contains the principle and philosophy of the orgn • It is the framework which guides decisin making in the orgn • It indicated that the Mgt is committed to the orgn as well as the employee • Established policies ensure consistent treatment of all personnel throughout the orgn • Serve as a standard of performance • Send policies help build motivation and loyalty • Sound policies help resolve inter group conflicts • Continuity of action irrespective of a person resigning HR Manual Policy for Talent Acquisition Appointment, Age, sanctioning authority, Recruitment, Induction, Probation, confirmation , promotion, transfer Compensation Policy Human Resource Development Training, Performance Management, Job Rotation, Career progression Leave privileges-Hours of work and Holidays Loans and Advances Fringe Benefits Attritions Travelling Rules Industrial Relationship Policy How do you formulate policy Past practice of the organization Prevailing practice in company Brain storming of managerial staff Experience gained from handling problems on a day to day basis Laws and regulations Policies should be stable because it then creates a climate of security and removes uncertainty in the minds of employees Should be consistent among employees but should not be rigid but flexible Reflects the goals and values of the orgn and merge with the overall corporate philosophy of the co