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PRINCIPLES OF MANAGEMENT

LESSON 6

POLICIES AND PROGRAMS FORMULATION

Policies and programs are a kind of plan, a plan being a guide to thinking and action. The difference is

that policies are broad guidelines applied to recurring situations. They are meant to be followed or 

observed for as long as they remain relevant to the goals of the company.

Programs are designed to meet particular objectives of the organization and are carried out through a host

of projects related activities with more specific objectives and targets. Upon accomplishment of the

objectives, the project is ended.

Reflecting Management Belief 

As major products of the planning stage of staffing, human resource policies and programs reflect what

management believe in about employing and developing people in the organization.

Program Content

Most often, policies are carried out through programs which, in turn, embody specific responsibilities,

rules, regulations, procedures, and standards affecting the parties involved. A program as a plan generally

contains the following:

1. Title of the program

2. Units involved

3. Policy statement defining purpose

4. Program objectives

5. Responsibilities of those affected and that of the company

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6. Organization- what unit (s) will be in charge, the supporting committees to be created, and their 

relationships

7. Procedures- specific activities to undertake from planning, implementation to evaluation

8. Time frame- when and how long will the program take effect

9. Budget- what resources are needed and how much funds will be allocated

10. Approval- signature of approving authority.

Human Resources Policy

One of the most indispensable policies, written or unwritten, that an organization has is the one on human

resources management. Such policy, whether called personnel, employee relations, human resources, or 

 plain labor policy provides a wide range of guidelines covering more importantly recruitment, selection,

 placement, training and development, performance appraisal, compensation/incentives, safety and unions.

Kinds of Human Resource Pograms

Translated into operations you will, therefore, find in many organizations such programs as (but not

limited to):

1. Recruitment and selection- how vacant positions are filled up either from within or outside (or 

 both) of the firm.

2. Placement/deployment- programming or scheduling where individual personnel will be placed in

what unit or project or location of work, e.g. deployed to central office, branches, factory, etc.

And for how long.

3. Skills and manpower development- training of workers, office staff, technical personnel,

supervisors, and aspirants to supervisory and mmanagerial positions.

4. Management development- helping managers improve their performance and prepare them for 

advancement through experience-based training and education.

5. Performance appraisal- assessing each employee’s work performance based on a set of criteria

regarding accomplishments and/or traits exhibited during a certain duration of employment

(usually one year).

6. Rewards and benefits- describing how employees are rewarded with cash (e.g. promotions,

leaves, insurance, medical services, awards, scholarships, training, home financing retirement) benefits, and company services (e.g. shuttle bus, canteen, sports facilities, clinic, safety clothes,

 parking space, air conditioning); also includes special programs for managers and executives of 

certain positions.

7. Labor or industrial relations – dealing with unions in terms of work policies/procedures agreed to

(or to be agreed upon) between management and employees, settlement of disputes and

grievances, implementation of labor law, collective bargaining, and anything that has to do with

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the relationship between management and its work force; though not all companies have this

 program, and even if their personnel are not unionized, they are well advised to have one because

 properly implemented, it could minimize, if not totally eliminate, disputes and misunderstanding.