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The definition of business policy – is that it is a type of guideline book/paper that the organisation produces. These guidelines include the limitations of the business, which guide the employees to make decisions on company matters in the absence of a supervisor.
Contents
- Mission, vision and purpose of the business
- Strategies to improve the working environment or projects
- Includes the roles and responsibilities of the employees at a higher level of management
- Issues that hinder or profit the organisation/business.
- The decisions that can affect the business from a long-term point of view.
- Payments of the employees are also mentioned.
Importance
The business policy affects the business from several aspects, like legal liabilities, employees and public relations. The business policy ensures that all the company stakeholders are on the same page so that in times of crisis, everyone knows the course of action that is to be followed.
Policies can be of different kinds for different tasks- Human resource hiring; anti-discrimination; safety of the employees; rules and regulations; daily/monthly schedules; holidays; payment regarding policies; policies for customer satisfaction and services. All in all, a business has several policies to adhere to.
The business policy makes an employee feel safer in the business environment because, in case of any accidents, they know the company will protect/provide for them according to the clauses in the policy agreement. Policies make employees more positive; policies are the same for every employee, so discrimination by the employer is out of the equation. This results in increased employee productivity. If employees’ productivity levels are high, this positively affects the business.
Process
There are essentially four steps to overcome for a business to successfully implement business policies.
1.Environment Scanning – This is done to identify factors that affect the business. Information is monitored, evaluated and shared with important people in the organisation.
The factors that positively affect the company’s future are noted, and the ones that can hinder the progress of the business are tried to minimise or eliminate.
There are two subgroups of analysed factors- internal and external factors. Internal factors can be the strengths and weak points inside the company. External factors can include threats like competitors and future opportunities like business expansions.
2.Formation of the policy- Here, the formation of policies for the business is started, and the evaluations from environment scanning are used to make appropriate policies that can benefit the business/organisation in the short and long run.
The policy contains the mission of the business, objectives to be achieved, strategies to increase the business and last but not least, the guidelines that the employees adhere to.
3.Policy implementation- The time comes when the policies formulated are to be put to the test or installed in the business. During this phase, the business acts on the policies, overall structure, environment, and business processes; everything changes once these policies are put to work.
The business becomes more organised as the policies are implemented. This is because now the employees finally know or are more clear on the agendas of the business, and they work accordingly.
4.Evaluation and control- Here, the performances and effects of the policies are monitored by the business. The company’s growth is then compared with the expectations that would be present in the business policy, and appropriate measures can be taken. This research will also show the business in the areas where there is work to be done and which areas are booming with excellence.
Features of business policy
Positive | Negative |
Prevents legal problems faced by the business because policies limit its liability | Costs for developing and implementing the policy are borne by the business, even when they cannot afford to. |
Partiality done by supervisors is eliminated because policies are the same for all the employees. | There are restrictions during the process of decision making, especially when there is a need to act fast without wasting time. |
When someone breaches the policy, they can be immediately fired | Making policies requires excessive time and effort; they must be extremely detailed. |
Conclusion
Business policies are guidelines provided for the business employees to know the code of conduct in the organisation. Policies bind employees/managers to the employer. These are advantageous when either of the parties breaches their policies; they can sue one another. The policies help the business grow smoothly with fewer hurdles to face. The policies outline the business’s agendas, visions and future projects that guide the employees to work in the proper direction that can benefit the company. One of the negative features of business policy is that it requires investment of money, time and effort to formulate these strategies that have to be excessively detailed.
