Polytechnic University of the Philippines

College of Accountancy and Finance

Department of Higher Accounting
A.Y. 2018-2019

Written Report in:

BUSINESS
POLICIES AND
STRATEGIES
Group 1
Amoroso, Charmagne Monique U.
Ang, Wilson
Antonio, Mary Arvielyn
Avila, Niñalyn P.
Barnachea, Darren Marl M.
Belmonte, Cristopher Jr. F.

April 15, 2019

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 GENERAL BUSINESS POLICIES

I. ORIGIN OF POLICY
Management
Acc. to Peter Drucker, management is a function, a discipline, a task to be done, and
managers practice this discipline, carry out the functions and discharge these tasks.

Acc. to Dalton McFarland, management is a process by which managers create, direct,

maintain and operate purposive organizations through systematic, co-ordinated a co-
operative human effort.

It can be used into two major contexts:

I. It is used with reference to a key group in an organization in-charge of its affairs.
In relation to an organization, it is the chief organ entrusted with the task of
making it a purposeful and productive entity, by undertaking the task of
bringing together and integrating the disorganized resources of manpower,
money, materials, and technology into a functioning whole.
II. It is also used with reference to a set of interrelated functions and processes, to
a field of study or discipline in social sciences and to a vacation or profession.
The functions and processes of management are wide-ranging but closely
interrelated. They range all the way from design of the organization,
determination of the goals and activities, mobilization and acquisition of
resources, allocation of tasks and resources among the personnel in carrying
on activities, through articulation of skills and efforts of organizational
personnel in a unified manner and installation of communication and control
systems to ensure that what is planned is achieved.

BUSINESS POLICY
A guide and roadmap to create awareness and direction to the management of any
organization. The guidelines developed by an organization to govern its actions.They
define the limits within which decisions must be made.

A business policy should be:

• Specific - Policy should be specific/definite. If it is uncertain, then the
implementation will become difficult.
• Clear – Policy must be unambiguous. It should avoid the use of jargons and
connotations. There should be no misunderstandings in following the policy.
• Reliable/Uniform – Policy must be uniform enough so that it can be efficiently
followed by the subordinates.
• Appropriate - Policy should be appropriate to the present organizational goal.
• Simple – A policy should be simple and easily understood by all in the
organization.
• Inclusive/Comprehensive – In order to have a wide scope, a policy must be
comprehensive.
• Flexible – Policy should be flexible in operation/application. This does not imply
that a policy should be altered always, but it should be wide in scope so as to

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 ensure that the line managers use them in repetitive/routine scenarios.
• Stable – Policy should be stable else it will lead to indecisiveness and uncertainty
in minds of those who look into it for guidance.

ORIGIN OF BUSINESS POLICY COURSE

The origins of business policy can be traced back to 1911, when Harvard Business
School introduced an integrative course in management aimed at the creation of
general management capability. This course was based on interactive case studies
which had been in use at the school for instructional purposes since 1908. The course
was intended to enhance general managerial capability of students. However, the
introduction of business policy in the curriculum of business schools / management
institutes came much later. In 1969, the American Assembly of Collegiate Schools of
Business, a regulatory body for business schools, made the course of business policy, a
mandatory requirement for the purpose of recognition. During the next few decades,
business policy as a course spread to different management institutes across different
nations and become an integral part of management curriculum. Basically, business
policy is considered as a capstone, integrative course offered to students who have
previously been through a set of core functional area courses.

II. PROCEDURES AND RULES

Company policies and procedures establish the rules of conduct within an organization,
outlining the responsibilities of both employees and employers. Company policies and
procedures are in place to protect the rights of workers as well as the business interests
of employers. Depending on the needs of the organization, various policies and
procedures establish rules regarding employee conduct, attendance, dress code,
privacy and other areas related to the terms and conditions of employment.

Employee Conduct Policies

An employee conduct policy establishes the duties and responsibilities each employee
must adhere to as a condition of employment. Conduct policies are in place as a
guideline for appropriate employee behaviour, and they outline things such as proper
dress code, workplace safety procedures, harassment policies and policies regarding
computer and Internet usage. Such policies also outline the procedures employers may
utilize to discipline inappropriate behaviour, including warnings or employee termination.

Companies are increasingly paying attention to bullying behaviour as a serious issue

and beginning to adopt policies in this area as well. Anti-bullying policies focus on
repeated hostile behaviours, identify reporting mechanisms and describe the
consequences for employees who engage in persistent bullying behaviour.

Equal Opportunity Policies

Equal opportunity laws are rules that promote fair treatment in the workplace. Most
organizations implement equal opportunity policies – anti-discrimination and affirmative
action policies, for example – to encourage unprejudiced behaviour within the
workplace. These policies discourage inappropriate behaviour from employees,
supervisors and independent contractors in regard to the race, gender, sexual
orientation or religious and cultural beliefs of another person within the organization.

Attendance and Time off Policies

Attendance policies set rules and guidelines surrounding employee adherence to work
schedules. Attendance policies define how employees may schedule time off or notify
superiors of an absence or late arrival. This policy also sets forth the consequences for
failing to adhere to a schedule. For example, employers may allow only a certain
number of absences within a specified time frame. The attendance policy discusses the

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 disciplinary action employees face if they miss more days than the company allows.

Substance Abuse Policies

Many companies have substance abuse policies that prohibit the use of drugs, alcohol
and tobacco products during work hours, on company property or during company
functions. These policies often outline smoking procedures employees must follow if
allowed to smoke on business premises. Substance abuse policies also discuss the
testing procedures for suspected drug and alcohol abuse.

Workplace Security Policies

Policies on security are in place to protect not only the people in an organization, but the
physical and intellectual property as well. Policies may cover entrance to a facility, such
as the use of ID cards and the procedures for signing in a guest. Equipment such as a
company laptop or smart phone may need to be signed out.
Computer security is a high priority for firms these days. Policies cover a variety of
topics, such as the frequency for changing passwords, reporting phishing attempts and
log-on procedures. Use of personal devices, such as a USB drive you bring from home,
may also be restricted to prevent to unintended spread of computer viruses and other
malware.
The benefit of policies and procedures
Policies and procedures is an important tool in managing your employees. They work
alongside employment agreements to make sure both parties are clear on the
expectations and obligations of the employment relationship.
They can:

*reduce the risk that anyone misunderstands the conditions of employment

* ensure fairness
* give you a good reference point to confirm that you’re complying with all relevant
legislation
*help you get consistency across multiple locations.

Thinking about how you want your business to run, documenting it, and sharing it with
your employees, will save you time and money in the long run.
Common policies and procedures

* code of conduct — this should also cover privacy and conflicts of interest
* discipline, misconduct and employment investigations
* health and safety
* holidays and leave
* hours of work and overtime, including time in lieu and flexible work arrangements
* information security
* internet, e-mail and social media use
* leaving the business
* performance appraisals
* recruitment, including reference checking
* resolving employment issues
* training and development
* travel
* use of company equipment
* how to handle customer complaints.

III. FORMULATING AND IMPLEMENTING POLICIES

HR professionals are often confronted with employee relations issues in the workplace
and faced with deciding the best approach in handling these issues. Company policies
are created to establish expectations and to provide guidance on how to consistently
handle workplace situations. Although most company policies are not all-encompassing,
they provide direction regarding what is appropriate as well as inappropriate or

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 unacceptable behavior. Company policies help maintain order within the organization
and ensure that people are treated fairly and equally. Policies also help employees
understand what is expected of them. The five steps needed to develop and implement
a new employer policy are outlined below.
Step 1: Identify the Need for a Policy
Employers do not need to create policies for every unforeseen event as this will limit
management's ability to address individual employee needs or unique situations.
Policies should provide good guidelines and expectations to ensure fair and consistent
practices and legal compliance. Employers may want to develop a policy:
• If employees' behavior indicates confusion about the appropriate conduct or how to
handle certain situations (e.g., attendance policy, cellphone use policy, travel
expense policy, code of conduct).
• If legal protection of the organization is necessary (e.g., investigations policy).
• If there is a need for government laws and regulations compliance (e.g., the Family
and Medical Leave Act, COBRA).
• If there is a need to create consistent standards and rules (e.g., progressive
discipline).
• If there is a need to create consistency and fair treatment of employees (e.g., paid
time off, benefits eligibility).
Step 2: Determine Policy Content
Policies are written guidelines that explain generally what the employer's requirements
are and how employees will be treated. As organizations create new policies, they
should be careful to avoid language that conveys rigid rules that must be followed
exactly as written in all circumstances. Flexibility should be built into the wording, and
promises that could be interpreted as a contract should be eliminated. For example,
organizations should not:
• State that the organization will "only" or "always" do something, or "will" or "must"
act in a particular way.
• Describe employees as "permanent."
• State that employees will be terminated only "for cause."
• Make promises of job security.
• Use all-inclusive lists, such as in disciplinary procedures or work rules.
Employers should use terms such as "generally," "typically," "usually" and "may" so that
managers have flexibility in interpreting and applying the policies based on the
circumstances involved and on the severity of any company policy violation(s).
All policies need to be written in clear language. The policy language itself often varies
from employer to employer depending on size, industry and sometimes even location.
However, most policies have similar components. The typical components are outlined
below:
• Purpose statement. The purpose statement outlines why the organization is
issuing the policy and what the desired effect or outcome will be. For example,
"Employees contribute to the corporate culture and reputation of [Company
Name] in the way they present themselves. A professional appearance is
essential to a favorable impression with customers, regulators and company
shareholders (owners). Good grooming and appropriate dress reflect employee
pride and inspire confidence on the part of such persons."
• Specifications section. This section includes details about specific regulations,
requirements or organizational behavior standards that the policy is creating. For
example, "Employees are expected to dress in business attire Monday through
Thursday. On Fridays employees are permitted to wear casual attire unless there

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 is an event at the workplace or the employee has any meetings with external
clients or vendors that day."
• Implementation section. This section indicates which parties are responsible for
carrying out policy statements and how those parties will ensure adherence to
the policy. For example, "Managers will exercise discretion in determining
appropriateness in appearance."
• Effective date. This date indicates when the policy is considered in force. For
example, "All employees will be subject to this new policy/revision as of [date]."
• Glossary. A listing of definitions for terms found in the policy (for example, "casual
shirts: All shirts with collars, including collared blouses, golf and polo shirts.").
Although employers are free to create policies according to business needs, the policies
must be written in compliance with pertinent employment laws. This can be more
complicated for multistate employers because it is critical to ensure that policies do not
conflict with more than one set of state employment laws. Therefore, all policies should
be reviewed by experienced legal counsel prior to communicating the policy to
employees.
Step 3: Obtain Stakeholder Support
All too often those who are expected to carry out the policies and ensure adherence to
the policies are not consulted prior to the implementation of the policy. Once the policy
has been drafted, it will be important to communicate (e.g., meetings, e-mails,
teleconferences) with managers and supervisors who will be expected to apply the
policy. This communication should include why the new policy (or revision) is needed,
address the impact the policy will have on the stakeholder's area(s) and address any
potential thoughts or concerns the stakeholders may have. Considerations from these
meetings will lead to any necessary revisions before legal counsel conducts its final
policy review.
Step 4: Communicate with Employees
Employers can determine the best approach to introduce the policy to employees
Organizations should give employees background information (when possible) as to
why the policy is being implemented. Employees should be given enough details to
make the organization's position clear while keeping the communications process short
and simplebased on the nature, sensitivity and ease in which the policy will be
understood. The best means of distributing the policy (e.g., e-mail, memo, or
individual/small group/all-employee company meetings) must also be determined. If
using e-mail or company memo, these communications should be distinguishable from
other routine communications that employees may easily overlook. For example,
organizations can specify the topic in the subject heading, change the importance of an
e-mail, change the background and font of a memo or e-mail, change the delivery
method of memos, or add read receipts for e-mails.
Employers should incorporate a communication method that will give employees an
opportunity to ask questions about the policy. The policy should consist of an
acknowledgment statement indicating the employee's receipt and understanding of the
new policy along with the effective date of the policy. The policy should contain space
for the employee's signature and date. It should also be added to the organization's
employee handbook or intranet and included in new-hire orientation programs as
appropriate. Employers should notify employees where they can access the policy later
(i.e., links to intranet site, attachment of policy to print and add to their employee
handbook).
Step 5: Update and Revise the Policy
Clear, well-written policies that are regularly reviewed can be effective employee
relations tools and communications devices. They illustrate the organization's
commitment to a positive work environment. Although written policies in general are not
legally required, they can be used to demonstrate nondiscriminatory employment

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 practices and serve as the basis for an effective defense in employee lawsuits.
Policies should be reviewed on a regular basis to ensure they continue to comply with
federal and state laws and the needs of the organization. New laws, regulations and
court cases can affect both policy language and how employers implement the policies.
Most experts suggest a thorough review of policies at least once a year. Employers
should also use resources that will keep them updated in the interim, like subscribing to
a service or publication or becoming part of an organization that specializes in HR or
employment. SHRM is committed to updating its members of the latest news on state
and federal laws and the latest upcoming or proposed legislation through Government
Affairs that may have an impact on HR professionals.
Step-by-Step: How to implement effective policies and procedures

To implement effective policies and procedures at your workplace, follow these steps to
get the best results.
Step 1: Consultation
When developing your policies and procedures, you must consult with all relevant
stakeholders, including health and safety representatives, contractors (particularly those
who work with you regularly), and of course your employees.
Consultation should ensure that every person in your workplace understands the
importance of company policies and procedures and why they need to be implemented
effectively.
It will also ensure that the policies and procedures are realistic and actionable on a daily
basis.
Tip: Consultation helps to achieve more effective policies and procedures, and is a
greater motivation for employees to follow them.
Step 2: Tailor the policy to your business
The policies and procedures you adopt need to be tailored to the needs of your
business, not just lifted straight from a generic manual.
If you use policies and procedures from another source, it is essential that you adapt
them to your company and your workplace operations.
Step 3: Define obligations clearly – be specific!
All policies should be short and succinct.
All procedural steps should be set out in clear and plain English.
This will create an ‘auditable standard’, meaning that you create a standard that can be
used to measure whether your workplace health and safety obligations are being met or
not.
The obligations outlined in an auditable standard should be defined in enough detail that
persons in your workplace understand exactly what is expected of them.
Specifically state what actions should be taken. For example, don’t say “dispose of
chemicals safely“, but state how this should be done at the site, e.g. “chemicals must be
disposed of in the designated approved dangerous goods waste drum“.
Step 4: Make the policy realistic
Make sure your business has the time, resources and personnel to implement the
policy.
There is no point in adopting a policy which aspires to the best practice possible if your
business cannot realistically adopt the procedures set out.
This is the development stage of the policy and procedure done. Once you have

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 completed these steps, you will have the policies and procedures your company needs
to maintain a healthy and safe workplace.
But the next stage is just as important as the development stage, the implementation
stage…
Don’t get too excited that you have developed the policies and procedures because
without implementing them correctly, they won’t be of any use to you.
Step 5: Publicise the policies and procedures
Put your policies and procedures in writing and make them available to your entire
workforce.
If possible, keep all your policies and procedures in a single manual, and make copies
readily available to all employees.
Tip: Safety documents should also be published on the company’s intranet if you have
one.
Step 6: Train all employees in policies and procedures
You have an obligation to provide adequate information, instruction, supervision and
training to your employees.
Ensure that new employees and contractors are trained and familiar with company
policies and procedures, and that existing staff receive appropriate training, e.g. annual
refresher courses.
Policies and procedures should also be reiterated and discussed with staff regularly at
team meetings to ensure that employees remain aware of the importance of the policies
and procedures.
Tip: It is a good idea to have all employees and contractors sign off after they have
read, understood and agree to comply with your workplace policies. You should also
keep records of training and induction. Make sure that you record attendees and details
of training content in case an employee fails to sign a training record.
Step 7: Be consistent in your policy implementation
Supervision of your workplace to ensure that the policies and procedures are being
properly implemented by all employees is essential.
Follow-up to ensure that any failure to follow the policy or procedure is addressed.
Specify that full compliance with the stated requirements is needed to ensure a safe
workplace.
After this, any deliberate breaches of policies or procedures must be treated seriously,
and dealt with immediately and consistently.
All supervisors and managers must ‘lead by example’ in implementing policies and
procedures. It is crucial that all OHS expectations are demonstrated through modelling
and leadership at all levels of management.
If managers condone practices which do not fall within the policy, it could be argued that
disciplinary action against an employee who fails to follow the policy is unfair. The
consequence of any deliberate breach should be appropriate to the severity of the
breach, whether it be:

• ​counselling;
• ​disciplinary action (e.g. a warning); or
• ​in serious circumstances, dismissal.
Step 8: Review all policies and procedures regularly

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 Policies and procedures must be reviewed periodically.
When any changes occur, ensure your policies and procedures remain relevant and
effective. For example, a change may occur when a business purchases a new piece of
machinery, starts using a new chemical or adopts a new production method. Any such
changes mean that relevant procedures should be reviewed.
Tip: The review cycle will depend on the circumstances and document type, but it is a
good idea to review policies at least every 2 years, e.g. an OHS training policy may only
need to be reviewed every 3 years, but a chemical handling procedure should be
reviewed more often due to the level of hazard involved.
Implement a document management system that:

• ​triggers reviews;
• ​notes the dates of change; and
• ​involves interactive revision.
All employees and contractors need to be made aware of the changes to policy and
procedure when they occur.
Step 9: Enforce the policies and procedures
Once your policies and procedures have been implemented, they need to be enforced.
Make sure that you approach this consistently as this is an important factor in being
able to discipline a worker for a breach of policy.
Tip: The simpler the system, the easier it is for workers to understand and for employers
to enforce health and safety policies and procedures.

IIII. INTEGRATING OBJECTIVES, STRATEGIES, AND POLICIES

Before integrating Objectives, Strategies, and Policies, let us discuss first how and why
are these established. Looking at the bigger picture, a company first creates its vision
and mission statements.

What is vision? Vision statements are those which you want to achieve, more often it’s
unattainable, but the company still strives hard in achieving these.

What is mission? Mission statements are those how will you achieve your vision
statement.

After these are established, it is also be accompanied with core values; it’s how you will
behave in achieving those statements.

For clarification let’s have Starbucks as an example:

Vision Statement: ​to establish Starbucks as the premier purveyor of the finest
coffee in the world while maintaining our uncompromising principles
while we grow
Mission Statement: ​To inspire and nurture the human spirit – one person, one cup
and one neighborhood at a time.
Core Values: ​ ​Creating a culture of warmth and belonging, where everyone
is welcome.
Acting with courage, challenging the status quo and finding new

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 ways to grow our company and each other.
​ ​ ​Being present, connecting with transparency, dignity and respect.
​ ​ ​Delivering our very best in all we do, holding ourselves
accountable for results.

Once you have identified what your organization wants to achieve (vision) and generally
how the vision will be achieved (mission), the next step is to develop a series of
statements specifying how the mission will be utilized to achieve the vision:

Objective: Objectives provide specific milestones with a specific timeline for achieving
a goal.
Strategies: Strategies are one or more ways to use the mission statement in order to
achieve the vision statement. Although an organization will have just one vision
statement and one mission statement, it may have several strategies
Policies:The policy is also regarded as a mini – mission statement, is a set of principles
and rules which direct the decisions of the organization.

Objective
Objectives or the goals of the organization are the ends towards which every activity of
the organization is aimed at. Therefore, goals or objectives are the results that the
organization tries to achieve. Objectives are considered as a prerequisite for planning.

Strategy
The strategy is a game plan, chosen to achieve the organizational objectives, gain
customer’s trust, and attain competitive advantage and to acquire a market position. It is
a combination of well-thought intent and actions which lead to the organization towards
its desired position or destination. It is a unified and integrated plan made to achieve the
basic objectives of the enterprise like:
• Effectiveness
• Handling events and problems
• Taking advantage of opportunities
• Full resource utilization
• Coping with threats
The strategy is a combination of flexibly designed corporate moves, through which an
organization can compete with its rivals successfully. The following are the features of
the Strategy:
• It should be formulated from the top level management. However, sub-strategies
can be made by middle-level management.
• It should have a long range perspective.
• It should be dynamic in nature.
• Strategies are concentrated toward actions.
• The main purpose is to overcome from uncertain situations.
• Strategies deal with external environmental factors.

Policy
The policy is also regarded as a mini – mission statement, is a set of principles and
rules which direct the decisions of the organization. It is helpful in highlighting the rules,
value and beliefs of the organization. In addition to this, it acts as a basis for guiding the
actions.

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 Policies are designed, by taking the opinion and general view of a number of people in
the organization regarding any situation. They are made from the experience and basic
understanding. In this way, the people who come under the range of such policy will
completely agree upon its implementation.
The following are the features of the Policy:
• The policy is a set of common rules and regulations, which forms as a base to
take the day to day decisions.
• Policy is a principle of action.
• Policies are uniform in nature.
• Policies are decision oriented.
• Policies are framed by the top level management of the organization to serve as a
guideline for operational decision making.
• Policies are made for internal environment of business.
• Policies help the management of an organization to determine what is to be done,
in a particular situation. These have to be consistently applied over a long period
to avoid discrepancies and overlapping.

Conclusion
The difference between Strategy and Policy is, a little complicated because Policies
come under the Strategies. Apart from that, the policies are made to support strategies
in several ways like accomplishing organizational goals and securing an advantageous
position in the market. Both of them are made by the top management as well as made
after a deep analysis.

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