3. Policy Development

Question 1

A policy ?

Answer 1

policy is a written statement detailing the processes, procedures, rules and regulations that must be observed in a given situation.
 Policies must reflect the organization mission and goals.
 They should provide the guiding or governing principles that mandate or constrain the actions of people with the organization.
 A policy guides a member of the organization about that they are expected to do in a given situation.

Question 2

Policy Ellaboration?

1. Framework
2. Procedure?
3. Control/Guidance?
4. Effectiveness?

Answer 2

1. Policy provides the broad framework for an organisation’s activity.
    It is a general guide to decision making and action.
    A large organisation’s policies must be consistent with its objectives.
    Policy should help the organisation achieve its objectives.
2. In management, the term policy is often linked to procedure.
    Procedures are practical ways of putting policy into action.
    Procedure is more detailed and usually more routine in nature than policy.

Policy development is certain to involve top management; in most situations, top management will control or guide the process of policy development.

 Top management is usually accountable for the quality of policies developed within a large organisation
 Policy development may even be initiated by departments or staff at lower levels in an organisation.

For policy to be effective it must be plainly expressed (worded) and communicated clearly throughout the organisation.
 In many cases this requires training of management and employees on the policy and its intentions.
 Training should include the organisational procedures that will be used to implement the policy.
 Organisations can make policy in any area that they believe their people need guidance

Question 3

Policies that are based on an organisation’s mission and goals will:?

Answer 3

• Reflect the mission and objectives of the organisation
• Establish a consistent interpretation of the intentions of senior management
• Include procedures. Procedures are a series of steps that must be followed to implement a policy. These specify how someone will go about doing something.
• Offer guiding principles for actions within the organisation. Policies allowed and restrict what people do
• Assist with compliance and acceptance desired behaviours within the organisation
• Recognise the rights and obligations of people within the organisation
• Identify means and procedures for resolution of conflict

Question 4

Effective policies are:?

Answer 4

• Clearly expressed so that everyone can understand them
• Clearly communicated so everyone is aware of their existence, and potential and actual changes to them
• Often introduced by training employees and management and procedures to be followed within a policy and the rationale for the policy

Question 5

Policies are necessary in LSO’s because:?

Answer 5

• They can help enforce legal requirements
• They ensure consistency in approaches to work
• They can prevent accidently
• They allow workers to clearly know the boundaries in which they work

Question 6

Reviewing and changing policy?

Answer 6

The external and internal environments of large organisations are constantly changing. Policy of any sort must be subject to review and change.

 Clearly management should monitor the need for changes in corporate policy.
 Rarely can corporate policy afford to remain static.
 Modern managers are advised to be proactive and try to instigate (start) or pre-empt (predict) change.
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 Managers should seek to understand and interpret change.
 Change must be seen as an opportunity rather than a threat.
 Unplanned change, with its potential for disruption and inefficiency, should be minimised.

Corporate policy must be evaluated to determine its effectiveness in helping to achieve organisational objectives.
 Evaluation of policy is a challenging activity for management.
 Appropriate indicators would need to be established for a particular policy or for different areas of policy.

Question 7

Reviewing and changing policy

Pressures on policy development?

Answer 7

1.	External/Macro Environment
• Legal/legislative
• Technology
Social responsibility
Changing markets and other international pressures

2.	Operating 
• Customers
• Competitors
• Special interest groups
Regulatory bodies.

3.	Internal
• Managers
• Staff
• Structures
Owners/shareholders.

Question 8

The policy development process?

Answer 8

1. Issue identification.
   Management become aware of the need for a policy or the need to change an existing policy.
2. Research and Analysis.
   • Research is conducted into policies of competitors, trading partners, and organisations to determine possible alternatives.
   • Assessment of what is needed in the new/updated policy is conducted.
3. Stakeholder input.
   • Stakeholders are informed of possible impending policy change and why the change is required
   • Comment and feedback is called for from interested stakeholders.
4. Policy development. – “preparation of a proposed policy”
   • A draft policy or policy amendment is prepared by a working party taking stakeholder views and ideas into account
5. Draft policy is posted.
   • The draft policy is displayed in a public place
   • Stakeholders are given the opportunity to make comments
   • Comments are invited and advance notice if intended change is issued
6. Policy approval.
   • Feedback is considered
   • Necessary changes are made
   • appropriate level of management approval is obtained
   • A final copy is issued Management and employee training on the new policy occurs
7. Evaluation’ “Did the new policy help achieve organisational goals?”
   • Did it work?
   • Was the new policy effective?

Question 9

The policy development process?

Answer 9

1. Issue identification.
   Management become aware of the need for a policy or the need to change an existing policy.
2. Research and Analysis.
   • Research is conducted into policies of competitors, trading partners, and organisations to determine possible alternatives.
   • Assessment of what is needed in the new/updated policy is conducted.
3. Stakeholder input.
   • Stakeholders are informed of possible impending policy change and why the change is required
   • Comment and feedback is called for from interested stakeholders.
4. Policy development. – “preparation of a proposed policy”
   • A draft policy or policy amendment is prepared by a working party taking stakeholder views and ideas into account
5. Draft policy is posted.
   • The draft policy is displayed in a public place
   • Stakeholders are given the opportunity to make comments
   • Comments are invited and advance notice if intended change is issued
6. Policy approval.
   • Feedback is considered
   • Necessary changes are made
   • appropriate level of management approval is obtained
   • A final copy is issued Management and employee training on the new policy occurs
7. Evaluation’ “Did the new policy help achieve organisational goals?”
   • Did it work?
   • Was the new policy effective?