Article No. 05 - How to formulate the HR Policies within the organization

The development of HR policies depends upon the day-to-day problems arising in an organisation and their solutions. The main purpose of formulating the HR policy is to assist the top executives in reaching the decision in a given situation. The process of policy formulation involves the following steps:

Formulate the HR policy within the organization is quite important. Steps that should be followed in the formulation of human resource policy are mentioned below:

1. Identifying the Need:

If an organisation does not already have an appropriate HR policies, the personnel manager should feel the need. He should also convince the chief executive of the need of required HR policies. Policies are required in various areas of HR management such as hiring, training, compensation, industrial relations etc.

A staff expert, a first-line supervisor, a union leader or a rank-and-file employee may voice the need for revision of an existing policy.

2. Gathering Information:

Once the need for a policy has been accepted, the next step is to collect necessary facts for its formulation. A committee or a specialist may be assigned the task of collecting the required information from inside and outside the organisation.

Facts may be gathered from any of the following sources:

(i) Past practice in the organisation.

(ii) Prevailing practice among the companies in the community and throughout the nation in the same industry.

(iii) The attitudes and philosophy of the top management.

(iv) The attitudes and philosophy of middle and lower management.

(v) The knowledge and experience gained from handling countless problems on a day-to-day basis.

The HR department should study existing documents, survey industry and commu­nity practices and interview people within the organisation to collect appropriate infor­mation.

Special attention should be paid to attitudes and philosophy of top manage­ment, social customs and values, aspirations of employees, labour legislation etc.

Wide­spread consultations and discussions at this stage prove helpful later on when it comes to applying the policies.

3. Examining Policy Alternatives:

On the basis of data collected, alternatives are appraised in terms of their contributions to organisational objectives. It is necessary to secure active participation of those who are to use and live with the policies.

4. Putting the Policy in Writing:

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. While writing the policy, emotional phrases should be avoided.

5. Getting Approval:

The HR department should send the policy draft to the top management for its approval. It is the top management which has the final authority to decide whether a policy adequately represents the organization's objectives or not.

6. Communicating the Policy:

After getting the approval of the top management, the policy should be communicated throughout the organisation. A real education program should be set up to teach people how to handle various personnel problems in the light of this newly formulated policy.

7. Evaluating the Policy:

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. There may be situations when an organisation is not getting the expected results.

This requires modifications in the policies. Any serious difficulty with a policy along with suggestions should be reported to the top manage­ment.

Such knowledge will enable the management to decide whether there is a need to restate or reformulate the policy.

Need for Formulation of HR Policies

Formulating HR policies is necessary for several reasons. These include:

1. Setting clear expectations: HR policies establishes clear guidelines and expectations for employee behavior, conduct, and performance. This helps to ensure consistency in the workplace and provides a framework for addressing issues and concerns.
2. Compliance with laws and regulations: HR policies ensures that the organization complies with relevant employment laws and regulations, such as those related to discrimination, equal employment opportunity, and workplace safety.
3. Attracting and retaining employees: An organization that has a well-formulated HR policies can attract and retain employees by providing a clear and fair framework for compensation, benefits, and performance management.
4. Promoting a positive work environment: HR policies can promote a positive work environment by setting expectations for respectful behavior, addressing harassment and discrimination, and promoting work-life balance.
5. Enhancing organizational performance: HR policies is aligned with organizational goals and values can enhance organizational performance by promoting employee engagement, productivity, and commitment to the organization.

Overall, the formulation of a required HR policies is essential for creating a positive and productive work environment, ensuring compliance with legal requirements, and promoting organizational performance. It provides a framework for managing human resources effectively and efficiently.

List of References

Vskills CERTIFIED(2023). Formulation of Personnel Policy [Online]. Available at: https://www.vskills.in/certification/tutorial/formulation-of-personnel-policy/. [Accessed on 28th of August 2023].

zambian guardian(2021). Process Of Policy Formulation [Online]. Available at: https://www.vskills.in/certification/tutorial/formulation-of-personnel-policy/. [Accessed on 28th of August 2023].