The responsibility for creating policies and procedures, internal operating and other governing documents varies depending on the size and structure of the organization.
- In general, specific policies and procedures for a specific area must be created in cooperation with managers, leaders or specialists for the given area.
- Accounting procedures are therefore created in cooperation with the accountant or CFO.
- HR Policies and procedures must be created in cooperation with the HR manager, personnel specialist or HR expert.
- IT guidelines, in turn, in cooperation with an IT manager or IT specialist.
Role of HR in policy management
Policies and procedures are about the people and processes. Human resources professionals frequently contribute to the development and formalization of company policies and procedures, particularly in larger small businesses. These HR experts typically possess deeper knowledge of HR laws and ethical practices. Consequently, managers often collaborate with HR to create policies and procedures. Subsequently, the HR department compiles a comprehensive policy manual for distribution to new employees upon hiring.
Policy management varies across companies of different sizes
The responsibility for developing company policies and procedures varies somewhat depending on the size and structure of the organization. As the owner of a small business, you can create most principles and procedures either independently or in collaboration with other company leaders. These policies and procedures typically stem from the company’s vision and goals, which are often established during strategic management meetings at the highest organizational level. In some organizations, department managers also formulate guidelines and procedures specific to their departments based on the nature of job tasks.
Policy management in small businesses
- In small companies, the responsibility for creating internal regulations usually rests with the owner or director.
- They often delegate this responsibility to an external specialist or an accountant, because in a small team the need for internal regulations for the management of the company as such is naturally lower, and so the policies and internal procedures are often pragmatically limited to only those given by legislation.
- In any case, organizations create only those policies for which they have content and reason, i.e. at least policies that result as an obligation from legislation. These obligations are different from country to country. Most often they are:
- Accounting policies and procedures: - these policies guide decisions related to complex accounting practices, such as depreciation methods, recognition of goodwill, inventory valuation, and consolidation of financial accounts
- Employee Handbook: Contains policies, procedures, and guidelines for employees. Covers topics like work hours, dress code, benefits, and behavior expectations
- Code of Conduct: Outlines ethical standards and expected behavior for employees
Policy management in medium businesses
- Medium-sized companies already have a developed middle management, which plays a fundamental role in the creation of policies and especially operating procedures (SOPs), because it is the bearer of rules and procedures in the processes for which the relevant manager is responsible. It naturally follows from this that they transfer these processes into the form of work procedures.
- Medium-sized companies may already have a specialist for the creation and maintenance of policies - either someone in the area of quality control or a separate manager or administrator of policies.
Policy management in large companies and corporations
- Large companies almost always have a specialist or a team of people dedicated to policies and procedures. They are usually part of the legal department or part of the quality or compliance department.