types of Personnel Policies Originated Policies – established formally by top
management Appealed Policies – formulated on requests of subordinates
who want to know handle some situations. Imposed Policies – An organization accepts these policies
due to external agencies like govt.,trade association . Eg- Not to accept any one below the age of 14 according to
the factories act. General Policies – These policies do not relate to specific
issues in particular Specific Policies – Policies relating to specific issue like
staffing compensation , collective bargaining etc Written or Implicit Policies – are inferred from behavior
of managers.
Coverage of Policies
In most companies, policies are established regarding various functions of personnel management which are as follows:-
Coverage of Policies1)Employment:Employment policies should provide
clear guidelines on the following points:
a) Minimum hiring qualifications.
b) Preferred sources of recruitment
c) Reservation of seats for Sc St, handicapped persons and ex-servicemen.
d) Probation period
e) Lay off and rehiring
Eg – Minimum qualification for cabin crew is HSC
Eg – Banks have reservation systems for employees
Eg – BMC , Police departments , Armed Forces
Coverage of Policies2) Training and Development
a) Attitude towards training
b) Objectives of training
c) Basis of training
d) Methods of training
e) Programmes for executive development
f) Orientation of new employees
Eg- Armed Forces, Police Department, Fire Departments, Disaster Management Dept
Coverage of Policies3) Transfers and Promotions
a) Rationale for transfer
b) Seniority required for promotion
c) Relative weightage of seniority and merit in promotion
Eg- Police constables are transferred to urban cities if they belong to some interiors of Maharashtra
Coverage of Policies4. Compensation
a) Job evaluation system
b) Minimum wages and salaries
c) Method of wage payment
d) Profit sharing and incentive plans
e) Non monetary rewards
Coverage of Policies5. Working Conditionsa) Working hoursb) Number and duration of rest intervalsc) Overtime workd) Shift worke) Safety rules and regulationsf) provision of transportation etc
Eg – Tesco paid salaries on hourly basis and time taken off for tea break was not included in total working hours. The company reduced 15 minutes of wages from employees who were late by three minutes. The company did not pay for the first 3 days of sick leave taken by employees and dismissed employees who took many sick leaves
Eg – A poultry unit of US does not let the employees use the freshroom because its an assembly line structure. An employee would use the freshroom when the reliever relieves him
Coverage of Policies 6. Industrial Relations
a) Handling of grievances
b) Recognition of Trade union
c) Suggestion Schemes
d) Discipline and Conduct rules- Punctuality, smoking and drinking
e) Workers participation – through quality circles, total quality management etc
Matters to be included in Policy Formulation
•History of company’s growth•Employment practices and conditions of employment•Grievance redressal procedure •Safety rules and regulations and responsibilities of employees at work•General Practices•Mutuality of interests•Employee financial Aid•Educational Aids•Employees news sheet and house journals•Health & Hospitalization•Vacation with pay•Sickness, death and maternity benefits and allowances•Prohibited Activities•Labour Management & Industrial Relations etc
Nike’s Principles
Minimizing impact on environment There would be no discrimination based on
race, creed, gender and marital status or maternity status age etc
The manufacturer would not have children employed below the age of 18 to produce footwear.
P &G s Principles We show respect for all individuals
We believe that all individuals can and want to contribute to their fullest potential
We value personal mastery
We believe it is the responsibility of all individuals to continually develop themselves and others
We seek to Be the Best
We strive to be the best in all areas of strategic importance to the Company
Innovation is a corner stone of Our Success
We place great value on big, new consumer innovations
TESCO’s Principle Lean Thinking is a way of working which increases value through the
elimination of waste. It has guided our supply chain thinking for over six years. Womack and Jones define waste as:
Errors, Overproduction, Waiting for people, equipment or materials, excess stock, dissatisfied customers
….And suggest an approach to reducing waste..
Specifying value by defining the value a customer places on an good or service
Lining up all the value creating activities or a product along a value stream which reduces the eight wastes
Making value flow smoothly through the pull of the customer in pursuit of perfection
Uni lever’s business principles Standard of Conduct
We conduct our operations with honesty, integrity and openness, and with respect for the human rights and interests of our employees.
We shall similarly respect the legitimate interests of those with whom we have relationships.
Obeying the LawUnilever companies and employees are required to comply with the laws and regulations of the countries in which we operate.
EmployeesUnilever is committed to diversity in a working environment where there is mutual trust and respect and where everyone feels responsible for the performance and reputation of our company.
We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed.
We are committed to safe and healthy working conditions for all employees. We will not use any form of forced, compulsory or child labour.
We are committed to working with employees to develop and enhance each individual's skills and capabilities.
We respect the dignity of the individual and the right of employees to freedom of association.
We will maintain good communications with employees through company based information and consultation procedures.
Conflicts of InterestsAll Unilever employees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company.
Unilever employees must not seek gain for themselves or others through misuse of their positions.
Compliance – Monitoring – ReportingCompliance with these principles is an essential element in our business success. The Unilever Board is responsible for ensuring these principles are communicated to, and understood and observed by, all employees.
Day-to-day responsibility is delegated to the senior management of the regions and operating companies. They are responsible for implementing these principles, if necessary through more detailed guidance tailored to local needs.
Assurance of compliance is given and monitored each year. Compliance with the Code is subject to review by the Board supported by the Audit Committee of the
Family friendly policies should live up and not exist on paper
Men and women at all levels of companies in all stages of their career development and all stages of their life cycle are seeking flexibility to achieve a better work life balance
Family friendly policies are one way to support and recognize the changing needs of employees
SUMMARY