Program Semester Subject Code Subject Name Unit number

: MBA : IV : MB0052 : Strategic Management & Business policy :6

Unit Title
Lecture Number Lecture Title

: Business Policies
:6 : Business Policies

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Unit-6 Business Policies

Business Policies

Objectives:
To understand business policy To understand the need of business policy To study the types of business policy To discuss importance of business policy statements To study the role of corporate culture in implementing strategy

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Unit-6 Business Policies

Lecture Outline

Introduction & Features of Business Policy Importance of Business Policy Definitions of Important Terms Types of Business Policies Business Policy Statements Corporate Culture Summary Check Your Learning

Activity

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Unit-6 Business Policies

Introduction

Business policies are the directions or paths taken by an organisation

to manage its activities.

Features of business policy are:

It should be specific and clear

It should be uniform and appropriate It should be comprehensive and flexible It should be stable and in a written form

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Unit-6 Business Policies

Importance of Business Policy

The importance of business policy are:

Promote coordination throughout the organisation Help to make quick decisions Control the planned activities effectively Help in decentralising and reorganising roles and responsibilities

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Unit-6 Business Policies

Definitions of Important Terms

Policy: It is a set of actions laid down by the senior management to
achieve business objectives.

Procedure: It involves a series of steps which have to be followed in

order to achieve a specific goal.

Process: Business activities are considered as process. Programmes: It is a set of principles laid down to accomplish a
specific goal.

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Unit-6 Business Policies

Types of Business Policies

The various types of business policy are:
General or specific policy Written or implied policies Originated, imposed and appealed policies Organisational and functional policies

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Unit-6 Business Policies

Business Policy Statements

Business policy statements are formal certificates, displaying the condition of business in a condensed form. Steps to develop policy statements are: Gathering information and customising into a policy Using simple words & covering all the queries

Selecting a pilot group to review policy legally

Updating the policy regularly

Different parts of policy statement are:

General statement of intent

Organisation & arrangement

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Unit-6 Business Policies

Corporate Culture

Corporate culture is a well defined culture explaining values, attitudes and standards followed by organisational members. Features: Innovation and risk taking Attention to detail & Outcome orientation People orientation & Team orientation Aggressiveness & stability

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Unit-6 Business Policies

Corporate Culture contd..

Role of corporate culture in strategy implementation: Helps the smooth implementation of strategy Amends values Motivates employees to achieve oragisational objectives Encourages informality Tolerates mistakes Acts as community cultural centers

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Unit-6 Business Policies

Corporate Culture contd..

Hindrances due to corporate culture: Cultural difference Loss of jobs Existence of subcultures Communication breakdown

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Unit-6 Business Policies

Summary

Business policies are very important for an organisation in terms of its growth, success and achievement determined goals. Business policy statements should be formulated for successful

functioning of the organisation.

Corporate culture and its role in governing the organisation has to be given prominence while making business policies.

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Unit-6 Business Policies

Check Your Learning

1.

What are the features of business policy? should be in a written form.

Ans. Specific, stable, uniform, appropriate, comprehensive, flexible and 2. State whether true or false: i) Business policies are not involved in the success of an organisation. Ans. False Business policies plays very important role in success of the organisation. 3. What are the parts of policy statement? Ans. General intent statement, organisation and arrangement.

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Unit-6 Business Policies

Activity

Suppose in a company, you belong to a team wherein your team and

senior management are involved in creating policy statements.

Suggest measures you would take while implementing a policy statement.

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