Need for HR Policies

Carefully developed policies are vital to HRM because employees are sensitive to any differences, no matter how slight, in the treatment they may receive com­pared with others. The quickest way to impair em­ployee efficiency and morale is for a manager to show favoritism in decisions such as those relating to vaca­tions, schedules, raises and promotions, overtime, and disciplinary action.

Decisions can be made more rapidly and more consistently if policies relating to these and other subjects have been formulated and communicated throughout the organization.