Business policies and procedures
- A policy and procedure manual should convey the organization’s purpose, philosophies, policies, and good business practices.
- A policy and procedure manual is a playbook that defines each employee’s role, where they should be, what they should be doing, and how their actions affect the success or failure of the company.
- Policies are different than rules which inform employees of what is acceptable and what is not.
Effective corporate policies and procedures convey a consistent understanding of the organization’s purpose, philosophies, policies, and good business practices to everyone involved. It provides employees with guidelines pertaining to their authority, responsibilities, and expectations. Policy and procedure manuals also promote consistency, improve efficiency, and increase overall profitability.
A policy and procedure manual could be seen as a playbook for your business. A playbook for a football team for example, tells every player what their responsibilities are for every play. If followed correctly, each player on the field knows where they should be, what they should be doing, and how their actions relate to and affect the total team’s success or failure. If everyone does their job, they make a touchdown. A policy and procedure manual should define each employee’s role, where they should be, what they should be doing, and how their actions apply to the continued success or failure of the company.
As a company grows, their policy and procedure manual may grow. It may be divided into sections such as Administration, Sales, Employment, Finance, Management, and Safety. The policies and procedures need to be clear, consistent, and current. A good playbook doesn’t say, “Just go down the field and I’ll throw you the ball.” A good policy and procedure manual doesn’t say, “Just show up at work and we’ll figure it out as we go.” With some careful thought and attention to detail, a policy and procedure manual will result in a “touchdown” for the business in employee satisfaction and continued profitability.
Policies and regulations
Company policy is often related to a strategic plan that defines the nature or the intent of the company’s purpose. An example is the difference between a truckload carrier and a less-than-truckload (LTL) carrier. A truckload carrier’s policy may be to transport shipments from origin to destination without any excessive handling and/or to consolidate that shipment with other shipments. An LTL carrier’s policy is just the opposite. They utilize a network of terminals that routinely load and unload shipments through a relay operation that mixes multiple shipments all destined to a similar regional area. Generally, neither one is competitively equipped to handle the other’s type of business. This is largely due to their functional policies, which strategically define and separate the two.
Another form of policy is used as a guideline for establishing boundaries and limits by which decisions are made. A “Manager of Maintenance” may be authorized through company policy to purchase parts, accessories, or tools necessary to keep the fleet running. However, a higher position in the organization will make the decision to purchase vehicles and other assets. This authority is set as company policy. This doesn’t mean that the Manager of Maintenance will not be allowed to have input into this type of purchase. A degree of discretion within the policy will allow the Manager of Maintenance to participate.
Most policies are written and enforced through an operational need to set standards and may be confused with rules. Rules are explicit orders that inform employees what is acceptable and what is not. No smoking on or in company property; personal vehicles must be parked behind the fence — these are examples of work rules.
Some policies in the workplace are created due to the consensus among management that the current state does not reflect the desired state. An example is, “All driver applicants must meet or exceed the minimal standards established in the Driver Qualification Policy to be considered for employment.”
More commonly, policies are applied to maintain a certain standard of quality in the workforce. Cargo handling policies, rider/passenger policies, and weapons in a company vehicle policy are examples of this type of policy. The important issue here is the enforcement of the policy.
Management may have a difficult time enforcing a policy if training, including an awareness of the characteristics of the situation that caused the policy, is not provided when the policy is implemented. In cases such as these, it may be necessary to obtain a signed statement from the employee acknowledging receipt of the training and/or awareness of the company policy. Legal consultation is advised if any uncertainty exists with the administration of discipline due to a violation of company policy.