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I have a few years of experience in HR filed.But in all my previous companies there was a HR system available and I was following and practicing the existing policies. I recently joined a company in KERALA where the management want me to implement complete HR system there. I have developed a HR Manual and it is under discussion with the management.

I know there is a lot to do to build an HR system in a company. Can anybody help me in this regard? What all can be the step-by-step procedure that I should follow to implement a complete HR system in the company?

The company is having three different but small sectors of business. Also they have branches. But branches are on different names and licenses. Some branches have more than 20 employees and some have less than 20.

In this regards I would like somebody to help for the below mentioned,

How to go for labour license? What can be the procedures? Does each branch need different labor licenses?

Is PF compulsory since the branches are on different names and license and some are having less than 20 employees? If compulsory what will be the procedures?

What about ESI?

What about labour welfare fund and professional Tax?

Is WPS necessarily implemented?

Please if there is anybody can help me?

From India, Bengaluru
Assistant Hr Manager
+2 Others


Step by step procedure to build HR System for a Company..
1. List the various human resources needs you have.
2. Decide on the organizational structure you will use.
3. Create a system for recruiting, training, managing and terminating employees.
4. Develop a compensation program that includes levels for hourly wages and salaried positions.
5. Meet with your accountant to determine if you will handle payroll in-house or outsource it.
6. Review the costs and benefits of adding wellness programs, such as an employee fitness center, seminars delivered by health experts, a wellness newsletter or paying for smoking-cessation programs.
7. Meet with an employment attorney to review your HR system.
8. Create a budget for your HR system based on your wish list.

From India, Chandigarh

Hi Shaanji, 26.1.17

Thanks for ur query in CiteHR reg.Systems, Policies, Procedures to setup HR Dept.

Reg. Steps to Set up HR Dept., there is no one Solution/Answer fitting to several HR & A works/Functions at one time. One need to study/audit existing Systems, Procedures, Rules, Policies etc., to deal with HR works as one Dr.cannot cure all diseases & we have to go to Ortho, Optho, Gyno etc.,for dif.ailments. KINDLY GO THRU BELOW POINTS. I hope; it will be useful for ur works.


In my previous Mfg.Cos. , I had this opportunity to setup HR systems from the start. First; I studiedAudited existing:

1. Systems, Rules, Documents - maintained / followed in the Company Ė Viz.,

Attendance Registers, Leave Card /Records, Statutory Returns/Reports, Licenses-Factories Act, PF, ESI, Bonus, Gratuity etc., MP Statistical Reports, MIS, Personal Files etc.,

2. Compared with List of- Documents -TO BE Maintained as per Factories/S&CEstts Acts etc.,

Registers, Records, Reports, MIS, Documents, Statutory Returns/Reports, Licenses, MP Statistical, Reports, MIS, Files, Rules, Policies, Procedures, Processes, Systems, Formats etc., and

3. Recommended the List of GAP / inadequacies / Steps to Set up HR Dept., for Adoption / Implementation as under:-.


================================================== ==============

Imp. FORMATS, Documents for H.R.&Admin. OPERATION PURPOSE:


As I was to take care of both HR &,

Ist. Designed & Introduced Basic Formats for each Jobs like Advance to draw Cash for Coís works, TA & Expenses Bill, Out-Pass, OOD & Visitors Pass, Gate Pass, Leave Card & Register, Indent for Vehicles, Food, Room, Ticket Booking etc., Collected and Maintained all Statutory Registers like Attendance, Wages, Leave, Adult Workers, Register of Extra Work Done (OT) & Co-Off Availed, Punching (Bio- metric- Face Reader) to regulate In & Out Time and Certify Attendance for Salary, Leave Card, Record, Deduction & Remittances of PF, ESI ,WC Policy, other Insurance Policies for Employees-Medi-claim, Machines & Equipments, Motor Vehicles etc., C.L. Regn, Regrs. Records etc., Implemented Bonus, Gratuity, Superannuation Scheme for Sr.Executives. etc.,



Made NEW Company Application / Bio-Data Form to collect full details of all employees already working and collected filled Forms from 200 employees. ISSUED INDUCTION KIT with New Appointment Order, Standing Orders & Leave Rules, I.D.Card, Emp.Code No., EPF & Gratuity Nomination Form, Bank A/c. Opening for all employees & Provided Uniform & PPE after Safety & Induction Training.



was Introduced and New Personal Files opened for each employee with Company Application/BioData, Interview/Selection Approval Sheet of Competent Authority for Apptt., Offer Letter, Induction Schedule on Joining, Apptt. Order-Ack.Copy, all Certificates Copies of DOB, Qualifications, Past Experience, Salary Slip, P.A.Form, Address Proof, Medical & Blood Group Reports, Photos, I.D.Card, Emp.Code No., EPF & Gratuity Nomination Form etc.,



New Man Power Requisition/Indent Form, Candidates Details for Interview / Selection (Comparative List Form), Interview Assessment Form for Selection, CHECK-LIST FORM for INTERVIEW, CHECK-LIST FORM for APPOINTMENT & APPROVAL introduced.



Master List, Addition & Separation, Man-Power Planning, Succession Planning, HRIS, MIS etc, CATEGORISING / GRADING & PAY-SCALE (Band) for all Levels of employees, Job Description, Security Checks, Safety & Health Ė OHC., as per ISO / Managementís requirement were Introduced and implemented



to Monitor / Control Absence, Advisory Memo, Show Cause Notice, Enquiry, Publication on Company Notice Board, News Paper. If employee fails to respond, Terminate as per A.O.S. under Certified Standing Orders of the Company. P.A. Form to assess Trainees, Confirmation, Promotion, S.I., Annual Increment, Transfer, T&D, All Terminations, Retrenchment, VRS., Superannuation, Extension of Service, Resignation Procedures, Notice Period, Exit Interview, Clearance Certificate / No Due Certificate, Final Settlement, Service Certificate.



Constituted Safety, Canteen, House-Keeping, House Allotment, Works and Grievance Redressal, Transport, Event Organising Committees etc. involving concerned HODs to create awareness, to ensure smooth functioning of all, Harmonious Relations & to attend to Complaints of employees including Sexual & other types of Harassment &, Grievances.



F. CONDUCTED T&D Programs with 50 Slides on Discipline, Attitude, House-keeping, HEALTH TIPS on AYURVEDA, YOGA, PUNCHAKARMA for STRESS, BP, SUGAR Problems etc.,


As we are in January, Adopting some of the below Systems, Rules will be helpful for your P&A works.




Some Cos. still use Leave Appn.-(LA)Loose Forms to take Leave every time: As LA is loose, difficulty to Check, Account, Store, keep track; to make Monthly Salary besides Saving PAPER & Printing Cost/WASTE where hundreds of emplís work.

On Checking 500 entries of Bio-metric Attendance in Big Cos., 20 LA was missing. As LA is loose, Seniors donít get time to check each loose LA & so, wages as Certified by Staff though empls. took leave. Hence,

You can PRINT & Use LEAVE CARD (LC)-RECORD & Stop LA:. LC is handy, Seniors can always Check, Find No.of times, days Leave taken; to Calculate Monthly CL, SL,PL/EL to make Salary. LC/RECORD is Statutory. It cannot be manipulated like Loose LA.

1 Card for 1 Employee for 1 year.

You can introduce LC in Jan.2017. After one year, keep old LC- in Per.File as Record to verify in future. Easy for P&A to work out Entitlment, Balance- Leave Management. It is cheap & easy to maintain. Empl. will know how often he is taking Leave & HOD can caution, Mis-use/approve on need basis. Custody-P&A. Each HOD to keep LC to facilitate his take Leave. HR to call LC when Reqd., to update Leave Regr , Month-end, Decmbr. - Statutory.




For Continuous Working Cos.,(Mines, Plants) -for uninterrupted Works, 2 Optional Holidays can be given with National & Festival Holidays to ensure Min.MP to man Essential Services like Prodn., O&M, A/c.s, HR etc., as most emplís donít observe all Festivals at 1 time & so, when 1 set of emplís take Holiday, other set can work & vise-versa. Thus, HODs can plan min.MP for Shift duty/ maintain Essential Services by adjusting MP to suit his needs & avoid OT or stop work due to Holidays (without increasing Declared Holidays-10-12).



. ============

Most HR/P&A Dept. have Per.Files on all emplís.Still,

many emplís current Infn. is missing when HOD wants it; i.e.

1. Present Address to send Notice to X,

2. Mobile No. would have changed to contact X

3. Nominees detls. to Notify accident etc.

4. Nominees detls. to send payment of deceased X

5. To know Marital / dependents detls,

6. To verify latest Addnl. Qlfcn. etc.,

As the above infn. have changed after giving Ist BIO-DATA -on joining, they can be collected by Dec.2016 using above Form to update MIS, MP dtls. For Per.File, PF, ESI & other Stat.Returns,ISO Recordsfor Promotion, S.I./A.I. in Jan.2017 etc.




Recruitment work starts when User Dept. sends MPI/R.F. to HRD/P&A. This Single Sheet Form has many Columns for HOD to Indent several posts- like Name/No.of Post tobe filled, J.D., Qlfcn, Exp.,Grade etc. (of the Person to be recruited). After Competent Authority, send to HR Dept. HRD to compare MP Appl. with MP Planning & Succession Planning Statements to Check Internal Candidates+CL etc. If no suitable match, take MDís appl. to recruit. Follow Recruitment Procedures. Notify to Employment Exchanges under CNVAct, Employees referrals, Data Base. If no candidate, Issue Paper/TV Ad./ Contact Recruiting Agents to Sponsor suitable Candidates.




Absenteeism is becoming a serious problem in some Cos. HRM is blamed for laxity. It can be controlled by using above Form. HRM to take Action against erring employee or when a HOD sends A.N.F. to him. Proper Disc.Procedure tobe followed for AOS lest; Court may nullify it as void.

SAMPLE CIRCULAR + FORM for Adoption, are given below: (1 50 RP&F available).


6. WHY STANDING ORDERS (S.O.) -- I.D.Act. ???


A Certified S.O. under Indus.Employment(S.O) Act; empowers the Co. to take Disc.Action against its Emplís for violating T&C in S.O. BUT; the Co. cannot punish Emplís for Acts not included in S.O - SUPREME COURT.


Hence, Imp.Acts/Conducts involving Discipline of emplís; MUST be included in ďMIS-CONDUCT LISTĒ in S.O. & PROCEDURES of NATURAL JUSTICE MUST be OBSERVED to make Coís. action LEGAL.

Doís, Donítís, Duties of emplís -100 Points,

Mis-conducts forwhich emplís LIABLE FOR DISCI.ACTION-80 points, Co.Appn/BioData Form-40Points, Imp.t& Appt.Order.-for Sk-20, Suprvsrs &above-35. (Pl.check t&c in ur Co.Appn., A.O, S.O.etc.)- Effect of Non- inclusion.

I hope; you will find the above useful . Will share more on hearing from U.

C.Neyim Khan,

HR Consultant & Advocate, Ex- AGM (HR&A),

HOSPET/ BANGALURU, Karnataka, S.India.

Mobile No. 9535470460 Email:

Email: , Qualification: BA,LLB, PGDPM, MBA-HR-Xaviers),

Ex-Member, NIPM, Calcutta, Ex- Trainee-Member, Indian Institute of Management, B;lore.

Languages Known:- Kannada, Tamil, Telugu, Malayalam + English & Hindi

From India, Mumbai
Kalidhasan D
I had finished my MBA in HR & Finance. i want to indulge in generalist activities rather than recruitment.
please help me to choose my start
MANUFACTURING OR HOTEL industry in Tamil nadu, which has scope for me and my growth. this is going to change my everything. please give me best possible advice. No manufacturing encourages freshers so in case if i enter hotel can i switch to manufacturing? what do i do?
Thanks in advance.

From India, Pondicherry
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