What is the importance of HR policies in an organization?

Organizing the relations between employees and Management and putting boundaries for how each of them, HR policies will solve a lot of conflicts in organizations.

First we all MUST know that HR is the role of movement of the Co. internal and external as well, second in a sample answer the HR Policy is a coin with2 side , can't be seperated , meaning its between the company need and the employe's need as well, thats why both MUST work together with the HR policy to make the company go on but even reach the top as long both company need and employee need are working on the same line and in same direction accroding the HR Policy.

to support administrative functions, performance management, employee relations and resource planning, it can also be very effective at supporting and building the desired organizational culture

Policies are game rules. They outlines to all parties processes, rewards, & punishment. This enables staff to proceed for the mutual benefit of themselves and the organization.

Clear policies ensures fair treatment for all parties.

I like Wasim Khalil Ali’s answer. Businesses did not always used to have policies and employees felt treated unfairly and abused during those times. They built employee unions and fought for their rights. Some died during those times. After a while business owners learnt that it is better to treat employees fairly and work with them rather than fighting against each other.  Some of those policies prevent the need for unions and others represent how a company want (or must/compliance) its employees to behave and act when conducting business on its behalf. There is more..

HR is the most important dept in any organization.

HR policies directly proportional employees productivity, their interest and loyalty towards an organizations benefits.

It binds the organization together . Especially the growth and development of employees . Their engagement towards work , setting up the right attitude , work culture development all depend on HR policies.

HR policies define the morale of the employees , everybody getting hired does a research on the company where does it stand and how its been performing over the years . But its the HR policies the person is interested post that and that makes it a crucial aspect . It makes the individual transform to company cultures , values and depict a companys goals . A big and successful company has always a strong employee centric HR policy which nurtures the growth of an employee , shows direction and gives him a career path to crave for and lets him know his rights . As the saying goes " employees dont leave companies , they leave their bosses " very true . Ive seen organizations fail because bosses dint have a strong HR policy to help the employee grow . 

Lastly to conclude , having a HR policy is as important as it shud be coming from Top Management to low in adhering to the policies laid down . Whenever u go out of the policy , trust me employees morale always goes down and they wudnt respect the policy nor the company