Policies

Now, you may be wondering what the differences between policies and procedures are. The two terms are often used interchangeably, but there are key differences between the two. A policy states what management wants employees to do, and a procedure describes how that task should be done.

Since, an effective manual contains both policies and procedures, let's look more closely at each of them.

A policy is a guiding principle that sets the direction for an organization. Policies, then, are the rules and guidelines under which a company, division, or department operates. In your manual, you will have policies for the overall company, for specific parts of the company, and for individual employees.

Here is an example of a company policy for bill paying:

Accounts Receivable personnel shall ensure that all outstanding customer invoices are paid within 30 days (net 30) and 20 days next quarter (net 20).

And here is an example of an employee policy:

Smoking and drinking are strictly prohibited within the company offices.

Here is an example of an inventory employee policy:

Warehouse personnel must count physical inventory on a weekly basis to ensure the accuracy of the general ledger balance.

Company policies set a standard for your company image. They create a level of uniformity in employee rights and responsibilities. Without them, your employees will have varying personal standards.

Therefore, it is important to consider carefully what kind of image you wish to project, as a company, when you are developing your new manual. Policies typically reflect that desired image or brand.

Policies typically fall into the following three categories:

Uniformity

Policies create a level of uniformity in employee rights and responsibilities. Without clear direction, employees usually have varying personal standards. A company dress code is an example of a policy.

Without a dress code, some of your employees might wear a suit to work, while others might wear jeans and t-shirts. If you would like your employees to convey a consistent image to your customers or clients, a dress code takes the guesswork out of the situation.

A best practice is a technique or method that has shown consistently positive results in your company. These policies direct employees to act in line with what benefits a specific department and/or the entire organization. Many sales organizations have best practices policies for communication with clients and customers, for example.

Safety

Many organizations have policies that address employee and customer safety, as well as legal and ethical safety for the company. These policies are particularly important in warehouses, factories, or even restaurants, where dangerous equipment is used, or in any area of a business where injury is a concern.

It is possible to go overboard with policies. Excessive rules and regulations can have a negative effect on morale. Be sure that your policies do not restrict creative thinking, or that they do not go against your established or desired corporate culture.

]]>