BSBMGT518 Develop Organisation Policy: A Comprehensive Guide

This comprehensive guide explores the intricacies of developing effective organizational policies. It delves into the policy cycle, risk analysis, stakeholder engagement, and implementation strategies. Learn how to identify policy needs, analyze potential risks, and draft policies that align with your organization's goals and values. This resource provides practical insights and real-world examples to help you master the art of policy development.

BSBMGT518 DEVELOP ORGANISATION POLICY
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Table of Contents
Assessment Task 1: Short answer questions..............................................................................3
Assessment Task 2 – Case study one (1): Set the policy agenda...............................................6
Assessment Task 3: Project: Develop a policy plan..................................................................9
Assessment Task 4: Case study two (2): Provide policy options.............................................13
Assessment Task 5: Portfolio: Draft and promote a policy.....................................................15
References................................................................................................................................17
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Assessment Task 1: Short answer questions
QUESTION 1
Explain each of the processes and practices relating to whom and what (steps) might be
involved
Who might be involved? What might be involved?
Identifying the
scope of a policy
Board of directors –In most of the
organization or institutes scope of
policy is identified by the board of
directors. They are considered as
main people of the organization that
is why it is their reasonability to
make new policies and determines
their scope.
For identifying the scope of
policy board of directors include
the policy problem and then
develop possible solutions so
that they can be overcome.
Analysing the
issues arising
from existing
policy
Senior management- After deciding
and making the policies, senior
management critical evaluate those
policies so that they can identify
possible issues which are associated
with policies.
The senior management includes
measurable divisions so that
evaluate risks or issues which are
associated with the policy.
Drafting a new
policy
Business managers –If there any kind
of issues or problems are identified
in policy then business manager
make some changes or draft new
policy so that activities and functions
of the organization will not be get
affected (Aven, 2015).
For drafting new policy business
managers needs to take help of
different alternatives of policy.
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QUESTION 2
In what way/s does define the nature, size, and distribution of a problem ultimately
affect each stage of the policy cycle?
If the business enterprise is facing any problem then it should deeply analyze the nature, size,
and distribution of problem because it affects all stages of the policy cycle. Basically, policies
are made so that organization will not deal with any problem (B'far, et. al., 2016). The
business manager plan, implement and evaluate policy only after considering the nature, size,
and distribution of problem.
QUESTION 3
How would you use an analytical policy development framework to minimize
organizational risk?
As per my point of view, analytical policy development concept is helpful in removing the
business risks. While using the analytical framework I will consider the skills, methods, and
techniques of the business enterprise because if the organisation will have high skilled
workforce then it can easily remove the organisational risks from the workplace.
QUESTION 4
Explain how existing policies and the policy cycle guide the development and review of
new policies.
The business enterprise develops new business strategies only after considering the policy
cycle and previous policies. On the basis of current policies, an organisation can evaluate that
in which areas it needs to develop new policy (Borras, et. al., 2014). The standard of existing
policy also helps in evaluating the effectiveness of the new business policy.
QUESTION 5
Provide three (3) examples of laws and/or regulations that apply to policies and outline
their potential impact on the development process.
Legislation/ regulations Impact
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Medical Law There are various medical laws which are commenced for
workers or employees who work in any organization.
Medical law force organization to make policies which
provide medical assistance to workers in case of any incident.
This type of legal law helps in making most effective policies
which prompt the wellbeing of patients.
Health and Safety law There are various rules and regulations which are made by
health and social care organization for managing their
healthcare policies. This type of regulation allows healthcare
organization to build policies to consider the health and
safety of patients (Cotter& Fritzsche, 2014).
Business Law There are various industrial laws which provide protection to
employees within workplace so that they do not get exploited
by their seniors. To consider business laws organization have
to build those policies which focus on safety and security of
employees. Business law influences positive impact on
policies and also allow the organization to operate its
business activities in an ethical manner.
QUESTION 6
Identify three (3) internal and three (3) external factors, issues or events likely to trigger
a policy change.
Internal factors External factors
Employees: Sometimes workers demand
special facilities which force the organization
to make changes in its current business
policies.
Political: The legal authorities make changes
in taxation, interest rate, and other policies
which force businessmen to make changes in
its pricing and other business policies.
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Competitors: Due to globalization
competition is increasing in all markets. For
dealing with market competition, the
organisation develops a new policy or make
changes in its current one.
Social: When an organisation operates its
business activities in a different region so it
has to consider social aspects of that area
otherwise it can suffer from huge financial
and non-financial loss. The taste and
preferences of society keep changes so the
organisation has to cooperate with their
preferences and make changes in existing
business policies (DeYoung, et. al., 2013).
Suppliers: They are also known as service
materials and providers of production. For
satisfying needs and demands of suppliers,
the organisation has to make changes in its
production and other policies.
Economic: For having better growth and
development, the organisation should set its
pricing policies only after considering
economic condition of the area in which it is
operating its business activities. On the basis
of economic change, business enterprise
makes modification in their organizational
policies.
QUESTION 7
Identify two (2) risks associated with poor policy planning and analyze the potential
impact of each one.
Business failure: If business enterprise will build poor policy planning then it might face
finical loss which will result in business failure. So, it is important for an organisation to use
effective policy planning procedure.
Customer’s dissatisfaction: The poor policy planning generally results in customer
dissatisfaction because without having effective business policies organization can never
cooperate with customer needs as well as preferences.
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Assessment Task 2 – Case study one (1): Set the policy agenda
Question 1
A list of internal and external factors, issues, events, directions or board executive
policies likely to trigger changes to Fountain Art’s policies
There are various internal as well as external factors which should be considered by Fountain
Art so it can make necessary changes in its business policies (Dodgson, 2018). Some most
important internal factors which trigger changes in business policies are followed as under:
 Customer
 Competitors
 Suppliers
Apart from this, there are other factors which affect business from outside are mentioned
below:
 Political
 Social
 Economic
A summary of their likely implications and impacts
By focusing on internal factors, Fountain art can make strong from inside. Also, it will help
the organisation in building positive relationships with its customers and suppliers and also
will help in achieving competitiveness over market competitors. The customer is that key
factor which decides the success and failure of organization, bargaining power of suppliers
may force the organisation to pay extra charges for raw material (Gomez, 2017). For
satisfying customer and supplier organisations have to make changes in current business
strategies and policies.
Apart from this, the implication of external factors allows the organisation to survive in the
marketplace for the long time period. The political factor decides that how much organization
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can earn a profit on the particular product. The economic factor provides information to an
organisation that how much people can pay for products. On the other side, social factor
describes the actual needs of the customer so the organisation can satisfy their customers.
Any changes in these factor force Fountain art to make changes in its policies so it can
survive in the market for a long duration.
A critical analysis of the requirement for new or revised policies
For developing new business policies or revising current policies, the organisation needs the
help of senior managers and different resources such as human, financial and technical. Apart
from this, the business enterprise needs approval from legal authorities for developing any
new business policy. For collecting above mentioned resources organization have to spend
huge amount which basically increases organisation cost and also consume so much time.
A list of recommended priorities
For having better growth organisation should set administration policies first because they
come on the priority level. Without administrating business activities an organisation cannot
generate financial profit (Haley& Haley, 2013). Apart from this, there are some other
priorities which are recommended to fountain Art are follows as under:
 Fulfilment of business goals and objectives
 Positive working environment
 The maximisation of profit and minimization of cost
 Better control of business functions by making policies
Question 2
The dates and names of students or ‘stakeholders’ you consulted with
 1 June 2018 - Board of director
 4 June 2018 - Chief executive officer
 7 June 2018 - Suppliers
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 8 June 2018 - Investors
 12 June 2018 - Legal authorities
The iterative (repeated rounds of analysis) and consultative processes you used
While developing new organizational process I have gone through from consultative
processes in which I have to consult with business directors, suppliers, investors and other
important stakeholders. I have discussed pros and cons of the new policy with CEO and BOD
so there will no chance of business failure. Apart from this, I consulted with suppliers and
investors of organization which plays the lead role in policy planning process. At last, with
consulted with all stakeholders I visited legal authorities for taking their permission to
implement new business policy.
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Assessment Task 3: Project: Develop a policy plan
Part A
Question 1
A risk analysis of three (3) issues likely to affect the policy planning process
Lack of resources: Most of the organizations face business failure because of poor
access to finance and lack of human and technical resources.
Poor policy planning: The poor policy planning always results in business failure so
the organisation should execute policy planning process ineffectively as well as in a
systematic manner (Modarres, et. al., 2016).
Employee dissatisfaction: Sometimes resistance from employees does not allow the
organisation to develop new business policies.
New legislation expected: Political and legal factors are those which force the
organisation to trigger changes in its policies.
Some most important issues and their risk analysis are followed as under:
Risks Likelihood Consequences Risk level
New legislation
expected
Probably Intolerable Extreme
Resistance from
employees
Possible Intolerable High
Lack of
resources
Improbable tolerable Low
Poor policy Probably tolerable High
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planning
Question 2
A policy development plan
Policy requirements
The business enterprise develops policy so that they can operate their business activities as
well as action in systematic and effective manner. Apart from this, business policies make
people aware of organizational functions and activities. The major requirements of policy
development plan are followed as under:
Policy: Before developing new business policy organization have to decide that for which
purpose it is developing a new policy. In simple words, the organisation should determine the
needs of policy.
User experience: It is very much important for an organisation to make only those business
policies which will not affect the values and beliefs of customers. The organisation should
develop only those policies which provide a great experience to customers directly or
indirectly.
Information disclosure: While making new business policy organization should involve all
business stakeholders so that they can also go through the terms and conditions of specific
policy (Richardson, 2013).
Branding: After making the business policy organisation should promote its policy so that it
customer and employees can get enough knowledge about that.
Implementation: Implementation of action plan or implementation of business policy is the
biggest requirement of policy development plan. Without implementing business policy
organisation cannot achieve its desired objectives.
What needs to be done?
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For developing new business policy, the organisation needs to take help of required resources
such as human, financial and technical. For developing policy organisation needs funds and
for implementing that policy organisation needs to take help of human resources.
Who should be consulted?
Business policy is considered as a most important aspect of business enterprise so the
manager should consult with senior managers, BOD and CEO of organisation (Sharma &
Nayak, 2016). By communicating with them managers can find out possible risks which can
be associated with the business policy.
What should be done to manage the fallout from dissenting stakeholders?
For dealing with the fallout of dissenting stakeholders, the organisation should consider their
suggestions and also make them aware of the advantages of policy which they can have in
future. Also, the business manager should try to tell them about the future growth of
organisation which can be done only by developing business policy.
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Part B
Question 1
Review of policy development plan
Insight
Legal
requirements
associated with
policy
development
Ethical
requirements
associated with
policy
development
Practical
requirements
associated with
policy development
Manager The business
manager has to
consider all legal
requirements
before
implementing the
new business
policy within the
workplace.
The manager
should share the
information with
all seniors and
subordinates so
they can also
participate I policy
development
process.
Risk analysis should
be done by managers.
Employees For being a part
of the business
enterprise,
employees have
to follow all the
commenced rules,
regulation and
policies of the
business
For better growth
of the
organisation, it is
important for
employees to
follow previous as
well as new
business policies.
Cooperation with the
new policy
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Stakeholder
name
enterprise.
Board of
directors
It is the
responsibility of
the board of
directors to
complete all legal
formalities so
business policy
can be
implemented
within workplace
appropriate
manners.
They should
implement
perform legal
requirement before
developing new
business policy.
Evaluation of data
collected for policy
development.
Summary of plan
Before developing new organisational policy organisation should consider all the policy
requirements such as user experience, policy, the disclosure of information and systematic
implementation of policy. Also, the business manager should consider the welfare of
customer and employees. The manager should not spend their time and money on planning,
in fact, they should use their money and time on implementing policy.
Assessment Task 4: Case study two (2): Provide policy options
Question 1
Three policy options
Option 1 - Limited utilization of resources: For developing successful business policy, the
organisation should utilize its available resources in an appropriate manner so in case of
failure organization will not face huge financial loss.
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Option 2 - Employee’s motivation: For removing the problem of resistance from employees,
the organisation should motivate employees and also provide them knowledge about the
policy benefits (Zott, & Amit, 2013).
Option 3 – Employee’s participation: For ensuring the success of policy development plan,
the organisation should increase the participation of employees.
Five assessment criteria
For evaluating the policy options organization can take help of different assessment criteria
which are followed as under:
Reliability: By evaluating the reliability of policy options organization can determine that it
should follow that option or not.
Validity: The validity of policy option signifies that organisation should adopt only that
policy option which is valid and remain valid for the long time period.
Economic evaluation: Before implementing policy option, the organisation should do an
economic evaluation of that option. The reason behind doing economic evaluation is that it
provides enough information to the organisation about cost and future profit of particular
policy option.
Political criteria: While adopting policy option, a business enterprise should consider the
political influences which can affect the success of policy development plan(Haley& Haley,
2013).
Comparisons of past and new policy option: By comparing the effectiveness of past and
new policy, an organisation can easily decide that which option would be best for its future
growth.
Question 2
Recommendation
The organisation should go for optimum utilisation of resources. By selecting this policy
option Fountain art can easily maximise its profit and minimise organisational cost. There are
various benefits which are associated with this policy option as limited use of the raw
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material will allow the organisation to sustain its business for the long time period. Apart
from this, a business enterprise can remove the problems surplus or shortage of resources.
The Fountain Art has selected this policy option because it allows the organisation to retain
its resources and use them in most effective as well as in a systematic manner(Modarres, et.
al., 2016).
Also, limited use of resources can decrease the organisation cost. This policy option allows
employees and staff members to perform their given task in the limited time period and with
help of a limited number of resources. For implementing new policy organisation should
provide training and development program to employees so they can easily understand the
policy. Apart from this, Fountain art can use its resources equally for all business functions.
Recommendation of one risk control method
Factors likely to affect the implementation
process
Risk control methods
Lack of staff training For removing this problem organisation
should take help of recruitment process and
hire a large number of customers so the
organisation would not face any kind of
problem while implementing business policy.
Customer/ client complaints For minimising the number of customer
complaints Fountain art should improve its
product quality and also start option of live
chat where the customer can explain their
problems.
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Assessment Task 5: Portfolio: Draft and promote a policy
Question 1
1. Draft of business policy
Policy statement To utilize the resources in an optimum manner
Principles, values,
and philosophies
The Fountain art organisation creates value by providing quality
products and services to its customer. Also, it follows all legal laws
and principles which can improve its business performance.
Objectives There are different objectives like profit maximisation, business
growth and high customer satisfaction for which Fountain art wants
to develop new business policy.
Strategies For having better growth and development, the organisation will
follow marketing and growth strategies. These strategies will help
the organisation in operating its business activities in an appropriate
manner.
Actions For developing new business policy organisation will perform
practical actions such as training and development program. Also,
the organisation will take help of risk analysis procedure for
removing risks which are associated with the business policy(Zott, &
Amit, 2013).
Outcomes There are some desired outcomes of business policy such as
effective utilisation of resources, high organisational profit, and
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good working environment.
Performance
indicators
Effective leadership style and cash flow management are major
performance indicators which will help the organisation in
successfully developing business policy.
Implementation plan The organisation will follow Lewin’s change management model for
adopting new business policy within the business enterprise.
Risk management
processes
For successful policy development plan, the organisation will take
help of risk management process which includes different stages
such as identifying risk, analysing risk, evaluating risk, treating and
monitoring risk.
Review program For reviewing the entire program, Fountain art will take help of
different mechanisms such as comparison of past and current
business performance.
2. Promotion of policy
To staff members,
Fountain Art,
Dear all,
It is informed that organization is implementing the new business policy within the
workplace. The organization has decided to develop a new policy because it wants to
improve their performance of the business enterprise. After analysing all pros and cons
associated with the business policy, the organisation has decided to utilise its resources in an
appropriate manner. Being a business director I have decided that organisation will
implement new business policy and senior and lower manager would be responsible for
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implementing the business policy within the workplace. The managers of administration,
accounts, services and finance department would be responsible for marinating the new
business policy. We hope that all staff members and selected managers will cooperate with
the organisation in implementing new business policy.
Thanks and Regards,
Director of Fountain Art
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References
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