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POLICIES
FORMULATION
IMPLEMENTATION
MONITORING
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OBJECTIVES
RE-ORIENT ON THE PROCESS OF
POLICY FORMULATION
HIGHLIGHT THE IMPORTANCE OF
POLICIES IN THE OPERATION OFCOOPERATIVES
VALIDATE THAT POLICIES OF THE
COOPERATIVE ARE UPDATED ANDPROPERLY DOCUMENTED
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REINFORCE THAT POLICIES ARE
COMMUNICATED AND UNDERSTOODBY ALL
ENCOURAGE COOPERATIVE IN
ORGANIZING THE APPROVEDPOLICIES AND CODIFIED IN A
POLICY MANUAL
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BOARD OF DIRECTORS
DIRECTION SETTING
STRATEGIC PLAN
POLICY DEVELOPMENT
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GOVERNING
VSMICRO-MANAGING
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GOVERNING
SET CRITERIA, STANDARD ANDPARAMETERS TO GUIDEMANAGEMENT DECISION-MAKING
FOCUSES ON THE FUTURE (WHERETHE COOPERATIVE SHOULD GO)
DELEGATE CLEAR LEVEL OFAUTHORITY TO THE MANAGER
(MANAGER IS FREE TO MAKEDECISION WITHIN THE
BOARDS PARAMETERS)
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MANAGING BOARD
MAKING SPECIFIC DECISIONS
REGARDING THE OPERATIONS OF
THE COOPERATIVE
FOCUSES ON THE PRESENT ANDTHE PAST
RE-HASHES, REDOES
MANAGEMENT WORK AND
DECISIONS
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DISTINCTION
POLICY
PROCEDURE
RULE
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DISTINCTION
POLICY
PROCEDURE
RULE
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POLICY
A PRONOUNCEMENT/ STATEMENT
ISSUED BY THE POLICY MAKER OF
THE COOPERATIVE TO PROVIDEGENERAL GUIDELINES FOR MAKING
DECISIONS TOWARDS THE
ACCOMPLISHMENT OF GOALS
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DESCRIBE THE RULES THAT
ESTABLISH WHAT WILL OR WILL NOTBE DONE
CAN RANGE FROM BROADPHILOSOPHIES TO SPECIFIC RULES
ARE USUALLY EXPRESSED INSTANDARD SENTENCE ANDPARAGRAPH FORMAT
INCLUDE WHAT THE RULE IS, WHENIT APPLIES AND WHO IT COVERS
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PROCEDURE
A STANDARDIZED METHOD OF
PERFORMING A SPECIFIC TASK OR
WORK, EXPRESSED IN A SERIES OFRELATED STEPS.
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DESCRIBE THE CRITICAL STEPSUNDERTAKEN TO ACHIEVE POLICY
INTENT ARE SUCCINCT, FACTUAL AND TO
THE POINT
ARE USUALLY EXPRESSED USINGLIST
INCLUDE HOW TO ACHIEVE THENECESSARY RESULTS
SPECIFIC CONDUCT, METHOD,ROUTINES, PROCESSES AND
ACTIONS USED TO COMPLY WITHPOLICIES
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RULES
A STATEMENT OF SPECIFIC AND
DEFINITE ACTIONS TO BE
FOLLOWED IN THE FORM OF A
DIRECTIVE THAT USUALLYCONTAINS SANCTIONS FOR NONCOMPLIANCE.
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WHY NECESSARY
1. To ensure that decisions will be
consistent with and contributing to
objectives;
2. To pre-decide issues and avoidrepeated analysis and consideration of
general courses of action; and
3. To have a unified structure to other
types of plans.
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WHY IN WRITING
GOVERNANCE
to maintain control and describe themethod and system of management
COMPLIANCE
to comply with best managementpractice standards; to comply with the
by-laws, laws and governmentregulations
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COMMUNICATION
so members, leaders and employeescan read and understand policies
CONTINUITY
to provide for management continuity
EDUCATION
to train new leaders and employees;
to educate people about the
cooperative
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POLICIES CLASSIFIED THOSE RELATED TO MANGEMENT
FUNCTIONS
THOSE RELATED TO THE
FUNCTIONS OF ITS BUSINESS
OPERATION AS DEFINED IN THEOBJECTIVE AND PURPOSES
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RELATED TO MANAGEMENT
FUNCTIONS
a. PLANNING
*long-range planning*centralization or decentralization of
planning functions
*involvement of subordinates
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b. ORGANIZING
*decentralized or centralized structure*use of job descriptions
*organizational chart
*fixing responsibilities for eachfunctions
*following channels or lines of authority
*span of control
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c. DIRECTING
*specific vs. broad granting of authority
*degrees of delegation
*methods of handling discipline andgrievances
*one boss principled. COORDINATING
*staff planning groups
*levels of coordinating
*use of committees
*vertical vs. horizontal
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e. CONTROLLING
*annual profit budgets
*profit and responsibility centers
*preventive or corrective controls
*performance based on work standards
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RELATED TO BUSINESS
a. PROCUREMENT
*sources of raw materials
*volume
b. PRODUCTION
*make or buy
*size of products run
*production stabilization
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c. MARKETING
*products to be sold
*customers and distribution channels*prices
*sales
*promotion and advertisingd. LENDING
*processes
*facilities
* interest rate
* cost of money
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e. FINANCE
*sources of capital
*uses of capital
*owning vs. leasing
*cash and depreciation allowances
*working capital
*profit disposition
*credit
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f. MEMBERS
*surplus distribution
*protection of capital
*services and benefits
g. EMPLOYEES
*selection and training
*compensation
*promotion
*fringe benefits
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h. PUBLIC RELATIONS
*industrial relations
*community standing
*member relations
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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 existingproblems
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3. Solicit suggestions or gather existing
model policies, discuss and adopt.4. Formulate the policies.
5. Approve policies implement thepolicies.
6. Communicate or disseminate theadopted policies to all concerned.
7. Amend the policies accordingly, if
necessary.
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FORMULATEPOLICY
LEGITIMATION
IMPLEMENTATION
REVIEW &
ASSESSMENT
REVISION OR
AMENDMENT
IDENTIFICATION OF
AGENDA
POLICY CYCLE
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WRITING GOOD POLICIES
POLICIES SHOULD BE IN WRITTEN
IN CLEAR, CONCISE AND SIMPLE
LANGUAGE
NOT TOO TECHNICAL SIMPLEENOUGH TO UNDERSTAND BY ALL
DONT INCLUDE INFORMATION THAT
MAY QUICKLY BE OUTDATED
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KEEP THE STRUCTURE SIMPLE
* GENDER NEUTRAL LANGUAGE
* SHORT SENTENCES
* SHORT PARAGRAPHS
* USE LIST
* REMOVE WORDS THAT DONT ADD
MEANING
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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, USESHOULD
* IF PERMISSIVE, USE MAY
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KEEP IT GENERAL PROVISIONS
NEED TO BE GENERAL ENOUGH,
CLEAR ENOUGH TO BE APPLIED
EVEN TO UNANTICIPATEDCIRCUMSTANCES
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POLICY FORMAT
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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
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SCOPE
DESCRIBES WHO THE POLICY
AFFECTS,
OR WHICH ACTIONS ARE IMPACTED
BY THE POLICY NEED TOCONSIDER
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POLICY STATEMENT
ADDRESSES WHAT IS THE RULERATHER THAN HOW TO IMPLEMENTTHE RULE
INDICATES THE SPECIFICREGULATIONS, REQUIREMENTS, ORMODIFICATION TO ORGANIZATIONALBEHAVIOR THAT THE POLICY ISCREATING
SHOULD BE ALIGNED WITH
THE VALUES, MISSION AND
GOALS OF THE COOPERATIVE
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RESPONSIBILITY
STATES WHO IS RESPONSIBLE FORCARRYING OUT THE POLICY, ANDTHE SCOPE OF SUCHRESPONSIBILITY
* MAY REQUIRE ESTABLISHMENT OFSOME ONGOING FUNCTION OR
ACTION
* INCLUDE IDENTIFICATION OF ANYRELEVANT OVERSIGHT OR
GOVERNANCE STRUCTURE
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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 ACCOMPLISHINGTHE POLICY
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ADDITIONAL TIP
o CLARIFY ITS SCOPE
o EXPLAIN HOW IT IS RELATED TO
THE OVERALL MANAGEMENT
SYSTEMo PROVIDE ANY DEFINITION THAT
WILL HELP CLARIFY THE DOCUMENT
o PUT DETAILS ON ANY CONTROL
THAT MUST BE APPLIED
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o EXPLAIN HOW AUTHORITY HAS
BEEN DIVIDED AND DISTRIBUTED
o LIST THE RESPONSIBILITIES AND
TASK THAT SHOULD BE
PERFORMED
o DESCRIBE THE TASKo IDENTIFY WHO IS RESPONSIBLE
FOR PERFORMING THE TASK
o SPECIFY HOW AND WHEN THE TASK
SHOULD BE PERFORMED
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o LIST ANY MATERIALS AND SUPPLIES
THAT MUST BE USED
o LIST ANY TOOLS AND EQUIPMENT
THAT MUST BE USED
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TITLE (POLICY AREA) POLICY #DATE APPROVEDEFFECTIVITY DATE
PURPOSE
SCOPE
POLICY STATEMENT
RESPONSIBILITY
IMPLEMENTATION PROCEDURE
NAME OF COOPERATIVE
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WORKSHOP
ABC COOPERATIVE DECIDES TO
EXPAND MEMBERSHIP IN MAUNLAD
NA BAYAN CITY, A HIGHLY URBANIZED
AREA WITH SEVERAL ECONOMIC
ZONES AND LARGE BUSINESSESTABLISHMENTS. ALSO, THE AREA
HAS THREE COOPERATIVES OPERATING
THE SAME BUSINESS LINE AS THEM
WRITE POLICY THAT WILL RESULTIN FAVORABLE OUTCOME FOR THECOOPERATIVE
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E-mail add of NONIE HERNANDEZ