Human Resource Policies

MBA: 820 HUMAN RESOURCE MANAGEMENT Group 3 Sheila Nasieku Eliud Nzola Jane Mungai PeterMwaniki Caroline Wahome

THE ASSIGNMENT Supposing you have been appointed the HRM manager of a newly established large organization with more than 1000 employees of different categories; a) Outline the policies you would put in place and give your rationale for each. b) Illustrate with a diagram what the structure of the new HRM department would look like.

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Introduction Human resource policies are guidelines on how organizations plan to manage people. The policies define the values, philosophies of an organization and this gives principles that managers are to us in management of staff. Human resource policies ensure that when dealing with matters concerning staff, an approach in line with corporate values is adopted throughout an organization. The policies provide a frame work through which consistent decisions are made and thus promote equity. Some of the areas of policy formulation include; employment, leave, compensation(reward), code of ethics & conduct, staff benefits, Corporate social Responsibility (CSR), Email and internet , Trade unions, Traveling , Statutory contributions, Education, training & development, Staff Transfer, Health, Safety & Security, Team Building, Retirements Benefits,

Discipline policy & Procedure, Performance management and Misuse of

Organization’s property.

Proposed policies for our organization 1) Employment policy a)

Recruitment The recruitment of staff of the desired quality and in sufficient numbers is a primary requisite for the maintenance of a high standard of service to our clients, in turn; the continued progress of the organization relies. To ensure that the success of the organization is not hampered by lack of suitable personnel, from time to time the Human Resource Manager will recruit suitable personnel. The policy outlines; recruitment procedures, advertising (internally & externally) of vacant positions, Head hunting procedure, short listing, terms of employmentcontract, Permanent terms or casual, Qualifications and requirements e.g Certificate of good Conduct, References, academic certificates etc.

b) Interview Based on the large numbers to be interviewed, recommended on an interview method of selection, whether to be individual, panel or selection boards. The policy outlines

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the interview procedures e.g who is to conduct the interview (internally or outsourcing interviewing Co.), how the interviews are conducted- aptitude test, oral interview, email, telephone etc. c) Selection & Posting (placement) This policy outlines selection criteria for a suitable candidate and the deployment procedure. d) Induction This is the process of orientation whereby, the candidate is introduces to the organizational day to day activities through training. It can also be described the process of receiving and welcoming employees when they first join a company, giving them the basic information they need to settle down quickly and happily start to work. Employee hand book should be in place that clearly conveys in simple terms to new staff the entire organization structure and the hierarchy of command how it will look like. e) Probation This is the immediate period after deployment that enables the management to assess the capabilities of the employee. It enables the management to understand the employee better before confirmation. It also enables the new employee adapt to the organization’s working environment. This is usually 6 months; which is the case in many organizations in Kenya. f) Confirmation This is a certificate awarded to the employee upon successful completion of probation period. It applies if one is employed on permanent basis. 2) Performance management Policy a) Appraisals i) Balanced Scorecard ii) Performance contract b)

Work plans

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3) Compensation Policy It is the goal of any company to maintain levels of pay and benefits that are competitive with the average compensation of employers offering similar employment and competing in the same labour market. This is in the form of:i) Salary (remuneration) ii) Overtime iii) Commission iv) Bonus v) Promotion vi)

Certificate of recognition

vii) Reward in kind 4) Code of ethics & Conduct a) Sexual harassment This policy is committed to providing and promoting an atmosphere in which employees can realize their maximum potential in the workplace. Toward this end, all members of staff should understand that Sexual harassment is not tolerated at work place. Sexual harassment may be described as unwelcome sexual advances, requests for sexual favours and other verbal and physical conduct and expressive behaviour of a sexual nature, where raising objections or refusing may have negative consequences. As applied in the workplace any unwanted sexual behaviour including but not limited to suggestive looks, sexual jokes, physical touch, or pressure for sexual favours may constitute sexual harassment. Note; men also face sexual harassment, but overwhelmingly majority of sexual harassment complaints are from women about men. In determining whether alleged sexually harassing conduct warrants corrective action, all relevant circumstances, including the context in which the conduct occurred will be considered. Any serious relationship between two single consenting adults although not constituting sexual harassment may not encouraged in the workplace as it may lead to lack of concentration that inevitably impacts performance as is the case in many local companies. This policy should highlight confidentiality, Assurance against retaliation, procedure for handling complaints of this nature and disciplinary measures. 4

b) HIV /Aids Policy HIV/AIDS continues to pose some of the greatest challenges globally, nationally and at the workplace. Any organization will acknowledge that its workforce has not been spared the ravages and devastating effects of the AIDS scourge. Organizations should be committed to providing a healthy and safe working environment for all its employees. The HIV/AIDS policy and program is intended to ensure that everyone learns how to prevent the spread of HIV and be confident about heath and safety in the workplace. This policy may capture the following; Training on HIV/Aids, Counseling service, medical scheme, confidentiality & disclosure and non discrimination of affected members. c) Conflict of interest A conflict of interest involves a conflict between duty as a staff of an organization, and personal or private interests. Conflicts of interest can also be perceived or potential. The perception that a Staff’s private interests could improperly influence their execution of duties can be as important to identify as an actual conflict of interest. This is because public confidence in the integrity of the organization is vital. A potential conflict of interest arises where a staff has private interests that could conflict with their official duties in the future. Another type of conflict of interest can exist where a member of has competing interests through more than one official role or duty. Conflicts of interest can occur quite frequently and are not necessarily unethical, or wrong. However, it is how they are identified and managed that is important. If conflict of interest situations are not properly identified and managed, they can endanger the integrity of organizations and can result in corruption in the public service. The policy should therefore outline how conflicts of interest may occur and how they can be managed at a workplace. d) Dress code The Corporate Dress Code is designed to guide employees of the organization on standards of dress and appearance. All employees’ appearance must be professional at all times both within the workplace and when representing the organization.

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The Policy is not exhaustive in defining acceptable and unacceptable standards of dress and appearance and staff should use common sense in adhering to the principles underpinning the policy. This policy is subject to review as need arises.

This policy describes the specific dress code for both male and female, hair style, jewellery and footwear. e) Working Hours This policy states the time at which the employees report to work in the morning and leave in the evening. It also captures when an employee is working overtime. 5) Discipline Policy and procedure Discipline is generally administered when an employee violates a company policy or falls short of work expectations, and managers must act to remedy the situation. Discipline usually progresses through a series of steps- warning, reprimand, probation, suspension, disciplinary transfer, demotion, and discharge. This policy will therefore spell out the disciplinary procedure and punishment depending on the case at hand. 6) Staff benefits Staff or employee benefits and benefits in kind (also called fringe benefits, perquisites, perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. Where an employee exchanges (cash) wages for some other form of benefit, this is generally referred to as a 'salary sacrifice' arrangement. In most countries, most kinds of employee benefits are taxable to at least some degree. Some of these benefits are: housing (employer-provided or employer-paid), group insurance (health, dental, life etc.), disability income protection, retirement benefits,

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daycare, sick leave, vacation (paid and non-paid), social security, company discounts, mortgages and other specialized benefits. The purpose of the benefits is to increase the economic security of employees. The term perks is often used colloquially to refer to those benefits of a more discretionary nature. Often, perks are given to employees who are doing notably well and/or have seniority. Common perks are take-home vehicles, hotel stays, free refreshments, leisure activities on work time (golf, etc.), stationery, allowances for lunch, and—when multiple choices exist —first choice of such things as job assignments and vacation scheduling. They may also be given first chance at job promotions when vacancies exist. a) Allowances i) House allowance

vi) Mileage Allowance

ii) Commuter allowance

vii) Utility allowances

iii) Responsibility

viii)

Allowance iv) Hardship Allowance v) House Help

Professional

Bodies/Clubs allowance ix) Leave allowance

allowance b) Loans i) Car loan

vi) Education

ii) Mortgage

vii) Salary advances

iii) Furniture

viii)

iv) Land Purchase

ix) Shares purchase

v) Compensation

Laptop loans

loans

c) Parking staff Cars d) Staff Canteen & Clinic e) Daycare f) Medical Covers and insurance 7) Retirement Benefits policy 8) On-Job-Rotation policy There is need to consistently expose our staff to various jobs so that they become multi-skilled. This in essence ensures that the 7

organization always has sufficient skills at all times and gives managers flexibility in using these resources. This may also be carried out through job shadowing. Job Rotation involves moving to a new job on full time basis, while job shadowing involves attaching staff to another staff who has the skills you would like to impart. The learner thus acquires the skills by observation as well as assisting on the role during specified times only. This is a flexible way of acquiring skills and has least disruption on work flow. 9) Transfer policy Transfers between departments may be permitted, when in the best interests of the organization and the employee. The head of the department from which the employee is transferring should verify that the employee is a satisfactory employee and eligible for transfer. Our organization needs this policy to guide staff transfers and entitlements which include; i)

Disturbance allowance

ii)

Traveling (movement) costs (Reimbursements)

10) Statutory Contributions policy This is the deductions on staff income which are backed-up by the law. They include NSSF, NHIF, Training levy (Directorate of Industrial training). 11) Education, Training & Development The major purpose of educating training and training are improving employee performance, updating employee skills, avoiding managerial obsolescence, preparing for promotion and managerial succession, and satisfying personal growth needs. Training needs are determined based on the organization's and the employee's needs. Organizations provide training to employees in the areas of company policies and procedures, specific skills, human relations, and managerial skills. Some organizations also provide apprentice training. There are two types of training methods - on-the-job and off-the-job. 8

The policy should capture the scope of training and Development activities, as in most other activities in an organization, depends on the policy and strategies of the organization 12) Team Building policy Organizations are quickly adopting team building sessions for their staff to enhance team cohesion and spirit. This policy gives the guidelines on how and when the team building sessions should be carried out. For instance, Teambuilding events are no different from workplace events in that managers are still responsible for the health and safety of their staff. Health and Safety issues should always be taken into account and risk

assessment prepared where

necessary. All events should have a clear structure and clearly defined objectives. The event should be structured in such a way as to develop team skills such as leadership and communication skills, decision-making, and organization and planning. It should be clear how they intend to develop motivation and morale.

13) Health, Safety &Security at work place a) Fire/disaster assembly point This policy is important to this organization and it spells the following; adequate and suitable means of extinguishing fire must be provided in every building and persons trained in the correct use of such means shall be present during all working periods. Detailed requirements are laid down in the Act as to the special precautions necessary to ensure safety in the events of a fire. Adequate means of escape in case of fire must be provided. Fire exits must be marked by a notice printed in red letters of adequate size. Effective steps must be taken to ensure that the workers are

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familiar with the means of escape and the routine to be followed in case of fire.

b) First Aid In every workplace there must be provided a first-aid box or cupboard of a prescribed standard, containing nothing except first-aid requisites, and in charge of a responsible person who must be always readily available during working hours. In every workroom a notice must be affixed stating the name of the person in charge of the box or cupboard provided in respect of that room. c) Drinking Water supply An adequate supply of wholesome drinking water must be provided. The policy also includes; cleanliness of the workplace, ventilation, adequate lighting, drainage of floors, sanitary accommodation, removal of waste materials, protective clothing and appliances and frequent maintenance of hoist or lifts. 14) Email and Internet Policy In many organizations, access to the Internet was initially limited to a few people in the IT or marketing groups. Today, with a PC on every desk, many employees find themselves with access to the Internet and email but with little understanding of either the potential problems or the real benefits which this can bring. The purpose of an acceptable use policy is to ensure that employees understand the way in which these technologies should be used in the workplace. This enables both employees and the organization to gain the maximum value from email and the Internet, and alerts them to the dangers that can arise to the organization if they are misused, which may put the organization at technical, legal or commercial risk.

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Employers are responsible for their employees' activities when using email and the Internet. For example, if software for use in an organization is obtained illegally, the employer is liable even if it was obtained without their knowledge or permission. Similarly, information on an organization’s website or in its email can give rise to legal action against the company. The content of such policies will depend on the needs of the organization and the expectations and requirements of its employees, so before producing an acceptable use policy, an organization must have developed an agreed strategy for using email and the Internet. But the policy must always state the consequences of breaching the rules: since the issues covered range from the inconsiderate through to illegal activities, the sanctions would similarly be expected to range from a verbal warning through to instant dismissal. The policy should be introduced and explained during the employee induction programme. Where necessary, it should be reinforced during specialist training sessions.

15) Leave policy a) Annual leave Annual leave will be taken at the convenience of both the individual concerned and that of the employer. Annual leave entitlement for different categories of staff, leave allowance, accumulation of leave days and compensation of leave days not utilized are captured in this policy. Employees are required to make written applications for leave through their head of department. All leave applications, 11

approvals, and related correspondence must be recorded in the employees’ personal file. b) Compassionate leave An organization may give consideration to granting "special leave" on compassionate grounds on the production of proof of the necessity for such leave. Such may apply in cases of death of employee's spouse, children or parents. The policy may set out the maximum number of days. c)

Maternity leave This is a legal requirement by Kenyan labour laws (Employment Act), a female employee shall be entitled to three months (3) maternity leave with full pay, in addition to her annual leave entitlement for that year. Some organizations extend this by offering one and a half hour early exit/late entry at workplace for nursing mothers for a period of one month.

d) Paternity leave A staff member may be granted two (2) weeks paternity leave whenever his spouse delivers a baby. The leave shall be taken within thirty (30) days from the date of delivery by the spouse. This is a legal requirement by Kenyan labour laws. e) Sick leave In the event that a member of staff is unable to come to work as a result of illness or accident, they are expected to notify the supervisor at the earliest opportunity. A medical certificate is required for absence and should be submitted to the HR office. Staff members may be entitled to a specific number days per annum on full pay. If the staff member is still unfit to perform their duties after this, the situation will be reviewed by the management and a decision to continue or terminate their employment decided. f) Study leave

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The organization may offer study leave to members of staff for courses approved by the management subject to job relevance. For self sponsored courses, leave will be granted but deducted from annual leave days. g) Leave of absence A leave of absence without pay may be granted when the requirements of the department permit, when such leave is for prolonged illness or injury, or for any exceptional personal or institutional reason. Leaves of absence without pay may be granted only after all appropriate accumulated leave has been used. Such leave must be requested by the employee and recommended by the department chairperson or administrative head, and approved in accordance with the current delegation of authority. Any regular employee may be granted a leave of absence without pay when approved by the proper authority in order to preserve the employee's employment rights and benefits. A leave of absence may be granted only if the employee has a bona fide intention to return to the organization following the leave. h) Unpaid leave In exceptional circumstances an employee may seek permission to take leave without pay. This may be granted at the organization’s discretion and only in the most deserving of cases. 16) Misuse of Organization’s Property policy This policy highlights how the organization’s assets should be handled and the consequences for mishandling.

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17) Traveling Policy This policy highlights the entitlements and how staff should be reimbursed expenses incurred while on is working out of the usual work station. This capture items like Per diem, Daily allowances etc 18) Trade Unions Policy Trade unions are becoming popular and powerful in the modern world and they cannot be ignored. Organizations need to recognize union staff in the organization and entrench the bargaining agreement in the staff manual. 19) Corporate Social Responsibility (CSR) Policy Corporate social responsibility is a concept with a growing currency around the globe. CSR is a concept that frequently overlaps with similar approaches such as corporate sustainability, corporate sustainable development, corporate responsibility, and corporate citizenship. While CSR does not have a universal definition, many see it as the private sector’s way of integrating the economic, social, and environmental imperatives of their activities. As such, CSR closely resembles the business pursuit of sustainable development and the triple bottom line. In addition to integration into corporate structures and processes, CSR also frequently involves creating innovative and proactive solutions to societal and environmental challenges, as well as collaborating with both internal and external stakeholders to improve CSR performance. Corporate social responsibility (CSR) promotes a vision of business accountability to a wide range of stakeholders, besides shareholders and investors. Key areas of concern are environmental protection and

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the wellbeing of employees, the community and civil society in general, both now and in the future. The concept of CSR is underpinned by the idea that corporations can no longer act as isolated economic entities operating in detachment from broader society. Traditional views about competitiveness, survival and profitability are being swept away.

Conclusion All these policies when compiled in one booklet may be referred to as staff manual. Policies depend on the strategies of an organization. These policies must be inline with the labour laws, human rights and the constitution. The policies should also have a clause on how they can be amended to incorporate any changes.

References Stoner, James A.F, Freeman R.E, Gilbert (Jr) D. R (2007), Management, 6th Edition, Prentice Hall. Cole G.A (1996), Management; Theory and Practice, 5th edition, Prentice Hall. Armstrong M., A handbook of Human Resource Management Practice, 10th Edition

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Cole G.A (2002), Personnel & Human Resource Management, 5th edition, prentice Hall. Armstrong M, (2000), Strategic Human Resource Management; A guide to Action, 2nd edition, Kogan Page Limited. Co-operative Bank of Kenya, staff Manual, 2007 Commercial Bank of Kenya, Staff Manual Kenya Revenue Authority, Staff Manual

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