An HR policy is a total commitment of the organisation to act in the specified ways. We know that top management in any organisation is responsible for making decisions regarding their human resources. To ensure that decisions made are consistent over a period of time, there is a need for HR policies. HR policies provide guidelines for a wide variety of employment relations in the organisations.
These guidelines identify the organisation’s intentions in recruitment, selection, promotion, development, compensation etc. HR policies serve as a road map for managers. Simply issuing a written statement of HR policy does not automatically make it policy. For the policy to be issued is one phase; when it is accepted, understood and used as a guide to decisions in actions, which is another phase. HR policies must be known and understood before they become guides to action. HR policies should receive a broad distribution, so that anyone who wishes may review the policy and the policy may become the positive reflection of the values of employees and management.
Thus, HR policies refer to principles and rules of conduct, which govern the employees in the attainment of-the organisation objectives. HR policies: (i) Provide determined course of rules or actions. (ii) Provide a positive declaration and a command to an organisation. (iii) Suggest the values and viewpoints, which dominate the organisation’s actions. (iv) Provide the standard or ground for the decision. (v) Guide the performance of objectives.