Explanation:

HR policies are also defined as that body of principles and rules of conduct which govern the enterprise in its relationship with employees. Such a policy statement provides guidelines for a wide variety of employ­ment relationships in the organization. The purpose and significance of the HR policies hardly need any elaboration.

Every organization needs policies to ensure consistency in action and equity in its relation with employees.
Policies serve the purpose of achieving organizational goals in an effective manner. HR policies constitute the basis for sound HRM practices. Moreover, policies are the yardstick by which accomplishment of programmes can be measured.