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.

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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.

 

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