company policies definition

The guidelines which establish standards, procedures, and behaviors must be followed by the employees. Company policies must comply with certain legal requirements, such as employee rights.

The type of policies that companies apply varies greatly depending on the nature of the business and the management philosophy.

The most common mistakes regarding business policies are:

  • Every business has them, but they are rarely clearly defined and documented.
  • They are generally not communicated or understood by all members of the company.
  • Often they do not go in the same direction as the vision of the company.
  • They do not derive clear objectives from them.
  • They are not periodically reviewed to adapt them to internal or external changes, such as the national and international context.

How to define the policy of a company?

type of company policies

Having adequately defined the policy of a company is essential for the proper functioning of the organization. Defining these policies is not difficult, the real problem is complying with them, without them the company does not control its future.

The first point to take into account is to define real policies, this refers to enforceable policies. To do this, when doing so, it is necessary to identify and analyze both internal and external factors that affect compliance with them.

Second, the rules of the game must be aligned and set, for everyone from managers, employees, to workers.

It is a statement of the general principles that the company undertakes to comply with, a good policy does not occupy more than two pages and lists a series of basic guidelines that define the philosophy of the company, some rules about the behavior expected of its employees.

Once the policy is created, it must be documented and included in the Quality Manual or in the Comprehensive Management Manual of the company and also distributed to employees, for their knowledge and implementation.

Policy Types

There are several types of the policy depending on its scope, the most common are:

General policies

It identifies and defines the general lines of the company, the principles that govern the entire organization. They must be known by all the workers that make up the company’s human resources and serve as a guide. To be good, it must be in accordance with the company’s strategy and serve as a reference for the development of the rest of the company’s policies, such as departmental and specific ones.

Departmental policies

Includes the principles to be followed by each department or service. Some of these are the Quality Policy that talks about the principles and objectives of quality to be achieved, the Environmental Policy that deals with being responsible, in the preservation of the environment, as well as minimizing the environmental impact, the Risk Prevention Policy Labor and Occupational Health, talks about the importance of achieving and establishing and providing decent working conditions, sales policy, and commissions, established to manage volumes and motivate the employee.

Specific policies

Set the principles for specific activities and projects, tailored to the project and are usually temporary.

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