For decades Human Resource Management has been considered to be a cost center, an overhead that does not contribute to the revenue growth or the overall strategy of the organization. This research paper provides a brief of the important HR Policies that every organization must have to ensure a harmonious work culture, Hypothetical Case Studies with critical questions that every organization has to address in their policies, and Actual Case Studies that give a glimpse of real-world Employment Law Cases and their respective Worst-Case Analysis. However, there have been drastic changes in perception in the recent past with the management realizing the importance of Human Resource Management and the role it plays in contributing to the overall strategy of the organization. Today, the senior management of many organizations considers HRM to be a profit center. The Human Resource department is expected to perform more than just the traditional HR activities and be more strategic in its approach. Kaplan and Hurd (2002) define strategic human resource management as a collection of tasks and processes shared jointly by line managers and human resources to solve business issues based on people. Michie and Sheehan (2005) define strategic human resource management as the pattern of scheduled HR tasks and deployment intended to enhance an organization to gain its aims.
HR Policies form the fundamental base of strategic Human resource management in any organization irrespective of its size. They define the guidelines for employee behavioral conduct and the organization’s approach to handling legal situations. This research paper is based on secondary data with data for the research collated from previous research papers, journals, and various other secondary sources.
Human Resource Management (HRM) is defined as the process of acquiring, training, appraising, and compensating employees, and attending to their labor relations, health and safety, and fairness concerns. Human Resource Management deals with people and how to effectively bring out the potential in them to utilize it for the revenue growth of the organization. On the other hand, Strategic Human Resource Management(SHRM) deals with formulating and executing human resource policies and practices that produce employee competencies and behaviors the company needs to achieve its strategic aims.