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Why Should a Firm have Procedures and Policies?

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casey
4
casey
Australia

Why Should a Firm have Procedures and Policies?

Why is it important for companies to have policies and procedures? I'm currently in a course for leadership management and this is one of the many questions I'm being asked.

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  Leodegardo M. Pruna
2
Leodegardo M. Pruna
Professor, Philippines
 

Why Policies and Procedures

A firm should have procedures and policies to guide its path in the direction towards achieving its goal. Without them the road to success would be haphazard and painstaking.

  Jaap de Jonge
2
Jaap de Jonge
Editor, Netherlands
 

Reasons for Procedures and Policies

Another aim of policies and procedures might be to standardize and describe the appropriate things to do in (more or less) standard, straightforward situations. An issue with them is that they tend to be static and not very flexible. Also there is always the risk that the situation is not so standard as it seemed at first sight.

  Muhammad Moeen
2
Muhammad Moeen
HR Consultant, Pakistan
 

Reasons for Policies and Procedures

First of all we should appreciate the difference between policies and procedures:
Procedures are the series of steps to accomplish a task to attain desired objectives.
Policies are used in a broader way like what/why we perform tasks to achieve goals.
Policies and procedures are important when performing tasks, as it provides a route map for the desired result. Furthermore, as above mentioned policies are prescribed in a broad way, they are useful in longterm change processes.
So both policies and procedures always exist, the question is, are they designed in such a manner that they really help to achieve the desired goals?

 

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More on Corporate Governance
Summary Discussion Topics
topic Internal and External Corporate Governance
🔥 CEO Duality
topic Agency Theory: Principal-Agent Problems
topic Corporate Governance: One-tier versus Two-tier Boards
topic Dealing with non-profit Board of Directors
topic Europe Reaches Agreement on Banking Supervisor: Curse or Blessing?
topic Corporate Culture Vis-a-vis Societal Culture
topic HR Involvement in CG
topic How to Evaluate and Measure the Effectiveness of Corporate Governance Systems?
topic Corporate Governance and Strategy
topic Corporate Governance in Family Businesses
topic Governance in Public Sector Organisations
topic How Corporate Governance Affects the Financial Performance of Companies
topic Challenges in Corporate Governance in Africa
topic Why the Interest in Corporate Governance Today?
topic Corporate Governance Aims
topic Culture and Corporate Governance
topic Gender Diversity (Women) in the Board of Directors
topic A Global Corporate Governance Body is Needed
topic Corporate Governance Rules and Ethics
👀Why Should a Firm have Procedures and Policies?
topic Governance versus Management
topic Maintaining Creativity and Flexibility Despite of Corporate Governance Mechanisms
topic Corporate Governance and Compliance
Special Interest Group
Knowledge Center

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