"We are thinking of writing down formal
policies and procedures. Is the effort going to add value or just costs Are there any
pitfalls or less obvious benefits we need to know about"? J.B., Connecticut "We are thinking of writing down formal
policies and procedures. Is the effort going to add value or just costs Are there any
pitfalls or less obvious benefits we need to know about"? J.B., Connecticut
THE INDUSTRY ADVISOR
WHY POLICIES AND PROCEDURES?
By Gene Levine - www.genelevine.com
Consider the case of Joe. His management style is "fireman." He
spends his day busily running around the plant putting out the same old fires over and
over again. As he puts out each fire, he asks his employees, "How many times do I
have to tell you the same thing, over and over?"
Yet if you ask Joe why he doesn't write a policy manual – which would, in the end, allow both him and his employees to spend their days more productively – he always will answer, "Who has the time?"
The truth is, Joe likes it this way. After all, people continually are waiting for him to make the decisions. Joe gets to do all the thinking, and that gives him a kind of security.
The problem, though, is that there are just too many decisions to make. And because Joe doesn't allow his employees to "think," he has a hard time communicating instructions. (It doesn't help that Joe issues his directives in curt tones.) Naturally, when things don't get done the way Joe wants, he complains about the "lousy" or "stupid" people with whom he's saddled.
Joe cannot see that he's the problem. But then again, even a hunchback never sees his own humps.
If Joe stopped to look at and analyze his problem, he would see that it makes sense to decide which instructions he's repeating the most and then write them down so they can be implemented in a standard way. Written policies promote better understanding, clearer lines of authority and a more consistent and impartial administration on matters of company wide policy.
By writing his instructions down on paper, Joe transfers his knowledge into what is called a policy and procedure manual. This enables the manual to become the "one source" for all of the key employees – and for Joe to focus on issues more important than "today's fire."
The initial effort of creating a policy and procedure manual will yield worthwhile results, but Joe needs to be aware that there's more work involved. Proper policy manuals are very dynamic documents. They always are in need of constant revision, modification and further development. Nevertheless, by constantly revising, and eliminating conflicting instructions, Joe will ensure that all of his team members are working with the same set of rules.
One advantage of a properly conceived policy and procedure manual (even to Joe) is that though key management may change through the years (or take vacations), the sustainability of the company's modus operandi will remain constant and therefore predictable.
Another often overlooked benefit is that a legally approved policy and procedure manual could prevent a disaster with OSHA, the Department of Labor and/or other government or non-government entities that decide to target Joe's firm for alleged personnel violations. Though the use of the manual, substantial, factual proof of day-to-day employee policies will be available. These written policies will give Joe a very strong hand in rejecting hearsay evidence and winning his case.
Figure 1 (below) provides a sample table of contents for a typical policy and procedure manual.
Like Joe, you will find that written policies obviate the need for time consuming memos, bulletins and announcements. Though them, employees will have a deeper understanding of their role in the organization.
A Policy and Procedures Manual should be assigned to each position within the company. The manual is assigned to positions and not to incumbents (of the position) and should remain with the position if the incumbent moves on. The updated manuals always remain company property and must be surrendered upon request.
Policies, practices and guidelines remain in effect until required changes are considered necessary. Any policy change only should be made after due consideration is given to the mutual advantages, benefits and responsibilities of such changes – as they relate to all employees. When changes are made and approved, the incumbents should be notified immediately and given the revised policies (which they correctly file in the policy manual, destroying any superseded ones ). It's also a good idea to have employees "sign off' on the revised policies, acknowledging that they have read and understood them (you can get information on how to obtain GLA's complete Policy And Procedure Manual by clicking this link).
FIGURE 1
SAMPLE POLICY AND PROCEDURE MANUAL
TABLE OF CONTENTS
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