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The Importance of HR Policies and Procedures

The HR Department of any company is the people who have been hired as employees of a company to select, recruit assess new candidates, as well as create the procedures and HR policies of companies. It is said that the HR Department and its policies and procedures are the real backbone and foundation of a company.

To run any organization successfully, it is important for the organization to define clear HR policies and procedures which are in line with the country’s labor war.

But what’s the difference between policy and procedure? We talk about policies and procedure all the time, but what is policy and how does it differ from a procedure?

A policy is a guiding principle used to set direction in an organization. It should be used as a guide to decision making under a given set of circumstances within the framework of objectives, goals and management philosophies as determined by senior management.

There are two types of Policies. The first is Rules frequently used as employee policies. The second is Mini-Mission Statements frequently associated with procedures. A policy in a procedure acts as a mini-mission statement containing the customer of the policy, it’s purpose, and a key performance indicator (KPI) to communicate how users know the procedure is working.

A procedure is a particular way of accomplishing something. It should be designed as a set of series of step to be followed as a consistent and repetitive approach or cycle to accomplish an end result.

To put in very simple terms, here are some specific guidelines on differentiating between Policies and Procedures:


  • Are general in nature
  • Identifying company rules
  • Explain why they exist
  • Tells when the rule applies
  • Describes who it covers
  • Shows how the rules are enforced
  • Describes the consequences
  • Are normally described using simple sentences and paragraphs


  • Identify specific actions
  • Explain when to take actions
  • Describes alternatives
  • Shows emergency procedures
  • Include warning and cautions
  • Gives example
  • Shows how to complete forms
  • Are normally written using an outline format

HR policies and procedures are an essential part of an organization and provide formal statements of ‘the rules’ that defined how an organization operates on a day-to-day basis with respect to its people.

These HR Policies and Procedures helps an organization to:

  • Manage all employees who are on the payroll in a fair and consistent manner
  • Set and manage employee expectations
  • Communicate an organization’s goals and values
  • Ensure all policies are aligned to legal requirements and best practices
  • Create a common and healthy working environment
  • Provide know how o how to apply policies across all levels of an organization
  • Give a clear picture of career growth in the organization

HR Policies and Procedures are important as they provide structure, control, consistency, fairness, and reasonableness. They also ensure compliance with employment legislation and inform employees of their responsibilities and the company’s expectations. Policies and procedures are written by the human resources department for various reasons.

Here are the following purpose of HR Policies and Procedures.

  1. Organizational Structure:

    HR policies and procedures can differ from organization to organization. The HR policies provide guidelines on employer-employee interaction, behavior, appropriate work behaviors, work schedules, employment laws, conflict resolution, disciplinary measures and health, and safety measures.

  2. Legal Issues:

    HRM policies and procedures of an organization are made to comply with the laws and regulations of a country. These policies and procedures are made to prevent lawsuits as far as possible, in case of problems faces as the workplace. Employees are required to be informed about these policies and procedure and legal implication to ensure smooth operations in an organization.

  3. Supervision Guide:

    Policies and procedures provide the right tools, guides, and resources on how to manage employee and employment matters in an organization. It allows supervisors and managers to train, guide and manage new or existing employees.

  4. Consistency:

    Consistent application of HR policies and procedures helps prevent dissatisfactions amongst employees, as sudden changes in schedules, benefits or roles and responsibilities can create a healthy working environment.

The following points show why policies and procedures are important for the human resource management process.

  • HR policies and procedures ensure every employee of the organization is looked after their needs respected and proper benefits are given to them for their work.
  • They help address complaints, problem, and grievances of employees and solve them appropriately.
  • They protect employees from wrong behavior from other employees or even from the organization itself.
  • Helps train and develop employees who are consistent with the needs of the organization.
  • Helps employees receive adequate compensation.
  • Helps maintain discipline in the workplace, and
  • Provide paid vacations and holidays to eligible employees.

In order to build a good company, it is essential for employees to be able to work together peacefully. This is attainable by having a proper set of policies and procedures in a company.


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