How To Understand Formulation and Strategies of Business Policy

Business policies define all functional areas in the company from marketing, finance, operations, to personnel or management. The formulation of policies is established to avoid problems and/or address unfavorable repercussions that may arise from any entity of the organization.  If you really want to know how good business policies can help your company succeed, it's a good idea to attend a business class or two - these are easily attended online.

Business policies enable institutions, organizations, or enterprises to function efficiently and systematically. Essential to business management is a business policy that defines processes and practices within the organization. It functions as a set of rules or principles enforced to guide every department, component, and position in the company, the absence of which connotes a huge possibility of disorder, discrimination, and favoritism. Compliance to this set of rules however, promotes discipline, precision, and motivation to reach company goals.

 To help you learn how to understand business policy, here are some examples of common business policies:

  1. Attendance - Rules on work shifts, vacation leave, bereavement leave, sick leave, emergency personal time, tardiness, etc., have to be complied with, otherwise disciplinary actions shall be taken. The possible consequences or decisions of the company in case you do not comply with the guidelines shall be dependent on the stated course of actions stated on the business policy. 
  2. Human Resource (HR) - The human resource department implements policy guidelines for the development of the HR department itself, employee development and training, employee relations, performance management, development of the entire workforce, safety and health of the workforce, recruitment and staffing, compensation and benefits, organizational planning, etc.
  3. Health and Safety - To promote wellness and safety of its employees, an office policy includes guidelines that demand safe work practices, procedures, equipment, and behavior among others. The policy aims to protect not only the employees but also the customers and guests who visit the work area. Health and safety policy must be congruent with all environmental laws and regulations set by the government.
  4. Dress Code - Work dress code is enforced to project professionalism for customers, business prospects, visitors, or potential employees. It determines what type of clothing is appropriate within the workplace and for a specific type of job function. It states what and what not to wear in the work environment, etc.
  5. Hostile Environment Claims - Business policies must have a proactive treatment of concerns on harassment not limited to sexual innuendos. All workplaces must comply with the state or government's laws and regulations on issues involving discrimination due to race, age, gender, religion, nationality, and disability.

All factors covered by a business policy are created based on the needs, status, and type of business to ensure a safe, organized, nondiscriminatory, and systematic workplace. In order to achieve each policy objective, a strategy syllabus is required in formulation and development of business policies. Strategies may change or vary according to the needs of the organization or the type of business the company is in. For instance, the Human Resource department can amend its policy in recruiting a workforce in order to foster the need for innovation in terms of performance. It can set a particular strategy that involves establishing age limit, particular field of education and training, and other factors in hiring new personnel. Restructuring organizational departments is also another example of a strategy used in business policies.   The intricacies of drafting strong business policies aren't too difficult to learn, especially with a few online continuing education courses in business management.


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