If We want to know what is personal policies then first we should know why organisation needs it. In this article we cover all aspects of personal policies like what are personal policies, formulating of policies and what are the principles of personal policies in an organization.

What are personal policies?

An organisation must have set policies definite procedures and well-defined principles relating to its personnel. These contribute to the effectiveness, continuity, and stability of the organisation.

A few specific personnel policies are:

• Policy of hiring people with due respect to factors like reservation, sex, marital status, and the like.

• Policy on terms and conditions of employment-compensation policy and methods, hours of work overtime, promotion, transfer, lay-off, and the like.

• Policy with regard to medical assistance-sickness benefits, ESI and company medical benefits.

• Policy regarding housing, transport, uniform and allowances.

• Policy regarding training and development-need for, methods of, and frequency of training and development.

• Policy regarding industrial relations-trade-union recognition, collective bargaining, grievance procedure. Participative management, and communication with workers.

Formulating of Policies

What are the sources and content of personnel policies? How to formulate a policy relating to hiring, training, remunerating or resolving an industrial dispute? There are:

• past practice in the organisation,
• prevailing practice in rival companies;
• Attitudes and philosophy of founders of the company as also upper to lower management and
• The knowledge and experience gained from handling countless personnel problems on a day-to-day basis.

Policies must be stable. Stability creates a climate of security and removes uncertainty from the minds of employees. The application of policies must be consistent over a period of time and uniform across departments and among the same category of employees. Yet policies should not be rigid Flexibility, it is necessary to meet the changing conditions.

Principles of personal policies

If policy is a guide for managerial decisions and actions, principle is the fundamental truth established by research, investigation and analysis. Many personnel principles have been established through practice, experience and observation. Principles are universal truths generally applicable to all organisations.

Policies, on the other hand, vary from organisation to organisation. Principles guide managers in formulating policies, programmes, procedures, and practices. They also come handy in solving any vexing problem.

Some of the Personnel Principles are:-

1. Principle of individual development: to offer full and equal opportunities to every employee to realize his/her full potential.

2. Principles of scientific selection: to select the right person for the right job.

3. Principle of free flow of communication to keep: to keep all channels of communication open and encourage upward, downward, horizontal, formal and informal communication.

4. Principle of participation: to associate employee representatives at every level of decision-making.

5. Principle of fair remuneration: to pay fair and equitable wages and salaries commensuration with jobs.

6. Principle of incentive to recognise and reward good performance.

7. Principle of dignity of labour to treat every job and every job holder with Personn dignity and respect.

8. Principle of labour management co-operation to promotes cordial industrial relations.

9. Principle of team spirit to promote co-operation and team spirit among employees.

10. Principle of contribution to national prosperity to provide a higher purpose of work to all employees and to contribute to national prosperity

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