Introduction to Writing Effective Policy and Procedure Manuals

Every business should have a document that clearly states how things should be done. This need is true for a large company, so that the various departments work together effectively, and it is just as true for a small company so that things can run smoothly when the owner is away from the office.

Does your business have a policy and procedures manual that covers company rules and employee guidelines? If not, it is time to develop one. It is a straightforward process, and once you have a workable template in place, you will be able to make revisions and updates as your company changes and grows.

An effective policy and procedure manual is an essential management tool. As a piece of required reading for all employees, it states business goals and policies and communicates appropriate standards of action and behavior for all employees.

Your manual should include your company best practices, your core business process descriptions, and the specific methods and standards for how work is performed. This manual enables you to simplify employee training, and to focus your company for growth.

The manual can be printed and placed in a three-ring binder, placed in a folder on a network share drive, or automated and published online using procedures management software. Or, it can be available in each of these formats. What is important is that everyone in your company knows about the manual, reads and understands the manual, and knows where to find it when they need it.

Essentially, your policy and procedure manual is really about good communication. Your manual communicates your standards.

Your employees need to know what you expect of them. Your supervisors need a manual to reference for managing day-to-day business processes. By documenting your standards, you communicate what is important for your company's quality, growth, and customer satisfaction.

With a policy and procedure manual in place, your staff will have somewhere to go when the unexpected happens or, in other words, when they wonder, "What do I do now?" or, "How do I handle this?" Let's take a look at the benefits of having written policies and procedures.

First, the manual helps your company avoid inconsistencies. With a written guidebook to refer to, your team will have clear directions from management on how to handle specific works situations. Clearly defined policies and procedures express the company's desire to make consistent and impartial decisions.

Let's say a new employee is chronically late for work, for example.

When you have an existing policy on tardiness, your manager will not have to make judgment calls on the spot. He or she can refer the employee to the manual. A written policy avoids the uncomfortable situation in which one manager excuses a chronically late employee while another manager fires a chronically late employee. In other words, the manual spells out the consequences for work behavior and takes out any opportunity for ambiguity, which can cause hurt feelings.

When company policies and procedures are in writing, you let employees know exactly what they need to do to remain employed with your company. When employees are required to read the manual, sign a statement that they agree to abide by it, they can be held accountable for their actions.

Another benefit of an effective policy and procedure manual is that it can protect your company from possible legal action or employee fraud. When you pay careful attention to the content of your policy and procedures manual, it can help you defend disciplinary actions and other actions in a variety of business situations.

It is important to have your attorney review your manual to determine if there are any legal issues that need your attention, and if you are following federal and state legal requirements as an employer.

Thirdly, a policy and procedures manual can serve as a training tool, since it tells employees how they fit into the overall structure of the company, and it tells them where to go if they have questions or concerns. New workers will use the manual to help them get up and running in a timely manner.

An effective manual describes critical daily tasks that must be accomplished for your business to run safely and efficiently. More than just a list, the manual also should provide details on why things are done the way they are done.