HR policies provide a framework for employee behavior and management decisions. They aim to treat employees fairly and consistently in areas like hiring, termination, evaluations, and discipline. Developing strong HR policies involves determining objectives, gathering information, examining alternatives, getting approval, and periodic reviews. The policies should be clear, flexible, fact-based, equitable, and communicated to all employees. A comprehensive HR policy manual typically addresses topics like recruitment, benefits, payroll, workplace guidelines, and more.

1. HR POLICY
Shaikh Sajibur Rahman
AMC, BIM

2. Policy Vs Procedures
What is HR Policy?
Purpose of HR Policy
Importance of HR Policy
Feature of HR Policy
Content of HR Policy
Steps of Developing HR policy
© 2010 by Nelson Education Ltd. 2

3. The differences between policies and procedures can be summarized as follows:
 Policies guide of decision making, while procedures drive actions.
 Policies leave some room for managerial discretion, while procedures are detailed and
rigid.
 Policies are an integral part of organizational strategies, while procedures are tactical
tools.
 Policies are generally formulated by top management, while procedures are laid down
at lower organizational levels in line with policies.
 Policies are more evergreen than procedures. Procedures change more frequently,
because they should be adaptable to the changing operational environment and
technological advancements.
Differences between Policy and Procedure

4. HR POLICY
• HR policies are the principles or objectives established by a Company for the
guidance of the management in its relationship with employees.
• HR policy is one of the most important aspects of running a business.
Creating a human resource (HR) policy is one of the most important aspects
of running a business. A formal, written human resources policy can aid in
communication with employees, assist managers and help avoid litigation.
• In other words, Human Resource policies are systems of codified decisions,
established by an organization, to support administrative personnel
functions, performance management, employee relations and resource
planning.
• In short, it is a statement of intention committing management to a general
course of action

5. Objectives of HR Policy
 To provide fair, acceptable & efficient leadership;
 To provide an opportunity for expansion & voice in management;
 To strengthen & appreciate the human assets continuously by providing
training & developmental programs;
 To provide facilities & conditions of work & creation of favorable
atmosphere for maintaining stability of employment;
 To attain an effective utilization of human resources in the achievement of
organizational goals, etc
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6. HR policies serve as a resource for dealing with various situations that occur in the
workplace. They encourage managers to treat employees fairly and consistently.
Policies on hiring, termination, performance evaluation and disciplinary action
provide managers with the framework to manage staff. So HR policy is important
and adopt in an organization.
Human resources policies provide the framework by which employees are expected to
behave in the workplace. The importance of HR Policy as follow.
 Coming on Board
 Workplace Rules
 Fairness
Importance of HR Policy

7.  Improved Chain of Command
 Expense Reimbursement
 Terminations
 Clear thinking
 Uniformity and consistency of Administration
 Continuity and Stability
 Orientation and Training
 Delegation of Authority
 Prompt Decision Making
 Standard of Performance
 Employee Morale and Loyalty.
Importance of HR Policy

8.  Established polices assure consistent treatment of all personnel throughout
the organization.
 Continuity of action is assured even though top management personnel
change.
 Policies serve as a standard of performance. Actual result can be compared
with the policy to determine how well the members of the organization are
living up to professed intentions.
 Sound policies help to build employee enthusiasm and loyalty. This is
especially true where the policies reflect established principles of fair play and
justice and where they help people grow within the organization
Importance of HR Policy

9. The characteristics of a good HR policy
While developing sound personnel policies management should pay attention to the
following things:
1. Related to Objectives: Policies must be capable of relating objectives functions,
physical factors and company personnel.
2. Easy to Understand: Policies should be stated in define, positive, clear and
understandable language.
3. Precise: Policies should be sufficiently comprehensive and prescribe limits and
yardsticks for future action.
4. Stable as well as Flexible: Personnel policies should be stable enough assure people
that there will not be drastic overnight changes. They should be flexible enough to
keep the organization in tune with the times.

10. The characteristics of a good HR policy
5. Based on Facts: Personnel policies should be built on the basis of facts and
sound judgment and not in personal feelings or opportunistic decision.
6. Appropriate Number: There should be as many personnel policies as
necessary to cover conditions that can be anticipated, but not so many
policies as to become confusing or meaningless.
7. Just, Fair and Equitable: Personnel policies should be just, fair and equitable
to internal as well as external groups.
8. Reasonable: Personnel policies must be reasonable and capable of being
accomplished. To gain acceptance and commitment from employees, the
policy should be conditioned by the suggestions and reactions of those who
are affected by the policy.

11. The characteristics of a good HR policy
9. Review: Periodic review of personnel policies is essential to keep in tune
with changing times, and to avoid organizational complacency or
managerial stagnation.
• It should be clearly stated so that there can be no question as to what it
proposes.
• It should presumably be uniform throughout the organization. Variations
cause misunderstanding among employees.
• It should be understood and interpreted in a uniform manner throughout
an organization.
• It should be appropriate, that is, well chosen in terms of the total situation
faced by the individual management. Policy cannot simply be copied
from another organization.

12. The characteristics of a good HR policy
• It should be communicated to all who are responsible for seeing that they are
implemented. It should be in writing.
• It should be consistent with public policy.
• It should conform to the Government regulations.
• It should be definite. Ambiguity and uncertainty are destructive of the
organization morale.
• It should be stable yet possess sufficient flexibility to meet changing
conditions.
• It should recognize individual differences in capacities, interests, ambitions
and the desire for job security.
• It should give due regard to the interest of all personnel the workers, the
consumers the public and the owners of the capital.

13. STEPS IN POLICY FORMULATION
1) Setting Statement of Objectives
2) Setting up of Program and Procedures
3) Identifying the Needs
4) Gathering Information
(Information may be gathered from any of the following sources)
 Past practice in the organization.
 Prevailing practice among the companies in the community and throughout
the nation in the same industry.
 The attitudes and philosophy of the top management.
 The attitudes and philosophy of middle and lower management.
 The knowledge and experience gained from handling countless problems on a
day-to-day basis.

14. STEPS IN POLICY FORMULATION
5) Examining Policy Alternatives
6) Putting the Policy in Writing
7) Getting Approval
8) Communicating the Policy
9) Evaluating the Policy

15. Contents of HR Policy
 1. Our Company
 Introduction
 Welcome Letter from the President
 Company History
 Company Objectives/Mission
 Organization Chart
 Statement of Growth, Profit, and Business Plan
 Statement of Commitment to Employees
 Continuity of Policies - Right to Change or Discontinue
 Acknowledging Receipt of Policy Manual
 Acknowledging Electronic Receipt of Policy Manual

16. Contents of HR Policy (contd.)
 2. Employment Policies
 Recruitment
 Announcement of New Positions
 Employee Selection Process
 Employment Eligibility Verification — Forms
 Immigration Law Compliance
 Equal Opportunity
 New Hire
 Rehire

17.  Relatives
 Return to Work after Serious Injury or Illness
 Employee Orientation
 Confidentiality of Company Information
Conflict of Interest
 Medical Evaluations and Interviews
 Disability Accommodation
 Outside Employment
 Grievance Procedure
Contents of HR Policy (contd.)

18.  Gratuities to Government Employees or Officials
 Gratuities to Customer or Supplier Representation
 Inventions and Patents
 3. Employment Status & Records
 Anniversary Date and Reinstatement
 Reinstatement
 Employment Classifications
 Access to Personnel Files
 Consent to Release Information
 Background Checks
Contents of HR Policy (contd.)

19.  Authorization to Provide Information
 Performance Review and Salary Merit Increases
 Performance Improvement
 Job Descriptions
 Equal Pay
 4. Employee Benefits
 Vacation
 Child Care
 Holidays
 Workers' Compensation Insurance
Contents of HR Policy (contd.)

20.  Sick or Personal Leave
 Voting
 Jury Duty
 Military Service
 Bereavement Leave
 Relocation of Current or New Employees
 Temporary Assignment Allowance
 Professional Memberships
 Health Insurance
 Health Benefits Continuation (COBRA)
Contents of HR Policy (contd.)

21.  Short-term Disability Insurance
 Long-term Disability Insurance
 Life Insurance
 Employee Assistance Program
 Flexible Spending Account
 Employee-Incurred Expenses and Reimbursement
 Mileage Reimbursement
 Travel Reimbursement
 Required Management Approval
Contents of HR Policy (contd.)

22. Contents of HR Policy (contd.)
 Educational Assistance
 Parking
 Kitchen — Break Room
 Employee Recognition
 Matching Gifts Plan
 5. Payroll
 Salary Administration
 Payroll Deductions
 Shift Premium
 Timekeeping

23.  Payday
 Pay Deductions
 Pay Advances
 Overtime Compensation
 Termination
 6. Workplace Guidelines
 Record Retention
 Employer Security
 Employee Safety
Contents of HR Policy (contd.)

24. Contents of HR Policy (contd.)
 Injured On the Job
 Emergency Instructions
 Employee Privacy
 Workplace Search Policy
 Workday
 Smoking
 Meal and Rest Periods
 Non-Business or Social Visits
 Use of Company Vehicles
 Use of Rental Car on Company Business
 Emergency Closings
 Flextime

25.  Telecommuting
 Compressed Workweek
 Cell Phone Policy
 Telephone Use
 Medical Leave of Absence
 Family Leave, Parental Leave and Pregnant
Employees
 Family Leave
 Pregnant Employees
 Leave of Absence and Military Leave
 Visitors
 Recreational Activities–Sponsorships
Contents of HR Policy (contd.)

26.  Code of Conduct
 Substance Abuse
 Drug and Alcohol Policy
 Drug Testing
 Attendance
 Dress Code
 Sexual Harassment
 Workplace Violence
 Workplace Emergency Plan
 Political Activities
Contents of HR Policy (contd.)

27.  7. E-Policies
 General Principles
 User Responsibilities
 Access to Information Technology Resources
 Abuse of Information Technology Resources
 Unauthorized Use and Sanctions
 Digital Millennium Copyright Act
 Management Access to Technology Resources
 E-mail Policies
Contents of HR Policy (contd.)

28.  Spyware Policy
 Internet Usage Policy
 Content Filtering
 Internet Access and Administration
 Making Company Purchases over the Internet
 Virus Protection
 Internet Security
 Internet Miscellaneous
 Disaster Recovery Policy
Contents of HR Policy (contd.)

29. To be effective, a policy must meet the following seven criteria:
 Policy is an expression of belief.
 Policy is always stated in broad terms.
 Policy must be long-range. Policies must provide for today, tomorrow
and a decade from now.
 Policy must be developed through the active participation of top
management.
 Policy must be approved by the organization's highest authority.
 Policy must be inviolate.
 Policy must be in writing.
Seven Criteria

30. Organizations should have HR policies as they ensure the following
benefits:
 The work involved in formulating HR policies requires that the management
give deep thought to the basic needs of both the organization and the
employees.
 Established policies ensure consistent treatment of all personnel throughout
the organization. Favoritism and discrimination are, thereby, minimized.
 Continuity of action is assured even though top-management personnel
change.
• Policies serve as a standard of performance.
• Sound policies help build employee motivation and loyalty.
• Sound policies help resolve intrapersonal, interpersonal and intergroup conflicts.
Why Adopt HR Policies?
•

31. Our attitude towards employment and hiring at Volvo Vostok is based on the HR
policy presented below.
 Encouraging diversity: At Volvo Vostok it does not exist a stereotype ideal
employee. We want our co-workers to use their individual qualities in order to find
new and original approaches to solving problems.
 Team spirit: We aspire to create a company culture promoting a continuous
exchange of experiences, creative thinking and the use of different approaches in
the process of solving a task.
 Professional growth: We challenge our employees with tasks that demand
maximal commitment and offer those how do well great career opportunities.
 Reward: The corporate employee reward policy provides favourable conditions
and individually adjusted rewards based on results.
 Training: We give our employees the possibility of further professional growth,
using both internal and external resources.
HR Policies: Volvo Vostok

32. End of Session
Thank You