What is Business Policy?
Policies are important for business to keep operations running smoothly. Business policies are the procedures and rules, that shows directions to the employees. Business policies contained in an official handbook of the organisation. Every policy has its own advantages and disadvantages, the business policy has its own i.e, it shows the directions but it does not empower the innovation in the organisation.
Advantages of Business Policy
- Shows Direction, Business policies help the business to guide and show the direction to the employees.
- Provide Legal Cover, In business policies, everything is cover as per the legal procedures. So, it provides legal coverage to the employees.
- Smooth Business Operations, When employees have business handbook, then they know what will be the right decision at critical situation. Because that time they have a reference that shows the right path.
Disadvantages of Business Policy
- Financial Investment, the financial investment necessary to establish the rules at your business. Whether you will choose to outsource or will assign this task in-house to development of your workplace policies.
- Restrict Innovation, Business policies restrict innovation. there are many policies that do not allow employees to make decisions or create something new.
- Creation of Frustration, When the business policies do not allow the employees to do something new. Sometimes it creates frustration and depreciation into the employees.