Feature

The problem of too many policies

Everything is good when in proper measure. Renuka Vembu on how too many policies can become detrimental for the organization

It is said that children turn rebellious when parents place too much restriction on them, while on the other hand, they tend to be more disciplined and well-behaved when they are given some amount of freedom and not dealt with, with a stick in hand at all times.

Similar is the case at office too. When employees are trusted and given space to perform and responsibilities to shoulder, they tend to be more productive at work and loyal to the organization. Whereas when they are scrutinized and put under the scanner and do not have enough flexibility, they tend to be demotivated, disinterested and disengaged.

Atul Hemani, Managing Director, Omnitech InfoSolutions, asserted, “Good company policies reduce organizational risk and increase profits; however many a times misleading company policies reduce the employee morale and hence can increase the company’s attrition rate. Company policies are dishonest and misleading when recruiters paint pictures of what the job will be like and the endless opportunities awaiting those who can perform well, but in reality that vision might not square with the situation. Then, when the new recruit finds that he/she has fewer resources than promised and less discretion to act effectively, it results in dissatisfaction and confusion and can send her emotional and intellectual commitment to the job spiraling down.”

The side-effects of ‘too much’

While policies are necessary to bring about decorum at the workplace, discipline in behavior and an organized functioning of the processes and systems, too many restrictions may hamper creativity, innovation and the sense of belonging.

Iti Kumar, AVP, People Development and Employee Services, GlobalLogic, said, “Companies have to keep in focus the objectives while framing policies. There has to be a direct linkage of all the policies with the organization and employee needs and concerns. Generally, there are three reasons due to which any company implements policies and these are compliance, regulation and security. Policies and procedures, are important to an organization’s stability, success and growth.” At the same time successful policies and practices do not draw boundaries; rather they recognize employees’ needs and addresses their concerns. The repercussions of this over-indulgence can lead to:

Certain policies are mandatory, but too many policies or processes to take every decision results in losing the flexibility aspect and in enforcing rules and regulations on people. At the same time, it can also make employees manipulate policies for their advantage. Adherence to rules is important but it should not take away freedom of expression and thoughts.

Innovative ideas are lost since people stick to policies and do not share feedbacks or new ideas on bringing about changes to existing policies.

Policies cannot be done away with, because then there would be no code of conduct to follow and no regulation to monitor. No clear communication will lead to lack of clarity of the expectations and thereby disability to take action against non-compliance. Rules that are imperative and indispensable, and are either critical or contentious, need to be formulated. But it is important to create proper awareness, espouse it and follow them.

Pankaj Agarwal, Group CEO and MD, Mindteck India, said, “It is imperative to have a well defined corporate policy document that articulates all the dos and don’ts. But, it is even more important to create awareness among all employees about these policies. Most often, companies document policies carefully, but fail to communicate them effectively. Policies need to be evaluated from time-to-time to make sure they hold good at the present business environment. Simply adding new policies seldom helps. Too many policies can sometime leads to irritation and frustration among employees resulting in badmouthing in the market. Therefore, every policy needs to be carefully weighed before amending into the policy document.”

Hemani viewed that the great majority of employees are quite enthusiastic when they start a new job. But in about 85% of companies, employees’ morale sharply declines after their first six months, and continues to deteriorate for years afterward. The fault lies squarely at the feet of management—both the rules and regulation or policies and procedures companies employ in managing their workforces and in the relationships that individual managers establish with their direct reports.

There also needs to be timely review and amendment of policies before they become passé and irrelevant. When new polices are formulated, the old ones need to be evaluated. Polices, their importance, and action against non-conformity, must be clearly defined, so that there is no ambiguity.

Chetan Shah, MD, Synygy India, felt that the real question was not whether policies posed a problem, it was whether policies are adhered to and if they are reviewed and modified to ensure it is still applicable. Given the volatile economic situation, it is important for the organization to have written policies to deal with performance-related terminations and exit policies. Not having apt policies creates confusion, exposes the organization to legal issues, and they waste a lot of resources in dealing with the situation.

Ways of communicating

For those policies that are not listed, communicating them through posters, or by way of team leaders/managers, can help spread awareness. Non-verbal communication can be more effective where there is no verbal rule laid down. Simple day-to-day things like break timings or dress code can be conveyed by peers or team members. Etiquettes or expected demureness can be publicized by way of messages, posters, cartoons, or any other visual form.

Sunny Pokala, President, Amtex Systems, mentioned, “Sooner, rather than later, an employee would himself or herself become aware of the unwritten rules of an organization. But if even after coming to terms with the unwritten rules, an employee doesn’t adhere to them, then an organization should convey to the employee in an indirect manner so that the employee doesn’t feel that he/she alone is being targeted.” For example, when the dress code of an employee comes under question, then a mail by the HR department to all or a particular section of employees could ensure that the message reaches the target. If a message needs to be sent out to employees that they should maintain order in the cafeteria, then creative posters or message boards could be set up at strategic locations where the message is clearly displayed for all to see.

Areas of criticality

Polices on rewards and recognition, sexual harassment or other grievance, ethical/moral conduct, promotion and perks, job rotation, employee benefit schemes, security areas, etc., must not only be clearly defined but also strictly be adhered to or dealt with.

But the main task of the company, its HR department and the immediate supervisors is not to make the policies as an enforcement or imposition. Rather, the implications and the repercussions of not adhering to the same, and the impact on not only the individual concerned but also the company as a whole and its entire ecosystem should be highlighted. This will make employees equal participants to help carry and maintain the requisite company rules.

Policies should enable smooth functioning and erase inconsistencies. Too many or too little will pose a problem; so companies have to get the right mix of the necessary framework and yet not go overboard.

renuka.vembu@expressindia.com