Introduction to Business Policy
Policy
- is a predetermined course of action which is established to provide a guide toward accepted business strategies and objectives. Policies identify the key activities and provide a general strategy to decision-makers on how to handle issues as they arise. This is accomplished by providing the reader with limits and a choice of alternatives that can be used to "guide" their decision making process as they attempt to overcome problems.
Characteristics of a Policy
1. Are general in nature
2. Identify company rules
3. Explain why they exist
4. Tells when the rule applies
5. Describes who it covers
6. Shows how the rule is enforcement
7. Describes the consequences
8. Are normally described using simple sentences & paragraphs
Features of Business Policy
1. Specific
-Policy should be specific/definite. If it is uncertain, then the implementation will become difficult.
2. Clear
-Policy must be unambiguous. It should avoid use of jargons and connotations. There should be no misunderstandings in following the policy.
3. Reliable/Uniform
-Policy must be uniform enough so that it can be efficiently followed by the subordinates.
4. Appropriate
-Policy should be appropriate to the present organizational goal.
5. Simple
-A policy should be simple and easily understood by all in the organization.
6. Inclusive/Comprehensive
-In order to have a wide scope, a policy must be comprehensive.
7. Flexible
-Policy should be flexible in operation/application. This does not imply that a policy should be altered always, but it should be wide in scope so as to ensure that the line managers use them in repetitive/routine scenarios.
8. Stable
-Policy should be stable else it will lead to indecisiveness and uncertainty in minds of those who look into it for guidance.
Content
1. Purpose statement
-outlining why the organization is issuing the policy, and what its desired effect or outcome of the policy should be.
2.
- is a predetermined course of action which is established to provide a guide toward accepted business strategies and objectives. Policies identify the key activities and provide a general strategy to decision-makers on how to handle issues as they arise. This is accomplished by providing the reader with limits and a choice of alternatives that can be used to "guide" their decision making process as they attempt to overcome problems.
Characteristics of a Policy
1. Are general in nature
2. Identify company rules
3. Explain why they exist
4. Tells when the rule applies
5. Describes who it covers
6. Shows how the rule is enforcement
7. Describes the consequences
8. Are normally described using simple sentences & paragraphs
Features of Business Policy
1. Specific
-Policy should be specific/definite. If it is uncertain, then the implementation will become difficult.
2. Clear
-Policy must be unambiguous. It should avoid use of jargons and connotations. There should be no misunderstandings in following the policy.
3. Reliable/Uniform
-Policy must be uniform enough so that it can be efficiently followed by the subordinates.
4. Appropriate
-Policy should be appropriate to the present organizational goal.
5. Simple
-A policy should be simple and easily understood by all in the organization.
6. Inclusive/Comprehensive
-In order to have a wide scope, a policy must be comprehensive.
7. Flexible
-Policy should be flexible in operation/application. This does not imply that a policy should be altered always, but it should be wide in scope so as to ensure that the line managers use them in repetitive/routine scenarios.
8. Stable
-Policy should be stable else it will lead to indecisiveness and uncertainty in minds of those who look into it for guidance.
Content
1. Purpose statement
-outlining why the organization is issuing the policy, and what its desired effect or outcome of the policy should be.
2.