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Human Resource Management Syllabus Overview

The document outlines the syllabus and key components of Human Resource Management (HRM), including its importance, objectives, functions, and the roles of HR managers. It emphasizes the significance of human resources as a vital asset for organizations and details various HRM processes such as planning, recruitment, training, compensation, and performance evaluation. Additionally, it distinguishes between traditional personnel management and modern HRM practices, highlighting the evolving roles of HR managers in today's organizational landscape.

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0% found this document useful (0 votes)
16 views53 pages

Human Resource Management Syllabus Overview

The document outlines the syllabus and key components of Human Resource Management (HRM), including its importance, objectives, functions, and the roles of HR managers. It emphasizes the significance of human resources as a vital asset for organizations and details various HRM processes such as planning, recruitment, training, compensation, and performance evaluation. Additionally, it distinguishes between traditional personnel management and modern HRM practices, highlighting the evolving roles of HR managers in today's organizational landscape.

Uploaded by

Brindha
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

HUMAN RESOURCE

MANAGEMENT
HRM SYLABUS
• UNIT I INTRODUCTION TO HUMAN RESOURCE MANAGEMENT 9
• The importance of human resources – Objective of Human Resource
Management - Human resource policies - Role of human resource manager.
• UNIT II HUMAN RESOURCE PLANNING 9
• Importance of Human Resource Planning – Internal and External sources of
Human Resources - Recruitment - Selection – Socialization.
• UNIT III TRAINING AND EXECUTIVE DEVELOPMENT 9
• Types of training and Executive development methods – purpose – benefits.
• UNIT IVEMPLOYEE COMPENSATION 9
• Compensation plan – Reward – Motivation – Career Development - Mentor –
Protege relationships.
• UNIT V PERFORMANCE EVALUATION AND CONTROL 9
• Performance evaluation – Feedback - The control process – Importance –
Methods – grievances
• –Causes – Redressal methods.
UNIT I
INTRODUCTION TO HUMAN
RESOURCE MANAGEMENT
INTRODUCTION AND MEANING

• Human Resources are the wealth of an organization which can


help it in achieving its goals.
• Human resource management is concerned with the human
beings in an organization.
• It reflects a new outlook which views organization’s manpower
as its resources and assets.
• Human resource is the total knowledge, abilities, skills, talents
and aptitudes of an organization’s workforce. The values,
ethics, beliefs of the individuals working in an organization also
form a part of human resource.
• In the present complex environment, no business or
organization can exist and grow without appropriate human
resources.
• So human resource has become the focus of attention of every
progressive organization.
INTRODUCTION AND MEANING

• Human resource management is that process of


management which develops and manages the
human elements of an enterprise.
• It is not only the management of skills but also the
attitudes and aspirations of people. When individuals
come to a work place, they come with not only
technical skills, knowledge, experience etc.,
• but also with their personal feelings, perceptions,
desires, motives, attitudes, values etc. So HRM
means management of various aspects of human
resources.
INTRODUCTION AND MEANING
• An important element of human resource
management is the human approach while managing
people. This approach helps a manager to view his
people as an important resource.
• It is an approach in which manpower resources are
developed not only to help the organization in
achieving its goals but also to the self satisfaction of
the concerned persons.
• On the one hand this approach focuses on human
resource development, and on the other hand it
focuses on effective management of people on the
other
DEFINITION OF HUMAN RESOURCE MANAGEMENT

• It is a process ,the people and organizations


are bound together and both of them are
able to achieve their objectives.
• human resource management is that
aspect of management which deals with the
planning, organizing, directing and
controlling the personnel functions of an
enterprise.
• The purpose of these functions is to assist
in the achievement of basic organizational,
divisional and societal goals
FEATURES OF HRM
• It has the following features:
• Pervasive force:
• HRM is pervasive in nature. It is present in all enterprises.
It permeates all levels of management in an organization.
• Action oriented:
• HRM focuses attention on action, rather than on record
keeping, written procedures or rules.
• The problems of employees at work are solved through
rational policies.
• Individually oriented:
• It tries to help employees develop their potential fully. It
encourages them to give their best to the organization.
• It motivates employees through a systematic process of
recruitment, selection, training and development coupled
with fair wage policies.
FEATURES OF HRM
• People oriented:
• HRM is all about people at work, both as individuals and
groups. It tries to put people on assigned jobs in order to
produce good results.
• The resultant gains are used to reward people and
motivate them towards further improvements in
productivity.
• Future oriented:
• Effective HRM helps an organization in meeting its
goals in the future by providing for competent and
well-motivated employees.
FEATURES OF HRM
• Development oriented: HRM intends to develop the full
potential of employees. The reward structure is tuned to the
needs of employees.
• Training is offered to sharpen and improve their skills.
Employees are rotated on various jobs so that they gain
experience and exposure.
• Every attempt is made to use their talents fully in the
service of organizational goals.
• Integrating mechanism:
• HRM tries to build and maintain cordial relations between
people working at various levels in the organization.
• In short, it tries to integrate human assets in the best
possible manner in the service of an organization
FEATURES OF HRM
• Inter-disciplinary function:
• HRM is a multi-disciplinary activity, utilizing knowledge and
inputs drawn from psychology, sociology, anthropology,
economics, etc. To unravel the mystery surrounding the
human brain, managers, need to understand and
appreciate the contribution of all such ‘soft’ disciplines.
• Continuous function:
• According to Terry, HRM is not a one shot deal. It cannot be
practiced only one hour each day or one day a week. It
requires a constant alertness and awareness of human
relations and their importance in every day operations.

FEATURES OF HRM
• Comprehensive function:
• HRM is, to some extent, concerned with any organizational
decision which has an impact on the workforce or the potential
workforce.
• The term ‘workforce’ signifies people working at various levels,
including workers, supervisors, middle and top managers. It is
concerned with managing people at work. It covers all types of
personnel.
• .
• It is basically a method of developing potentialities of employees so
that they get maximum satisfaction out of their work and give their
best efforts to the organization
• Auxiliary service:
• HR department exist to assist and advise the line or operating
managers to do their personnel work more effectively. HR Manager
is a specialist advisor. It is a staff function
SCOPE OF HRM
Human
Resource
Industrial Job analysis
Planning
Relations and design

Motivation,
welfare, health Recruitment
and and Selection
SCOPE
OF HRM

Compensation
planning and
remuneration Orientation

and Induction

Performance
Training and
Appraisal
Development

1. Human Resource Planning.


SCOPE OF HRM

• The scope of HRM is very wide. Research in behavioural sciences,


new trends in managing knowledge worker and advances in the field
of training have expanded the scope of HR function in recent years.
• The Indian Institute of Personnel Management has specified the
scope of HRM thus:
• Human Resource Planning – It is the process by which the
organisation identifies the number of jobs vacant.
• Job Analysis and Job Design – Job analysis is the systematic
process for gathering, documenting, and analyzing data about the
work required for a job. Job analysis is the procedure for identifying
those duties or behaviour that defines a job.
SCOPE OF HRM
• Recruitment and Selection – Recruitment is the process of
preparing advertisements on the basis of information collected from
job analysis and publishing it in newspaper. Selection is the
process of choosing the best candidate among the candidates
applied for the job.
• Orientation and Induction – Making the selected candidate
informed about the organization‘s background, culture, values, and
work ethics.
• Training and Development – Training is provided to both new and
existing employees to improve their performance.
• Performance Appraisal – Performance check is done of every
employee by Human Resource Management. Promotions,
transfers, incentives, and salary increments are decided on the
basis of employee performance appraisal.
SCOPE OF HRM
• Compensation Planning and Remuneration – It is the job of Human
Resource Management to plan compensation and remunerate.
• Motivation – Human Resource Management tries to keep employees
motivated so that employees put their maximum efforts in work.
• Welfare Aspect
• – Human Resource Management have to follow certain health and
safety regulations for the benefit of employees. It deals with
working conditions, and amenities like - canteens, crèches, rest and lunch
rooms, housing, transport, medical assistance, education, health and safety,
recreation facilities, etc.
• Industrial Relation Aspect
• – HRM works to maintain co-ordinal relation with the union
members to avoid strikes or lockouts to ensure smooth functioning
of the organisation. It also covers - joint consultation, collective
bargaining, grievance and disciplinary procedures, and dispute
settlement.
SCOPE OF HRM
• Personnel aspect: This is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, lay off and
retrenchment, remuneration, incentives, productivity etc.
OBJECTIVES OF HRM
OBJECTIVES OF HRM
• Societal Objectives:-
• To manage human resources in an ethical & socially responsible
manner.
• To ensure compliance with legal & ethical standards.
• To minimise the negative impact of societal demands upon the
organisation.
• Organisational Objective:-
• HR department, like any other department in an organisation, should
focus on achieving the goals of the organisation first. If it does not
meet this purpose, the HR department cannot exist in the long run.
• HR department should recognise its role in bringing about
organisational effectiveness.
• HRM is not an end in itself. It is only a means to assist the
organisation with its primary objectives.
OBJECTIVES OF HRM
• Functional Objectives:-
• To maintain the HRM departments contribution at a level appropriate to the organisation’s
needs. Resources are wasted when HRM is either more or less sophisticated to suit the
organisation’s demands.
• The department’s level of service must be tailored to fit the organisationit serves.

HRM should employ the skills & abilities of the workforce efficiently. It should aim at making
the people’s strength more productive & beneficial to the organisation.
• HRM should aim at providing the organisation with well trained & well motivated employees.
• Personnel Objectives
• HRM should increase employees job satisfaction to the fullest extent.
• HRM should also meet the self actualisation needs of the employees. It should stimulate
every employee to achieve his potential.
• HRM should assist the employees in achieving their personal goals, at least in so far as these
goals enhance the individual’s contribution to the organisation.
• HRM should develop & maintain a quality of work life. It makes employment in the
organisation a desirable, personal & social situation. Organisational performance can never
be improved without the quality of work life.


• The HRM should also communicate HR policies to all employees. It
will help the HRM in tapping the ideas, opinions, feelings, & the views
of the employees.
OBJECTIVES OF HRM

• The principal objectives of HRM may be listed as:


• To help the organization to attain its goals effectively and efficiently
by providing competent and motivated employees.
• To utilize the available human resources effectively.
• To increase to the fullest the employee‘s job satisfaction and self-
actualization.
• To develop and maintain the quality of work life (QWL) which
makes employment in the organization a desirable personal and
social situation.
• To help maintain ethical policies and behavior inside and outside
the organization.
• To establish and maintain cordial relations between employees
and management.
• To reconcile individual/group goals with organizational goals.
OBJECTIVES OF HRM

• To help the organization reach its goals:


• To employ the skills and abilities of the workforce efficiently:
• To provide the organization with well-trained and well-motivated
employee:
To increase to the fullest the employee’s job satisfaction
and self-actualization: To develop and maintain a quality of
work life:.
To communicate HR policies to all employees : To be
ethically and socially responsive to the needs of society:
• PERSONNEL MANAGEMENT
• Meaning:- it is the process of Planning, organising,
compensation, integration & maintenance o people for the
purpose of contributing to organisational individual & societal
goals.
• Personnel management can be defined as obtaining, using &
maintaining a satisfied workforce.
• Definition:- Acc. to Flippo “ personnel management is the
planning, organizing, compensation, integration &
maintenance of people for the purpose of contributing to
organisational, individual & societal goals.
• Acc, to Brech “personnel management is that part which is
primarily concerned with human resources of organisation.
DIFFERENCES BETWEEN PERSONNEL MANAGEMENT & HRM
PERSONNEL MANAGEMENT HRM
It is a traditional approach to managing people in the It is modern approach to managing people
organisation. Tin the organisation
It focuses on personnel administration, employee It focuses on acquisition, development,
welfare, & labour relation. motivation & maintenance of HR in the
organisation.
It assumes people as input for achieving the desired It assumes people as in important &
output. valuable resource for achieving
the desired output.
It undertaken for employee satisfaction. It undertaken for goal achievement.
Job design is done on the basis of division of labour. Job design function is done on the basis of
group work/teamwork.
Employees are provided with less training & Employees are providedwith more training &
development opportunities. development.

Decisions are made by the top management as per Decisions are made collectively after
the rules & regulation of the organisation considering employee’s participation,
authority, decentralization, competitive
environment etc.

It focuses on increased production & satisfied It focuses on effectiveness,


employees culture, productivity & employee’s
participation.
It is concerned withthe personnel manager. It is concerned with all levels of managers
from top to bottom.
It is a routine function. It is a strategic function.
ROLE OF HR MANAGERS
ROLE OF HR MANAGERS

• Human resource managers, now a days, wear many hats.


They perform mainly three different types of roles, while
meeting the requirement of employees and customers,
namely administrative, operational and strategic.
• Administrative Roles
• The administrative roles of human resource management
include policy formulation and implementation,
housekeeping, records maintenance, welfare administration,
legal compliance etc.
• Policy maker: The human resource manager helps
management in the formation of policies governing talent
acquisition and retention, wage and salary administration,
welfare activities, personnel records, working conditions etc. He also
helps in interpreting personnel policies in an appropriate manner.
ROLE OF HR MANAGERS
• Administrative expert: The administrative role of an HR manager is
heavily oriented to processing and record keeping. Maintaining
employee files, and HR related databases, processing employee
benefit claims, answering queries regarding leave, transport and
medical facilities, submitting required reports to regulatory agencies
are examples of the administrative nature of HR management.
• These activities must be performed efficiently and effectively to meet
changing requirements of employees, customers and the
government.
• Advisor: It is said that personnel management is not a line
responsibility but a staff function. The personnel manager performs
his functions by advising, suggesting, counseling and helping the line
managers in discharging their responsibilities relating to grievance
redressal, conflict resolution, employee selection and training.
• Personnel advices include preparation of reports, communication
of guidelines for the interpretation and implementation of policies,
providing information regarding labour laws etc.
ROLE OF HR MANAGERS
• Housekeeper: The administrative roles of a personnel
manager in managing the show include recruiting, pre-
employment testing, reference checking, employee
surveys, time keeping, wage and salary administration,
benefits and pension administration, wellness
programmes, maintenance of records etc.
• Counselor: The personnel manager discusses various
problems of the employees relating to work, career, their
supervisors, colleagues, health, family, financial, social,
etc. and advises them on minimizing and overcoming
problems if any.
ROLE OF HR MANAGERS
• Welfare officer: Personnel manager is expected to be the Welfare
Officer of the company. As a welfare officer he provides and
maintain (on behalf of the company) canteens, hospitals, crèches,
educational institute, clubs, libraries, conveyance facilities, co-
operative credit societies and consumer stores. Under the
Factories Act, Welfare officers are expected to take care of safety,
health and welfare of employees. The HR managers are often
asked to oversee if everything is in line with the company
legislation and stipulation.
• Legal consultant: Personnel manager plays a role of grievance
handling, settling of disputes, handling disciplinary cases, doing
collective bargaining, enabling the process of joint consultation,
interpretation and implementation of various labour laws,
contacting lawyers regarding court cases, filing suits in labour
courts, industrial tribunals, civil courts and the like.
ROLE OF HR MANAGERS
• In some organizations, the above administrative functions are being
outsourced to external providers in recent times, with a view to
increasing efficiency as also cutting operational costs. Technology is
being put to good use to automate many of the administrative tasks.
• Operational Roles
• These roles are tactical in nature and include recruiting, training and
developing employees; coordinating HR activities with the actions of
managers and supervisors throughout the organisation and resolving
difference between employees.
• Recruiter: “Winning the war for talent” has become an important job
of HR managers in recent times in view of the growing competition
for people possessing requisite knowledge, skills and experience.
HR managers have to use their experience to good effect while
laying down lucrative career paths to new recruits without, increasing
the financial burden to the company.
ROLE OF HR MANAGERS
• Trainer, developer, motivator: Apart from talent acquisition,
talent retention is also important. To this end, HR managers have
to find skill deficiencies from time to time, offer meaningful training
opportunities, and bring out the talent potential of people through
intrinsic and extrinsic rewards which are valued by employees.
• Coordinator/linking pin : The HR Manager is often
deputed to act as a linking pin between various
divisions/departments of an organisation. The whole exercise is
meant to develop rapport with divisional heads, using PR and
communication skills of HR executives to the maximum possible
extent.
• Mediator : The personnel manager acts as a mediator in case of
friction between two employees, groups of employees, superiors
and subordinates and employees and management with the sole
objective of maintaining industrial harmony.
ROLE OF HR MANAGERS
• Employee champion: HR managers have traditionally
been viewed as ‘company morale officers’ or employee
advocates. Liberalization, privatization and globalization
pressures have changed the situation dramatically. HR
professionals have had to move closer to the hearts of employees in
their own self-interest. To deliver results they are now seriously
preoccupied with:
• Placing people on the right job.
• Charting a suitable career path for each employee.
• Rewarding creditable performance.
• Resolving differences between employees and groups smoothly.
• Adopting family-friendly policies.
• Ensuring fair and equitable treatment to all people regardless of their
background.
• Striking a happy balance between the employee’s personal/professional as also
the larger organizational needs.
HRM FUNCTIONS
HRM FUNCTIONS
• Managerial Functions
• Basic managerial functions of human resource management are -
planning, organizing, directing and controlling.
• Planning: Planning is an all-pervasive and the most basic function of management
Planning refers to the determination of a course of action to achieve a desired result.
• Planning means deciding in advance what to do, when to do it, how to do it and who
is to do it. It bridges the gap from where we are to where we want to go. As far as
personnel management is concerned, planning is determining personnel programmes
and changes in advance, which will contribute to the goals of the enterprise.
• As such it involves planning of human resources requirements, recruitment, selection,
training and so on. Besides, it also involves estimating personnel requirements,
changing values, attitudes and the behaviour of the personnel in the organization.
• Organising: Organising refers to the way in which the component parts of an enterprise
are put into working order so as to achieve the definite objectives of the firm.
• If human and material resources remain unorganised, the broad business objectives
cannot be attained. In the words of H. Koontz and O'Donnell, " It is the grouping of
activities necessary to attain the goals of the enterprise
HRM FUNCTIONS
• and the assignment of each grouping to a manager with authority
necessary to supervise it". It is no exaggeration to say that without proper
organisation, other functions of management are of no use.
• Directing: Directing initiates organisers action. It is concerned with stimulating the
people to work. It consists of those activities that are concerned directly with
influencing, guiding or supervising people in their jobs.
• It involves motivation, leadership, supervision, communication and coordination.
The personnel managers should co-ordinate the activities of managers at all levels as
regards to personnel activities Coordination of personnel function with other functions
of management should also be ensured.
• Controlling: Control is the most important function of the personnel management.
Control is intended to ensure and make possible the performance of planned activities
and to achieve the pre- determined goals and results.
• It involves monitoring the activity and measuring performance against set standards,
correcting deviations when necessary and maintaining the system. It helps the
personnel manager to evaluate the performance of the personnel department and
formulating the future plans by considering the variances observed in the course of
action. Hence, the exercise of control is the primary responsibility of the personnel
manager.
HRM FUNCTIONS
• Operative Functions
• Operative functions are of routine nature and are entrusted to the
personnel department. These functions are concerned with
procurement, development, compensation, human relations and
effectiveness of human resource management.
• Procurement of People
• Procurement of people is the first operative function of human resource
management. It is concerned with procuring and employing the
personnel with requisite skills to achieve the organisational goals. It
includes the following sub-functions
• Job Analysis: Job analysis deals with determining the characteristics of each job.
It is a procedure through which the facts with respect to each job are secured,
organised and combined. It is also called job study. There are three phases in
every job analysis. They are as follows:
• I. Collection of data and information connected with various aspects of
jobs, which normally include men, machines and materials
HRM FUNCTIONS
• Preparation of job descriptions by condensing the data to represent an accurate
and complete picture of the distinguishing features of each job in terms of the
tasks and occupational requirements
• Working up of job specifications, which precisely stipulate the skills, operation
routines, responsibilities, types of efforts, working conditions and other
requirements of a job. They serve as a source of data for job rating.
• Human Resource Planning: Human resource planning is the process of
determining manpower requirements and means for meeting those requirements
in order to carry out the integrated plan of the organisation. It plays a vital role in
the achievement of the common goals of the enterprise. Without proper manpower
planning, destructive problems are bound to occur. It involves the following
aspects:
• Forecasting present and future requirements and supply of human resources
• Making an inventory of present human resources and assessing the extent to which these
resources can be employed
• Taking necessary steps to mould and develop the strength of existing personnel in the
organisation with a view to meet the human resource requirements of the future.
• Planning the necessary programmes of recruitment, selection, training and
development
HRM FUNCTIONS
• Recruitment: It is the first process of employment, which helps in providing the adequate employees
for the organization. It means searching of the prospective employees to suit the job specifications
and stimulating them to apply for the jobs in the organisation. It involves identification of existing and
new sources of applicants and developing them, stimulating the candidates to apply for jobs in the
organisation and striking a balance between internal and external sources.
• Selection: Selection is a process whereby the qualified personnel can be chosen from the applicants
who have offered their candidature to the organisation for employment. It is a tool in the hands of the
management to differentiate the qualified and unqualified applicants by using various techniques such
as tests, interviews etc. It involves the following:
• Scrutinizing the applications received.
• Conducting preliminary interview.
• Formulating and developing application blanks.
• Conducting various tests to measure the qualifications of the applicants
• Conducting final interview.
• Checking of references.
• Framing the medical examination policy and procedure
• Final selection.
• Placement and Induction


HRM POLICY
HRM POLICY
• Employee Contract
• An employment contract is a legal document that binds both employee and
employer. It outlines all the below significant terms and conditions of the
association:
• Job role and description
• Type of role (Part-time, Full-time, Contract, Freelance)
• Probation period (if any)
• Tenure
• Remuneration and benefits
• Confidentiality.
• Tip: Check Indian labour laws, the Companies Act and the Contract Act to
draft a locally compliant employee contract.
• 2. Code of Conduct
• A code of conduct policy outlines expected employee behaviour and ethics
during work hours. A typical employee code-of-conduct policy has the
following elements:
HRM POLICY
• Professionalism
• Job duties and authority
• Use of company’s assets
• Protection of company property
• Communication
• Collaboration
• Dress code
• Gifts at work
• Disciplinary actions
• Absenteeism and tardiness
• Avoiding conflict of interest
• Non-compliance and consequences
• Maintaining occupational health and safety
• Maintaining privacy and confidentiality.
HRM POLICY
• Tip: To write a code-of-conduct policy, you must first dig into company
culture, values and local labour laws.
• 3. Working Hours
• The working hours policy defines:
• Standard working hours: What are the expected working hours and
how many days do employees have to work? Some Indian companies
opt for a 6-day workweek and some for a 5-day workweek. You will
also see working hours vary from 8 to 9 working hours.
• Break: How much break are employees legally supposed to get? As
per the Companies Act, any employee working for more than five
hours must get at least half an hour break.
• Overtime: How many overtime hours are permissible per the labour
laws? In India, an employee can extend up to 12 hours per day, but
they still need to work within the weekly upper limit of 48 hours. After
crossing the weekly limit, employees are eligible for overtime pay.
HRM POLICY
• Leave Policy
• A leave policy gives employees an idea of how many leaves they
are eligible for. The main types of leaves to define in the leave
policy are:
• Public holidays and festivals: India has three public holidays:
Republic Day, Independence Day and Gandhi Jayanti. Apart from
these three holidays, you must also give holidays for festivals or
any state events, which vary from state to state.
• Sick leaves: How many leaves can employees take for sickness?
• Casual leaves: How many short-term leaves can employees take
for personal reasons or unforeseen events?
• Earned leaves: Earned leaves are paid leave granted based on
the number of days one has worked in the company. Employees
can use it for sickness, vacations or any personal reasons.
HRM POLICY
• Compensatory off: Employees are eligible for compensatory off
for additional days/hours they worked in holidays.
• Maternity leave: How many leaves can a new mother take? As
per the Maternity Benefit Act 1961, a working woman is allowed a
paid maternity leave of 26 weeks for the first two children and
three months for subsequent children.
• Paternity leave: How many leaves can new fathers take? There
are no laws related to parental leave. Typically, employers offer
15 days of parental leave in India.
• Leave without pay: If an employee exhausts all the leaves, how
much additional leave without pay can they still take after which
they would be up for termination?
• Tip: Do go through the Factories Act 1948 before drafting the
working hours and leave policy.
HRM POLICY
• 5. Wages and Timekeeping
• Managing employee payroll is a crucial aspect of legal compliance. In
the wages policy, you can define:
• Minimum wages: Indian labour laws already state minimum wages, but
it's better to check market norms and minimum wages for every role.
• Payment frequency: How frequently should employees get payments:
weekly, bi-weekly or monthly? Monthly payments are the most common.
You can also define on which day an employee will get the salary: 1st
working day of the month, last working day of the month or any
particular date of the month.
• Overtime pay: How do you keep track of time and how much overtime
pay will employees get for working additional hours?
• Deductions: What are the deductions in the salary? Standard
deductions are advance tax, professional tax, provident fund, gratuity
fund and health insurance premium.
HRM POLICY
• 6. Employee Benefits
• You have to offer benefits as per the market norms and labour
laws. Top benefits offered by employers which you can mention
in the benefits policy are:
• Provident fund: Employee provident fund is a retirement
scheme for employees. Both employee and employer have to
contribute 12% of salary monthly.
• Gratuity fund: Employees get an incentive for continuing with
an organisation for more than five years. They get 15 days of
additional pay as gratuity for every year of service.
• Health insurance: Most companies give health insurance to
employees and dependents. Typically, employers pay for the
employees. It's the employer's choice whether or not to pay for
the dependents.
HRM POLICY
• 7. IT and Data Security
• IT and data security policies are essential to meet
compliance requirements and prevent security breaches.
You can define guidelines related to:
• Usage of company internet, email and software
• Confidentiality of company data
• Usage of personal devices in the office: laptops,
smartphones, tablets, Universal Serial Bus (USB), etc.
HRM POLICY
• 8. Non-Discrimination
• Non-discrimination policy ensures employees are safe from bullying, harassment
and discrimination regardless of age, race, colour, religion, gender or sexual
orientation. Important conditions of the non-discrimination policy are:
• Equal employment opportunity: You must give equal employment opportunities to
all employees regardless of age, race, colour, religion, gender or sexual orientation.
• Prohibited discrimination and harassment: Discrimination or harassment in any
form based on age, race, colour, religion, gender or sexual orientation should be
prohibited.
• Prevention of sexual assault: You must follow Prevention of Sexual Harassment
(PoSH) guidelines in India to create a safe working environment for women.
• Grievance redressal: How can employees report any discrimination, harassment or
assault? Also, what would be the process to address these grievances?
• Tip: The Government of India also provides a handbook on
preventing sexual harassment of women at the workplace. You can go through this
before forming the policy.
HRM POLICY
• 9. Performance Management and Appraisal
• The performance management policy gives a framework for assessing
employee performance: frequency of appraisals, rating system and
review process. The policy creates transparency for employees on how
their performance will be evaluated. Lastly, the policy will also outline
how you will address performance issues. Will employees enter any
performance improvement program (PIP) or what will disciplinary
consequences be for not meeting performance expectations?
• 10. Rewards and Recognition
• A rewards and recognition policy motivates employees to bring their best
foot forward. The policy encourages employees to do great work by
transparently mentioning:
• Types of rewards or incentives they can get for outstanding performance
• Criteria for selecting employees for rewards
• Processes by which they can claim any rewards.
HRM POLICY
• 11. Claim Reimbursement
• A claim reimbursement policy gives a detailed procedure
by which employees can claim for any business or travel
expenses. The policy mentions:
• Reimbursable expenses
• Claim application and approval process
• Reimbursement timeline.

THANKS

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