TM

Importance Of

HR Policies

About Floraison

floraison in French means 'flowering'.

The name reflects our objective of Accelerating Growth. “Floraison India Compliances Private Limited is a Bangalore-based business consulting organization. As a company which provides integrated consulting services, we partner our clients from the stage of inception to assist them in successfully commencing their operations and further hand-hold them to run their company efficiently.

At Floraison, we strive to cultivate strong relationships with our clients by providing them with solutions, which cater to their precise requirements. Customizability is therefore the essence of all the services provided by us. We believe true success is not just fulfilling our clients' requirements, but exceeding their expectations. And, to be successful, we work as an cohesive team all the way, using the best of tools and methodologies.

Floraison is a member of:» Confederation of India Industry

» Bangalore Chamber of Industry and Commerce » Indo-German Chamber of Commerce

For more information on the company, Please visit us at www.floraison.in

”

DisclaimerThis publication is a product of Floraison India Compliances Private Limited. The items contained herein are provided for general information purposes only. Floraison strives to maintain up-to-date information from its own and other reliable sources; however, no responsibility is accepted for any errors and/or omissions or results of any actions based upon this information, without consulting Floraison first. Though all efforts have been made to ensure the accuracy of the content, the same should not be construed as a statement of law or used for any legal purposes. The information is for reference purposes only and should not be dealt with as advice.

“

”

With regard to excellence,

it is not enough to know,

but we must try to have and use it.

Aristotle

Index

Introduction Page 1

Why Develop An HR Policy? Page 2

How Do They Help? Page 3

Preparing HR Policies: The Methodology Page 4

Some Important HR Policies Page 5

Introduction

HR Policies can be defined as the strategy for developing, communicating and enforcing

a set of practices that reflect your standards of acceptable behaviour. Successful policies and practices strategy do more than drawing boundaries; they also recognize and address people's needs. The focus in any successfully run business is not just about meeting specific goals, but also about how you achieve them. And the "how" affects the liabilities an organization creates in the process.

To ensure that the employees have clear expectations and are treated fairly as they work to help build your company depends largely on the manner in which an organization addresses the four key elements related to the development and deployment of its policies and practices: policies, consequences and tools.

Managers and employees need to share a clear understanding of what is and what is not acceptable behaviour, what can be said and what can't be said within the company etc. Setting clear and specific standards, procedures and guidelines in the form of policies establishes a framework for spotting and addressing violations of those standards. If an organization relies on loosely defined general standards, procedures and organization that aren't properly documented, then violations become subjective and open to interpretation. The result of such ambiguity is often litigation, which could ultimately lead to dissatisfaction and the exit of the employee.

It's important that an organization clearly states consequences for violations of the standards, guidelines and procedures so that employees know what to expect and have early warning of those expectations. In addition, clear consequences help to ensure that the company is not limited in the options for dealing with violations.

Tools address the question of how the organization supports the people in the company who manage other employees. When faced with a specific personnel issue, what resources are available to them? For instance: the employee guide or the handbook on HR policies. Tools like these are vital not just to help avoid litigation, but also to minimize the time it takes for you to deal with productivity-draining people issues instead of core business matters.

Policies

Consequences

Tools

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Why Develop An HR Policy?

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e To organize and announce the management’s plans for the growth of the

organisation and also explain employee benefits and workplace issues.

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To help the employees and management teams run the organisation in an

efficient manner.

To help take major human resource decisions, develop company guidelines and

procedures that can make the organisation a better run entity.

To help in documenting and communicating to all the employees the management’s

plans, rules, intents and business procedures.

To help in comparing the policy alternatives, understanding their importance and

evaluating the company’s current practices.

To save countless hours of management time.

To prevent mere legal issues from becoming serious legal problems.

To define management standards for making decisions on various personal and

organisational issues

To help an organisation run at its most cost-effective and efficient level thereby

bringing about additional revenue.

To protect the legal interest of the company as well as define the rights and

obligation of the employees and the company.

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How Do They Help?

HR Policies also provide guidance in the following highlighted areas:

Ensures that the employees dedicate themselves to total quality and constant,

never ending improvement of the organisation.

Hiring people on the basis of skill, training, attitude, ability and character, being

oblivious to other discriminatory factors like age, color, sex, race, creed, national origin, religion, political belief or disability that does not prohibit performance of essential job functions.

Pay all the employees according to their effort and contribution to the success of the

business.

Operating an economically successful business so that a consistent level of steady

work is available.

Review wages, employee benefits and working conditions constantly with

objectives of providing maximum benefits in these areas, consistent with sound business practice.

Provide paid vacations and holidays to all eligible employees. Provide eligible

employees with medical and other benefits.

Develop competent people who understand and meet organization's objectives and

who accept ideas, suggestions and constructive criticism of fellow employees with an open mind.

Address complaints which may arise in everyday conduct of the business, promptly

in a practical way.

Respect individual rights and treat all employees with courtesy and consideration

and help in maintaining mutual respect in the workplace leading to an amicable ambience

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Preparing HR Policies: The Methodology

Research

Collect Information

Draft the manual text

Select Appropriate policies

Design and Format the document

Revise and Fine tune

Prepare & Design the final document

4

Some Important HR Policies

Following are a few HR policies that could / should be a part of all organisations:

Employment PoliciesGuide in hiring practices, orientation of new employees

Employment Status & RecordsDefine issues such as employment classifications, provide access to personal files and guidance on carrying out background checks and performance reviews

Employee BenefitsExplain employee benefits such as insurance, vacations, holidays, leave and employee reimbursements

PayrollRelated to salary and wage administration including deductions, pay advances, and time keeping

Workplace GuidelinesDefines certain work arrangements like flex time and telecommuting to offering guidelines on the use of company assets and record retention

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Employee ConductControls employees' behaviour and conduct, takes preventive measures to check substance abuse, smoking, harassment and workplace violence

E-PoliciesGuides staff in proper usage of the organisation’s information technology, defines acceptable and prohibited activities, fair use of the internet

The buck doesn't stop at drafting policies. Helping the employees to get well-

acquainted with the new/revised policies is also a major requirement. To help the staff

gain a better understanding of the policies, the HR personnel should take steps to create

interactive PowerPoint presentations or spread the information through emails.

A company without an HR policy is in a risky position. Documented policies can protect a

company down the road from potential misuse of company resources. Replacing the

grey areas with concrete guidelines can also help settle employee misunderstandings,

avoid confusions and remove the chance for future conflicts.

Some Important HR Policies

6

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c Internal Corporate Communication Benefit Tax

c Group Dynamics c Introduction to Transfer Pricing Regulation in India

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c Employee Welfare Measures - the companies - When is it applicable?essentials

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c Importance of Vendor Satisfaction Surveys c Formation of a new private limited

company in indiac Importance of Customer Satisfaction

Surveys c Fact File on INDIA

c ISO Certification c Budget 2008-09 - a synopsis company

HR Services @ Floraison

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Floraison India Compliances Pvt. Ltd.,#185/7, 2nd Floor, "Chandra Plaza", 25th Cross, 8th F Main Road, Jayanagar 3rd Block Bangalore - 560 011,India

Tel: + 91-80-26538257 / 58 / 59Fax: + 91-80-26538273E-mail: inflo@floraison.in

www.floraison.in

And more...

Credits: Ashwini S Bhuma