HR policies are rules that guide employee performance toward organizational goals. They communicate intentions and translate goals into actions. Objectives of HR policies include fulfilling organizational goals, informing employees, developing duty, providing trained personnel, protecting common interests, establishing trust, and rewarding accomplishments. Policies should be clear, stable, balanced, recognize employee desires, and benefit all parties. There are functional policies for categories and centralized policies across locations. Sound policies are definite, written, reasonably stable, balanced, recognize employee desires, and benefit all.