TABLE OF CONTENTS 4.1 The question must initially be asked: Why have policies and procedures at all? The answer to this question is fundamental to understanding the concepts in this chapter. From an organisational perspective, there needs to be a top-level strategy for managing risks within the organisation. This essential responsibility for the Board or senior management team not only protects the interests of the shareholders but also ensures a safe and effective working environment. In terms of assessing corporate risks, these are associated with a wide range of business activities such as buildings, plant and machinery, finance and, of course, people. Senior management have overall responsibility for ensuring that the risks faced by the organisation are managed and minimised.
4.2 The answer for Human Resources professionals is that the implementation of effective policies and procedures for Human Resources operational and regulatory requirements is key to managing Human Resources risks. As a result, not only will management fulfil this important part of their obligation to stakeholders, but they will also maximise the effectiveness of employees, thus maximising opportunities for the organisation.
4.3 Mention has already been made of the psychological contract as an unwritten set of expectations within an organisation. How Human Resources professionals write policies and procedures, determine the resulting practices and communicate them to employees can significantly shape the perception of the psychological contract for existing and prospective employees.
4.4 Where employees perceive that the psychological contract has been violated, they...
