Business Policy & Strategic Management Business Policy includes guidelines, rules and procedures established to support efforts to achieve stated objectives. Policies are guides to decision making and address repetitive or recurring situations.
What is Strategic Management And Business Policy?
Strategic management refers to management activities that influence the short- and long-term business outcomes. These outcomes are based on the company’s operations and overall performance. Strategic management focuses on analysis and implementation of decisions that provide the foundation for the company’s overall goals and objectives. Strategic management is focused on the future and encompasses processes that drive the operation’s objectives.
Strategic management requires a competitive edge that provides a foundation for overall business success. Strategically managed organizations benefit from properly implemented and managed business processes, as well as strategic planning activities.
Key business decision areas include
- Business Strategy
- Business Intelligence
- Business Policies
- Business Processes
- Business Management
- Business Decision Management
- Strategic Management
- Strategic Thinking
- Business Policy
- Business Process
What are the Benefits of Strategic Management and Business Policies?
Benefits of strategic management include:
Predictability: Effective organizational policies help to ensure expected standards and to identify common areas of responsibility.
Consistency: Effective policies equally apply to employees and ensure consistent practices.
Organizational Integrity: Organizational policies ensure that processes are carried out smoothly and consistently, reducing the risk of mistakes.
Some of the key benefits of a business policy include:
Standardized Compliance: Business policies ensure that all employees are aware of organizational goals and that they understand the procedures required to achieve them.
Effective Communication: Business policies provide clarity and an understanding of organizational goals and values.
Fewer Mistakes: Business policies help to eliminate mistakes and costly errors, resulting in improved business outcomes.
Hierarchy of Biz Policies
Tier 1: Corporate Policy
Tier 2: Departmental Policy
Tier 3: Functional Policy
Tier 4: Work Unit Policy
Tier 1: Corporate Policy
Corporate policies are made at the highest level and apply across the entire organization. These policies are the foundation of the organization. If a business policy lacks concreteness, the underlying principles are not defined, and key expectations and standards are not understood, then the policy probably needs modification. Overall effectiveness is dependent on the effectiveness of corporate policies. In many cases, senior management creates corporate policies.
Corporate policies define specific organizational goals, objectives, and priorities. They provide consistency, reduce uncertainty, increase efficiency, and ensure standardization in the organization.
Examples of Corporate Policies
- Management Philosophy
- Scope of Operations
- Strategic Plan
- Corporate Objectives
- Quality Policy
- Customer Service Policy
- Financial and Risk Management Policy
- Asset Management Policy
Tier 2: Departmental Policy
Departmental policies apply to a specific group within the overall organization. Policies often establish procedures and guidelines for departmental operations. Departmental policies also may include specific company agreements, including standard agreements and industry contracts. Departmental leaders often are responsible for creating and approving departmental policies.
Examples of Departmental Policies
- Shipping Procedures
- Employee Policies
- Payment Policy
- Work Permit Procedures
- Travel Policy
- Accounting Policies
Tier 3: Functional Policy
Functional policies apply to specific areas and functions within an organization. For example, a purchasing policy applies to the purchasing function within the organization, financial policies apply to the finance or accounting function, and legal policies apply to the legal function. A functional leader is responsible for creating and confirming the functional and departmental policies.
Examples of Functional Policies
- Employee Handbook
- Workplace Conduct Policy
- Risk Management Policy
- Credit and Collections Policy
- Industry and Company Codes of Ethics
- Policy on Patents
- Product Pricing Policy
Again, keep this in mind when you think about policy… It’s a “living document” don’t expect to put in down in writing and never think about it again. Policy should be dynamic…and The market and situations are changing every day. So what if it was written a year ago? And I’m guessing everyone who had a stake in it (HR, Legal, etc.) is no longer there. As things change, your policy needs to change. That’s where it all gets complicated…
- Policies need to be understood, communicated, and embraced by Management and employees alike.
- Policies need to be consistent across all levels of management and still be flexible enough to handle changes.
- Policies need to ensure employee compliance but still allow for occasional exceptions.
- Policies need to support the company’s ultimate goals and objectives without becoming an obstacle. That’s why policies should be reviewed and adjusted as needed and support organizational change.
- Policies need to reflect the company’s ethical standards, regulations, and values.
- Policies need to be transparent. Employees will follow the rules more closely when they can understand the rationale behind them.
- Policy should be long-term while catering to short-term situations.
- Policies should balance short-term and long-term needs.
- Policies should be consensual. If employees are consulted and involved in the policy process, then policies will be followed more closely.
- Policies should be understood by everyone, in all areas of the company.
Business management is about getting things done through others. The principal concern of business managers is with the long-range planning of activities, with the achievement of the goals set for the enterprise, and with the long-range growth of the enterprise. Managers are concerned with the operational details of running the business, but their principal concerns are with the organization of resources for effective long-range performance.
A complex business organization should assign responsibility for business management to a high-level corporate executive, and this person should be given appropriate authority in order to execute his or her responsibilities. In this way, the corporation may be administered as a separate legal entity, owned by owners who can be identified and who may expect or demand a productive return on their investment.
Tough-minded readers Must Ask 3 Questions About People Management:
- Is The Person Capable?
- Is The Person Committed?
- Is The Person Likeable?
Biz Policies That You Should Review
Change Policies That Don’t Work
Trouble At Work:
A Multi-Tasking, Stressful Job
- Decision Maker
- Technical Expert
A great leader must possess certain psychological capacities and attitudes. What sets great leaders apart from the rest is their ability to innovate within the context of the business environment. Executives who are average in their fields of expertise, but superior as motivators, are highly successful because their need to be loved is greater than their need to achieve. The need to be loved is a basic human need, yet the fear of being rejected is a fundamental Achilles’ heel of most people. These are the drivers behind the aggressive behavior of many great entrepreneurs.
PEOPLE MANAGEMENT – human resources
Study of the process of managing, developing, and using people in organizations.
Primary purpose of people management
Manage the human resources of the organization to meet the current and future needs of the business.
In accordance with the organization’s mission, values, goals, and objectives.
It is essential that the organization’s people management policies and practices reflect a commitment to a team-based culture.
It is imperative that the organization’s people management policies and procedures create the right combination of incentives for maximizing performance, motivation and satisfaction.
CULTURE – to study of the characteristics of a particular group of people, the beliefs, behaviors and philosophies that are unique to those members. In other words, the non-material and material things that shape how they operate.
Culture is more permanent than the rest of the variables, which are subject to change. Culture has a much larger impact on business outcomes than any other factor. Culture has a great impact on important business objectives like profitability, business growth, productivity, customer satisfaction, employee satisfaction, employee retention, and business reputation. It often determines whether the organization will survive.
Culture has a major impact on most business decisions. Culture has a strong impact on whether organizations are established, how well they perform, and whether they succeed or fail.
- Lessons Learned – Generalizability:
- Transparency is the efficient use of cognitive capacity.
- Communication is the conduit for information sharing.
- Learning is a means of obtaining new information.
- Trust is the bond between people.
- People Management is the building of an empowered team.
- Selection – Significance:
- Individual diversity is essential for team synergy.
- Team leader and followers must have the same or compatible values.
- Interaction between team members is essential for team development.
- Team orientation is an attitude toward team function.
- Management must select staff members who are suited for the task.
- Management must control the process of selections.
- Training – Learning:
- Training is the acquisition of knowledge or fundamental skills.
- Learning is the ability to retain new information.
- Learning is a purposeful act.
- Learning from experience is a necessary prerequisite for future performance.
- Training and learning are effective if they are performance-based.
- Performance management is activity that the organization engages in every day.
- Development – Learning:
- Individual development is the process of increasing employees’ performances.
- Team development is the process of improving over-all performance of their respective teams.
- Better individual performance results in better team performance.
- Organizational development is the continual improvement process in an organization.
- Motivation – Performance:
- People are motivated by a desire to achieve their goals.
- Performance is the results of past behavioral decisions.
- Competencies are the blend of knowledge, skills, and abilities.
- Competencies must be congruent with the tasks.
- Competencies are the difference between average and superior performance.
- All employees want to be successful.
- Communication – Performance:
- Organization is the gathering, receiving, transmitting, and interpreting of information.
- Performance is the results of past behavioral decisions.
- Employees want to know how they are doing with performance evaluations.
- Employees want to be recognized and rewarded for their individual and team achievements.
- Employees want to know about company performance.
- Communication is the core of an organization’s operating procedures.
- Decision Makers – Performance:
- Organizations and their employees must be able to compete and succeed on a global scale.
- Corporate decisions are made by the top management.
- Employees should be encouraged to improve productivity, reduce costs, and increase efficiency.
- Employees should be encouraged to make decisions on a daily basis.
- Security is a very effective motivator.
- Most employees want a work environment in which they feel secure.
- Corporate Policies – Performance:
- Corporate policies determine how business is conducted in a company.
- Individuals and teams must be held accountable for adherence to the corporate policies.
- Individuals and teams must know the rules they are required to follow.
- Individuals and teams must have a direct communication channel with management.
- Ethics should play a vital role in corporate policies.
- Organization must adhere to the corporate policies.
- Division of Labor – Performance:
- The skills of individuals and teams must increase.
- People use different skills.
- People work in groups.
- Culture is a significant factor in group behavior.
- All members of a group are interdependent.
- Members of a group must work together.
- Goals – Performance:
- Organizational and individual goals are derived from the same source.
- Organizations and individuals must have the same goals to succeed.
- The personal goals should be derived from the corporate or organizational goals.
- The priorities will change depending on the organization.
- The activities that employees engage in must be relative to the goals.
- The employees must know how their performance contributes to the achievement of organizational goals.
- Public Relations – Public Performance:
- Public relations efforts are crucial for the survival of most organizations.
- Employees cannot work unless they are motivated.
- Organizational reputation is important in attracting great employees.
- Organizational reputation affects how customers are attracted to a business.
- The effective utilization of employee benefits is essential to organizational survival.
- Benefits must be spend wisely to be effective.
- Employees – Performance:
- Employees achieve the highest performance through a cooperative relationship.
- Communication and training are essential for optimum performance.
- Creativity is essential for the viability of the organization.
- Employees must see the value they bring to the organization.
- The decisions and ideas should be made by responsible people.
- Employees serve an organization.
- Rewards – Performance:
- Nothing should be rewarded without performance.
- Rewarding the wrong things produces the wrong behaviors.
- The rewards must be fair.
- The rewards must be relative.
- The rewards must be recognized by others.
- The rewards must motivate the behavior.
- Standards – Public Performance:
- Standards must be measurable.
- Standards must be based on facts.
- Standards must be communicated with the employees.
- Standards must be revised if they are not working.
- Standards should be perceived as fair by the employees.
How to make a winning Strategic Management And Business Policy?
A winning strategic management and business policy is a critical part of a successful strategy. One of the most important steps toward creating a winning policy is to become familiar with the major elements of the policy itself. Strategic management and business policy is all about setting the boundaries for an effective plan that guides the direction and driving force of the organization in the right direction.
There are several elements that are part of the overall considerations in creating a strategic management and business policy. These elements range from decisions about non-governmental and business relationships to decisions and understandings about the functions and duties of the human resources and finance departments and their roles.
These elements often wind up shaping the strategies being created for departments and business units within the business, which provides a chance for greater success. The elements and considerations that should be considered include the following:
- Goals and Objectives: The example of Nike is the best example for the purpose of setting goals and objectives.
- Resource Requirements: Resource management is a good example of the resource requirements.
- Policies and Procedures: An example of policies and procedures is offered by the McDonald’s franchise.
- Standards: The standards serve as the measurement of performance.
- Strategic Alliances and Partnerships: Examples of strategic alliances and partnerships include Wal-Mart and Procter and Gamble.
- Quality Control: Quality control is important for the organization.
- Change: Change, change and change is one of the most important aspects of strategic management and business policy.
- Costs: Costs play a very important role in strategic management and business policy.
- Diversification: Diversification is very useful for the business.
- International: International arenas are very important area for the business.
- Incentive Programs: Incentive programs are used to motivate teams and workers.
- Quality Standards: Quality standards tell how to give the quality.
- Mergers and Acquisitions: Mergers and acquisitions are done in a relatable manner.
- Business Competitors: Business competitors ensures that business is up to date with what is occurring in the industry.
- Corporate Structure and Organization: Corporate structure and organization is highly important for the business.
- Operations: Operations are necessary to consider for sound planning and management.
- IT: Information technology is the best round the clock way to stay in the shoes of competition.
- Legal: The legal issues should be taken into consideration.
- International Business: International business is one of the major factors for successful planning and implementation.
- Supply Chain: Supply chain plays a highly important role in highly competitive business environment.
The structure and format of the strategic management and business policy is also an essential part of the development of the plan that will be employed. This is a consideration that gets overlooked by many who are thinking about putting together the strategic management and business policy without much thought and planning.
A good strategy should be presented in a way that is sustainable for the business. This means that the business is able to adapt and change along with the environment with ease, which is when the strategic management and business policy is adaptable is when it is created. This is something that many who are thinking about creating the strategic management and business plan forget that tend to care a great deal about what the overall assessment of the plan is.
When people are trying to create the strategy they want for the business, they tend to forget that the business is also an environmental entity that will need to change and adapt as well as the environment does. This is why the structured style that the strategic management and business plan is presented with is important.
The organizational units that will use the business plan are also a consideration. This is the better for people to understand about how to go about creating the structure that will be used. There are some people who could be affected by the way that the structure of the business plan is presented, so it is important for people to understand the needs of those who are affected so that they can make the strategic management and business plan work.
Strategic Management and Business Policy: Balancing Effectiveness/Effectiveness
One of the most important considerations for strategic management and business policy is making sure that the planning and implementation of the plan works for the organization as a whole. This means that the interests of the organization are paramount at all times. One of the most important aspects of this is developing management skills that will be able to be used immediately.
This is one of the most important developments to take into consideration, because it means that the people who will be impacting the plans and strategy are already aware of how to carry out the strategy in a way that allows for growth. This is the most important aspect of achieving the strategic management and business policy, because it is not a strategy that is done lightly.
A business, no matter how small or large, needs to take their time to develop a strategic management and business policy. This does not mean that there should be any significant delay or an extended amount of time to develop the plan, although this can be a part of the process. However, the deliberation is essential for the strategy that will be used by the business.
This is the aspect of the situation that is most important, because the total implementation of the strategic management and business policy will be based on how well the planning was done to develop the plan.
One of the most effective ways to structure the planning of the strategic management and business policy is to solicit the advice and input of the members of the organization, because they have a very good chance of being on the bleeding edge of the whole operation. Getting the employees’ take on the situation is a very important part of the whole situation. This is an essential thing for people to think about that want to create a good, solid business plan for their business.
This is what allows people to create the good plan for their business, because they are completely knowledgeable about how to put the plan into action.
The involvement of people in the strategic management and business plan also helps to put it on a higher level, because it shows that people are willing to put their whole weight behind the business strategy that is being put forth.
This is what makes the strategic management and business plan a comprehensive plan, because it is not thrown together without any extensive thought put into it. This is something that is very important to take into consideration, because it means that people are not just going to be coming up with a plan that is thrown together without any specific purpose or plan in mind.
The strategic management and business plan is also one of the best times to be able to get the plan in writing so that it can be used by the executive management, because the possible ramifications of not having it in writing can lead to difficulties if the leaders of the organization do not know what the plan is going to be. This is something that is very important to consider, because it shows that people are taking the business seriously so that they can make all the intelligent decisions that will be necessary to affect the growth of the business.
This is one of the most important setups for the business plan, because it allows people who are trying to put it together to be able to make sure that they get the best quality possible for the plan.
Because of the introduction that was put forth earlier, one of the most important things to look at when it comes to strategic management and business policy is the way that people are going to be able to help the business grow. This is a task that many people try to take care of, but they are not set up in a way that would be fitting for the business strategy that is being worked on.
The key issues of the business plan are also considered in depth. This is necessary to ensure that the organization understands why there are certain facets of the plan, so that they can work on them. This is what allows people to better their chances of getting the results that they are interested in, because they will have a greater chance of understanding what they need to do so that they can achieve their specific goals.
These topics are what allow the strategic management and business plan to be fully realized, because the decisions that are made will be the right ones for the business.
This is the big picture which needs to be thought about in the decision making process so that the business can be able to better the conditions that they work in, so that the business can be able to grow.
One of the most important considerations for strategic management and business policy is the analysis of the market and customers that they will be working with. This is the big picture that the organization wants to be able to have going forward, because it will assist in the growth of the business. This is the biggest consideration in the planning process, because it gives people the ability to understand the situation better.
Understanding the circumstances that they are in is why this is so important, because it is the only way that the strategic management and business plan will be able to be created properly to ensure that the business can grow.
One of the most critical aspects of the whole situation is the analysis of the information that the market and customers can provide. This is what allows people to be able to better their chances of getting the best possible material for the business strategy that they plan to put forth. This is one of the most important plans, because it is the only way that people will be able to know to how to act in regard to the situation.
The situation is one of the most important parts of how people are going to be able to achieve the goals they have aimed for. The key issues that are created by the market and customers are a way that people can get their hands on the information that they will need to know how to best use the business strategy being created.
To create the right strategic management and business policy, it helps to use the resources that people have. This is the way that people can get a good idea of what they will be able to achieve by their hard work. This is one of the most important aspects of creating the plan for a strategy, because it allows the best use of the business plan to be used by the people who will be implementing it.