“Surround yourself with the best people you can find, delegate authority and do not interfere while the policy you have decided is carried out.” (R. Reagan)
Policies and Procedures are two words that are frequently heard in the business world and there is often confusion between the two concepts.
What is an Organizational Policy?
A policy defines a result; It is a premeditated rule established by a company to guide the direction of the organization, employees and business decisions, and to regulate, direct and control actions and conduct. Policies can range from a broad philosophy to a specific rule. They are the direct connection between a company’s vision and its day-to-day operations and the foundation of a company’s culture.
What is an Organizational Procedure?
A procedure is a means to an end. Procedures are step-by-step instructions, which prescribe an exact sequence of action. A procedure explains how and by whom (what title) will implement the policy. The procedures are specific, factual and succinct. They can include timelines, specific forms to be used, and template forms. The procedures help eliminate common misunderstandings that can result in costly mistakes.
What is the difference?
Together, Policies and Procedures strengthen a process by providing clear and concise direction necessary for consistent operation. The essential differences are described below:
Policies
– General in kind
– Identify company rules.
– Explain why the rules exist.
– Explain when the rule applies
– Describe to whom (what position) you apply
– Explain how it is applied.
– Describe the consequences.
– Provide guidance for managerial thought and action.
– Flexible – allows discretion
procedures
– Identify specific actions and alternatives
– Explain when to take action.
– Describe emergency procedures.
– Include warnings and cautions.
– Give examples
– Show how to fill out a specific form
– Prescribe how to carry out the action through step-by-step instructions
– Less flexible – concise and exact sequence of activities
Why does a company need Organizational Policies?
Policies and Procedures (P&P) are essential when a company requires consistency in its daily operations. They provide clarity and direction regarding accountability. P&Ps help companies meet legal requirements set forth by the Labor Standards Act, the Human Rights Code, the Occupational Safety and Health Act, and many other compliance requirements.
A properly written policy and/or procedure allows employees to understand their roles and level of responsibility and to perform their work by making decisions within predefined limits. By implementing P&P, management can provide guidance to employees without the need to micromanage, freeing up managers to focus on strategic thinking.
P&Ps allow the workforce to understand not only their own job responsibilities, but also those of their co-workers, which can foster a cooperative work environment.
How big should a company be to consider implementing Policies and Procedures?
With just six employees, there will be recurring problems. Productivity and efficiency, both from a legal and an operational point of view, can be obtained through the implementation of P&P.