This document discusses various aspects of human resource (HR) policies and strategies. It defines HR policies as guides for personnel decisions set by top management. HR strategies must be integrated with the organization's overall objectives. The roles of HR in strategic management include defining the organization's structure and aligning HR programs with business strategies. Effective strategic control involves measuring performance against plans and taking corrective actions. The document also outlines different levels of strategies, factors influencing strategic HR planning, and guidelines for developing strategic HR policies.

1. UNIT-II (HR Policies & Strategies)
Introduction,
HR policies & Procedures,
HR Programme.,
Role of HR in strategic management,
Developing HR policies and strategies,
Strategic control,
Types of Strategic control,
Operational Control System,
Functional and grand strategies,
Strategy factors

2. HR Policies
• Policy is a predetermined decision to serve as a
guide towards certain accepted objectives.
• Calhoon- HR policies constitute guides to action.
They furnish the general standards or basis on
which decisions are reached. These genesis lies in
the organization’s values, philosophy concepts and
principles.
• HR policies are formed by top management. They
also lay down the criteria for personnel decisions
such as transfer, training, increment, promotion,
compensation, motivation, etc
• HR policies serve as a road map for managers.

3. HRM in a Changing Environment
•Advancement in Technology
•Cultural Forces
•Social forces
•Economic environment
•Globalization
•Political and legal environment(legislature, executive,
judiciary)
•Trade unions
•Leadership
•Organizational culture
•Professional bodies

4. Objectives of HR Policies
• General employment policy
• Securing cooperation
• Ensuring employees obligations
• Providing competent and trained personnel
• Recognizing role of trade union
• Ensuring employee participation
• Innovative leadership with values
• Enforcing discipline
• Providing job security
• Providing opportunity for promotion
• Ensuring equality

5. Features of HR Policy
• General guidelines for deciding actions
• Focuses on what a manager should do?
• Expressed in general or conditional way
• It is a function of all managers
• Permanent feature of organization
• Guides future course of action

6. Advantages of HR Policy
• Facilitates decision making
• Facilitates actions
• Consistency of actions
• Continuity and stability
• Establishes better control and discipline
• Eliminates personal bias
• Creates confidence among employees
• Ensuring welfare of the employees.

7. Guidelines for Developing HR Policies
• Policy should contribute to objectives and
plans of the organization.
• Policy should be broad and flexible.
• Policy should be long range and fairly
consistent.
• Policy must consider informal groups.
• P should be prepared after a careful analyses.
• Policy should be distinguished from rules and
procedures.

8. Limitations in policy formulation
• It brings rigidity in operation
• It doesn’t leave room for initiative by
subordinates.
• Future unforeseen situations are not
covered
• It limits the human judgment and
decision making in certain circumstances

9. Steps in policy formation
• Defining need and initiating
• Fact building- gathering appropriate
information
• Putting policy in writing
• Communicating the policy
• Evaluation of existing policy

10. Procedure
• It is a written document to support a "Policy Directive".
• It is designed to describe Who, What, Where, When,
and Why by means of establishing corporate
accountability in support of the implementation of a
"policy".
• The "How" = “Detailed Work Instructions“ e.g. a
company established a policy that all overtime shall be
approved. A procedure can be created to establish
“Who” can approve overtime, "What" forms/systems
need to be used, "Where" they are located, "When"
overtime is applicable. And the "Why" refers to the
management directive established via a "Policy".

11. Programme
• Programme is the process of managing several
related projects.
• It tells what it consists of the entire broad course
of action governing employees at all levels.
• HR Programmes ( HR forecasting-Recruitment,
Selection and Placement- T&D- Evaluation,
wages and salary- employee benefits &services-
grievances handling-communication -industrial
relations

12. Procedure
• The output of a procedures become input into a
work instruction which is a set of actions or
operations which have to be executed in the
same manner in order to achieve intended
results under the same circumstances.
• Policy indicates- ‘what and why’ and procedure
indicates how a policy is to be carried out.
• It mentions methods processes movement and
specific rules and regulations.

13. SHRM
• Strategy can be defined as
determination of the basic long term
goals and objectives of an enterprise
and the adoption of course of action
and the allocation of resources
necessary for carrying out these goals.
Besides, It combines external forces
with internal resources.

14. Strategy
• Strategy has a number of meanings: 4Ps
• A ‘plan’- directing or guiding a course of
action.
• A ‘pattern’ – to maintain consistency in
behaviour over a period of time.
• A ‘perspective’- projecting organization’s
fundamental way of doing things.
• A ‘play’- using moves to defeat an opponent
or a competitor

15. Features Strategy
• It is a comprehensive and integrated plan for
allocation of resources.
• It is designed to improve organization's relations
to its environment.
• Strategic decisions depends on external forces.
• Concerned with attainment of organizational
goals.
• It is a standing and long term plan.
• Formulation is the primary responsibility of top
management.

16. Importance of strategy
• To cope up with the environmental future
challenges.
• Directed towards achievement of organizational
objectives.
• Helps in coordination and better control of all
department’s activities.
• It is made in the light of competitor’s policies
and strategies.
• It utilizes resources effectively and efficiently.
• It is directed towards the success of org.

17. SHRM
• Policies, programs and practices are related
to the human resource or employees
working in the organization. These
strategies are developed to defeat the
other competitors. Its specific approach
differs from organization to organization.
But the key concept is consistent i.e. to
integrate HR programs in such a way that it
helps achieve the firm’s objectives.

18. HR Manager’s Role in SHRM
• Define company’s structure, system, rewards,
processes, style, people, skills and shared values.
(defining company’s way of doing business-
inside and outside)
• Organizational audit and HR audit.
• Identify methods for renovating parts of
organization.
• Setting clear priorities and defining importance
of HR staff.

19. Strategic role of HRM
• Strategic – formulating decisions, translating
corporate strategy into HR strategy.
• Information and decision making role – new
product and best practices to serve customers
• Functional role – select, design and implement
planning and appraisal.
• Administrative role – to improve administrative
system.
• T & D – to motivate employees and achieve
objectives.

20. Barriers to SHRM
• Focusing on short term performance
• Lack of technical knowledge
• Lack of strategic perspective
• Difficulty in quantifying e.g. skills, work
development.
• Reluctant to spend money and time to train
people.
• Employee’s resistance to change.

21. Strategies at different levels
• Corporate level strategy
• Business unit level strategy
• Functional level strategy(finance, R&D,
manufacturing, marketing, personnel, etc)

22. Benefits & requirement of strategic
HRM/ HR Policy
• Improvement of employee’s productivity.
• Recruitment of qualified HR.
• Adjusting with rapid technological changes.
• Reducing labor turn over.
• Control over recruitment and training
programs
• Facilitating expansion programs
• To treat manpower like real assets

23. Process of strategic HR policy
• Define vision and mission
• Environment analysis
• Setting goals and objectives
• Analyzing organizational capabilities
• Policy formulation
• Policy implementation
• Review of existing policy

24. Limitations in strategic HR Planning
• Inaccuracy
• Uncertainties
• Lack of support
• Quantitative aspect
• Employee’s resistance
• Inefficient information system
• Expensive and time taking

25. Factors affecting Strategic HR
planning
• Improper linkage between HR planning and
corporate level strategy.
• Rigidity in attitudes.
• Environmental uncertainties.
• Conflict between long- term and short- term
planning.
• Inappropriate HRIS

26. Guidelines for making Strategic HR
planning
• Fit with the objectives.
• Top management support.
• Exercise with in budgeted provisions.
• Appropriate time horizon.
• Manpower inventory- quantity and quality
should be assessed.
• Proper HRIS
• SHRP should be properly organized and
coordinated.

27. Strategic control
Checking and verifying actual
performance against established
strategic standards to ensure
adequate progress and satisfactory
results.

28. Types of strategic control
• Established strategic plans and programs
• Personal observation
• Reports
• Control through exception principles
• MBO
• MIS
• HR Audit
• Performance appraisal
• Others- CPM, PERT, Budget

29. Strategic control process
• Determining goals
• Measuring performance
• Comparing actual with the expected
performance
• Taking corrective actions

30. Operational control system
• It is a control mechanism used to set priorities
and control activities or operations of strategic
significance.
1. Picking strategic control points- income,
expenses, inventory, quality of the product,
absenteeism.
2. Mechanized measuring devices- technical and
electronic instruments used for measuring
machine operations, product quality and
production process. Contd…

31. Operational Control System
3. Ratio analyses – it describes the relationship of
one business variable to another. E.g. net profits
to net sales, net sales to working capital, etc.
4. Comparative statistical analysis – of two
companies in similar operations( helpful to keep
company on track)
5. Personal observations – formal(planned) and
informal(day to day observation)

32. Functional and Grand Strategies
• In SHRM different approaches were developed
for anticipation of environmental threats and
opportunities. The developed alternatives are
called grand strategies which may be divided
into four categories:
1. Stability Strategy
2. Growth Strategy
3. Retrenchment Strategy
4. Combination Strategy

33. 1. Stability/ Static Strategy
• It implies that company will continue same
business with the same objectives. It also
focuses on improvement on functional
performance and maintaining the past level
of achievements.
• Features of Stability Strategy are:
1. no change in product, market and functions.
2. it maintains competitive advantage with the
present resources. 3. Past is sustained

34. 2. Growth Strategy
• When a firm increases the level of
objectives higher than what it has achieved.
• Emphasis is to increase functional
performance.
• Increasing marketing share(volume of
business).
• It includes internal growth and
diversification.

35. 3. Retrenchment Strategy
• Reduction of any existing product or service
line.
• It is a short-run business policy to survive in
the face of economic recession.
• Reasons for adopting this strategy- poor
performance, threat to survival, to secure
better management and efficiency.

36. 4. Mixed/Combination Strategy
• Using elements of 2 or more strategies at the
same time.
• It is most frequently used in multiproduct
companies.
• Reason for adoption is that a single strategy
does not fit for all products.