Why organization needs HR Policies?

Any organization whether it is small, medium or large needs to have system, policies and procedures in place to ensure smooth functioning and achieve its goals. HR is one of the crucial functions in any organization as it provides structure, consistency and control, specifically for Start-ups and SMEs. Now, keeping all these aside for a while, let’s think of a company without having HR policies in place. This company has positions from Manager to a Worker.


What an untrained manager can contribute?

Would he be able to design best practices & processes for the organization?

How it looks when a driver of a company vehicle drives without a license?

What if any of your employee downloads inappropriate material in company device?


This list goes on and on and on…………but these don't affect an individual only, it affects company’s culture badly which can lead to high attrition, indiscipline staff and ultimately costs company a huge loss in terms of money, time and resources. All this shows how HR Policies and Practices are crucial for businesses to grow and outperform in the market. In reality, policies serve many purposes like providing clear communication between employer & employee, works as basis for treating employees fairly and equally, comply with appropriate law and regulation etc.


Why HR Policies are important?

  • It communicates Values and Expectations of organization for how things should be done.
  • For Small Organizations and Start-ups, a desire to develop a more formal and consistent approach that will meet their needs as they grow.
  • It supports Business Strategy by utilizing manpower rightly
  • It supports consistent treatment
  • Keeping organization in compliance with legislation and provide protection against employment claims
  • Assist management to take consistent and predictable decisions
  • It promotes strong work culture by continued support to staff, fairness and transparency
When it comes to defining policies sometimes it becomes difficult for SMEs and Start-ups as it requires time, expertise and money. As far as SMEs and Start-ups are concerned, they have less resources and fund so the wise decision is to purchase readily available HR policies from the market catering organization’s need. Organization can edit the documents as per their need and it will save time, cost and resources as well.