Company policy manual

Brief introduction

The fast shifting trend of business environment becomes a primary factor on the approaches of leadership and the change in an organization. On the contrary, changes occur due modification of organizational operating components, measuring the performance and capabilities of the internal elements, such as manpower and functions to meeting the objectives.

Many Chief Executive Officers (CEOs) prioritizes the relevance of putting in place a strategic management system that prescribes the “executable” or capable means that will be responsive at any given internal (organizational) or external (business environment) conditions. In which case the terms of reference of organizational operations must be derived by creating a company policy manual that can be referred as the fundamental guidebook, wherein CEOs even describe as the “bible” of an organization.

This paper will discuss the vital role of the CEO in framing the key organizational elements of planning, organizing, leadership and control. Thus, these elements transpire in a policy manual that would outline the mandates of the core-managing personnel.


As a method, several literatures will be reviewed relating the development of strategic organizational management, specifically how CEOs frames their decision in implementing a company policy manual.

Literature Review

The general reference of this paper focuses on the processes of formulating a policy manual, in which the CEO of XYZ Internet Company needs to guide the incoming managers in their departmental functions.


The importance of planning enables the determination of “short-long-term plans” as a direction of the company to achieving it vision, mission and goals. In short planning “set foot” towards identifying and describing the general priorities, and qualifying the immediate needs. It may be cited that planning is the stabilization of organizational sensibilities from where, when, what, how and whom the company will focus (Deere et al., 2001).

Reflective of the above cited experiential thoughts, the CEO may as well determine the internal competencies and resources (manpower and capital) by reviewing the size, scope and character of the organization. This can be exemplified by looking at the strength, weakness, threat and opportunities (SWOT) of the company in order to determine viable and objective plan of actions. At this point, the character of XYZ Company can position its business line or operations in particular consumer targets, market competition and industries where XYZ Company can feasibly optimize its profitable venture.


What has been the result in planning must be organized at a strategic phase of implementation, wherein mobilization [of resources and programs] must coincide in a strategically coordinated action. As cited, planning and organizing is “congruent” in the cycle of programmed-managed and result-oriented actions (Nadler et al., 1980).

It is noteworthy to mention that a “congruent model” is the integration of all systems of operation according to planned activities, in which the CEO of XYZ Internet Company may enact directives on organizing the resources of the company to execute the plan. This can be exemplified by instructing the department managers to formulate Work and Financial Plan (WFP) in order to determine the scope of business operations. As pointed out by Nadler et al. (1980), the aspect of organizing the resources must be critically decided by the CEO to empower the objectivity of plans, referring to measuring the efficient and effective organizing.


It is said that leadership is created while leaders are born. In the realms of organizational leadership, the leader must internalize the characteristic of the organization and the overall membership or elements (Volckmann, 2008). Relating this pragmatist’s perception to XYZ Internet Company, the CEO may pattern the “style” of leadership as people-led, performance-based and business-focused.

As explained by Volckmann (2008), the business behavior of organization must emanate from the perspectives of the CEO. It may be then relate with XYZ Internet Company that the CEO may enact a policy of centralized and decentralized operation. As further cited, the department managers must possess a “consultative management”, referring how a central or executive directive can be specifically executed in a detailed or decentralized implementation (Volckmann, 2008). In so doing, leadership must be also consultative upon the “popular” needs of the membership in order to synthesize the situation, directions and perspectives of the organization. In this case, leaders are born in a dynamic and participative leadership.


The aspect of controlling assimilates the function of management. Accordingly, authoritative and goal-centered are the fundamental typologies of controls. To cite, authoritative is the setting of policy that outlines the rules and regulations, while goal-centered refer to regulating the flow of functions (Mcnamara, 2008). These two types of controls can be related to the function of XYZ Internet Company CEO, wherein the formulation of a company policy manual is in itself part of his functional capacity to establish the control by setting the work and business standards.

This finds relevance with the CEO’s desire to stabilize the Boperation of XYZ Internet Company. To sum up, control imparts as a critical and strategic aspect in establishing the directions of a company, in which the aspect of control draws an important component towards the process of achieving organizational sustainability.


The significance of a company policy manual attributes the characteristic of an organization and upholding its vision, mission and goals. In other words, a company policy manual is the bulwark of efficient and effective organizational performance, in a way the ethical standards of business operation has been founded.

Like the desire of XYZ Internet Company CEO, a dynamic working team must be built according to the strategic management processes where aspects of planning, organizing, leadership and control are vital elements of qualifications that must be imbued to the department managers’ functions.

In conclusion, the company policy manual would provide organizational benefits to XYZ Internet Company by identifying their competitive role in the marketplace and determining their business character that shall lead the company towards extensive business potentials. Thus, establishing a viable company policy manual within the parameters of strategic management would ensure a tangible function of organization and sustainable business operation.


Deere, D., Stevens, M., Davison, A., Helm, G. and Dufour, A. (2001). ‘Management

            Strategies’. IWA Publishing, London, UK, ISBN-1 900222 28 0.

Retrieved 11 December 2008 from


McNamara, C. (2008). ‘Organizational Change and Development’. Free Management

            Library. Retrieved 11 December 2008 from


Nadler, D.A. and Tushman, M.L. (1980). ‘A Model for Diagnosing Organizational

            Behavior’. Organizational Dynamics, American Management Associations.

Retrieved 11 December 2008 from

Volckmann, R. (2008). ‘Business Leadership On Purpose’. Emerging Leader. Com.

Retrieved 11 December 2008 from