Policies In Functional Areas l4l55

POLICIES IN FUNCTIONAL AREAS Policies- are directives designed to guide thinking, declarations and actions of managers and their subordinates in implementing strategies. It provides guidelines for establishing the control ongoing operations. Purpose- These are: 1) Indirect control over independent action, 2) Promotes uniform handling of similar activities, 3) Ensures quicker decisions, 4) Helps institutionally basic aspects of organizational behavior, 5) Reduce misunderstanding in repetition and day to day activities, 6) Counteract resistance to or reject certain strategies by the organization , 7) Offer predetermined answers to routine problems, and 8) Offers managers a maximum to avoid hasty and ill concerned decisions POLICY FORMULATION Operation level- unite, unified, coherent, ive pattern, The pieces /layers should fit together like a jigsaw puzzle (situation, performance, goodness, competition). Business level-(response to change, craft, competitive, connected, relevant) competitive advantage, cost, planned (proactive), change, geography, patch up (collaboration, functional). Corporate level- (move-action- pursue- establish) leader, diversified, scope, position (new, old), divest weak, capture, business strategy fit, allocation, diversification International level Policy formation Meaning- Policies are directives designed to guide thinking, declaims and actions of managers and their subordinates in implementing the organization‘s strategies. It provides guidelines for establishing control on ongoing operation in a manner consistent with firm‘s strategic objectives.

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Need- purpose- Policies establish indirect control over independent action, Promote uniform handling of similar activities, Ensure quicker decisions, Help to maintain institutionally the basic aspects of organizational behavior, Reduce misunderstanding and confusion in day to day or repetitive decisions, Counteract resistance to rejection of certain strategies by the organization , Offer predominant answers to routine problems Offer managers a maximum for avoiding hasty and ill-conceived decisions Exhibit enviable ethical business practices Different functional areas of policies A. Personal policies The development of competent and motivated employees Employment facilities- package, compensation, regulations istration policies- recruitment, selection, orientation, career development policies- discipline, control and valuation Human capital- performance evaluation, training and development Human resource development Welfare- pubic relation, protection, care, feelings Reducing turnover Working environment Future growth Work study Time and motion study B. Financial policies Growth in resources Growth in earnings Higher dividends High return on invested capsule Bigger profit margins

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Attractive economic value added (EVA)- cost advantage- economies and diseconomies of scale, learning and experience curve effects, cost of key resource inputs, link, sharing, integration, time, first movers, outsourcing) Strong bond and Credit rating Market value added (MVA) Bigger cash flows Recognition as a blue chip company Substantial rising in stock price More diversified revenue base. C. Marketing policies Marketing takes care of product, place, price and promotion and service p that look into package, ion, physical evidence, process & people. Production policies/ product operation management policies must be coordinated with marketing policies for the firm to succeed. Careful integration with financial components such as capital budgeting and investments prove much better. Operation decision areas are: Low cost provider of goods and services, Quality provider, Stress customer service, Rapid and frequent introduction of policies, Strive for absolute growth, Seek vertical integration, Maintain revenue capacity Marketing in its simplest form is process of winning the customers for its products and services. Research and development identifies market in of size, characteristics of customers in of lifestyle, income, rate of growth and many others. It promises getting and keeping with customers for attracting the new customers, building customers‘ loyalty ,brand management, measuring customer satisfaction,

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adopting product or service design, a packaging to meet the changing customer requirements and so many. D. Product policies- production operation management- Operating policies must be in coordination with marketing policies to succeed. Careful integration with financial policy components such as capital budgeting, investment decision is essential. It considers: Low cost provisions Providers of goods and services- quality, quantity, cost and convenience, Stress Customer services, Provide rapid and frequent introduction of policies, Strive for absolute growth, Seek vertical integration, Maintain revenue capacity, Guide marketing managers- decision, product lines, packaging, accessories, quality and product development, elements of marketing E. Public relation policies Corporate social responsibility Public Image Background ment and publicity Relation with leaving employees Response of employees working in other organization Facilitation

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