Standing Use Plans-Policies, Procedures & Methods
Policies are general statements formulated for guidance, they provide framework within which a person can act. Importance of policies:
• operationalise objective,
• delegation of authority,
• speed up decision making,
• aid training, etc.
Various considerations while formulating policy are achievement of organisational objectives, proper participation and reflect business environment and flexibility, consistency, proper communication and in writing.
Types of policies are originated policy, appealed policy, implied and written policy in writing. Limitations of policies are that may lead to friction and confusion if applied without understanding and rigid policies may stifle initiative and creativity.
Procedures describe exact manner an activity is to be perfomed. Features:
• procedures are guide to an action;
• involve series of steps involved,
• no scope for interpretation,
• narrow in scope,
• less flexible and
• helps in implementation and execution of policies.
Primary importance of procedures are that it save manager’s time and efforts in directing subordinates, improve efficiency by providing best manner of doing a job, etc. Procedures are based on adequate facts of particular situation, focus on desired objectives and established policies, standardised so that responsibility can be easily fixed, well balanced and reviewed periodically. Limitations of procedures are rigidity in working, discourage initiative and creative thinking of employees.
Method is standardised way of accomplishing repetitive and routine jobs. Features:
• manner and sequence of performing a particular task,
• designed to keep operations running on planned lines,
• represents the best way to doing a job, etc.
Importance of method are simplify and standardise the work, prevent confusion and adhoc behaviour and help in economic and efficient use of procedures.