Human resource policies are continuing guidelines on the approach of which an organization intends to adopt in managing its people. They represent specific guidelines to HR managers on various matters concerning employment and state the intent of the organization on different aspects of Human Resource management such as recruitment, promotion, compensation, training, selections etc. They therefore serve as a reference point when human resources management practices are being developed or when decisions are being made about an organization's workforce. A good HR policy provides generalized guidance on the approach adopted by the organization, and therefore its employees, concerning various aspects of employment. A procedure spells out precisely what action should be taken in line with the policies. Each organization has a different set of circumstances and so develops an individual set of human resource policies. The location an organization operates in will also dictate the content of their policies. Purposes The establishment of policies can help an organization demonstrate, both internally and externally, that it meets requirements for diversity, ethics and training as well as its commitments in relation to regulation and corporate governance of its employees. For example, in order to dismiss an employee in accordance with employment law requirements, amongst other considerations, it will normally be necessary to meet provisions within employment contracts and collective bargaining agreements. The establishment of an HR Policy which sets out obligations, standards of behavior, and documents disciplinary procedures, is now the standard approach to meeting these obligations. HR policies provide frameworks within which consistent decisions are made and promote equity in the way in which people are treated. HR policies can also be very effective at supporting and building the desired organizational culture. For example, recruitment and retention policies might outline the way the organization values a flexible workforce, compensation policies might support this by offering a 48/52 pay option where employees can take an extra four weeks holidays per year and receive less pay across the year. In actuality, policies and procedures serve a number of purposes: They provide clear communication between the organization and their employees regarding their condition of employment. They form a basis for treating all employees fairly and equally. They are a set of guidelines for supervisors and managers. They create a basis for developing the employee handbook. They establish a basis for regularly reviewing possible changes affecting employees. They form a context for supervisor training programs