How Do I Establish HR Policies and Address Employee Grievances in a Family-Run Business Transition?

Dear All,

I have recently joined a company that is a family-run organization and is now transitioning to a more professional setup. It is a manufacturing company with its office in Mumbai and a factory in Gujarat, with a total employee strength of approximately 70-80, including blue-collar workers. I am the only HR personnel and have been given the responsibility to start from scratch. There are no policies in place, and the company is currently operating based on the preferences of the family. I have begun introducing changes to its policies.

Request for Guidance from Seniors

I would like to request guidance from all seniors, please.

Employee Grievances and One-on-One Sessions

Additionally, they are interested in learning about employee grievances and have tasked me with informing them after conducting one-on-one sessions with the 20 office staff. Please provide me with your insights on the key points to discuss with the employees.

Thank you.

If all along the management had run the organization the way they wanted and now they want to run it professionally, then they need to recast their priorities. Yes, you need to have a "Policy on Employee Grievance." It is an important tool to redress grievances and thereby create an atmosphere of justice as well. Nevertheless, in terms of priorities, what you need is the establishment of performance measures for each department. Once you focus on performance, the inter-departmental or intra-departmental friction will reduce as it will bring the focus to their work.

In the Indian Standing Orders Act, sufficient information is given on how to handle employee grievances. However, following these legal means is passé, and we have moved far ahead. When disputes arise, these need to be resolved through counseling rather than through bureaucratic grievance handling machinery. By creating these bureaucratic means, you may follow the procedure to handle grievances, but the disgruntlement may remain. How will you remove that? Secondly, what about those who do not bring their grievances? Can we construe in that case that these employees are quite happy and well-motivated?

While taking the initiative to run the company professionally, if you deem it fit to give priority to employee grievances, then it goes on to show that your company has a degraded interpersonal environment. You need to fix that problem first rather than patching up grievances. Are these grievances resulting from the rude behavior of the managers? If yes, then they need to be taught interpersonal skills, listening skills, questioning skills, feedback-giving skills, etc.

What about your top boss? Does he/she rub employees or managers the wrong way? If yes, then unless he/she changes his/her behavior, no positive change will come in any way. First, let them master interpersonal skills; everything else is secondary!

All the best!

Regards,
Dinesh V Divekar

I would first advise you to understand the business thoroughly, including product lines, costs involved, and customer segments. Once you know this, the suggestions you make should show a positive impact on the above areas or just revenue, as the case may be.

For employee grievances, I would suggest that you become friends with the employees and talk to them informally rather than formally. You are not likely to learn much from group meetings since people don't like to speak out in front of others for fear of reprisal. If this is difficult for you, I suggest you conduct an employee satisfaction survey and analyze the findings. Then you can provide proper recommendations to the management. I could assist you here.

Wish you all the best.

Regards,

Transitioning from a Family-Run to a Professional HR System

Don't get confused with employee grievances when you want to start a new HR system. It is a very minor issue now. Pay attention to it after you have set up a system. Secondly, transitioning from a family-run system to a professional system is a great joy and a desired step. But don't dismiss all that they have done so far.

1. Absorb the existing system.
2. Study the gaps.
3. Develop systems for filling the gaps.
4. Introduce HR forecasting, HR audit, recruitment policies, selection policies, induction policies, training policies, appraisal system, thanking policy, HR salary systems, increment policies, joint committee, feedback systems, awards and punishments, and many more.

Blessings,

Dr. Ram

I have faced similar issues in the last three organizations, including the current one. One of them was an IT company, and the others are hospitals. As replied by my able friends before me, you need to understand if the management is really "serious" about the whole HR fanfare. My past experience shows that the management is launching it as a "fanfare" rather than being more serious about it. I have always treated this kind of situation both as a challenge and a hindrance. A challenge because it is a barren land for an HR, where he/she has to slog for years to cultivate a good crop (and in turn amass a wealth of knowledge and experience). A hindrance because if it is a fanfare, then despite slogging, there are no results, and the HR is discouraged as both the management and the people look down on an HR.

Mr. Rhinoramanan has also put it descriptively. You will have to get "under the skin of the organization," understand its processes and policies, if any. Talk to the management and people and understand their point of view, jot down the gaps, work on it, get it approved by the management, explain to the people, and set sail.

Employee Development Life Cycle (EDLC)

Whatever the matter, you can look at it as an "Employee Development Life Cycle (EDLC)." With all the jargon of HR, I have laid down an EDLC which I feel can work in any domain - necessarily in that order.

1. Job Descriptions/Job Profile
2. Compensation and Benefits
3. Recruitment and Retention
4. Induction/Orientation
5. Performance Management
6. Performance Appraisals
6a. Increments/Promotions
6b. Rewards/Recognitions
6c. TNA (Training Need Analysis)
7. Resignations/Terminations
8. Exit Interviews
9. Feedback to Management

Points 5, 6, 6a, and 6b are cyclic until the employee leaves the organization. Most of the other activities are part of the above cycle.

Best of luck!

In the first note, is the organization involved in manufacturing, service, or the industry? What is the nature of the business? Secondly, if they have been operating as a family-owned business, with or without professionalism, rules, and regulations/systems, the phase of change will inevitably take time. The employees might have their own way of operating. In this case, it may be a slow development process, yet the guidance and direction provided by Dr. Brigadier V. Ramanan and Deepak Kanade will be more helpful and fruitful. However, first, understand the organization and consider each minute as valuable as breathing to enhance performance. Implement the necessary systems instead of searching in all directions, as this could backfire later on.

Best of luck...