How Does Karma Work?

Most of us are well acquainted with the word 'Karma'. Some of us may construe this word as what goes around comes around or who shall reap what you sow. However, such contextual definitions of Karma originated from the teachings of Hinduism and Buddhism.
In the Hindu sect, karma is identified as the connection between a person's actions and the subsequent consequences that follow these actions. Karma in present life also denotes the sum total of all the deeds and thoughts in the current as well as past lives.
In Buddhism, karma denotes the principle of cause and effect. As per Buddhist belief, the outcomes of an action that can be mental, verbal or physical are also dependent on the intention besides the action itself.