Advanced Business Policy, OD and ADR
Abstract
This paper addresses the importance of Advanced Business Policy in organization development through establishment of sound arbitration, negotiation and mediation practice. It introduces what are the relevant advanced business policies such as:
Marketing/sales policies,
Personnel policies,
Production and Purchasing policies and
Financial policies.
It then focuses on leadership which is very vital in bringing about Organization Development by setting up sound Business Policies that assist the Organization to grow up profitably and create a very good working environment within the Organization.
Finally this paper dwells on Personnel policies specifically policies relating to Employee services and Industrial relation that are relevant in bringing harmony in the Organization, it goes further to discuss policies for Alternative Dispute Resolution (ADR) namely Arbitration, Mediation and Negotiation. The paper finally gives the findings and conclusion regarding how these policies can develop an organization and therefore create a suitable working condition.
CHAPTER ONE:INTRODUCTION
1.1. What is business Policy?
Business Policies contain two terms - Business and Policy. Business itself has two meanings. One in macro sense and another in micro sense. Macro business means business relating to the economy as a whole. Business means economic activity relating to production, distribution etc. Business Policy may be of two types; one is general policy, which is adopted by all. Beyond this there are specific advanced policy, which is applicable in any business unit according to its suitability.
1.2. Types of business policies
Marketing/Sales Policies
Marketing Policies enables the organization to understand and solves the following:
§ Understanding the Customer and Creating Goods and Services that Satisfy
§ Developing Quality Products at the Right Price
§ Using Integrated Marketing Communications to Promote Products
§ Using the Internet for Business Success
§ Buying Trouble: Ethics Issues in Purchasing
§ Marketplace Ethics: Issues in Sales and Marketing
a. Pricing policies
Pricing is the most important aspect of managerial decision-making. Hence having clear pricing policies is important.
b. Product policies
These are policies that answer the question of whether to Specialize or diversify on a product.
c. Customer care policies
These policies answers the questions of who are the consumer, what is the most efficient and strategic size of the customers to be served by the company, what are the channel of distribution to be adopted and what location should be served by the company for the sale of its product.
d. Sales promotion policies
These are policies that address sales appeal, how advertising is to be utilized for sales promotion of the product and what role personal solicitation would play.
Production and Purchasing Policies
These are policies that addresses the following:
a. What is the extent to which vertical integration is strategic?
b. What are the general processes [next page]