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