Policy
Policy refers "to specific guidelines, methods, procedures, rules, forms and administrative practices established to support and encourage work towards stated goals.“
Importance of Policies
- They establish indirect control over independent action by clearly stating how things are to be done i.e. they control decisions yet permit and empower employees to conduct activities without direct intervention by top management.
- They ensure quicker decisions in routine activities by standardizing answers to routine, recurring questions.
- They counteract resistance to chosen strategies by clarifying what is expected and facilitate acceptance especially when operating managers participate in policy formulation.
- They provide communication channels between organizational units, thereby providing a necessary foundation for coordinated, efficient efforts. E.g. of a policy; to accept customers’ return of goods submitted within one month of purchase
Policies and procedures help enforce strategy implementation in several ways:
- Policy facilitates strategy-supportive practices and operating procedures throughout the organization.
- The policy reduces uncertainty in repetitive and day-to-day activities in the direction of efficient strategy execution.
- Policy limits independent action and discretionary decisions and behavior. Procedures establish steps on how things are to be handled.
- The policy helps align actions and behaviors with strategy. This minimizes zigzag decisions and conflicting practices and establishes consistent patterns of action in terms of how the organization is attempting to make the strategy work.
- The policy helps to shape the character of the working environment and to translate the corporate philosophy into how things are done, how people are treated, and what corporate beliefs and attitudes mean in terms of everyday activities.
- The policy helps establish a fit between corporate culture and strategy.
Product Policy
Product policy is the top management (Strategic) decision.
Every organisation has their own product strategies or policies, which form the basis of competing in the market.
They become the unique selling proposition (USP) of the company.
As per the requirements of the company, it may choose product policies.
The same company can opt for different policies for the different products.
Lowest Price:
The Company will be the price leader and the company is going to offer the product at the cheapest price than its competitors.
Price becomes the criteria used to compete in the market.
Though the profit per unit is less, the company is going to make the substantial profit by the large volume.
Highest Quality:
Some organizations offer highest quality products irrespective of the cost.
They are catering to the needs of special class of customers who value quality as the only criteria to purchase the product.
Product Policy
Compromise between Cost and Quality:
Some Organizations in order to capture the larger sections of the customers, offer products with the optimum blend of quality and cost.
The products are reasonably of good quality in proportion to its price.
These organisations try to give good value to the customers for his money.
Safety:
Some Organizations give maximum importance to safety.
Safety is the criteria on which they compete in the market, eg. – All home appliances, electrical gadgets etc.
Thus Organizations have to choose the policies suitable for them.
This policy is going to influence the design to the large extent.
Personnel Policy
Personnel policies are the rules that govern how to deal with a human resources or personnel related situation. They are guidelines to decision making that help keep the system as fair and unbiased as possible.
The policies for human resources are formulated by the top management for assisting the executives to deal with the personnel at work.
When developing policies, the organisation should always consult an expert who is very knowledgeable about federal, state/provincial and local laws regarding employment practices.
The following is a sample list of policies.
This list is by no means definitive for every organization.
The policies developed by an one organization depend on the nature and needs of the organization.
Work Schedule
- Work day hours
- Lunch periods
- Holidays
- Vacation
- Sick Leave
- Paid Leave
- Privilege Leave
Hiring Procedures
- Interviewing job candidates
- Checking references
- Offering employment
Compensation
- Paydays
- Overtime and compensation time
- Salary ranges
- Reclassifying positions
- Salary review policy
- Promotional increases
- Withholding salary increase due to performance
- Withholding salary increase due to leave of absence
Benefits
- Eligibility and general information
- Types of available benefits
- Medical insurance
- Dental insurance
- Disability insurance
- Life insurance
- Retirement plan
Public Relation Policy
PR policy outlines the rules and processes the organisation follows in their interactions with the media for all interested external audiences.
Public Relation Policy
Accepting Media Interviews
Spokespeople (analysts, consultant) should only accept an interview that focuses on their coverage area. If a reporter asks about topics or an industry that is not in their coverage area, associates should take the journalist’s contact details and forward them to the Public Relations (PR) department. The PR team will help the journalist further.
Spokespeople can accept interviews if they have time available (particularly in regard to broadcast media that requires travel to a studio) and approval from their manager.
Spokespeople may need to decline interview opportunities if demand on their time from client commitments prevents them from being prepared for the interview.
Sharing information with journalists
The organisation tries to keep a balance between providing journalists with enough information to use in a story, while not giving away too much of what our clients pay for.
When sharing content with journalists, the spokespeople should make sure that content has already been available to clients.
Comments to the media should be consistent with the published content.
Commenting on media speculation
The media will at times report on industry speculation, such as “company X is rumored to be in talks with company Y” or “it’s widely believed that it was company X that caused the problem, but they haven’t confirmed or denied it yet.”
As a general rule, spokespeople should not comment on a specific company that is the subject of media speculation or rumor.
If the spokesperson is not sure how to handle a media situation such as this, they can contact their local PR manager.
Attending third-party conferences
A spokesperson should not automatically accept an invitation to present at a third-party event.
Permission must be obtained from the spokesperson’s manager, and the organisation.
R & D Policy
Research and development (R&D) includes activities that companies undertake to innovate and introduce new products and services.
The goal is typically to take new products and services to market and add to the company's bottom line.
- Existing Product New Design
- Existing product Improvisation.
- New Product
- Variations in Products
Marketing Policies
Marketing policy is a long-term, forward-looking approach and an overall game plan of any organization or any business with the fundamental goal of achieving a sustainable competitive advantage by understanding the needs and wants of customers.
Paid advertising
This includes multiple approaches for marketing. It includes traditional approaches like TVCs and print media advertising. Also, one of the most well-known marketing approach is internet marketing. It includes various methods like PPC (Pay per click) and paid advertising.
Cause marketing
Cause marketing links the services and products of a company to a social cause or issue. It is also well known as cause related marketing.
Relationship marketing
This type of marketing is basically focused on customer building. Enhancing existing relationships with customers and improving customer loyalty.
Internet marketing
It is also known as cloud marketing. It usually happens over the internet. All the marketing items are shared on the internet and promoted on various platforms via multiple approaches.
Sales is particularly the most challenging work. Even for the largest retailers, selling is always tough especially when there are high volume targets.
However with the new marketing strategies, selling isn’t as difficult as it was.
In transactional marketing the retailers encourage customers to buy with shopping coupons, discounts and huge events.
It enhances the chances of sales and motivates the target audience to buy the promoted products.
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