Business Policy refers to how a company guides it's actions towards achieving it's goals. In other words these are guidelines and actions that the company sets out as required for it's employees that the company may achieve long term goals.
Outputs of Business Policy includes,
a. Easier Decision Making
When a business properly sets out it's policy on certain actions then employees make decisions easier in relation to actions that would otherwise have been unclear as to how they could be resolved.
For example, stating that the company does not take gifts from clients will help a Fund Manager for example, avoid receiving tickets to a game from a client as gratitude for a job well done.
b. Outline Job Expectations
Business Policies let employees know exactly what is expected of them so that they may act accordingly. Surprisingly more often than not, employees can act in a certain way that could hurt the firm simply because they did not know better. Well established business policies can solve this problem.
For example, by stating the decision authority of jobs in a Department, employees can know not to overstep.
c. Employee Efficiency
Establishing business policies can help improve the work rate of employees by giving them.incentives, quotas, requirements or by removing distractions. The Employees will therefore focus more on their work and work better to improve the company.
For example, mandating that Social Networks not be used on company time will help some employees focus better.
d. Consistency
Well established business policies ensure that there is consistency in the operations of the business. Policies will tell the Employees how things are done and even when new employees come, the policies can guide them in their work so that they can pump out a consistent level of work to company expectations.
For example, Stating Audit Policy in an Audit Firm so that all employees may audit companies in a certain consistent way for easier comparison.
e. Improves Working Environment
Good and well implemented Business policies reduces friction amongst Employees amongst themselves and with management. Because everyone will have their roles, they will act accordingly and avoid stepping on the shoes of others.
For example, a certain team will be in charge of one facet of production and another team will be in charge of another. This way the teams don't clash on decisions to be made in the facet of production that they are in charge of.
