U2 AOS1 KK4 Policies and Procedures

Question 1

Why do businesses need policies and procedures?

Answer 1

Policies and procedures are necessary to ensure that businesses are compliant with legislation (the law).

Question 2

What are policies?

Answer 2

Policies are documents that act as a guideline for all decisions made by an organization.

Question 3

What are procedures?

Answer 3

Procedures explain how to perform day-to-day tasks in line with company policies.

Question 4

True or False
Procedures are developed in tandem with policies.

Answer 4

True

Procedures are written to align with policies to ensure that businesses are compliant with legislation.

Question 5

List 4 benefits of developing policies and procedures.

Answer 5

1. Ensures consistency with company values.
2. Businesses can operate in a compliant, efficent and professional manner.
3. Policies and procedures can assist with staff performance reviews and assessments.
4. Policies and procedures provide a framework for business structure, planning and job description.

Question 6

True or False

Laws dictate what a business must and must not do.

Answer 6

True

Question 7

True or False

Policies broadly outline a company’s values and the culture it wishes to develop.

Answer 7

False

Policies broadly outline and recognise a business’ legal obligations and make a commitment to complying with these obligations.

Question 8

True or False

Procedures are specific instructions for practical tasks that will guide staff to ensure that a business remains compliant with its legal obligations.

Answer 8

True

Question 9

True or False

Legal compliance is only essential for some busineses. Eg. Large corporations.

Answer 9

False

Legal compliance is essential for all businesses.

Question 10

List 4 drawbacks of developing policies and procedures.

Answer 10

1. Policies and procedures are time consuming to produce.
2. Staff will need to be made aware of policies and provided training to ensure they know what their responsibilities are with regard to procedures.
3. Policies and procedures need to be reviewed and updated on a regular basis.
4. Policies may be too stringent and not allow for common sense.