---
title: "Personnel policy / employee handbook"
subject: "Organization and Management"
chapter: 7
key: "semester_7/organization_and_management:personnel-policy-handbook"
source: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-policy-handbook
site: BCT Engineering
---

# Personnel policy / employee handbook

Organization and Management · Chapter 7: Personal Management

- Asked in: 2074 Asoj, 3+5 marks
- Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14
- Page: https://www.bctengineer.com/q/semester_7/organization_and_management/personnel-policy-handbook
- Whole chapter: https://www.bctengineer.com/md/semester_7/organization_and_management/chapter-7

## Question

Define personnel management. How important is discussing personnel policy/employee handbook to newly hired employees?

## Short answer

A personnel policy is a written guideline; the employee handbook explains rules, rights and duties. Discussing it with new employees clarifies expectations and benefits, speeds adjustment, prevents disputes, ensures consistency and legal protection, builds commitment, saves time and improves productivity.

## Answer

#### Personnel management
Personnel management is the managerial function of procuring, developing, compensating, integrating and maintaining a workforce to achieve organizational goals. It covers manpower planning, recruitment, selection, training, appraisal, pay, welfare and industrial relations.

#### Importance of personnel policy / employee handbook for new employees
A personnel policy is a written guideline for decisions on employee matters; the employee handbook is the document that explains these policies, rules, rights and duties. Discussing it with new staff is very important because:
1. **Clarity of expectations:** Employees learn working hours, dress code, conduct and performance standards from day one.
2. **Understanding rights and benefits:** Pay, leave, provident fund, SSF, bonus, insurance and grievance procedure are explained as per the Labour Act, 2074.
3. **Faster adjustment (induction):** Familiarity with the organization's mission, culture and structure reduces anxiety.
4. **Avoids disputes:** Written rules prevent misunderstandings about discipline, promotion and termination.
5. **Consistency and fairness:** All employees are treated by the same rules.
6. **Legal protection:** Shows the organization has informed employees; evidence in conflict.
7. **Builds commitment:** A fair and open policy increases trust and loyalty.
8. **Saves management time** by answering common questions in advance.
9. **Improves productivity:** Employees who know the procedures make fewer mistakes and use safety measures properly.

Example: a bank in Nepal gives each new officer a staff service by-law and code of conduct and discusses it in induction.

## Check yourself

The answer's key points as multiple-choice questions, with the correct option and why.

1. What does the employee handbook explain?
   A. Competitor plans
   B. Tax law
   C. Product prices
   D. Policies, rules, rights and duties
   Answer: D. It explains personnel policies, rules, rights and duties. (Key point: Handbook)

2. How does discussing it avoid disputes?
   A. By ending discipline
   B. By removing rights
   C. By hiding rules
   D. Written rules prevent misunderstandings about discipline, promotion and termination
   Answer: D. Clear written rules reduce misunderstanding. (Key point: Avoiding disputes)

3. Why does it make treatment fair?
   A. All employees are treated by the same rules
   B. Rules change daily
   C. Managers decide freely
   D. Some staff exempt
   Answer: A. Consistency and fairness come from common rules. (Key point: Consistency)

## Related in Organization and Management

- [Personnel policy; referral recruitment](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-policy-referral) — Organization and Management, chapter 7
- [Personnel policy and manpower planning](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-policy-manpower-planning) — Organization and Management, chapter 7
- [Personnel management and its functions](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-mgmt-functions) — Organization and Management, chapter 7, asked 3×
- [Personnel management vs HRM](https://www.bctengineer.com/question.md?key=semester_7%2Forganization_and_management%3Apersonnel-motive-hrm) — Organization and Management, chapter 7

## Related in other subjects

- [Personnel management and selection steps](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Apersonnel-management-selection-steps) — Construction Management, chapter 10, asked 3×
- [RA: employee-projects with no part used](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Ara-emp-project-no-part) — Database Management System, chapter 3
- [RA: employees on project DBMS](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Ara-emp-project-dbms) — Database Management System, chapter 3
- [RA: employees on no project](https://www.bctengineer.com/question.md?key=semester_6%2Fdatabase_management_system%3Ara-emp-no-project) — Database Management System, chapter 3