Business policies and its characteristics why and how business policies are made types of business policies solution of poor business policies

1. CRITICAL THINKING &
LOGIC
 Effect of poor business policy on the growth of Business

2. Business Policy:
 Business policy is the study of roles and responsibilities of top level
management.
 Business policies are the guidelines developed by an organization to govern its
actions.
 They define the limits within which decisions must be made.
 Example: Marketing policy, HR policy etc.

3. Characteristics/Features of Business
policy:Seven Features Of Business Policy
1) Specific:
 Business policy should be specific.
 If it is uncertain then the implementation will be
 Difficult.
2) Clear:
 Business policy should avoid use of jargons and connotations.
 There should be no misunderstanding in following the policy.
3) Reliable/uniform:
 Business policy must be uniform so that it can be efficiently
followed by the sub-ordinates.

4. 4) Appropriate:
 Business policy should be appropriate to the present organizational goals.
5) Simple:
 Business policy should be simple and understood by all in the organization.
6) Inclusive/Comprehensive:
 In order to have wide scope, a business policy should be comprehensive.
7) Flexible:
 Business policy should be flexible in operations.
 This does not imply that a business policy should be altered always
but it should be wide in scope so as to ensure that line manager use
them in repetitive scenarios.
Continued…

5. Why the business policies are made?
Following points will help understanding the
importance of business policies.
 act as guidelines to managers to resolve recurring problems
 help the management to delegate duties to subordinates with full confidence.
 help the executives to know how others will act
 policies are never static and are subject to alternation or modification depending
upon the business environment.
 govern the planning, decision making, coordination, direction, control and other
managerial functions.

6. Importance of business policies
(continued)
 help the organization to have consistency in execution process and also
performance of the executives.
 Avoiding confusion.
 Providing guidelines at all levels.
 Enabling the enterprise to run smoothly without any hindrance,
 Helping management to achieve maximum utilization of human resources and
material resources.

7. How business policies are made?
Five steps needed to develop and implement a
policy are outlined below.
 Identify the Need for a Policy
 Determine Policy Content
 Obtain Stakeholder Support
 Communicate with Employees
 Update and Revise the Policy

8. Type of Policies:
Policies may be divided into different types of
policies from different approaches.
A. On the Basis of Source:
(i) Originated Policy.
(ii) Appealed Policy.
(iii) Implied Policy.
(iv) Externally imposed policy
1.Originated Policy:
By originated policy they refer to policy which
originates from the top management itself. These policies are
aimed at guiding the managers and their subordinates in their
operations.

9. 2. Appealed Policy:
It is meant decisions given in case of appeals in exceptional
cases up to management hierarchy. In case of doubts, an
executive refers to higher authority on how he should handle
the matter.
3. Implied Policy:
Implied policy is meant policies which emanate from conduct.
It also originates where existing policies are not enforced.
4. Externally Imposed Policy:
Policies may be imposed externally that is from outside the
organization on such as by Government control or regulation,
trade associations and trade union etc.

10. B. On the Basis of different Levels:
1. Basic Policies.
2. General policies.
3. Departmental Policies.
1.Basic Policies:
Policies which are followed by top management level are called
as basic policies.
For example, the branches will be opened in different place
where the sales exceed Rs. Five, lakhs.
2. General Policies:
These policies affect the middle level management and more
specific than basic policies.
Example:
Payment will be provided for overtime work only if it is allowed
by the management.

11. 3. Department Policies:
These policies are highly specific and applicable to the lower
levels of management.
Example:
Tea will be provided free for workers in night shifts.
C. On the Basis of Managerial Functions:
1. Planning policies.
2. Organization policies.
3. Motivation and control policies.
1. Planning Policies:
Planning policies involve the future course of action . Planning
policies may formulate for whole organization or for divisional
departments.

12. 2. Organization Policies:
These policies are highly specific to organizational goals and
objectives.
3. Motivation and Control Policies:
Here policies are formulated to motivate people and control
the activities, which leads to achieve the organizational
objectives with the fullest satisfaction of employees.
Continued…

13. What is Poor Business Policy?
 A business policy followed by its employees, which has no clear image, not a proper code
of conduct, poor strategy, no rules & regulations, poor decision making and time
management.
 It is a failure to do the duties of the role or meet the standard required.
 It directly relates to bad policy management in which employees spending their time not
focusing on reaching the goals of the organization.

14. Effects of poor business policy
on the growth of business:
 Organization cannot achieve its mission or goals.
 Not enforcing standard.
 Bad Management.
 Employee’s demotivation.
 Customer dissatisfaction.
 Ignoring the problems.
 Monitoring and tracking of employees performance.
 Loss of jobs.

15. Effects…
 Increase in debts.
 Decrease in profits.
 Not listening and not making people feel valued.
 Misleading of information.
 Legal risk increases.
 Biases become more prevalent.
 Organization will go bankrupt.
 Business failure.

16. What is the solution of poor
business policies?
Poor performance often shows up following:
 Failure to do the duties of the role .
 Not apply the rule on work place.
 Bad communication.
 Bad behavior of co-workers.
Your employees are the face of your company! I spoke with
my colleague and customer experience and here are a few
takeaways from our conversation:
1. Communicate your values:
 If your employees what your values are what those values
really mean.
 How they might be playout in the real world just they do
best.
 You cannot overcommunicate be treated.

17. 2. Supervise:
 To schedule and allocate work for employees.
3. Hire carefully:
Since it’s so vital to have the right people running point on
customer experience, make sure you prioritize this in your
hiring process. Talk with an expert on hiring and consider using
assessments.
 To supervise the performance of employees.
Continued…

18. 4. Pay appropriately for the value your
employees provide:
If you don’t pay them fairly for this important work, you’ll have
problems attracting the right people and holding on to the
keepers.
5. Reward for good customer experience:
Use customer experience as a component of any bonuses or
commissions.
Coaching the right way to give incentives.
Continued...

19. Thank You!!!