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    Class Session 2 --- Principles & Policies

    OutlineLine and Staff relationships

    Difference between Policies & Principles

    Policies--- Should we adopt them ???Benefits / Aims / Objectives ofPersonnel Policies

    Personnel Department--- Its Organization -Responsibilities & Placein the Organization

    Guidelines to formulate Policies ,Types of Policies, Matters to beincluded in Policy Formulation

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    Line & Staff Relationships in OrganizationsRelationship which the managers in an organization deal

    with one another are classified into two categories

    Line and staff

    Line Relationship - authority and responsibility

    Receiving and giving instructions or orders.Important as one gets work done through people.

    Staff Relationshipgiving and taking of advice

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    Line Staff Relationships in Orgn

    General Mgr

    Mkt Mgr Fin Mgr HR MgrProd.Mgr

    DyMgr

    DyMgr

    DyMgr

    DyMgr

    Officer

    Sales

    OfficerOfficer

    Officer

    Yellow StaffRelationship

    Black Line Relationship

    Asst

    Officer

    AsstAsst

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    Organization of Personnel Department

    1. Its concerned with the relationships of management to

    employees2. Its concerned with the relationships of employees to employees

    in all matter

    3. Personnel department is staff department and has a structure

    of line type

    4. Organization of personnel function depends on the size,structure, range and depth of actions, needs, capacities, natureand location of organization.

    5. The degree to which the organization takes personnel functionseriously

    Scale of operations large a separate department is essential

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    Organizational Structure Personnel Department

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    Organizational Structure Personnel

    Department

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    Personnel Department

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    Personnel Department

    Eg- Hospitals

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    Personnel Department

    Eg-FMCG Colgate Palmolive

    Levels of Management 3

    HR Dept

    Vice President HR

    3 Managers ( Functional& General

    Employees

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    Responsibility of Personnel Specialist

    Human Resource PlanningFormulation of Programmes & Procedures

    Employee Health & Safety Programmes

    Training and Development of Personnel

    Wage & Salary AdministrationGood Labour Management RelationsGrievance handling

    Employee Benefit Programmes

    Personnel Research

    Personnel Audit & Review Work

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    Airport Authority of India

    Functions of Personnel Department

    Formulating policies & procedure

    Manpower Planning

    Training & Development

    Recruitment & Promotion

    Service Condition

    Wage & Salary AdministrationPAS & Counseling

    Formulation of various welfare schemes

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    Personnel Department

    Indian Oil Corporation

    Executive Dir HR

    GM HR

    DGM

    HRDT&D

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    HR/Personnel Dept Shoppers Stop

    Officer HR

    Asst Mgr

    Corporate MgrHR

    Training Analyst

    TrainingManager

    VP HR

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    Mastek A mix of functional & Matrix

    Organization3 Center Heads

    Corporate HR Manger

    Mastek Development Cell

    PersonnelMgmt

    OD Training Career Path

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    Oberoi Hotels

    Sr.VP HR

    Director HR

    Training Human Resource

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    Principles

    Principles are fundamental truths related to

    management of Human Resource established byresearch, investigation and analysis, generally

    applicable to all organizations.

    Henri Fayolss 14 Principles of Management

    Division of Work, Authority, Discipline ,Unity of

    Command, Unity of direction, CentralizationOrder, Equity, Espirit De Corps ,Stability of

    Personnel , Initiative , Remuneration, Individual

    interest

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    Personnel Policies

    Personnel policies are statements of personalobjectives of an organization and provide abroad framework within which decisions on

    personal matters can be made withoutreference to higher authorities.

    They lay down the criteria for decisionmaking in the field of personnel management.

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    Purpose of Principles

    Principles act as a guide to the managers informulating policies, programmes,procedures and practices.

    They help in solving various personnelproblems

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    Difference --Policies & Principles

    Policies Principles

    It is a guide for managerialdecisions and actions

    A guide for managers informulating

    policies,programmes,procedur

    es and practices

    Vary from organization to

    organization

    Applicable to all

    organizations since they are

    universally true.

    Policies must be stable. Are facts so they wouldremain facts only

    Policies must reflect goals &

    values of the organization

    existing.

    Principles do not reflect goals

    and values of the organization

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    Sh ld O i i

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    Should Organizations

    Adopt Policies ??Benefits / Aims / Objectives of Personnel Policies

    Basic needs of both organization and employees taken care of.

    Consistent treatment to all the employees

    Stability & Security of work environment

    Standard of Performance

    Builds employee loyalty and motivation

    Resolves Conflicts -- intrapersonal and interpersonal

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    Identifying the need The areas where policy has to beformulated identified. Need for a new policy, revision, or anexisting policy is voiced by the staff and members of organization

    Gathering Informationthru past & prevailing in industry ,knowledge and experienced gained from handling problems onday-to-day basis.

    Examining Policy Alternatives- involving people who use thepolicy and live with the policies

    Getting Approvalfrom the top management at right time.

    Communicating the Policy - to staff through journals, in housemagazines, circulars, meeting, educational programmes etc

    Evaluating the policyafter the policy is framed it should beevaluated after a certain time period

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    Types of PoliciesJucius has identified 2 types

    Functional or Organizationalpolicies which are grouped for

    different categories of personnel

    eg- for the mgmt dealing with planning, organizing & controlling etc.

    Centralizedare planned for companies with several locations and are

    formulated at the Head Office

    Major Policypertain to overall objectives, procedures and controlwhich affect an organization as a whole. They are formulated by the

    Board of Directors and framework is established within which majorexecutives for the remaining policies necessary to carry out the majorobjectives of an organization.

    Minor Policy- cover relationships in a segment of and organization with

    considerable emphasis on details and procedures.

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    Types of Personnel Policies Originated Policies established formally by top

    management Appealed Policies formulated on requests of subordinates

    who want to know handle some situations.

    Imposed Policies An organization accepts these policiesdue to external agencies like govt.,trade association .

    Eg- Not to accept any one below the age of 14 according tothe factories act.

    General Policies These policies do not relate to specificissues in particular

    Specific Policies Policies relating to specific issue likestaffing compensation , collective bargaining etc

    Written or Implicit Policies are inferred from behaviorof managers.

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    Coverage of Policies

    In most companies, policies are establishedregarding various functions of personnelmanagement which are as follows:-

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    Coverage of Policies

    3) Transfers and Promotions

    a) Rationale for transfer

    b) Seniority required for promotion

    c) Relative weightage of seniority and merit inpromotion

    Eg- Police constables are transferred tourban cities if they belong to some interiors of

    Maharashtra

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    Coverage of Policies5. Working Conditionsa) Working hoursb) Number and duration of rest intervalsc) Overtime workd) Shift worke) Safety rules and regulationsf) provision of transportation etc

    Eg Tesco paid salaries on hourly basis and time taken off for teabreak was not included in total working hours. The companyreduced 15 minutes of wages from employees who were late bythree minutes. The company did not pay for the first 3 days of sickleave taken by employees and dismissed employees who took

    many sick leavesEg A poultry unit of US does not let the employees use the freshroom

    because its an assembly line structure. An employee would use thefreshroom when the reliever relieves him

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    Coverage of Policies6. Industrial Relations

    a) Handling of grievances

    b) Recognition of Trade union

    c) Suggestion Schemes

    d) Discipline and Conduct rules- Punctuality,smoking and drinking

    e) Workers participation through quality

    circles, total quality management etc

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    Nikes Principles

    Minimizing impact on environment

    There would be no discrimination based onrace, creed, gender and marital status or

    maternity status age etc The manufacturer would not have children

    employed below the age of 18 to produce

    footwear.

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    P &G s Principles We show respect for all individuals

    We believe that all individuals can and want to contributeto their fullest potential

    We value personal mastery

    We believe it is the responsibility of all individuals tocontinually develop themselves and others

    We seek to Be the Best

    We strive to be the best in all areas of strategic

    importance to the Company Innovation is a corner stone of Our Success

    We place great value on big, new consumer innovations

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    TESCOs Principle Lean Thinking is a way of working which increases value through the

    elimination of waste. It has guided our supply chain thinking for over sixyears. Womack and Jones define waste as:

    Errors, Overproduction, Waiting for people, equipment or materials, excess

    stock, dissatisfied customers

    .And suggest an approach to reducing waste..

    Specifying value by defining the value a customer places on an good or service

    Lining up all the value creating activities or a product along a value stream

    which reduces the eight wastes

    Making value flow smoothly through the pull of the customer in pursuit of

    perfection

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    E l

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    EmployeesUnilever is committed to diversity in a working environment where thereis mutual trust and respect and where everyone feels responsible forthe performance and reputation of our company.

    We will recruit, employ and promote employees on the sole basis of thequalifications and abilities needed for the work to be performed.

    We are committed to safe and healthy working conditions for allemployees. We will not use any form of forced, compulsory or childlabour.

    We are committed to working with employees to develop and enhanceeach individual's skills and capabilities.

    We respect the dignity of the individual and the right of employees tofreedom of association.

    We will maintain good communications with employees through

    company based information and consultation procedures.

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    Family friendly policies should live up and not existon paper

    Men and women at all levels of companies in allstages of their career development and all stages oftheir life cycle are seeking flexibility to achieve abetter work life balance

    Family friendly policies are one way to support andrecognize the changing needs of employees

    SUMMARY