Page 619 - Encyclopedia of Business and Finance

eobf_P 7/5/06 3:18 PM Page 596

Policy Development

statements need to be specific and precise. A vague policy What technological tools help in policy creation and dis-
will not only lead to confusion but could also cause hard semination? Many technological tools help writers create
feelings, not to mention legal problems. Without the spe- and disseminate company policies. Most full-featured
cific detail defining how the three days paid leave could be word processors include revision features. This tool allows
taken, an employee might expect to have three days tagged policy writers to share their drafts with others, reviewing
on to his or her vacation for the death of a spouse’s distant changes and suggestions others make and deciding
uncle, or an employee could be under the false impression whether or not to accept the change. Companies or
that vacation days could be accumulated without a cap. groups using intranets can post policy drafts and solicit
That employee might be not only extremely disappointed suggestions directly. Still others prefer to create policies
to learn that the trip to Europe this summer is off because using group software tools that allow users to brainstorm,
forty days of vacation had not been accumulated but also rank, and create policies anonymously.
extremely angry to learn that twenty vacation days were Many organizations make company policies available
actually lost because they were not taken earlier. on their intranets. In addition to being readily accessible,
these policies should be organized clearly and logically.
Companies today are extremely sensitive to discrimi-
natory policies. Law requires that women and men be Word processors include tools that can generate a table of
contents and an index, two components that help make
treated uniformly. Most companies with maternity leave
the policies more easily accessible. Another good idea is to
have rewritten their policy statements to include paternity
create a glossary that includes unfamiliar terms, such as
leave, while others have rewritten their disability policies legal definitions, acronyms, and jargon.
to include pregnancy. Discriminatory policies relating to
Writing or revising policies can be a big project,
age, race, and religion policies are illegal. Policies requir-
involving many people and tasks. Project management
ing someone to work on their religious holidays without
software is an excellent tool for helping identify the tasks
telling them before they are hired are viewed as discrimi- and manage them efficiently.
natory. Of course, companies cannot have a policy that is
illegal.
MAINTENANCE OF POLICY
Level of flexibility is another factor to consider in
One final but important aspect of policy development is
writing policy statements. The objective in writing policy
to review policies periodically and revise them as neces-
statements is to inform the reader about the content of
company policy as clearly as possible. For first-line sary. Revisions are indicated when companies find they are
employees and customers, this usually means being very continually being asked to clarify the statements. Keeping
a log of questions as they are asked will help in the revi-
precise. However, management may want the flexibility to
sion process. Another indication that updating is needed
make some decisions on a case-by-case basis. Thus policies
is frequent employee or customer complaints about a par-
written for middle- and top-level management may be ticular policy. While sometimes they do not understand
purposefully written to allow for flexibility and different
the reason behind the policy, often they are complaining
interpretations. Also, some types of policies have so many
about its fairness or its harshness in comparison with the
acceptable interpretations that listing them all is both
policy of other businesses.
ridiculous and unmanageable. Other times companies will Other reasons for revising and maintaining policies
implement a new policy without fully understanding the
include both external and internal changes. Changes in
level of precision it needs. However, there should be a plan
the business, work, and social environments often influ-
to refine the level during rewrites of the policy.
ence needs. Sometimes business mergers, acquisitions, or
The elder care example above might exemplify a new spin-offs cause companies to revise polices for the new
policy. Initially, an employer might intend that employees company. Technology such as the Internet, for example,
use these days to take their elders to doctor and dentist has changed the way many companies do business with
appointments. However, a perfectly acceptable use of this both their internal and external customers and suppliers,
day may be driving elders around to various nursing creating the need to add, delete, and revise policy state-
and/or retirement homes to choose one for their future ments frequently.
living. In any case, employers may decide to build in flex- Another way to keep current with needed revisions is
ibility at the beginning, recognizing that most of their by keeping up with news items, such as government regu-
employees will not abuse this use of their accumulated lations, health and safety regulations, antitrust laws,
sick days. However, companies might rewrite this policy morals laws, ethics, etiquette, and much more. Through
to decrease its flexibility if they find that some employees reading, a company learns what other companies are
are testing its reasonable limits. doing or what problems they have experienced with cer-

596 ENCYCLOPEDIA OF BUSINESS AND FINANCE, SECOND EDITION