Framing business policies and decisions - Framing business policies means setting clear

rules and guidelines that help a company run smoothly and stay on track with its goals.
Decision-making in business is about choosing the best option from different choices to solve
problems or take advantage of opportunities. ang mga ito ay tumutulong sa isang kumpanya na
mag-operate ng maayos, makagawa ng smart na desisyon, maiwasan ang mga risks, at
magtagumpay sa paglago.
Factors Considered before Framing Business Policies
Company Goals and Objectives - Company Mission:To provide healthy and affordable food to
everyone.
Company Vision: To be the most trusted brand for nutritious food options.
Long-Term Goal: To expand to 100 locations nationwide by 2030.
Policy Example: Product Sourcing Policy
Objective: Ensure all ingredients are healthy and sustainably sourced.
Policy Statement: The company will only source ingredients that meet strict health and
sustainability standards.
Alignment with Mission, Vision, and Goals:
● The policy supports the mission by ensuring the food is healthy.
● It aligns with the vision by building trust with customers through high-quality ingredients.
● It helps achieve the long-term goal by establishing a consistent standard as the
company expands.
Legal and Regulatory Requirements: The company must follow all rules and laws set by the
government to avoid getting into legal trouble. Example:
If a company is making toys, they must follow safety regulations. This means using materials
that are safe for children and getting approval from safety authorities before selling the toys.
This helps ensure the toys are safe and keeps the company out of legal trouble.
Market Conditions: The company needs to know what customers want, what other companies
are doing, and what is happening in the market. This helps in making good decisions and rules
that keep the business successful. Example:
If more people want eco-friendly products, a company might make a policy to use more
recyclable materials. This will help the company meet customer demands and stay ahead of the
competition.
Company Culture and Values: Policies should match what the company believes in and help
create a positive work environment. Example: If a company values teamwork, they might have a
policy that encourages regular team meetings and rewards good collaboration.
Employee Needs and Welfare: Policies should consider what employees need and help keep
them happy and motivated. Example: A company might offer flexible work hours so that
employees can balance their work and personal lives better.
Stakeholder Interests: Policies should take into account the needs of people connected to the
business, like investors, customers, suppliers, and the community. Example: A company could
have a policy to use local suppliers to support the community and build good relationships.
Risk Management: It is important to identify possible risks and create policies to reduce them
for business stability. Example: A company might have a policy to keep backup data to prevent
information loss in case of a system failure.
Financial Resources: Policies should be affordable for the company and not put too much
pressure on its budget. Example: A company may decide to give yearly bonuses instead of
monthly raises to manage costs more effectively.
Technology and Innovation: Policies should consider how technology is changing and how
new tools might impact the business. Example: A company might create a policy for using new
software to make work faster and more efficient.
Competitor Strategies: Knowing what other companies are doing can help create policies that
give an advantage. Example: If competitors are offering free shipping, a company might create
a policy to do the same or provide better delivery options to attract more customers.

**Steps Involved in Framing Business Policies**

1. **Identify Business Objectives**
- **Explanation**: Understand what the company wants to achieve to make sure the policy
helps reach these goals. **Example**: If the company wants to improve customer satisfaction,
the policy should focus on better customer service.
2. **Assess Internal and External Environment**
- **Explanation**: Look at what’s happening inside the company (like employee needs) and
outside (like market trends and competition).- **Example**: If employees need better training,
create a policy for regular skill-building sessions.
3. **Consult Stakeholders**
- **Explanation**: Talk to the people affected by the policy, like employees and customers, to
get their input.- **Example**: Ask employees for their suggestions before making a new work
schedule policy.
4. **Define Policy Scope and Purpose**
- **Explanation**: Clearly explain what the policy will cover and why it’s needed. **Example**:
A policy on employee safety will cover workplace rules and its purpose is to keep everyone
safe.
5. **Draft the Policy**
- **Explanation**: Write down the policy, including all the rules and how it will be followed.
**Example**: Write a policy that explains how employees should report safety concerns.
6. **Review Legal Compliance**
- **Explanation**: Make sure the policy follows all laws and regulations.
- **Example**: Check that the safety policy meets government safety standards.
7. **Evaluate Feasibility and Impact**
- **Explanation**: Think about how the policy will affect the company, including costs and
employee reactions.**Example**: Consider if the cost of safety equipment is affordable for the
company.
8. **Seek Feedback and Make Adjustments**
- **Explanation**: Get feedback from stakeholders and make changes to improve the policy.
- **Example**: If employees find the safety policy confusing, make it easier to understand.
9. **Finalize the Policy**
- **Explanation**: Make the final changes and approve the policy.
- **Example**: After making adjustments, finalize the safety policy.
10. **Communicate and Implement**
- **Explanation**: Share the policy with everyone who needs to know and explain how it will
be followed. **Example**: Tell all employees about the new safety policy and train them on how
to follow it.
11. **Monitor and Review**
- **Explanation**: Check if the policy is working well and update it if needed.
- **Example**: Regularly review the safety policy to make sure it’s keeping everyone safe and
make updates if needed.
Policy Cycle and its Stages
1. **Policy Identification**
- **Description**: Recognizing a specific issue or need that requires a policy response.
- **Activities**: Gather data and insights about the problem, assess its impact, and determine
the necessity for policy action. **Example**: Noticing that employees are frequently late to work.
2. **Agenda Setting**
- **Description**: Prioritizing the identified issue and placing it on the policy agenda.
**Activities**: Engage stakeholders, create awareness, and build support for addressing the
issue. **Example**: Discussing the lateness issue in team meetings to get input and support
from employees.
3. **Policy Formulation**
- **Description**: Developing potential solutions or strategies to address the identified
problem. **Activities**: Research best practices, analyze options, and consult with experts and
stakeholders to draft a policy proposal. **Example**: Creating a draft policy that encourages
flexible start times to reduce lateness.
4. **Policy Adoption**
- **Description**: Officially approving the policy after it has been formulated. **Activities**:
Present the policy to decision-makers for approval, followed by public announcements if
necessary. **Example**: Management reviews and approves the new flexible start times policy.
5. **Policy Implementation**
- **Description**: Putting the adopted policy into action. **Activities**: Communicate the policy
to relevant stakeholders, provide training, allocate resources, and establish procedures to
ensure compliance. **Example**: Informing all employees about the new policy and providing
guidelines on how it works.
6. **Policy Monitoring**
- **Description**: Tracking the implementation and adherence to the policy. **Activities**:
Regularly review progress, collect feedback, and observe how the policy is being applied in
practice. **Example**: Checking attendance records to see if the new policy is helping reduce
lateness.
7. **Policy Evaluation**
- **Description**: Assessing the effectiveness and impact of the policy. **Activities**: Analyze
data, gather stakeholder input, and determine if the policy is meeting its objectives or if
adjustments are needed. **Example**: Surveying employees to find out if they feel the flexible
start times are helping them arrive on time.
8. **Policy Revision or Termination**
- **Description**: Making necessary changes to improve the policy or deciding to terminate it if
it is ineffective. **Activities**: Based on evaluation results, revise the policy to better align with
current needs or eliminate it if it no longer serves a purpose. **Example**: Adjusting the policy
to allow for even more flexible hours based on employee feedback.
9. **Policy Renewal (if applicable)**
- **Description**: Reassessing the policy after a certain period and updating it to reflect new
information, changes in context, or emerging issues. **Activities**: Revisit the policy
identification stage to ensure the policy remains relevant and effective. **Example**: After a
year, reviewing the flexible start times policy to see if it still meets employee needs and
company goals.
Implementation of policy change
The implementation of policy change means isagawa ang mga bagong tuntunin o pagbabago
within the business. After deciding on the changes, kailangan tiyakin ng kumpanya na lahat ay
nakakaintindi at sumusunod sa mga bagong tuntunin. This process includes pagpapaliwanag ng
mga pagbabago sa mga empleyado, updating related documents, pagbibigay ng
kinakailangang training, and ensuring that the changes are implemented correctly. The goal is
to ensure that the new policy works effectively and improves business operations.
Role of Policies in Strategic Management, Policy, and Decision Making
**1. Guiding Strategic Management**
- **Explanation**: Policies provide a framework for strategic management by setting clear
guidelines on how the company should operate. They help ensure na ang mga araw-araw na
gawain ng kumpanya ay naka-align sa long-term goals at strategies nito. This means that
policies act as a guide to make sure the business stays on the right path toward achieving its
objectives. **Example**: If the company's strategy is to expand internationally, policies related
to hiring, marketing, and product development must be designed to support global growth,
ensuring all departments are working toward the same goal.
**2. Supporting Consistent Decision-Making**
- **Explanation**: Policies offer a set of rules and procedures that guide decision-making
across the organization. Ang consistency na ito ay nakakatulong sa mga managers na gumawa
ng mga desisyon na naaayon sa company values at strategic priorities, reducing the risk of poor
or inconsistent choices. **Example**: For instance, a company may have a policy on customer
refunds. By having a clear policy, every manager will follow the same rules when handling
customer complaints, ensuring fairness and consistency.
**3. Ensuring Compliance and Accountability**
- **Explanation**: By defining responsibilities and expectations, policies ensure that
employees follow the correct procedures and act within legal and ethical boundaries. This
enhances accountability dahil alam ng lahat kung ano ang inaasahan sa kanila. Employees are
more likely to follow proper procedures if they know what is expected and understand their
responsibilities. **Example**: A data privacy policy ensures that employees understand how to
handle customer information properly, helping the company comply with data protection laws
and avoid potential legal issues.
**4. Managing Risk**
- **Explanation**: Well-structured policies help identify potential risks and set guidelines for
minimizing or avoiding them. Nakakatulong ito sa mas maayos na decision-making by providing
a clear understanding of how to handle challenges or uncertainties. Policies help prevent
problems before they arise by laying out steps to mitigate risks. **Example**: A workplace
safety policy that requires the use of protective gear helps reduce the risk of accidents and
injuries, thereby protecting employees and reducing liability for the company.
**5. Improving Efficiency**
- **Explanation**: Policies streamline operations by providing standardized procedures,
reducing confusion, and ensuring that tasks are carried out efficiently. This helps in achieving
the organization’s strategic goals more effectively. Ang pagkakaroon ng malinaw na mga
patakaran ay nag-aalis ng kalituhan at nagpapabilis ng trabaho. **Example**: A policy that
standardizes how customer orders are processed can make the workflow more efficient,
ensuring that all employees follow the same steps and reducing the chances of mistakes or
delays.