POLICIES

FORMULATION IMPLEMENTATION MONITORING

OBJECTIVES
RE-ORIENT ON THE PROCESS OF POLICY FORMULATION

HIGHLIGHT THE IMPORTANCE OF

POLICIES IN THE OPERATION OF COOPERATIVES VALIDATE THAT POLICIES OF THE COOPERATIVE ARE UPDATED AND PROPERLY DOCUMENTED

 REINFORCE THAT POLICIES ARE COMMUNICATED AND UNDERSTOOD BY ALL ENCOURAGE COOPERATIVE IN ORGANIZING THE APPROVED POLICIES AND CODIFIED IN A POLICY MANUAL

BOARD OF DIRECTORS
DIRECTION SETTING STRATEGIC PLAN POLICY DEVELOPMENT

GOVERNING VS MICRO-MANAGING

GOVERNING
SET CRITERIA, STANDARD AND PARAMETERS TO GUIDE MANAGEMENT DECISION-MAKING FOCUSES ON THE FUTURE (WHERE THE COOPERATIVE SHOULD GO) DELEGATE CLEAR LEVEL OF AUTHORITY TO THE MANAGER (MANAGER IS FREE TO MAKE DECISION WITHIN THE BOARDS PARAMETERS)

MANAGING BOARD
MAKING SPECIFIC DECISIONS REGARDING THE OPERATIONS OF THE COOPERATIVE FOCUSES ON THE PRESENT AND THE PAST RE-HASHES, REDOES MANAGEMENT WORK AND DECISIONS

DISTINCTION
POLICY PROCEDURE RULE

DISTINCTION
POLICY PROCEDURE RULE

POLICY

A PRONOUNCEMENT/ STATEMENT ISSUED BY THE POLICY MAKER OF THE COOPERATIVE TO PROVIDE GENERAL GUIDELINES FOR MAKING DECISIONS TOWARDS THE ACCOMPLISHMENT OF GOALS

 DESCRIBE THE RULES THAT ESTABLISH WHAT WILL OR WILL NOT BE DONE CAN RANGE FROM BROAD PHILOSOPHIES TO SPECIFIC RULES ARE USUALLY EXPRESSED IN STANDARD SENTENCE AND PARAGRAPH FORMAT INCLUDE WHAT THE RULE IS, WHEN IT APPLIES AND WHO IT COVERS

PROCEDURE

A STANDARDIZED METHOD OF PERFORMING A SPECIFIC TASK OR WORK, EXPRESSED IN A SERIES OF RELATED STEPS.

 DESCRIBE THE CRITICAL STEPS UNDERTAKEN TO ACHIEVE POLICY INTENT ARE SUCCINCT, FACTUAL AND TO THE POINT ARE USUALLY EXPRESSED USING LIST INCLUDE HOW TO ACHIEVE THE NECESSARY RESULTS SPECIFIC CONDUCT, METHOD, ROUTINES, PROCESSES AND ACTIONS USED TO COMPLY WITH POLICIES

RULES
A STATEMENT OF SPECIFIC AND DEFINITE ACTIONS TO BE FOLLOWED IN THE FORM OF A DIRECTIVE THAT USUALLY CONTAINS SANCTIONS FOR NON COMPLIANCE.

WHY NECESSARY
1. To ensure that decisions will be consistent with and contributing to objectives; 2. To pre-decide issues and avoid repeated analysis and consideration of general courses of action; and 3. To have a unified structure to other types of plans.

WHY IN WRITING
GOVERNANCE to maintain control and describe the method and system of management COMPLIANCE to comply with best management practice standards; to comply with the by-laws, laws and government regulations

 COMMUNICATION so members, leaders and employees can read and understand policies CONTINUITY to provide for management continuity EDUCATION to train new leaders and employees; to educate people about the cooperative

POLICIES CLASSIFIED
THOSE RELATED TO MANGEMENT FUNCTIONS

THOSE RELATED TO THE FUNCTIONS OF ITS BUSINESS OPERATION AS DEFINED IN THE OBJECTIVE AND PURPOSES

RELATED TO MANAGEMENT FUNCTIONS

a. PLANNING *long-range planning *centralization or decentralization of planning functions *involvement of subordinates

b. ORGANIZING *decentralized or centralized structure *use of job descriptions *organizational chart *fixing responsibilities for each functions *following channels or lines of authority *span of control

c. DIRECTING *specific vs. broad granting of authority *degrees of delegation *methods of handling discipline and grievances *one boss principle d. COORDINATING *staff planning groups *levels of coordinating *use of committees *vertical vs. horizontal

e. CONTROLLING *annual profit budgets *profit and responsibility centers *preventive or corrective controls *performance based on work standards

RELATED TO BUSINESS
a. PROCUREMENT *sources of raw materials *volume b. PRODUCTION *make or buy *size of products run *production stabilization

c. MARKETING *products to be sold *customers and distribution channels *prices *sales *promotion and advertising d. LENDING *processes *facilities * interest rate * cost of money

e. FINANCE *sources of capital *uses of capital *owning vs. leasing *cash and depreciation allowances *working capital *profit disposition *credit

f. MEMBERS *surplus distribution *protection of capital *services and benefits g. EMPLOYEES *selection and training *compensation *promotion *fringe benefits

h. PUBLIC RELATIONS *industrial relations *community standing *member relations

PREPARATORY STEPS IN POLICY FORMULATION

1. Determine the specific areas where policies are needed. 2. Identify that specific action needs to be done on those areas, based on: a. Objectives of the coop b. Plans/programs of the coop c. Anticipated and/or existing problems

3. Solicit suggestions or gather existing model policies, discuss and adopt. 4. Formulate the policies. 5. Approve policies implement the policies. 6. Communicate or disseminate the adopted policies to all concerned. 7. Amend the policies accordingly, if necessary.

POLICY CYCLE
FORMULATE POLICY

IDENTIFICATION OF AGENDA

LEGITIMATION

REVISION OR AMENDMENT

IMPLEMENTATION

REVIEW & ASSESSMENT

WRITING GOOD POLICIES

POLICIES SHOULD BE IN WRITTEN IN CLEAR, CONCISE AND SIMPLE LANGUAGE NOT TOO TECHNICAL SIMPLE ENOUGH TO UNDERSTAND BY ALL DONT INCLUDE INFORMATION THAT MAY QUICKLY BE OUTDATED

 KEEP THE STRUCTURE SIMPLE * GENDER NEUTRAL LANGUAGE * SHORT SENTENCES * SHORT PARAGRAPHS * USE LIST * REMOVE WORDS THAT DONT ADD MEANING

 DO NOT USE ACCRONYM, SPELL OUT BE SPECIFIC MEAN WHAT YOU SAY AND SAY WHAT YOU MEAN * IF ACTION IS MANDATORY, USE MUST OR WILL * IF RECOMMENDATORY, USE SHOULD * IF PERMISSIVE, USE MAY

 KEEP IT GENERAL PROVISIONS NEED TO BE GENERAL ENOUGH, CLEAR ENOUGH TO BE APPLIED EVEN TO UNANTICIPATED CIRCUMSTANCES

POLICY FORMAT

DEFINITION OF PURPOSE
CONCISE STASTEMENT OF RATIONALE FOR THE POLICY, INCLUDING IF APPROPRIATE, REFERENCE TO BY-LAWS, EXTERNAL REGULATIONS, ETC OUTLINES WHAT THE DESIRED EFFECT OR OUTCOME OF THE POLICY SHOULD BE

SCOPE
DESCRIBES WHO THE POLICY AFFECTS, OR WHICH ACTIONS ARE IMPACTED BY THE POLICY NEED TO CONSIDER

POLICY STATEMENT
ADDRESSES WHAT IS THE RULE RATHER THAN HOW TO IMPLEMENT THE RULE INDICATES THE SPECIFIC REGULATIONS, REQUIREMENTS, OR MODIFICATION TO ORGANIZATIONAL BEHAVIOR THAT THE POLICY IS CREATING SHOULD BE ALIGNED WITH THE VALUES, MISSION AND GOALS OF THE COOPERATIVE

RESPONSIBILITY
STATES WHO IS RESPONSIBLE FOR CARRYING OUT THE POLICY, AND THE SCOPE OF SUCH RESPONSIBILITY * MAY REQUIRE ESTABLISHMENT OF SOME ONGOING FUNCTION OR ACTION * INCLUDE IDENTIFICATION OF ANY RELEVANT OVERSIGHT OR GOVERNANCE STRUCTURE

IMPLEMENTATION PROCEDURE
DETAILED PROCEDURES THAT ARE RECOMMENDED IN ORDER TO CARRY OUT THE INTENT OF THE POLICY DEFINES, OUTLINE THE RULES, REGULATIONS, METHOD, TIMING, PLACE AND PERSONNEL REPONSIBLE FOR ACCOMPLISHING THE POLICY

ADDITIONAL TIP
o CLARIFY ITS SCOPE o EXPLAIN HOW IT IS RELATED TO THE OVERALL MANAGEMENT SYSTEM o PROVIDE ANY DEFINITION THAT WILL HELP CLARIFY THE DOCUMENT o PUT DETAILS ON ANY CONTROL THAT MUST BE APPLIED

o EXPLAIN HOW AUTHORITY HAS BEEN DIVIDED AND DISTRIBUTED o LIST THE RESPONSIBILITIES AND TASK THAT SHOULD BE PERFORMED o DESCRIBE THE TASK o IDENTIFY WHO IS RESPONSIBLE FOR PERFORMING THE TASK o SPECIFY HOW AND WHEN THE TASK SHOULD BE PERFORMED

o LIST ANY MATERIALS AND SUPPLIES THAT MUST BE USED o LIST ANY TOOLS AND EQUIPMENT THAT MUST BE USED

NAME OF COOPERATIVE
TITLE (POLICY AREA)
POLICY # DATE APPROVED EFFECTIVITY DATE

PURPOSE SCOPE POLICY STATEMENT

RESPONSIBILITY IMPLEMENTATION PROCEDURE

WORKSHOP
ABC COOPERATIVE DECIDES TO EXPAND MEMBERSHIP IN MAUNLAD NA BAYAN CITY, A HIGHLY URBANIZED AREA WITH SEVERAL ECONOMIC ZONES AND LARGE BUSINESS ESTABLISHMENTS. ALSO, THE AREA HAS THREE COOPERATIVES OPERATING THE SAME BUSINESS LINE AS THEM WRITE POLICY THAT WILL RESULT IN FAVORABLE OUTCOME FOR THE COOPERATIVE

E-mail add of NONIE HERNANDEZ

nihagrifina_seven@rocketmail.com