Policy and Procedure - It Matters
First Published on Linkedin Pulse
How does the implementation of Policy and Procedure affect a Small Business?
For larger organizations, human resources departments have long been considered a priority and can be well up to speed with regard to the implementation of Company Policy and Procedure.
For small businesses, there can often be an attitude of winging it, when it comes to anything in relation to human resources as well as its components, especially policy and procedure. I have seen companies, where on the advice of someone they know, they issue a Company Handbook which may have been taken off the internet, to be then tailored to the specific company. So far, so good!
However, that's where it ends. The handbook gathers dust and even the owners and senior management have no idea what it contains, because they have never read it. There is an attitude of this being something that they had to do, but the effort of understanding and implementing its contents is something that is not worth bothering with. The handbook and the policies and procedures it contains are confined to the filing cabinet, and as time passes it becomes more and more irrelevant.
This relaxed attitude to company policy and procedure can have consequences and could very well end up with a situation arising, where both the company and the employee had wished that more attention had been paid to it and its contents.
Why is the Company Handbook important?
It clearly sets out Company Policy and Procedure in relation to a wide range of issues.
It should be in line with relevant Employment Law which is important for both the company and the employee.
It outlines ways of raising, dealing with and resolving issues that may arise, such as sexual harassment and bullying etc
It makes clear the procedures for dealing with work related issues, complaints about an employee's work performance and other work related procedure.
It makes clear as to who is responsible for dealing with any issues that may arise and the manner and procedure for dealing with them. This means that when it comes to dealing with something such as disciplinary issues, everyone is aware of how it should be dealt with. It details the chain of command for these types of issues and the final decision making process.
The importance of following the Company Handbook is defined in relation to all aspects of Human Resources. It would advise who to makes complaints to such as HR, Supervisor, Manager; how these complaints will be processed and dealt with and the ways in which they can be resolved and appealed if necessary.
There is also the issue of fairness outlined as part of procedure. A handbook should make mention of note and minute taking in meetings that might arise. It should outline whether there is a need for witnesses etc. This provides an element of fairness and best practice procedure and acts as a benefit to all parties as a defined part of company policy.
So, How Does This Matter In The Real World?
Small businesses often make the mistake of thinking that none of this stuff matters to them. The make the mistake of getting a handbook printed up, but then make the error of putting it away in a place where it cannot be found. This is works until an issue arises and then it happen that owners and managers haven't got the slightest idea of what to do.
I have encountered businesses that even after an issue arises, they still fail to consult the Handbook. It is as if it has been completely forgotten or irrelevant to to the situation at hand. Things can be dealt with the way they were always dealt with. This can end up with extremely bad consequences for everyone involved.
A company which fails to follow its own procedures is leaving themselves wide open to legal action, tribunals, possible breaches of employment law etc. The importance of reading, understanding and following your own policy and procedure cannot be overstated. Winging it will not do. The Handbook is there for a reason. There are clear definitions about situations should be handled. Disregarding the handbook and engaging in other courses of action can are are a cause for severe pain later on.
An employee should also be aware of , understand and have fully read and acknowledge that they have read and understand the consequences of the Company Handbook. This not only outlines how various work performance and disciplinary issues are to be handled, but it also outlines an element of protection and fairness. It can advise how to to make complaints, deal with harassment, bullying etc, outline meeting procedure and rights in relation to same, such as having a witness and having the proceedings documented. In short, the Company Handbook is a clear guide to all things relating to their employment and of how issues that might arise are processed, dealt with and resolved.
The Company Handbook is an extremely important document. But it is more than a document. Small businesses that consider it to be merely another piece of paperwork containing red tape and bureaucracy could very well be in for a rude awakening. The Handbook is not something to be filed away as soon as it has been printed, never to see the light of day again. It is an integral part of the organization and of how to handle various situations that may arise in relation to its employees.
Failure to pay attention to or follow its contents could end up being extremely costly, both financially and in terms of reputation. Failure to pay attention to it, could also have other consequences such as employee churn, poor morale, bad organization, and haphazard management. Do not ignore this vital piece of company document.
Robert E. Kearns 2017
