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Impact of Informal Policies
- What are the company's informal policies?
- How do your informal policies affect the day-to-day decisions of your firm?
- What impact are your management practices having on the informal policies?
The general policies of a company serve as the basic guidelines for conducting business. They are, in a sense, the "official" rules of the game. If the firm's communication systems, both formal and informal, are effective and individuals have trust in the motives and integrity of their leaders, personnel relations will most often be good. In the absence of the above they will not.
Just as the organizational structure has both a formal and informal side, so too does the firm's general policies. What is a good day's work? How is extra effort defined? What is quality? These and other operational questions are answered by the company's informal policies. These informal policies act as the company's social control by defining what is acceptable behavior. It is done collectively as an organization and in individual departments. It is then passed on from generation to generation. The most pronounced effect on the company's values and culture stem directly from these informal policies.
MDC assists clients in understanding the effect these informal policies have in running the business on a daily basis. With this knowledge, management can take specific actions so that these informal policies can be in line with corporate values and support the company's Mission.