Dear All,
Thank you very much for your discussion and I have prepared an assignment on HR policy based on your inputs and referring some books. Please review it and tell me if anything needs to be added. - SARAVANAN
HR Policy means the policies, rules and regulations setup by the management to be followed by the employees to achieve the objectives and goals of the Organization.
The only department which is concerning about the employees is the HR department of an organization.
It refers to the managerial function of determining and meeting the manpower requirements of an organization and of providing opportunities for the continuous growth of its manpower talent.
Ø A process by which a firm ensures that it has the right number of people, right kind of people, at the right places and at the right time, doing things for which they are economically most useful
- Recruitment – Positive process of inviting candidates to apply for the job
Ø Internal recruitment – Employee references
Ø External recruitment – Employee Exchange, Advertisements…
- Selection – Process of rejection and placing the right candidate
Ø Initial Screening
Ø Written tests
Ø Interview
Ø Reference checks
Ø Medical examination (if any)
Ø Final Interview
Ø Placement
Ø Introduction of the new comer to the company and company to the newcomer
2. TRAINING & DEVELOPMENT:- Training Need Analysis & Identification
Ø Non performing employees are identified and suitable training should be given to the employees like basic literacy skills, technical skills, Interpersonal skills and problem solving skills.
Ø Formal Training – Planned in advance and has a structured format
Ø Informal Training – Unplanned and Unstructured
Ø On the Job training – Job Rotation, Apprenticeships, Internships
Ø Off the Job training – Class room instructions, Vestibule training
Ø Evaluates the training process whether it meets the objectives or not.
Ø Example: Kirk – Patrick Approach
· Reaction Level
· Learning Level
· Behaviour level
· Result Level
3. PERFORMANCE MANAGEMENT SYSTEM
Managers use evaluation for general HR decisions. It provide input to important decisions such as Promotions, transfer and terminations.
- Probationary Period Reviews
- Performance Appraisals
Ø There are several methods available for performance appraisal. It varies from one organization to another organization and it depends on the number of employees working in the organization.
Ø Critical Incidents
Ø Graphic rating scales
Ø BARS
Ø Forced comparisions
But the most useful method is the
3600 performance appraisal.
· An employee’s performance is reviewed by his supervisor, peers, manager, other department representatives and clients.
4. COMPENSATION POLICY:
· Basic Pay
· Dearness Allowance
· House Rent Allowance (25% of BP)
· City Compensation Allowance (10%of BP)
· Provident Fund
Ø Employee contribution – 13.61% of BP
Ø Employer contribution – 12% of BP
· Employee State Insurance
Ø Employer – 4.75% of BP+HRA+CCA
Ø Employee contribution – 1.75% of BP+HRA+CCA
· Bonus (minimum 8.33% and maximum 20%)
Ø Eligible if employees salary is below Rs.10000/- per month
5. LEAVE POLICY:
· Casual Leave (CL)
Ø Entitlement: 7 days. For all employees
Ø Will not be utilized for going on a vacation.
Ø Is being provided for meeting emergencies of a personal nature for which planning cannot be done.
Ø Cannot be availed for more than 2 days at a stretch.
Ø Cannot be encashed
Ø Cannot be accumulated (gets lapsed by end of calendar year)
· Sick Leave (SL)
Ø Entitlement: 7 days. For all employees
Ø Beyond 2 days requires a doctor’s certificate.
Ø Cannot be encashed.
Ø Cannot be accumulated.(lapses by end of year)
· Privilege Leave (PL)
Entitlement: 16 days. For all employees
S.No
No. of days worked during calender Year
No. of days of P.L an employee is entitled to in subsequent calender year
1
below 240 days
Nil
2
240 days & above, but below 260 days
One day leave for every 20 days worked
3
260 - 280 days
14 days
4
281 days & above
16 days
The leave admissible under this clause will be exclusive of intervening weekly holidays & paid holidays.P.L shall be allowed to be accumulated upto 120 days, afrter which it can be encashed at the basic salary prevalent at the time of encashment. Encashment shall be applicable on the basic salary only. P.L shall be allowable only incase of prior sanction by the employee's superior.
· Maternity Leave (ML)
Ø Entitlement: 90 days. For female employees only
Ø Cannot be encashed & accumlated.
· Comp Off:
Ø Entitlement: For all employees
· Compassionate/Bereavement Leave
6. INDUSTRIAL RELATIONS POLICY:Ø Health
v Overcrowding – 9.9/14.2 cubic meter/employee
v Drinking water – Cool water for more than 250 employees
Ø Safety (Safety officers – more than 1000 employees)
Ø Welfare
v Canteen – More than 250 workers
v First Aid – First aid box for 150 employees and Ambulance for 500 employees
v Welfare Officers – More than 500 employees
· Workmen Compensation Act - 1923
Ø Disablement – Total and Partial
Ø Based on ‘Arising out of’ and ‘in the course of employment’
Ø Permanent Total disablement – 60% of monthly wages or Rs.60000
Ø Compensation for Death – 50% of monthly wages by relevant factor or Rs.50K
· GRATUITY ACT – 1972
Ø 15/26 multiplied by salary drawn and number of years of service
7. PERSONAL CONDUCT- Dress Code
- Personal Communications
- Gifts & Gratuities
8. EQUAL EMPLOYMENT OPPORTUNITY
9. EMPLOYEE RELATIONS- Discipline
- Disciplinary Appeal
- Grievance
10. TRAVEL & ACCOMMODATION
11. INTELLECTUAL PROPERTY AND SECURITY
The above mentioned are main HR policies of an Organization and in addition to this, the following are also essential;
Ø Employee Handbook
Ø HR Audit
Ø Surveys like Employee Satisfaction, Job Satisfaction, Attrition rate etc…