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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

    Finance POLICYPolicy CONTENTS

    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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