Importance of Policies & Procedures


Small businesses often overlook the creation of policies and procedures. This simple task has the ability to save time and money in a variety of ways.


  • Businesses should establish policies and procedures and commit them to print before hiring the first employee. Policies, defined simply as rules as to how the company and its representatives should handle specific scenarios, and procedures, meaning instructions as how to accomplish certain tasks, are crucial to every business, regardless of size.


  • Establishing a company's policies and procedures provides several benefits. The company is able to operate with greater consistency, both in its internal and external workings. Company morale generally increases because guidelines are available on how to accomplish a task. Set policies and procedures can also circumvent certain legal issues.


  • The policies and procedures manuals of a business should be in accordance with local, state and federal laws, as well as conscious of Internet use. The books need to appear professional; a financier may request a copy of the policies and procedures of a company under review.

Procedures Manual

  • The procedures manual clearly describes processes, such as how to enter an invoice into the system, processes with which the new employee will not yet be familiar. Describe procedures specifically. This may seem quite simplistic to the writer who is familiar with the tasks at hand, but to the novice, a precise explanation of the procedure may be invaluable.

The Policies Manual

  • This manual should contain the company's policies on employment, disclosure, competition, customer service, purchasing and so forth. When writing a policies manual, keep in mind whether, if the owner could not be reached, what would an employee need to know to accomplish his assigned tasks.

The Employee Handbook

  • This will be the first formal communication the company has with a new employee. As an abbreviated policies and procedures manual, it defines standards of behavior and outlines what will happen when those standards are not upheld. The handbook should contain the company's employee policies and procedures for asking for leave and similar requests. Management may find this to be an empowerment tool should it need to discipline an employee.

Related Searches


Promoted By Zergnet



You May Also Like

  • Importance of Accounting Policies

    Accounting policies are important to any business to maintain consistency and to set up a standard for decision-making. Based on policies, procedures...

  • Importance of HR Policies

    Human resources policies provide the framework by which employees are expected to behave in the workplace. These policies are written statements of...

  • Importance of Credit Policies

    Credit policies help govern the lending or credit activities of an organization. This relates to goods or services extended to customers on...

  • Importance of Pricing Policies

    Pricing integrity improves customer satisfaction, manages expectations, and builds loyalty. Creating a pricing policy will guide staff in this area and will...

  • How To Write Accounting Policy & Procedure

    Accounting policies and procedures are not one and the same thing, though workers in an office often confuse the two. Accounting policies...

  • The Importance of Policies to an Organization

    Just like societies need laws to create order and common understandings, organizations need policies. Often, when businesses start small, they leave things...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!