How Should HR Managers Handle Persistent Disagreements with Management on Key Policies?

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Inviting reference to my above post and subsequent replies of senior members, I am pleased to inform you that the management finally agreed to our concern and initiated no amendment in the leave policy. Thanks to senior members, especially Mr. Divekar, because his suggestion hit the bull's eye. (I took the help of an external consultant.)

Further, I want to inform you that currently, we have 150 staff in our organization and work in 5 locations (client side) across Odisha. Our company growth rate is 60% annually. When I joined, there was no proper system in HR, and in the past, I have successfully stabilized the HR department, employee discipline, implemented a proper system of reporting, implemented policies like recruitment, leave, advance, employee separation, etc., and implemented labor practices as per the law.

Disagreement with Management on HR Operations

But disagreement with management continues as far as HR operations are concerned, and they are as follows:

1. Not ready to implement a proper PMS System: Management is satisfied with the performance appraisal system (Feedback system). Based on that report, yearly increments take place. After repeated follow-ups, management is still not interested in reviewing performance periodically with proper KPI and KRA. When I tried to convince them, they said we are improving year by year (financially), so our current approach is OK, and we will implement this PMS later.

2. No proper increment subject to performance: As there is no proper PMS, the increment amount is almost the same for all employees. They are even reluctant to rate employees with the highest rank (maybe to avoid my objection). This year, only 4 members got 'A' rank, including me (less than 5%).

3. There is no employee benefit program: Currently, management doesn’t want to implement benefits like mediclaim, accident policy, NPC, etc. (as employee turnover is very low).

Like the above, I have differences with the management regarding employee engagement, training, and development, etc. As we have scaled up to a new height, being an HR, I feel that this is the right time to implement the above programs.

Please note that whatever I implemented here was after lots of discussion/argument with the management. Every time I cannot fight with the management for the implementation of the next level HR system.

Therefore, I request senior members to guide me on how to smartly implement those processes for my organization. Also, I am requesting you to suggest what an HR manager should do if differences with the management persist:

• Shall I quit, admit my failure, and look for another job where the HR process is already implemented? (As work will be getting monotonous)
• Continue with that organization and keep on trying to convince management to implement the above programs.
• Are management right with their opinion, and my concerns are not alarming?

Thank you for looking into the long written post.

Dear Jitendra, this is your second long post, supplementing your previous one. You feel that your concerns are genuine and believe that the knowledge gained during your MBA should be put into practice. However, your concerns stem from your orientation towards change. You aspire to witness a positive transformation take place during your incumbency.

Now, let's consider the situation from the perspective of the business owner. When a company's revenue grows by 60%, self-complacency is likely to set in. Coupled with the growth is the low employee turnover, which has further solidified the owner's stance. At this juncture, your employer's mindset is focused on seizing the opportunities at hand. Consequently, principles of management are disregarded, and the focus shifts to acquiring whatever is within reach.

Your employer's demeanor exudes highhandedness, and the more you contemplate changing this attitude, the more stress you might encounter. It may be beneficial to let things progress as they are, and eventually consider moving on when a better opportunity arises.

Thanks,
Dinesh Divekar

Despite the company's growth at 60%, you are meeting with resistance from management for the HR improvements you wish to make. I think instead of implementing too many changes at once, you should prioritize them and proceed one by one, slowly. Even if you encounter stiff resistance, don't give up. Make a data-based, well-reasoned case for the selected HR intervention. Remember, you succeeded in convincing them on the leave policy, and there is no reason why you cannot replicate that success.

Thinking of quitting the job without trying with full effort and giving it fair time is easy but also the most difficult option. The choice is yours.

Regards, Vinayak Nagar kar
HR Consultant

Dear Mr. Das, it is good to understand that you are very keen to implement policies and procedures to maintain natural justice and fair play in your plant. Since your employer is a small employer and has only 150 manpower at different locations, he might be avoiding the systematic process. Please continue your support in the same manner, and the day will definitely come for PMS, increment, mediclaim, and accident policy. Please keep yourself updated on all mentioned policies.

As you said, employee turnover is also very low, and things are going well, so wait for the right moment, keep aligned with the team, and stay positive and motivated.

Regards, RBSingh

I would suggest you put yourself in the shoes of your employer and think: If you were the business owner, do you think it would be most necessary to invest in your ideas?

So, present your idea from a costing point of view. Prepare the estimated investment required for your ideas and also consider what the ROI would be for the management.

Thank you very much for sharing your opinion. Please don't take me wrong. I think there is a misconception that implementing an HR system will only increase the cost of the company. On the contrary, a proper HR system can not only reduce costs but also improve the performance of employees and the company. I can share some examples from my company.

Employee Engagement and Cost Savings

We have 150 employees with 30 to 40 percent work engagement, and we spend 38 lakhs INR towards monthly salaries. As business continues, management doesn't bother about that. If we increase their engagement to at least 70 percent with a proper Performance Management System (PMS), just imagine how much cost can be saved per year.

Insurance Premiums Optimization

We nearly spent 19 lakhs INR in a year towards payment of insurance premiums for vehicles and other assets. As the premium dates are different, the insurance provider issues individual policies for each asset. For every such payment, the concerned person follows the process and gets engaged in it.

Now, if we opt for a single policy for all assets and process the payments at once or twice a year, we can get a better discounted price, and the claim amount could be better for both old and new assets. The insurance provider is getting 19 lakhs of business for one policy. Furthermore, the processing time will be significantly reduced, and the concerned person can be engaged in other work.

Mobile Connection Cost Reduction

We are currently spending nearly Rs 60,000/- on CUG mobile connections (with 2G data connection). The plan we have is 6 years old. However, if we change the plan now, the price may drop to below Rs 30,000/- with 4G data connection.

Many examples like the above can be shared. These points can be examined, and expenses can be reduced by adopting a proper HR system. Spending a small amount for this should not be a problem. I believe the challenge lies in the differing ideologies with the management, and as of now, it is a big challenge for me to convince them.