Policy Making by jenrap14
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Policies are important for organizations for several reasons: 1) Policies serve as important forms of internal control and limit employee behavior, but must be enforced through auditing to be effective. 2) When policies address potential risks and require awareness, they help managers minimize costs from issues like fraud and errors. 3) Organizational policies also help maintain accountability to internal and external stakeholders and ensure compliance. 4) Establishing policies can build a learning culture by determining what employees should read and processes for updates.
Policy Making by jenrap14
- 2. What is a policy? A definite course or method of action selected (by government, institution, group or individual) from among alternatives and in the light of given conditions to guide and, usually, to determine present and future decisions. Is a predetermined course of action, which is established to provide a guide toward accepted business strategies and objectives. Policy merely guides actions toward those that are most likely to achieve a desired outcome.
- 3. Why are policies important to an organization?
- 4. Internal Controls Organizational policies serve as important forms of internal control. Look at a policy as a control mechanism that will effectively limit the behavior of some employees but not all employees. Your policy must be enforced through some kind of auditing mechanism, or the policy will be a weak internal
- 5. Minimize Costs Managers share the need to minimize costs. He limits the financial losses that can cripple the organization, such as the negative impact of employee fraud, errors and other kinds of losses. When you write policies that address potential sources of risk and require employees to know them, you create awareness of the need for risk management. It is best to ensure that employees comply with company policies intended to minimize risk.
- 6. Maintain Compliance Organizational policies also help your company maintain a degree of accountability in the eyes of internal and external stakeholders. As the manager, you have an obligation to manage your staff or hire someone to do it for you. You also need employees to keep appropriate records and follow established policies and procedures.
- 7. Build a Learning Culture Create a learning culture in your organization by encouraging employees to continuously add to their job knowledge. This includes determining which policies each employee should read and creating a process for updating policies throughout the year.
- 8. Thank you!!!