Human resource policies are continuing guidelines on the approach of which an organization intends to adopt in managing its people.
[3] They therefore serve as a reference point when human resources management practices are being developed or when decisions are being made about an organization's workforce.
A good HR policy provides generalized guidance on the approach adopted by the organization, and therefore its employees, concerning various aspects of employment.
The establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance of its employees.
The process of developing HR policies involves the assessment of the following factors:[11] Human resource management consists of deliberate organizational activities designed to improve employee productivity and administration through such means as recruitment, compensation, performance, evaluation, training, record keeping and compliance.