Topic: The Importance of Company/Business Operation/Admin

Policies Organization Theories

Intended Outcome: Comprehensive understanding of the deeper value of business
policy & the importance of having major policies for a firm
Case Analysis: Generoso Pharma & Chemicals, Inc.
Additional Links/Sources: Personal work/ job experience/s
Evaluation: Class Discussion and Brainstorming

Business Policy is the study of the roles and resposibilities of top-level management,
the significant issues affecting organizational success and the decisions affecting
organization in the long-run.
Business Policy includes guidelines, rules and procedures established to support efforts
to achieve stated ojectives.
It guides us in decision making and addresses repetitive situations.
Examples:
HR Policy
- Hiring/Firing
- Employee Profile
- Training
- Transfer
- Promotion
- Wages
- Incentive & Bonus
Marketing Policy
- What to sell
- Where
- To whom
- Through whom
Materials Policy
- Quality
- Quantity
- Suppliers
- Payment terms
- Stores & Handling
Quality Policy
- Standards
- Check & Control
- Feedbacks
- Corrective Measures

Features of Business Policy

An effective business policy must have the following features-

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, 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 the minds of those who look into it for guidance.

Importance

A. For Understanding the Business Environment

- Creates an understanding on how policies are formulated
- Gains an insight of business environment complexities and changes , that makes
manager more receptive to ideas and suggestions.
B. For Understanding the Organization
- Provides a basic framework in strategic decision making while in the middle level
of management
- may lead to an improvement in job performance
C. For Personal Development
- enables the executives to avail an opportunity with regards to career planning and
development
- provides insights in dealing with policy-making

Case Method

I. Problem
There is a fast turnover of participants in the industry. It is very difficult to expand.

II. Objectives
To solve the problem expressed in statement…

Due to factors we cannot control…

III. Areas of Consideration

We have a big problem because of these:
(Site)

IV. Alternative Courses of Action

V. Recommendation