A policy is a plan of action. When the management drafts a policy statement to cover some features of its personal programs, the statement may often contain an expression of philosophy and principle as well. In this article, we explore 7 most important reasons to Why organisations should adopt policies?
What are policies?
Policies are plans of action. It is a statement of intention committing the management to general courses of action. Organizations need to evolve HR policies as they ensure consistency and uniformity in treating people. They help motivate and build loyalty. Policies become benchmarks to compare and evaluate performance.
Why organisations should adopt policies?
Many organisations have their own rule and policies but are know why organisation needs it or Why organisations should adopt policies? Organizations should have personnel policies as they ensure the following benefits-
- The work involved in formulating personnel policies requires that the management give deep thought to the basic needs of both the organization and the employees. The management must examine its basic convictions as well as give full consideration to the prevailing practices in other organizations.
- Established policies ensure consistent treatment of all personnel throughout the organisation. Favouritism and discrimination are, thereby, minimised.
- Continuity of action is assured even though top-management personnel change. The CEO of a company may possess a very sound personnel management philosophy He/she may carry the policies of the organisation in his/her head, and he/she may apply them in an entirely fair manner.
- The tenure of office of any manager is finite. But the organisation continues. Policies promote stability.
- Policies serve as a standard of performance. Actual results can be compared with the policy to determine how well the members of the organisation are living up to the professed intentions.
- Sound policies help build employee motivation and loyalty. This is especially true where the policies reflect established principles of fair play and justice and where they help people grow within the organisation.
- Sound policies help resolve intrapersonal, interpersonal and inter-group conflicts.
Frequently Asked Questions
Q1. Why organization needs to evolve HR policies?
Organizations need to evolve HR policies as they ensure consistency and uniformity in treating people. They help motivate and build loyalty.
Q2. Do organization policies expire with the created employees?
The tenure of office of any manager is finite. But the organisation continues. Policies promote stability.
Q3. What are benefits of sound policies in an organisation?
Sound policies help build employee motivation and loyalty. This is especially true where the policies reflect established principles of fair play and justice and where they help people grow within the organisation.