Organizational Policy And Policies

Policies David 2011 defines policy as “specific guidelines, methods, procedures, rules, forms, and administrative practices established to support and encourage work toward stated goals’. Policies are directives designed to guide the thinking decisions and actions of managers and their subordinates in implementing a firm’s strategy. They increase managerial effectiveness by regulating many routine decisions and clarifying the discretion managers and subordinates can exercise in implementing functional tactics (John et.al, 2008). Policies set limits, constraints, and boundaries on the administrative actions which the organization can take to reward and sanction behavior hence tools which are necessary in strategy implementation process. This

The values and belief shared through the organization always shape how its work is done and when there is any change to be introduced in the organization reshaping the organization’s culture is key. Brenes and Mena (2008) carried out a research on strategy and culture in Latin American firms, and established that if organizational culture is supportive of principles and values in the new strategy it will result to a successful strategy execution. Changing a firm’s culture to fit a new strategy is usually more effective than changing a strategy to fit an existing culture. The following are some the techniques which can be used to alter an organization’s culture. They include, recruitment, training, transfer, promotion, restructure of an organization’s design, role modeling, positive reinforcement, and mentoring. Linking strategy implementation and organizational culture must be handled wisely so that its performance and success are not jeopardized (Humphreys et, al 2008). A study by Ahmadi, Salamzadeh, Daraei, and Akbari (2012) on the impact of organizational culture while implementing strategies in Iranian banks established that a meaningful relationship exists between organizational culture and strategy