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Importance Organisational Policies in Businesses

Organisational policies plays a big a role in the business by ensuring that managers develops social capital and associated collaborated attitude for effective running of the business. The following are roles played by the organisational policies (Jauch and Glueck,1988)

An organisational policy plays an important role in the internal control. This policy regulates the kind of behaviour of employees in a certain business, policies should be enforced by a certain kind of mechanism auditing for it to be a strong kind of internal control

A business owner should always create simple internal controls that he/she should be able to reinforce so as to realise social capital( Frederick, 1988)

An effective organisational policy should minimise costs in that it should find the various ways of knowing the suitable prices of goods or services needed by the company. Companies should always consider cheap prices for products they need so as to avoid wastage of resources.

A good organisational policy should comply and maintain the degree of accountability for both the internal and external stakeholders. Businesses should have personnel specially designed to handle and keep records which can act as a proof that the business is involved in an ethical human resource practices ( Werther and Davis, 1989)

A learning culture should be created in businesses, this is by encouraging the employees to always add knowledge related to their jobs for the effective running of business and realisation of social capital


Frederick, W.C., 1988. Business and society: Corporate strategy, public policy, ethics. McGraw-Hill Companies.

Jauch, L.R. and Glueck, W.F., 1988. Business policy and strategic management. McGraw-Hill.

Werther, W.B. and Davis, K., 1989. Human resources and personnel management. Harper San Francisco.