Human resources policy is a formal statement of a principle or rule and regulation that members of an organization should use and follow. Each policy addresses an issue important to the organization’s mission, vision, and operations. The purposes of human resources policy are designed to provide access to pertinent resources necessary for successful employment. Besides that, they train employees to learn more about communication and promote understanding between staff and supervisors because communication is a value and expectation that every company wants to have.
Human resources policies also assist in the development and consistency of human resource practices and resources. With that, documentation and implementation of best practices that are appropriate to the organization are ensured. Human resources policies help management make decisions that are consistent and predictable. They also protect individuals and the organization from the threats and pressures of expediency.
The strategic management used by Unilever has realized that happiness among employees directly affects the success and growth of the business. Unilever has set an example of efficient human resource management by focusing on human rights and ensuring that compliance with human rights is carried out through its assurance process. Unilever has organized countless campaigns internationally to improve the company’s human resource management strategy and boost the motivation of all employees.
Theoretical Perspectives on Human Resource Policies
To better understand the significance and implications of human resource policies, it is important to consider several academic theories. One relevant theory is the Resource-Based View (RBV) of the firm, which suggests that human resources are critical assets that provide a competitive advantage. According to this theory, organizations that develop and implement effective HR policies can attract, develop, and retain talent that drives organizational success.
Another pertinent theory is Maslow’s Hierarchy of Needs, which posits that individuals are motivated by the fulfillment of hierarchical needs, starting with physiological needs and moving up to self-actualization. HR policies that ensure fair wages, safe working conditions, and opportunities for growth and development address these needs and enhance employee motivation and satisfaction.
Herzberg’s Two-Factor Theory also provides insight into the role of HR policies. According to Herzberg, there are hygiene factors (such as salary, job security, and working conditions) that prevent dissatisfaction, and motivators (such as recognition, responsibility, and opportunities for advancement) that promote satisfaction. Effective HR policies should address both sets of factors to create a motivating and satisfying work environment.
Equity Theory, developed by John Stacey Adams, highlights the importance of fairness in the workplace. This theory suggests that employees are motivated by the perception of fairness in the distribution of resources and rewards. HR policies that ensure equitable treatment, fair compensation, and transparent decision-making processes help maintain a motivated and committed workforce.
Impact on Regulatory Requirement on Human Resource Policies
Human resource management must comply with all employees’ health, safety, and other relevant legislation applicable to their jurisdiction for the organization to operate effectively. This includes federal, state, and local laws that belong to various areas of HR such as recruitment, benefits, labor relations, and termination. Safety, legal, and regulatory compliance is the most important law to an organization because that department involves employing new workers, developing new strategies, utilizing, managing, and understanding the staff in an organization.
Federal Law
Federal laws encompass all areas of employment, starting from an employee’s hiring to their termination. They outline the basic needs and requirements for which employers and employees are covered, employee rights, record-keeping, reporting, and penalties for noncompliance. Other than that, the laws provide standards for wages and hours, safety and health, health benefits, retirement, workers’ compensation, and working conditions. For example, some companies provide insurance or health cards for their employees.
The Fair Labor Standards Act (FLSA), for instance, sets the minimum wage, overtime pay, recordkeeping, and youth employment standards. This ensures that employees are fairly compensated for their work and that there is a standard baseline for employment conditions across the country.
State Law
Human resources management also involves complying with state laws governing various employment issues such as family problems, employer prior notice to employees of termination, medical leave, safety and security, monthly wages, working hours, and employee compensation. Employees should also have rights under state common law, such as privacy and contract rights. Many local governments have their own employment-related company laws, which cover more areas than federal laws or state laws.
State laws can include regulations such as California’s Fair Employment and Housing Act (FEHA), which provides protections against workplace discrimination, harassment, and retaliation. These laws ensure that employees are treated fairly and that their rights are protected in the workplace.
The Role of Human Resource Policies in Organizational Success
Effective human resource policies are critical to the success of any organization. They ensure that the organization complies with legal requirements, promotes fair and consistent treatment of employees, and supports the overall strategic goals of the organization. These policies help create a positive work environment where employees feel valued, supported, and motivated to contribute to the organization’s success.
Organizational behavior theories, such as Social Exchange Theory, highlight the importance of the reciprocal relationship between employers and employees. According to this theory, employees are more likely to exhibit positive behaviors and high levels of commitment when they perceive that their organization values and supports them. Effective HR policies can foster this positive exchange relationship, leading to better organizational outcomes.
Contingency Theory suggests that there is no one-size-fits-all approach to management and that organizational effectiveness depends on fitting HR practices to the specific context and needs of the organization. This theory implies that HR policies should be flexible and adaptable to address the unique challenges and opportunities within the organization.
Institutional Theory also provides insight into the importance of HR policies. This theory posits that organizations are influenced by the norms, values, and expectations of the society in which they operate. HR policies that align with these societal norms and values can enhance the organization’s legitimacy and reputation, which are critical for long-term success.
In conclusion, human resource policies play a vital role in ensuring the smooth operation and success of an organization. They provide a framework for consistent and fair treatment of employees, ensure compliance with legal requirements, and support the organization’s strategic goals. By incorporating relevant academic theories and best practices, organizations can develop and implement effective HR policies that enhance employee satisfaction, motivation, and overall organizational performance.