Record Rule to allow a Manager to update all Employees record and All employee can see their own employee record

Hello Gagandeep

Please Try below Record Rules.

For Manager:-

<record id="id" model="ir.rule">
    <field name="model_id" ref="model_(model_name)" />
    <field name="name">for Manager</field>
    <field name="domain_force">[(1,'=',1)]</field>
    <field name="groups" eval="[(4,ref('base.group_user'))]"/>
</record>

For Employee:-

<record id="rule_id" model="ir.rule">
    <field name="name">for Employee</field>
    <field name="model_id" ref="model_(model_name)"/>
    <field name="domain_force">[('employee_id.user_id','=',user.id)]</field>    
    <field name="groups" eval="[(4,ref('base.group_user'))]"/>
</record>