How to implement human resource management policy?

Phasing-out of the staff category is just one of the issues for which HR recognizes that further modifications in policies should await in-depth analysis of implications, or further experience with policy implementation(Boohene&Asuinura, 2011). There are other issues as well, for example relating to the staff council, job evaluation, and strategic staffing (as noted above), that might benefit from a similarly-careful incremental approach so that gaps in policy or practice are adequately addressed on the basis of learning-by-doing, as well as adoption or adaptation of good HR practices from other relevant organizations. It is essential to HR incrementally modify or develop HR policies in response to issues as they arise, for example issues relating to the staff council, job evaluation, and strategic staffing.

Human resource management policy of the organization should address the followings;

·         Policy on contract workers

·         Employee reward policy

·         Dress code policy

·         Employee induction policy

·         Mobile phone usage policy

·         Housekeeping Policy

·         Laptops and Desktop policy

·         Visiting card policy

·         360 Degrees review policy

It is important to plan and conduct human resource policy awareness programs. Most of the business organizations refresher trainings are not provided to staff that has been with the organization for a longer time, specifically those that are related to its key policies such as code of conduct, ethics, etc. Human resource management policies should be available in the intranet portal and accessible to all staff. However, having poster and other forms of media will enhance awareness on vital policies. Further all policies should be extended to cover all the statutory requirements existing in business organizations(Beeret al, 1999).  Unit head or designated alternate/authority shall review HR policies and guidelines as per unit’s agreed schedule to determine if HR policies and guidelines are updated and in accordance with the current activities of the unit.There is an urgent and important need to train, guide and equip managerial staff in having and holding difficult and challenging conversations with staff particularly around performance and conduct expectations outside of the formal annual performance exercise. Business organization should review its HR policies and procedures at least on annual basis, to monitor the applicability of the policies with the current practice of the organization(Boohene&Asuinura, 2011).

The SOP Manual on Payroll Operations includes the following requirements:

·         Employee’s payroll must be prepared accurately and paid on time

·         Reports and payments to government and other regulatory agencies must be complete, accurate, and submitted as well as paid before the deadlines

·         Employees’ payroll accounts must be constantly monitored to ensure accurate reporting.

·         Verifying that the employees’ gross and net pay were properly authorized, calculated, and supported by appropriate leave and attendance records;

·         Verifying that payroll deductions were proper and supported by appropriate staff member authorizations where applicable;

·         reports and payments to government and other regulatory agencies properly and timely made; and

·         Verifying that the payroll payments were properly recorded in the appropriate general ledger accounts in a timely manner.

Compensation management and employee satisfaction

It was not possible to match the number of staff members in the organization’s post incumbency report with the number of staff paid included in the earnings and deductions report. While the earnings and deductions report provided comprehensive information about all the staff members’ monthly pay slips, it did not include the total amount of each payroll element such as gross salary, post adjustment, etc. Many of the reports generated with the information systems were no longer supported and were not utilized as a reference during payroll processing. However managerial level employees of human resource management process could still use them making incorrect assumptions on the basis of this information. Business organizations should ensure that variances between the payroll reports generated with automated human resource management module are identified, explained and corrected in a timely manner and on a monthly basis; (ii) reports provide both consolidated and detailed information (i.e., processing elements, errors, payments, etc.); and (iii) the reports no longer supported are removed from the production database.

The Company employs several “best practices” in its payroll processing function, including:

·         Exception-based time collection for certain employees.

·         Standardized payroll cycles and calendars.

·         Single common employee-information database shared between human resources and payroll.

·         Automated integrated garnishments.

·         Benefits deduction payments and activity interfaced with benefits providers.

·         Standard employee identification.

Other “best practices” have not been implemented, or only marginal benefit has been derived from their implementation.The Company should implement the following payroll processing enhancements which are common in most efficient payroll processing environments:

·         Automated time-collection tools.

·         Integration between the employee-information database utilized by human resources and the benefits system.

·         Incentive programs to encourage more employees to utilize direct deposit of payroll checks

Risk management on human resource management process

While some identified risks in Enterprise Risk Management (ERM) system can be related to the payroll process, risk management can be further enhanced by identifying explicit payroll risks than can be specific to each Unit involved in the payroll process, as well as cross-cutting risks that could be managed across stakeholders of the payroll process. This is especially relevant because ongoing changes and enhancements would impact the current risk landscape of the payroll process (Beaver & Harris, 1995).  Human resource department should continue to work with all stakeholders involved in the payroll process, in identifying, documenting and monitoring payroll related risks, as part of the organizational risk management process. The Human Resource Management Department should identify fitting solutions in HR solution, to replace the current payroll action forms and the movement of insurance sheets, while maintaining ownership and accountability.Reassess the duties and roles relating to payroll processing and HR profiles and institute appropriate segregation and adequate controls, including those relevant to electronic fund transfers by(Boohene&Asuinura, 2011):

·         Continuing to coordinate with the labor department for the development and implementation of a bank payroll interface that will provide the office with electronic funds transfer capability;

·         Establishing an independent reconciliation process between the bank letters and the Atlas payroll,

-          Prior to the submission of bank letters; and

-          Assigning one or only compatible roles in payroll processing and Atlas profile to each human resource/finance personnel consistent with their respective roles.

Further code of discipline refers to violation of confidence as a disciplinary offense, including divulging confidential information to unauthorized persons. The audit noted that the SOP Manual on Payroll Operations make no reference to adequately securing staff members’ information/payroll records to ensure privacy and confidentiality. Such guidance on handling payroll and staff members’ personal information would reinforce the general provisions in the Code of Discipline (Boohene&Asuinura, 2011). Non-compliance in relation to payroll information could lead to loss of privacy, conflicts among the staff members, demoralization and at the extreme, identity theft.The Payroll Office should develop procedures to identify the causes, dollar amount, and the status of overpayments. A process should be developed to record and track all payroll overpayment exceptions, and this information should be communicated to deans, chairs and directors with recurring overpayments. Trainings can be developed and targeted to college/department timekeepers requiring additional support in processing employee appointment actions.

References

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Boohene, K., &Asuinura, E.L. (2011) The effect of human resources management practices on corporate performance: a study of graphic communication group limited. International Business Research, 4(1): 266- 272.

Boxal, P. and Purcell, J. (2000) Strategic Human Resource Management.International Journal of management reviews.

Chang, P.L., & Chen, W.L. (2002) The effect of human resource management practices on firm performance: Empirical evidence from high-tech firms in Taiwan. International Journal of Management, 19(4), pp. 622-638.

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feedback, Compensation and Benefits Review, pp. 41-6