The document discusses personnel policies, defining them as predetermined plans of action that guide employee performance and management objectives. Personnel policies provide guidelines for recruitment, selection, promotion, compensation, and directing employees. They serve as a roadmap for managers and aim to optimize human resource use, provide training, ensure fair wages, and respect human dignity. Personnel policies should be clear, stable yet flexible, formulated with stakeholder interests, and support organizational goals.

2. PERSONNEL POLICIES
Policy is a “plan of action” and that plan is a
policy.
Policy is man made rule.
A policy is a predetermined course of action
established to guide the performance of work
towards accepted objectives . It is a type of
standing plan that serves to guide
subordinates in the execution of their tasks.

3.  According to Yoder , “Human resource or labour or
industrial relations policy provides guidelines for a
wide variety of employment relationship in the
organization. These guidelines identify the
organizations intentions in recruitment, selection,
promotion, development, compensation, motivation
and otherwise leading and directing people in the
working organisation. Personnel policies serve as
a road map for managers.”
 Personnel policies refer to principles and rules of
conduct which formulate, redefine, break into details
and decide a number of actions that govern the
relationship with employees in the attainment of the

4.  Personnel policies are:
1) The key stone in the arch of management and the
lifeblood for the successful functioning of the
personnel management because without these
policies there cannot be any lasting improvement in
labour management relations.
2) The statements of intention indicating an agreement
to a general course of action indicating specifically
what the organisation proposes to do and thus
suggest the values and viewpoints which dominate
the organisation’s actions
3) A positive declaration and a command to an
organisation. They translate the goals of an
organisation into selected routes and provide
general guidelines that both prescribe and proscribe
programmes which in turn dictate practices and
procedure.

5. Objectives of Personnel Policies
 A personnel policy should have two types of
objectives viz., general objectives and specific
objectives. General objectives express top
management’s philosophy of human
resources whereas specific objectives refer to
specific activities like staffing, training, wages and,
motivation.
1. Optimum Use of Human Resources:
Every organisation tries to make use of the
available human resources to the best of their
capabilities. Right men should be selected for the
right jobs.

6. With the help of personnel policies, jobs are defined
and responsibilities of the personnel are specified so
that there are no square pegs in the round
holes.(uncomfortable)
2. Training of Everyone:
The other main object of personnel policies is to train and
develop everyone so as to make them competent for
doing their job. Only a trained worker can do his job
efficiently. The personnel policies must encourage healthy
and constructive competition among the workers and also
provide an opportunity for development and growth of an
individual.

7. 3. Sound Industrial Relations:
Personnel policies aim at creating sound industrial
relations and tend to establish conditions for mutual
confidence and understanding. Workers are
encouraged to put forward constructive suggestions
and are given participation through joint
management councils and works committees. All
this leads to industrial peace. Many operational
problems are avoided by having well formulated
policies.
4. Payment of Fair Wages:
Personnel policies must aim at ensuring the
employees that they will be given fair wages for the

8. 5. Security of Employment:
One of the objectives of personnel policies is to
provide security of employment to the workers.
Such policies provide an efficient consultative
service which aims at creating mutual faith among
those who work in the enterprise. All types of
doubts relating to loss of employment are cleared
from the minds of workers. Thus, social as well as
economic security is provided to workers.
6. Respecting Human Dignity:
Personnel policies ensure fair treatment to all
irrespective of caste, colour and creed and aim at
respecting the human dignity. Workers are offered
good and healthy working conditions.

9. Need for Personnel Policy
 Basic Needs: Personnel policy helps the
management to think deeply about basic needs of
organization and the employees.
 Consistent Treatment: Personnel policies ensure
consistent treatment of all personnel throughout
the organization.
 Minimize Favoritism: Personnel policies help
minimize favoritism and discrimination
 Continuous action: Personnel policies ensure
continuous action even if top management is
changed. These policies promote stability.

10.  Standard of Performance: Personnel policies
serve as a standard of performance.
 Motivation & Loyalty: Personnel policies help
build employee motivation and loyalty.
 Fair Play & Justice: Personnel policies reflect
established principles of fair play and justice.
 Growth: Personnel policies help people grow
within the organization.

11. Principles of Personnel Policies
1. Principle of Right Placement:
There is a common saying that there should be
square pegs for the square holes and round pegs
for the round holes. Only those persons should
be selected who are physically and mentally fit for
the job so that they can become our ‘asset’ in the
future.
2. Principle of Development:
All workers should be given the opportunity to
develop so that their monetary position as well as
their social status is enhanced. Workers tend to
be more sincere and hard working when they are

12. 3. Principle of Participation:
This principle states that we should consider the
organisation a co- ordinated team. If workers
participate in the formulation of policies, a large
number of problems which arise due to
misunderstanding can be avoided.
4. Principle of Mutual Interest:
The workers should feel that interest of
management is common with the
workers. This will provide motivation to the
workers to put in hard work which will entitle
them to earn higher wages and non-monetary

13. 5. Principle of Good Working Conditions:
Workers should be given better tools, good working
conditions, and adequate wages and there should be
impartial appraisal of their work.
6. Principle of Flexibility:
A personnel policy must be such that it can be
changed with the change in circumstances.
Technological changes are taking place at a very fast
speed in the industries and for that reason a constant
review of such policies is necessary.
 In a nutshell, personnel policies should contain the
principle of justice as well as equity and must be fair to

14. ESSENTIAL CHARACTERISTICS
OF A SOUND PERSONNEL
POLICY
•The statement of any policy should be definite,
positive, clear and easily understood by everyone
in the organisation.
• It should be in written.
• It must be reasonably stable but not rigid.
• It must be supplementary to the over all policy of
an organisation.
• It should be formulated with due regard for the
interests of all the concerned parties – the
employers, the employee and the public
community.

15. • It should be the result of a careful analysis of all
the available facts.
• It must provide a two way communication system
between management and the employees.
• It should be consistent with public policy.
• It should be generally known to all interested
parties.
• It must have not only the support of the
management but the co-operation of employees at
the shop floor level and in the office.
• Before evolving such a policy, trade unions should
be consulted in matters of industrial relations and
the role of trade unions should be restricted only to
this area.

16. • It should be progressive and enlightened and
must be consistent with professional practice
and philosophy.
• It should be uniform throughout the
organisation.
• It should have a sound base in appropriate
theory and should be translatable into
practices, terms and peculiarities of every
department of an enterprise.
• Policies should not prescribe detailed
procedures.

17. SOURCES OF PERSONNEL
POLICIES
• Past practice in the organization
• Prevailing practice in rival companies
• Attitudes & philosophy of people at all levels of
the company
• The knowledge & experience gained from
handling day-to-day personnel problems
• Employee suggestions and complaints
• State and national legislation

18. POLICIES
Jucius 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

19.  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.