Hi Jhuma,
Your question is very interesting. But for understanding the difference between an HR manual and HR policy, first of all, you have to understand the meaning of policy. I will explain that below.
Policies are the guidelines to be followed by the organization to achieve its long-term objectives. These policies cover areas such as training and development, employee promotion, and employee recruitment, among others.
Now, as far as the HR manual is concerned, it is basically a collection of all HR functions that contains the procedures for carrying out those functions. In short, it is a collection of procedures for achieving organizational goals.
The following examples will help clarify all the differences for you.
Suppose an organization is planning a recruitment drive. In this case, their recruitment drive will be based on the organization's policy, meaning what the company aims to achieve, and their recruitment process should support this goal. They will establish guidelines to be followed while hiring based on the policy. The HR manual will then outline the specific steps to follow in maintaining those guidelines.
So, this is the basic difference between an HR manual and HR policies. I hope the examples will clear any doubts you may have.