The backbone of any organization's operation is its work force. The attitude that is conveyed and delivered by the employees of an organization will directly affect the public's perception of the organization. In order to provide the work force with a clear understanding of their employee rights and benefits, as well as the rules and regulations set forth by the organization, personnel policy manuals are formalized and adopted by governing boards and management. These policies are a reflection of the philosophy and mission of the organization, which sets rules of conduct, service standards, employment categories, general expectations, supervision of the work force, employee benefits and other such issues that are related to the employment of individuals.

According to Marilyn Pincus of the Institute for Management: "A personnel policy manual is something that tells a manager or supervisor how to deal with a situation. It has been described as a consistent guide to follow whenever a request of this kind is made."

In other terms, a personnel policy manual provides the manager with direction in making the right decision. Writes Pincus: "Policies are guides to thinking in decision making. Their purposes are to define the area with which a decision should be made and guarantee that the decision made will be in line with the overall plans and goals."

Many organizations do not have personnel policies that are well written, consistent or documented. An organization that is without a personnel policy manual is risking great liability exposure should a confrontational issue occur.

Pincus states: "Most often the problem is a profusion of policies that have come into existence haphazardly over the years. Many of them are probably out of date and even contradictory. This could lead to policy chaos, which results from one or more of the following:

• Few, if any, agency policies have been written down;

• The written policies that do exist have not been distributed to all the managers and supervisors who are responsible for carrying them out, and

• As a result, new policies are made in ignorance of and, after, in contradiction to policies already in existence, because almost any expression of managerial intent can be taken for (and even used in court as evidence of) policy."

Normally, a well-written personnel policy manual will serve as a reference guide to what dictates correct or incorrect procedures for the employee and employer.

Pros and Cons
There are advantages and disadvantages to established personnel policy manuals.

Advantages include that policy manuals provide efficiency, reliability, quality and structure. Organizations are much more efficient when the work force knows what is expected of them. A clear sense of job duty and direction is established and the need for continual explanation and reinforcement on general procedures is not necessary. Employees are more reliable when they know what is expected of them as they can manage their job duties better and are aware of the repercussions that may occur if they fail to perform their job duties as instructed by management.

Quality control results from a well-written personnel

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FEATURE ARTICLE

Once a personnel policy manual has been adopted, an employer must make sure that they treat all employees with consistency whether it is disciplinary actions, promotions, benefits or other aspects of the manual.

policy manual because an employer shows that they care about their work force by providing a guide with requirements and procedures that inform employees of their expectations and available benefits. Also, it creates structure to an organization's management principles and work force, by providing a consistent method of treating employees fairly, whether rules are being followed or broken.

A disadvantage of a personnel policy is that it can create a false illusion to employees who may construe them as a binding labor contract. Oftentimes employees feel that as long as they follow all rules and regulations in the manual, they are exempt from losing their job.

In Finley vs. Aetna Life & Casualty, 499 A2d 1257, an appeals court in Connecticut ruled that a manual can indeed become a contract under appropriate circumstances in which terms of employment are dictated. These circumstances could arise even if a new manual is published after the employee takes the job. The employee can accept the terms by choosing to stay on the job. Such an offer and acceptance are basic elements of a legal contract (Alexander Hamilton Institute).

Management and governing boards have the right to amend policy whenever they so desire. According to the Alexander Hamilton Institute's Employee Handbook Audit: "A company should be free to make independent, good faith judgements about their employees. They should be equally free to improve and update policies. However, when an employee who is free to leave decides instead to accept the company terms, this agreement can become a contract."

Therefore, organizations must be very careful in how they develop, amend and apply policy. Attorney John Justin Wyeth of John Justin Wyeth & Associates, states:

"The employer must be careful to define that such benefits or procedures will be available only throughout the course of a persons employment with an organization."

The employer must provide proper planning in formulating and revising the personnel policy manual so that situations can be avoided. When this planning occurs, the employer will minimize their exposure due to the wording of what has been set forth in the manual. This, of course, is dependent on whether or not the employer was negligent or discriminatory in their practices.

Another obstacle faced by personnel policy manuals is that older employees may feel that they are "grandfathered" by any amendments that may occur after receiving their original manual. This is not the case and the employer must be sure to have employees sign off on a copy of any amendments to the manual. This sign off assures that the employee has read, understands and will abide by the amended policy.

Personnel policy manuals also become difficult in that they are binding to the employer regarding consistency.

"You cannot observe a policy only when it is convenient. You cannot enforce it to certain groups while omitting others. And, most of all, you cannot take the position tion that employees must observe the policies while you are exempt. The employment relationship is a mutual obligation" (Alexander Hamilton Institute).

Once a personnel policy manual has been adopted, an employer must make sure that they treat all employees with consistency whether it is disciplinary actions, promotions, benefits or other aspects of the manual. There should not be any special treatment given to one employee over another as this will cause the employer to lose credibility, trust and cause dissension among the work force.

Audit Process
While there are standards set forth in a personnel policy manual, these standards are not set in stone and can be revoked or amended by the governing board or management of an organization at any given time. These modifications are implemented in the "audit" or review/revision phase of the personnel policy manual.

Typically, organizations are advised to audit their personnel sonnel policy manuals annual or biennially. The purpose of this is to revise the policy in regard to recent legislation that may have passed as well as keeping current with shifting organizational policy. A prime example of the need for this procedure is the Americans with Disabilities Act of 1990, which required employers to revise hiring and accommodation procedures for their work force. The audit ensures that the personnel policy manual will remain flexible enough to adjust to changing ing legislative and organizational standards.

At-Will Employment
An employer who rebukes policy or procedures set forth in the personnel policy manual could be exposed to a lawsuit. However, many employers are covered under the at-will employment doctrine which exempts them from needing "just cause" to dismiss an employee. The at-will doctrine is very strong in that it provides employers with a lot of protections in allowing an employer to terminate a non-contractual employee with or without just cause.

From Elizabeth N. Thomas' Personnel Policy Manual:

"The at-will policy indicates that all employees who do not have a written employment contract with the company for a specific, fixed term of employment are employed at the will of the company for an indefinite period. Employees who do not have a separate, individual written employment contract or collective bargaining agreement are employed at the will of the company and are subject to termination at any time, for any reason, with or without cause or notice. At the same time, these employees may terminate their employment at any time and for any reason."

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DOES YOUR AGENCY HAVE IN WRITING?

During the interview process and after the time of hire, no person may make special arrangements or clauses that will exempt certain non-contractual employees from the at-will relationship. All employees of the organization are subject to at-will employment in the absence of a contract.

"No company representative is authorized to modify this policy for any employee or to enter into any agreement, oral or written, that changes the at-will relationship. Supervisory and management personnel are not to make any representations to employees or applicants concerning terms or conditions or employment with the company which are not consistent with company policies. No statements made in pre-hire interviews or discussions, or in recruiting materials of any kind, alter the at-will nature of employment or imply that discharge will occur only for cause." (Thomas)

Along with the flexibility of the at-will doctrine, the employer may issue procedures to employees to follow which provide clarifications or updates in organization policy. These may be instituted at any time by the employer and will not affect the at-will relationship provided they are implemented correctly. It is important that these clarifications are not worded to create an express or implied contract between the employee and the employer but serve as a guide to what is expected or offered employees during the course of employment with the organization.

"Policy revisions and clarifications may be issued by management as deemed to be in the best interest of the company. These documents do not create an express or implied contract concerning any terms or conditions of employment. In similar terms, the company's policies and practices with respect to any matter are not considered as creating any contractual obligation on the part of the company or as stating in any way that termination will occur only for "just cause." Statements of specific grounds for termination set forth in current personnel policy manuals or in any other company documents are examples only, not all inclusive lists, and are not intended to restrict the company's right to termiate at-will." (Thomas)

The at-will employment relationship offers the employer a considerable amount of control over the retention of the employee, however, this protection does not restrict the employee from taking the employer to court. Due to the nature of the at-will doctrine, an employee who does take their employer to court will have a hard time proving their case. The employer usually wins unless there is negligence or discrimination proven against the employer. In the case of negligence or discrimination, a ruling will then be granted on behalf of the employee due to the employers failure to comply with state and/or federal laws. There are also times when a ruling will be granted in favor of the employee if a set termination procedure has been violated. Wyeth explains:

"If the employer has stated that certain steps will be implemented prior to termination of an employee and these steps have not been followed, the employee may win their case. For this reason, an employer must be careful when implementing a termination process into the personnel policy manual. Many employers are too lenient with this process and put a three to five step process into their manuals to make the employees feel better. This is not necessary as this could tie up the termination of a problem employee for months. The best approach is to implement a clause allowing the employee to appeal to a higher manager or board who will then review the decision and take final action. This allows the employee to be heard and the organization to take a final look at any discriminatory or negligent factors that may be involved with the dismissal."

Summary
Personnel policy manuals are effective documents that are implemented for the collective good of an organization and its work force. It's not a contract but a tool, which allows the organization to establish and maintain consistent labor patterns and employee expectations. Content of a personnel policy manual varies, however, the contents should clearly identify the mission and goals of an organization as well as what is provided and expected of the organization's work force. 

PATRICK J. RYAN, CLP
is the executive director of the North Berwyn Park District. Individuals seeking additional information on this article or input on personnel policy manual development, may contact Ryan at the North Berwyn Park District, 1619 South Wesley Ave., Berwyn, III., 60402, 708.749.4900.

References
Alexander Hamilton Institute (editorial staff). The Employee Handbook Audit, New York: Modem Business Reports, 1987. Dessler, Gary. Management Fundamentals, Reston, Va.: Reston Publishing Company, Inc., 1985. Pincus, Marilyn. A Company Policy Manual, Greenvale, NY: Panel Publishers, Inc., 1987. Thomas, Elizabeth N. Personnel Policy Manual, vol. 15, no. 11, November 1994. Wyeth, John Justin of John Justin Wyeth & Associates

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