HR policies form the framework for effective functions of HR management; they form the culture in business management, i.e., they are the very functioning of a business enterprise. The practices should necessarily result in benefits to all the stakeholders like the shareholders, creditors, suppliers, consumers and the employees. Such practices create an awareness of the need to achieve the business goals in the best possible and ethical manner. They also create a sense of respect for ethical values in the organization. If the HR practices adopted by an organization include periodic review of employee performances, adequate training for the workforce and most important of all, well thought out career advancement norms for its personnel, it will be the organization that will reap the full business benefits and emerge successful to the great satisfaction of all the stakeholders. - Reproduced.