Why Should a Firm have Procedures and Policies?

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Corporate Governance > Forum > Why Should a Firm have Procedures and Policies?

Why Should a Firm have Procedures and Policies?
casey, Australia, Member

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

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Why Policies and Procedures
Leodegardo M. Pruna, Professor, Philippines, Member

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.

Reasons for Procedures and Policies
Jaap de Jonge, Editor, Netherlands

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.

Reasons for Policies and Procedures
Muhammad Moeen, HR Consultant, Pakistan, Member

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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