What is a policy?


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Formulating Policy for Cooperative

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What is a policy?

  1. 2. What is a Policy? <ul><li>A Policy is a statement, verbal, written or implied, of those principles and rules that are set by Board of Directors as guidelines on organizations actions </li></ul><ul><li>The purpose of the policy is to enable the management to relate properly to the organization’s work and its objectives </li></ul>
  2. 3. What is a Policy? <ul><li>The existence of practical and comprehensive policies tends to increase efficiency </li></ul><ul><li>Decisions made within a policy framework have a higher probability of being synchronized with other decisions within the cooperative </li></ul>
  3. 4. A policy is a predetermined course of action established as a guide toward accepted objectives What is a Policy?
  4. 5. Vision Statement “ what we want to become” Mission Statement “ who we are What we value” Goals & objectives “ How we measure our degree of success Strategy “ how we will achieve our vision” Policies & Procedures Communicating Purpose to Stakeholders
  5. 6. <ul><li>Both statements should be meaningful to all in the organization. </li></ul><ul><li>It should be shared to all members to create a unified direction for everyone </li></ul>
  6. 7. Crafting a mission and vision is not easy, it helps to follow the right steps.
  8. 9. Vision <ul><li>A vision statement is a future-oriented declaration of the organization’s purpose and aspirations </li></ul>
  9. 10. Vision captures as a short tag line <ul><li>such as Toyota’s “moving forward” statement </li></ul><ul><li>Wal-Mart’s “Save money. Live better </li></ul><ul><li>Buzz Cooperative “Give Buzz, Get Buzz” </li></ul>
  10. 11. Narra MPC is likened to a narra tree, a symbol of strength and prosperity. “ we envision ourselves to be the best, efficient and productive cooperative, dedicated and committed in bringing prosperity and positive transformation to its members and the community”. Vision Statement
  11. 12. The mission statement briefly, in a sentence or two, identifies the basic purpose and desire of the cooperative. It makes a concise statement that can be used to make decisions about the cooperative’s future. It answers four fundamental questions: 1. What does the cooperative do? 2. Who are its clients? 3 . Who are the members of the cooperative? 4. How does the cooperative conduct itself?
  12. 13. <ul><li>The mission statement of the San Joaquin MPC are : </li></ul><ul><li>Utilize all resources efficiently and effectively and bring about more better services to members, and in turn, more extensive utilization of the cooperative’s services by the members for better economic and social benefits; </li></ul><ul><li>Promote better social relationship between and among officers, staff, and members </li></ul><ul><li>Bring its services closer to the members for a stronger mutual trust that should expand membership and touch the lives of more people; </li></ul><ul><li>Motivate and encourage the development of technical and management capabilities of officers and employees through continuing education; </li></ul><ul><li>increase resources through continuous capital build up and savings mobilization; </li></ul><ul><li>Strengthen existing cooperative businesses and activities; and </li></ul><ul><li>Provide affordable and quality services to the members’ satisfaction </li></ul>Mission Statement
  13. 14. Values <ul><li>Provide a great work environment and treat each other with respect and dignity . </li></ul><ul><li>Embrace diversity as an essential component in the way we do business . </li></ul><ul><li>Apply the highest standards of excellence </li></ul><ul><li>Develop enthusiastically satisfied customers all of the time . </li></ul><ul><li>Contribute positively to our communities and our environment . </li></ul><ul><li>Recognize that profitability is essential to our future success </li></ul>
  14. 15. The Cooperative Values <ul><li>WE are transparent </li></ul><ul><li>WE are dreamers and visionaries </li></ul><ul><li>WE are result-oriented </li></ul><ul><li>WE value people and the environment </li></ul><ul><li>WE trust people & God </li></ul><ul><li>WE put premium on unity </li></ul><ul><li>WE always march forward </li></ul><ul><li>EXCELLENCE is our way of life </li></ul><ul><li>Baduang MPC </li></ul>
  15. 16. <ul><li>A goal is a long-term vision of what the cooperative is striving to become. It is a target for medium- to long-range accomplishment. </li></ul><ul><li>Goals should describe what the cooperative wants to achieve, They should be bold and exciting and have a clear finish line. </li></ul><ul><li>Goals should challenge the organization but be attainable. </li></ul><ul><li>Finally goals must be ranked by priority. </li></ul>
  16. 17. <ul><li>Goals should be developed with the following criteria </li></ul><ul><li>in mind: </li></ul><ul><li>future oriented, </li></ul><ul><li>broad, </li></ul><ul><li>measurable, </li></ul><ul><li>action oriented (the goal statement must have a verb in it) and </li></ul><ul><li>the outcome must be specified. Goals should be well advertised to the membership and the cooperative’s customers. </li></ul>
  18. 19. Guided by our vision and true to our mission, we aim to attain: 1.  A well-informed and loyal membership conscious of and performing its duties and responsibilities, and actively involve in the affairs of the cooperatives; 2.  A strong and properly functioning Pook-Tulungan system that would enhance the active and democratic participation of the members in the activities of their cooperative and their community; 3.  An enlightened and dedicated leadership willing and able to share its knowledge, time and effort for the welfare of the members, the cooperative and the community as a whole
  19. 20. A giant cooperative 4.  A professional staff hired, compensated and rewarded on the basis of competence and performance, who will run the business and non-business activities of the cooperative with the full support and participation of the duly elected and appointed management bodies of the cooperative; 5.  An efficient and effective management that would continuously strengthen the financing status of the cooperative through an effective savings and capital build-up program, efficient processing and collection of loans, improved systems and procedures and strong internal control mechanism; and 6. A continuous and effective educational and training program for the officers, committee members, pook-tulungan leaders, employees, and the general membership, responsive to the growing needs of the cooperative and the community.
  20. 21. Exercise #1 Vision Missions Values Goals
  21. 22. Exercise # 2 Business Processes Analysis Internal External Strength Weaknesses Opportunities Threats
  22. 23. Savings Mobilization Lending Marketing Savings Mobilization Lending Trading Marketing Objectives Evangelista MPC Banerle Credit Timpuyog ti Barangay MPC Lending Financial Services
  23. 24. vision is formulated business processes are analyzed policy and procedure systems written approved articulated implemented
  24. 25. Agenda Setting Policy Formulation Policy Adoption Policy Implementation Policy Evaluation The Policy Making Process revision revision revision Policy Making and Policy Implementation
  25. 26. <ul><li>Cooperatives with clearly communicated, widely understood, and collectively shared mission and vision have been shown to perform better than those without them </li></ul><ul><li>they are related to effectiveness only when strategy and goals and objectives are aligned with Vision & Mission as well </li></ul>
  26. 27. Mission, Objectives and Procedures. how it relates Cooperative Policies
  27. 28. Develop good policies that enhance rather than hinder the chances of achieving the cooperative’s objective
  28. 29. describes how it should be done a policy lays out what the BOD wants management to do Procedure
  29. 30. <ul><li>Policies differ from procedures in the sense that procedures provide standard methods by which work is performed and provide a check against deviations. They are subordinate to policies. </li></ul><ul><li>Whereas policy will contain the “what” and the “why”, procedures or protocols contain the “what”, the “how”, the “where”, and the “when”. </li></ul>Policy vs. Procedure
  30. 31. <ul><li>A policy is typically described as a principle or rule to guide decisions and achieve rational outcome(s). </li></ul><ul><li>A policy can be considered as a “Statement of Intent” or a “Commitment”. For that reason at least, the decision-makers can be held accountable for their “Policy”. </li></ul><ul><li>Policies are decision guides. </li></ul><ul><li>Policies are line fences for decision-making. </li></ul>Policy vs. Procedure
  31. 32. <ul><li>Policies differ from rules/regulations. Rules are more specific than policies and they usually entail penalties for violation. Policy establishes a guiding framework for rules. Policies are broader than rules and they are usually stated in general statement. </li></ul><ul><li>they provide no room for managerial discretion </li></ul>Policy vs. Rules and Regulation &quot;No smoking in the work area&quot; 'Wash your hands before leaving the restroom&quot;
  32. 33. <ul><li>provides emphasis </li></ul><ul><li>sets direction </li></ul><ul><li>signs by the board </li></ul><ul><li>detailing who is responsible for each policy and </li></ul><ul><li>what obligation that places on individuals employed by the organisation.” </li></ul>Policies Policies
  33. 34. <ul><li>steps by steps instructions to perform desired actions </li></ul><ul><li>provide direction regarding organizational practices and help implement standardized and repeatable processes </li></ul><ul><li>provide support for standard </li></ul><ul><li>compliance is mandatory </li></ul>Procedure
  34. 35. Policy & Procedure Purpose <ul><li>Together , policies and procedures ensure that a point of view held by the governing body of an organization is translated into steps that result in an outcome compatible with that view. </li></ul><ul><li>Together they keep you out of trouble! </li></ul><ul><li>Together they insure consistency under the law! </li></ul>
  35. 36. <ul><li>Use as a planning document or framework </li></ul><ul><li>Use as a selection tool quality improvement the organization </li></ul>The Functions of a Policy <ul><li>policies help secure consistency within the limits and equity in organizational decisions (i.e contracts will be awarded to the lowest qualified bidder) </li></ul>
  36. 37. <ul><li>Use as a means of protection </li></ul><ul><li>Simplify decision-making thus it promote efficiency in the </li></ul><ul><li>utilization of managerial time </li></ul>The Functions of a Policy
  37. 38. The Functions of a Policy http://www.referenceforbusiness.com/encyclopedia/Per-Pro/Policies-and-Policy-Making.html <ul><li>Management are comfortable delegating decisions to subordinates because they will have set guidelines within which to make choices </li></ul><ul><li>Ensures compliance with legal and other requirements of the organization </li></ul>
  38. 39. Organizational Policy Business /Operational Policy
  39. 40. Board A Board B Board C Board D Board D Board E A. Organizational Policies SMCBUP Membership Education & Training Internal Control Ethics Human Resource
  40. 41. B. Business/ Operational Policies Lending Trading Marketing Board F