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Management Policies and the world


We are in a highly competitive and very dynamic world, in view of that scenario the need for interconnection between regions and markets has become increasingly essential.

Thanks to this interconnection between parties, we have learned that we must prepare ourselves day by day, to be able to face the new challenges and remains that the commercial world presents us.
Among the acquired learning, we find that managerial policies and strategies must constantly evolve and that we must take into account that for a correct development of policies and strategies we can not close ourselves or focus only on the organization or company.

The development and establishment of policies and managerial strategies, must have as premise the environment of the organization and even should be evaluated from the macro to the micro, that is, try to develop from the global to the local, all from a glocal point of view .
As we see we speak of three important positions, which consolidate and direct an organization to success, as they are:

  • Management
  • Policies.
  • Strategies.

It is important to note, that I do not include within this list, the most important component within an organization, as is the human resource in general (Workers, at all levels), because this time I focus on the guideline of a company.

Management

The development of any company depends on the execution of projects. But, for the entrepreneur, it is not always easy to assign functions. At the start of the business, there is a tendency to centralize the activities in the hands of the owner of the company. However, with the passage of time, this can harm the company's growth, therefore, the role of manager is essential.

Everyone knows that building a good team is essential for the growth of any company. The manager is one of the most important pieces. It is he who will control and determine the paths that must be followed within the different sectors of the company.

As the dimension of a company is greater, the achievement of global objectives requires its decomposition into different objectives for the corresponding organizational units and center of responsibility, depending on which each of the components makes decisions consistent with the objectives of the company.

To be effective, the strategies and policies designed at the highest level of the company must be put into practice through action plans that allow adequate fulfillment of the tasks necessary to achieve them.

Management management is precisely the process that consists in guiding the divisions of a company towards the objectives set for each of them, through concrete plans and programs to ensure the correct development of operations and activities (tactical planning) , enabling its members to contribute to the achievement of such objectives and controlling that the actions correspond to the plans designed to achieve them.

The managements adopt decisions on distribution and allocation of resources, control of operations and design of corrective actions. They also have the responsibility to communicate and inform the strategic and operational levels. The elementary activities of any management are, therefore, based on strategic planning, establish objectives, organize, communicate and motivate, measure and evaluate, develop and train people and provide feedback on planning.

Management Policies

It is important to bear in mind that management strategies will depend on compliance with the policies established by management together with the organization; To understand a little about management policies we must focus on its definition.
Politics is one of the most used words by managers, executives and the staff of our companies. You always hear saying: "There is a lack of politics in society, in the university, in the State, in the home, etc.". As you can see, politics should play an important and fundamental role in companies, but it is sometimes left in the background. This has some guiding principles that are:

  • Integrality
  • Flexibility
  • Universality
  • Solidarity
  • Communicability
  • Concentration
  • Innovation

Policies are the means by which annual objectives are achieved. The policies include guidelines, rules and procedures established with the purpose of supporting the efforts to achieve the established objectives. Policies are guidelines for decision making and address repetitive or recurrent situations.

Policies are often established in terms of the activities of management, marketing, finance, accounting, production, operations, research and development, and computer information systems.

Policies can be established at the management level and applied to an entire company, at the division level and applied to a single division or at a functional level and applied to specific operational activities or departments.

Policies, like annual objectives, are very important in the implementation of the strategy because they describe the expectations of employees and managers of a company. Policies allow for consistency and coordination within and between company departments.

Much research suggests that a healthier workforce has a greater ability to implement strategies efficiently and effectively. The National Center for Health Promotion estimates that more than 80% of all US companies have policies that prohibit smoking; which are commonly derived from annual goals that attempt to reduce the company's medical costs related to absenteeism, as well as offer a healthy work environment.

D'Alessio Ipinza Fernando (2008). Define management policy as. 
The limits of management actions that define a strategy are called policies. These policies have to be aligned with the first set of macro policies that all organizations must have, that is, with their values, and there must be bilateral correspondence between them. Through policies, the way is designed to orient strategies towards the position future of the organization, the vision. However, these routes must be framed under the principles of ethics, legality, and social responsibility, which govern the direction of the organization.
Like the objectives, the policies also have a hierarchy according to the level of impact in the organization. Thus, for example, you can have policies associated with the organization's strategies, or support policies, therefore, of lower hierarchy.

There are several types of policies depending on their scope:
  1. General policies: These are policies that reach the entire organization and mark its general lines. They should be known by all and serve as a guide. A good general policy should be in accordance with the strategy set by the company and serve as a reference for the development of other departmental and specific policies.
  2. Departmental policies: These are the principles to be followed in each department or service. The most commons are:
    • The Quality Policy where the quality principles and objectives to be achieved are set,
    • The Environmental Policy where there is talk of being responsible, managing and minimizing the environmental impact and the Occupational Risk Prevention Policy (PRL) 
    • Occupational Health and Safety (SST) where people talk about getting decent working conditions and minimizing the risks of accidents.

Other less frequent policies, but also present in some sectors, are the Policy on Corporate Social Responsibility, the Physical Security Policy, the Change Management Policy, or the management of information and knowledge.
  1. Specific policies: The latter type of policies are principles set for specific activities and projects tailored to them.

Methodology of policy development.

  • Phase I: Design and development of the policy, in which it is contemplated from the need, definition, until its drafting.
  • Phase II: Validation and approval of the policy, proceeding to carry out the required revisions and adjustments, for subsequent approval by the parties involved.
  • Phase III: Dissemination to all levels of the organization, consists of formalizing all the members of the organization the validity and application of the same.
  • Phase IV: Maintenance of the policy in terms of compliance and validity, refers to the adjustments or updates required by said instrument, it is recommended to make revisions and / or updates at least once a year.

Benefits of the application of policies

  • Ensure equal treatment for all employees.
  • Generate internal communication security at all levels.
  • It is a source of initial knowledge, quick and clear, to place new employees in its position.
  • Facilitates open communication and promotes honesty.
  • Develops authority, power and leadership.
  • Ensures trust, transparency, objectivity and learning.
  • They are indispensable for an adequate delegation of authority.
  • They reflect the image of the company and must be readjusted in time.
  •  Recommendations when developing policies
  • Its wording should be simple and with clear, concrete and precise language, there should be no ambiguities.
  • The policy is an essential part of the organizational life of a company, so its letter should not be dead (define, apply and comply).
  • It must be adaptable over time, which is why the maintenance phase comes into play.

Example of strategic policies - Mobile phone company


The policies of the company are the specific guidelines, methods, procedures, rules, forms, and administrative practices. Likewise, they are the instruments to implement the strategies, to the extent that they facilitate the resolution of recurrent problems and serve as a guide.

Next, I present the proposed policies according to each type of strategy.
  1. Strategies of development and penetration in the market.
  2. Encourage the performance of sales personnel.
  3. Provide training to sales personnel.
  4. Promote sales to enter the informal commerce segment.
  5. Promote sales to enter the segments of agriculture, livestock, fisheries, and forestry.
  6. Promote the communication of achievements, through established milestones.
  7. Strategies for the development of new products.
    • Promote in the staff the generation of new ideas.
    • Do not discard any idea, all ideas must be evaluated.
    • Involve the protagonists of the best ideas in their development and implementation
    • Constantly train staff to achieve their professional development.
    • Establish free communication between executives and employees.

In addition to the policies that support the proposed strategies, it is important to develop other policies such as:
  • Open-door policy, where executives absolve staff inquiries.
  • Give staff free days in reward for the achievements, or for the generation of good ideas.
  • Encourage the flow of information freely, without bureaucracy.
  • Establish humor in the work center of the company, such as the staging of the attitudes of the staff in certain situations, between the manager and the collaborators in good situations and also bad ones.
Policies are relevant in an organization because they constitute:
  • The basis for solving recurring problems.
  • Borders, restrictions, and limits on administrative actions.
  • Expectations for managers and employees.
  • The basis for management control and coordination.

Strategic management

Management has a fundamental role within companies, since they are responsible for the final results of a company's own activity, the results can be short, medium or long term, everything will depend on the company's vision and the management.

The management is defined as a group of people whose function is to make decisions and successful that allow the proper development of the activity of a company or organization, these decisions must go hand in hand with the mission and vision of the organization, are two positions that should not go in different directions and different, much less at different speeds.

The constant changes that have taken place since the industrial revolution have generated the need to find various strategies that allow the organization to develop its operations positively and always in the search for results.

From these needs was born the idea of ​​organizational development and entrepreneurship and Strategic Management takes shape and defined by many authors as a tool to manage and order changes, where the objectives of the organization are defined and strategies are established to achieve them and the participation based on the leadership of executives or managers of the company to make decisions that correspond to the demands of the immediate or future environment or environment.

Fred R. David. Define strategic management as. 
Strategic Management is a process through which actions are formulated, executed and evaluated that will allow an organization to achieve the objectives ...
Based on the definition of strategic management Fred R. David, recreates the definition of strategic management as a complement or fundamental piece of strategic management and defines it as such.
Fred R. David. Define strategic management as. 
Strategic management is the art and science of formulating, implementing and evaluating the interfunctional decisions that allow the organization to achieve its objectives. It involves integrating management, marketing, finance and accounting, production and operations, research and the development and computerized information systems to obtain the success of the organization.
Strategic Management, needs and needs to identify the external threats and opportunities of an organization as a priority and as a second activity, but closely linked to the previous one and with the same important character, it must identify internal weaknesses and strengths (SWOT or SWOT matrix).

The strategies defined by management must go hand in hand with the vision, mission, goals and objectives of the organization, in this way a correct synergy between the organization and its employees is achieved. The decisions and strategies based on the goals and policies of the organization, achieve the motivation of its employees and ensure resources in such a way that the formulated strategies can be carried out successfully.

The strategic management provides an opportunity to adjust constantly to the current events and actions of the competitors. From this assertion, the 4 strategies defined by Michael Porter take importance.

According to Michael Porter, strategic management is formulated in four stages and the fourth stage is attributed to H. Igor Ansoff.
According to Porter (1992,14) 
The first stage of strategic management is called strategic formulation and the process in which managers formulated the strategy was called strategic planning.
The second stage was called skill planning, where an important administrative discipline had been created and executives exercised strategic planning and were thriving in the field. This is configured when research allows to determine the importance of what is called internal configuration of the organization. The third stage was in response to socio-political and technological changes, organizations make great efforts to give a timely strategic response to what is called administrative response.
In the fourth stage, the style is unified and increases with the intra-entrepreneur term in the organizations, considering this last administration as strategic, such as to ensure a viable future for the organization in its environment.
If we evaluate or analyze the theories of Michael Porter, we find that the way how management defines strategy, has great similarity or is strongly associated with their theories exposed, such as the "Five Power of Porter".

The Five Forces of Porter compose a holistic model that allows to analyze any industry in terms of profitability. Also called "Porter's Expanded Competitiveness Model", since it better explains what the model is about and what it is for, it is a management tool that allows an external analysis of a company through the analysis of the industry or sector. the one that belongs.

In accordance with the above, management has an important role within the organization and based on the studies and a correct formulation of strategies and policies, will allow the organization to develop correctly in their environment.

The formulation of policies and strategies involves a study and analysis and here the first challenges for management are presented, among which we can define the following.
Competition, in the process of analysis and study of market competition, takes us to an advantage, because while the organization is preparing to enter the market, the competitor finds himself alone in the market, developing and generating profit; hence the importance of doing a prior market study, to take advantage of the results of the competition and include them as a strategy.

Synergy of the organization with the external and internal environment, another management challenge is to learn to work in different directions, that is, their strategies can not or should be defined only from the inside out, if not work based on the development of the community and its workers (One of Porter's approaches).

Another important challenge is the relationship between organization and supplier or vice versa, hence the need to develop a good relationship between both parties, which allows us to sustain ourselves in the market thanks to a good agreement in obtaining the raw material; this together translates into the opportunity to minimize costs and maximize utility.

Strategic management is of vital importance in all companies and organizations. The strategic management process applies equally to large and small companies. From the moment of conception, every organization has a strategy, even if it originates only in daily operations.

Without policies, strategies or planning, management can not know how to organize staff and resources, they may not even have a clear idea of ​​what needs to be organized or where the organization is going.

The level of importance of strategic management, may vary according to the nature of the organizations, speaking from its composition, formation or internal training (divisions or departments), functions and work activities, since it must be coordinated that all levels work focused on the goal of the organization and this makes a difference in the performance of the organization.

Conclusion.

Management policies represent the beginning towards the sustained growth of a company, it represents the guide for a correct approach to strategies, both managerial and organizational.

To ensure compliance with the policies, it is necessary to make them known to the organization and settle them very well in the organizational base, as this will allow deviations to exist during the development process.

Globality is a fact and to say that managerial policies, are developed in complete isolation from globality, would be a fatal error for the organization, since globality is the center and guide of market movement, not the other way around.

It would be like saying "Water navigates by ship or the sea follows the current of the ship"

It is important to recognize this sense, since from here we can ensure a good success of the organization and a faithful fulfillment of goals, objectives and policies.



  References.



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