7 Reasons You Need to Know and Understand your Company’s Policies

Policies and procedures are a necessary component of any organization. They address important issues and constitute acceptable behavior by employees. They also act as a guideline for employee expectations and responsibilities and show how the organization will handle any policy violations. However, these policies and procedures are rendered useless if they are not enforced and followed by everyone in the workplace, including management. Managers have an important responsibility to their employees when it comes to policies and procedures. Therefore, it is absolutely crucial that those in management positions know and understand their company’s policies. Here are a few key reasons why it is imperative for managers to be familiar with the company’s policies and procedures. 


They Set Expectations

Policies and procedures set forth a guideline by which employees are expected to adhere. They should be aligned with the company’s values and mission and set standards for conduct and performance. Managers must know exactly what these policies are so they can ensure that both they and their team are meeting these expectations. 


Educate Employees

When a new employee joins the company they need to be trained on the company’s policies and procedures. Managers must be aware of these policies so they can properly educate new employees. It is also the manager’s duty to update employees on any changes to company policies.


Define Roles and Responsibilities

Policies and procedures provide clarity to the employee regarding his/her roles and responsibilities within the organization. Since managers are responsible for overseeing day-to-day operational activities, they must be aware of specific policies and procedures so they can make sure their employees clearly understand their roles and responsibilities. 



Company policies set standards for all employees, including management. Managers are not exempt from these expectations so they must be familiar with these policies and conduct themselves in a way that is acceptable. When policies and procedures are in place, it holds all employees accountable for their behavior and lets employees know that even their leaders have standards with which to meet. 


Ensure Compliance with the Law

Policies and procedures are put in place to establish acceptable workplace behavior which includes legal obligations. For example, a clear policy regarding workplace safety will ensure the company is meeting its legal obligations to provide a safe working environment. Management must understand these policies so they are in compliance with the law regarding hiring, firing, promotions, worker’s compensation, etc. 


Give Employees a Place to Turn

What happens when an employee comes to you with a question regarding sick days, overtime, vacation, or a personal issue with a coworker? Managers need to have an understanding of company policies in order to provide insight to their employees. Employees need to have a place to turn for questions and concerns regarding company policies and management is the first place they should be able to turn. 



Company policies are designed to keep daily operations moving smoothly and to ensure consistency across the board. When everyone is following policies and procedures, your company will operate as it was meant to and your staff will be using their time and resources more efficiently. A manager’s job is to help their team grow and achieve their goals and consistency is a necessary component.