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HR and Finance Policy

Understanding Basics of Policy

What are organizational policies?

  • Rules and regulations employees must follow to keep operations running smoothly.

  • Provide guidance to employees and protect the organization from legal risks.

  • Cover areas such as:

    • Safety

    • Hours

    • Dress code

    • Use of company assets

    • Employee benefits

    • Paperwork submission

    • Harassment

    • Check signatories

    • Expenditure approvals

Why do you need policy?

  • Helps control and monitor resources.

  • Training tool for staff.

  • Reference for staff, management, auditors, and evaluators.

  • Ensures accurate data entry from documents.

  • Enables effective management and reporting.

Why do you need procedures?

  • Policies = "why"; Procedures = "how."

  • Clear steps for routine tasks, with checklists and timelines.

  • Defines individual roles and timelines for processing and reporting.

Who makes Policies?

  • Board of Directors or Board Members appoint a financial committee.

  • The committee prepares a draft, discussed and approved by the Board.

Responsibility for Implementation

  • Finance: Director-Finance or Finance Manager

  • HR: Director-HR or HR Manager

  • Both ensure implementation and suggest updates.

Is Policy Only for Finance/HR Departments?

No, because:

  • Every decision has finance or HR impact.

  • Quality procurement and recruitment depend on policy.

  • Organizations function through crosschecks and shared responsibility.

Finance Policy Contents

  • Accounting Basics

  • Budgeting and Budget Monitoring

  • Investment, Treasury, Banking

  • Donor Management

  • Authorization Matrix

  • Fund Flows

  • Procurement

  • Asset Management

  • Travel Policy

  • Petty Cash

  • Audits and Assurance

  • Fraud Management

  • Sub Grants

  • Statutory Compliance

Detailed Finance Topics (with Takeaways):

  • Accounting Basics: Understand codes and documentation. Enables informed approvals.

  • Investment, Banking, Treasury: Roles in fund access, bank signatories, and reporting.

  • Donor Management: Respect commitments, maintain grant records, build credibility.

  • Budgeting: Know processes, tracking, variances, and unbudgeted expenses.

  • Authorization Matrix: Who can approve what (e.g., vouchers, bills, recruitment).

  • Fund Flows: Monthly projections, request and release formats.

  • Procurement: Templates, thresholds, good procurement leads to success.

  • Assets: Buying, selling, maintenance, depreciation, and responsibilities.

  • Travel Policy: Travel claims, approvals, entitlements, and conduct.

  • Petty Cash: Limits, approval, storage, and reimbursement guidelines.

  • Audits and Assurance: Types of audits, responsibilities, and rights during audits.

  • Fraud Management: Prevention, helplines, investigation, and reporting.

  • Sub Grant Management: Choosing sub-grantees, assessments, and fund release.

  • Statutory Compliance: Legal structure, calendar for compliance, responsibilities.

  • Other Topics: Office opening/closure, travel advances, vehicle use.

HR Policy Contents

Illustrative Policies

  • Whistle Blower Policy

  • Late Coming Policy

  • Transfer Policy

  • Promotion Policy

  • Mobile Policy

  • Job Rotation Policy

  • Laptop Policy

  • Reward & Recognition Policy

  • Code of Conduct

  • Harassment Policy

  • Nepotism Policy

  • Leave Policy

  • Referral Policy

  • Attendance Policy

  • Recruitment Policy

  • Compensation & Appraisal Policy

  • Probation & Confirmation

  • Internet Usage

  • Dress Code

Why HR Policy Matters

  • Senior Management: Implements policy with efficiency.

  • Managers: Ensure transparency.

  • Employees: Know their rights and duties, increasing trust and output.

HR Policy Details

  • Leave Policy: Types, usage, carry-forward, monetization.

  • Recruitment Policy: Channels, approvals, process, documentation, and onboarding.

  • Appraisal Policy: Goal setting, measurement, ratings, feedback, timelines.

  • Promotion Policy: Criteria, committees, timelines, and fast-track paths.

  • Transfer Policy: Need-based, support offered, relocation help.

  • Job Rotation: Rationale, coverage, protocol, evaluation.

  • Nepotism Policy: Family member employment, definitions, conditions.

  • Anti-Harassment Policy: Follows law and grants, covers all harassment types.

  • Code of Ethics: Employee obligations, declarations.

  • Equal Opportunity Policy: No bias based on gender, caste, etc.

  • Termination Policy: Grounds and process for exit.

  • Asset Usage Policy: Proper use and care.

Other HR Aspects

  • Salary structure, increments, rewards, trainings

  • Master file management

  • Payroll creation

  • Attendance/timekeeping

  • Visitor policies

Other Policies

  • Risk Management: Mapping, mitigation.

  • Disaster Management: Backups, alternate setups.

  • Security Policy: Threats and response protocols.

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