UNIT 7 FUNCTIONS

AND
RESPONSIBILIES
OF BUSINESS
POLICY IN
MANAGEMENT
 OBJECTIVES

At the end of this unit, you should be able to:

Discuss business policy as they relate to different

organizations;
Enumerate the functions of Business policy in management;
State the responsibility of Business policy in management.
 Business Policy in different
Organizations
Top-level managers- consider the numerous ways
in which this goal could be accomplished.
Rules- are specific statements what should and
what should not be done.
Dividend policy- is another area in which
management can affect the financing structure of
the company and examine whether changing
dividend policy could perhaps add value.
In every operational areas different policies re formulated.
For example.
in personnel numerous policies would be established to
provide consistent guides to action.
Areas might include:
Securing
Selecting
Training and
Compensating employees.
Working conditions, employee services and industrial
relations also might be considered.
 In the example of
Ethical policy, sometimes a credo is not specific
enough for a large company that faces complex ethical
challenges in many different markets and cultures.
List of Ethical Issues in Business
Fundamental Issues - The most fundamental or essential
ethical issues that businesses must face are integrity and
trust.
Diversity Issues- An ethical response to diversity begins
with recruiting a diverse workforce, enforces equal
opportunity in all training programs and is fulfilled when
every employee is able to enjoy a respectful workplace
environment that values their contributions.
Decision-Making Issues - ." Ethical decision-making
processes should center on protecting employee and
customer rights, making sure all business operations are
fair and just, protecting the common good and making sure
For example
Personnel Policies may cover:
Training and Orientation- Once hired, employees typically go
through an orientation and training process to learn about their
new employer and how their job function fits into the overall
goals of the business.
Employee Benefits - Companies offer employees a diverse
set of benefits, including everything from health, dental and
vision coverage to short-term disability coverage, life
insurance, employee housing grants and tuition
reimbursement.
Work Schedule Breaks and leave- Whether a company
offers flexible schedules or employees work in shifts, personnel
policies provide guidelines for when an employee should report
to the office for work and when he should leave. Personnel
policies also detail the rules for taking lunch hours and other
breaks.
 salaries and pay schedule - While employees at your
company will likely have diverse salaries, including
salary ranges or a salary scale in personnel policies,
where applicable, will give employees an idea of how
much money they can potentially make if promoted.
Whether paid weekly, biweekly or monthly, employees
should have written documentation that outlines their
pay schedules. Include information about direct deposit
if it's an option offered by your company.
Performance reviews and promotions - Employee
performance reviews vary based on the company and
industry, so your personnel policy should tell employees
about the procedures your company follows.
Terminating employees - Personnel policies should
There are many types of policies: marketing policies, financial policies,
production policies, personnel policies name a few in every organization.
Many professionally managed companies acknowledge the fact that it is
necessary to have policies in all the major functional areas of
management Kalejaye(1998)

The focus areas will thus include:

Production policy
Purchasing policy
Financial policy
Marketing policy
Selling Policy
Promotion Policy
 Business Policy and Implementation in
Organization
Business policies define areas within which
decisions are made and ensure that decisions will be
consistent with and contribute to an objective.
In Visionary management- policies help decide
issues before they become problems, make it
unnecessary to analyze the same situation every
time it occurs and unify other plan thus permitting
managers to delegate authority and still maintain
control over what their subordinate do ( Weighrich &
Koontz, 2005)
 Managerial
The Functions
basic management andare
functions Policy Implementation
planning, organization,
motivation and controlling.
1. Planning-develops objectives for each level of organization
and how to achieve those objectives. Strategies, policies,
procedures, methods and budget are examples of plan that
help to accomplish objectives.
2. Organizing-is also necessary as it takes place when work is
divided among departments and among individuals.
3. Motivating- is in working with people in order to create
conditions that encourage employees to do good job.
4. Controlling- measures the results of activities, compares them
against predetermined objectives and takes corrective action
if necessary.
 Business Policy Issues, Challenges
and Solutions
Business policy issues are basically that of decision making to
achieve set goals and objectives.
The challenges gyrate around overcoming obstacles and giving
solutions.
The role of business policy in providing solution in a going
concern matters so much in an organization.
The implementation policy depends on the type of organization
and the service rendered.
 Policy Implementation
Set up a committee/ working group.
Consult stakeholders.
Devise draft policy.
Have policies reviewed for legal accuracy.
If a board of directors or advisory board exists, do a board vote.
Set policy implementation date.
Monitor and review.
Consider creating & distributing a policy manual.
 Thank you

Reported by:
Limbag, Adrian
Canedo, Roxanne
Monopollo, Theresa
Solis, Eden Cristy
Luceno, Cynde
Venancio, Trixie Sheen