Friday 23 September 2011

Why do organizations have to adopt policies??

Author: Leean Mendes.

Day 12 of working with Global Vision (a NGO). I was on my usual field work and I met the manager of Aligity co. I had returned back to the company as I had been instructed by the previous manager 3days back to come and collect a cheque which would be ready in 3days as he said. However, the new manager informed me that the company had no such policies of donating to NGOs. So this experience of mine, led me to think that there is a need for organizations to adopt policies as they would increase the decision making process and also to ensure various other benefits. The policies also help organizations to deal with personnel.
First of all in formulating personnel policies, the management should give deep thought to the basic needs of both the organization and the employees. Having established policies ensure consistent treatment of all personnel throughout the organization and things like favoritism and discrimination are minimized. Again continuity of action is assured even though top management personnel change. To make this point clear, the CEO of a company may possess a very sound personnel management philosophy. He/she may carry the policies of the organization in his/her head, and he/she may apply them in an entirely fair manner. But what happens when he/she resigns/retires? The tenure of office of any manager is finite. But the organization continues. Therefore, policies promote stability. They also serve as a standard of performance wherein actual results can be compared with the policy to determine how well the members of the organization perform. Sound policies help in building employee motivation and loyalty and this would help people grow within the organization and also help resolve intra-personal, inter-personal and inter-group conflict.
I conclude this blog by saying that organizations should adopt sound policies because this helps them to  manage the employees well and also the policies should be stated in terms broad enough for it to be applicable in varying situations.

4 comments:

  1. hi..

    i really liked the blog,the way it starts by mentioning your experience.

    the part where you mention "policies promote stability" is so true.

    well yes i agree with you, policies are necessary for the protection of the organization as well as the employees. i guess thats why they need to be very well written.

    Rucha Datrange

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  2. Lean, Totally agree with you about polcies being required for the purpose of continuity and stability in an organization. Infact, one of the biggest signs of maturity of an organizatoin is having clear cut policies for their employees/vendors/ clients etc. They not only provide people with a set of rules and regulations but also a consequences for non-compliance. Infact some policies are crtical from a values and ethics point of view of an organization!

    Meenu Singh

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  3. Hey Good point Leean.....

    Policies are the strategic link between the Company's Vision and its day-to-day operations.

    Generally policies in an organisation should be....

    • Are general in nature
    • Identify company rules
    • Explain why they exist
    • Tells when the rule applies
    • Describes who it covers
    • Shows how the rule is enforcement
    • Describes the consequences
    • Are normally described using simple sentences & paragraphs

    I feel that every organisations make some or the other policies but do they follow it?

    And if an organization already has established Policies how can you determine if they are meeting your needs?

    If they are not meeting the needs what are your suggestions for it?

    Specially if i say my experience with an organisation i am working with, They make policy and forget about it.They make it just for a name sake.

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  4. Hi Leean,
    Very well written.I really liked the blog.
    And i totally argree with that policies promote stability. Policies are very important for the organisation. They define the rules of the company and also the tell us the vision of the company.
    It is also important from the employee's side.
    But i feel there is a lot of diff of having policies and applying them, because for some organisations policies are only on paper and are never applied.

    Nrupa Rajhans

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