Why Should a Firm have Procedures and Policies?

Corporate Governance
Knowledge Center


Next Topic

Corporate Governance > Best Practices

casey, Australia
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. (...) Read more? Sign up for free

Please register now to read all responses and to join this discussion yourself. It's easy and 100% free.

Sign up for free     Log in

  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, 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, 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?

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

Are you an expert in Corporate Governance? Sign up for free

Corporate Governance
Knowledge Center


Next Topic

About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2020 12manage - The Executive Fast Track. V15.6 - Last updated: 21-10-2020. All names of their owners.