All you need to know about organizational policies and their necessity

Lavanya Goinka

Introduction

To maintain social harmony, a functional legal system is essential for our society, just as organizations require policies to facilitate healthy relationships. Human resources are the most critical asset on Earth, and their management is a challenging task. That’s why organizations have dedicated HR departments to handle this vital resource.

What Are Organizational Policies?

Organizational policies, especially human resource policies, serve as guidelines for various functions within an organization. They play a crucial role in defining workplace culture and ensuring consistent decision-making for the organization and its employees. The implementation of robust policies reflects a fair working environment that aligns with corporate governance standards.

Function of Policies

Although policies may vary among organizations, their primary purpose remains constant: to keep employees aligned with company goals and prevent undesirable incidents. Employees are expected to adhere to these guidelines, promoting equality as everyone follows the same established rules.

How to Determine Necessary Policies for Your Organization Creating

Effective HR policies isn’t a one-size-fits-all endeavor; it depends on the organization’s unique needs and characteristics. When deciding on HR policies, consider the following factors:

1. Prioritize the company’s mission and vision when formulating policies.
2. Ensure that managers have the necessary tools to enforce the policies effectively.
3. Policies should address real concerns and needs affecting the company.
4. Policies must be consistent with the organization’s values and ethics.
5. If there are legal requirements for specific policies, ensure compliance with those specifications.
6. Design policies that encourage employee involvement in corporate decision-making, avoiding excessive discretionary power among managers. Investing in such policies can enhance productivity and reduce legal disputes. HR policies are a crucial component of your comprehensive people strategy.

How Policies Differ from Procedures

Policies and procedures work in tandem but are not interchangeable. In simple terms, a policy answers “what to do,” while a procedure explains “how to do it.” Together, they define the organization’s culture, acceptable behaviors, and methods to achieve them.

• A policy provides guidelines for business strategies and objectives, aligning the organization’s vision and mission with day-to-day operations. It aids decision-makers in resolving disputes promptly and effectively.
• Procedures offer specific action plans for implementing policies, acting as a roadmap. They clarify job responsibilities and boundaries, enabling managers to proactively control events and prevent costly decisions.

To run a company efficiently, a set of policies and procedures is essential to reduce liability and ensure consistency across the organization.

Formulation and Implementation of Policies

1. Analyze the need for a policy, considering statutory obligations and other requirements.
2. Ensure clarity in the purpose of the policy, covering both positive and negative behaviors with predefined consequences.
3. Collaborate with relevant stakeholders, managers, and employees to draft a strong policy.
4. Balance the need for coverage with the importance of a free environment for employees’ growth.
5. Keep the language in policies respectful, simple, and error-free.
6. Make policies concise, realistic, and unambiguous, seeking expert input and feedback.
7. After considering legal implications, finalize the policy.
8. Communicate the policy to all relevant stakeholders and provide proper training for understanding and implementation.
9. Regularly review and update policies to adapt to changing laws, needs, and circumstances.

The Importance of Policies HR policies offer several benefits:

1. Increase Compliance: Policies ensure alignment with best practices and legal requirements, helping organizations comply with various laws and regulations.
2. Smooth Internal Processes: They create a healthy workplace environment, reducing discrepancies, ensuring equality, and maintaining consistency in service or product quality.
3. Accountability: Policies make employees aware of the organization’s objectives and expectations, enabling corrective actions when performance falls short.
4. Crisis Prevention: Policies establish safety measures to prevent workplace crises and guide the organization’s response to incidents, such as disasters, product issues, cyberattacks, and legal disputes.

Conclusion

HR policies foster consistency and transparency within organizations, promoting a positive and healthy organizational culture. They outline the employer’s responsibilities towards their employees and guide employees on maintaining a respectful workplace. It’s crucial to thoroughly explain policies to employees and provide them with a copy for reference. Whether a company is small or large, strong policies are indispensable for growth and smooth operations.