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Purpose of Business Rules: Diana Jeanne Liwanag

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PURPOSE OF

BUSINESS RULES
DIANA JEANNE LIWANAG
Rules help a company establish guiding
principles employees are expected to
work with, and they set the tone for how

ORGANIZATION
the business operates and reflects the
corporate philosophy. Business rules can
include anything from hiring criteria
and how work schedules are set to
specific company policies and
procedures, customer interaction and
dispute mediation.
If conflict arises or if there is a
question about operating procedures, a
manager can turn to the rules to clarify
the situation. For example, if a

MANAGEMENT employee comes to a manager with a


request to take vacation time, the
manager can refer to the rules and
advise her on the process for formally
requesting vacation time through her
immediate supervisor, human resources or
the scheduling department.
It’s valuable to have rules in place if
a dispute arises among staff members.

CONFLICT For example, if a salesperson complains


to a manager that another sales
representative stole her lead, rules on

RESOLUTION how leads are generated and distributed


can be reviewed and discussed. This
allows a manager to make an educated
call about who is in the right and
administer discipline accordingly.
Having specific rules in place,
particularly as they pertain to the
safety of employees and customers, is
vital. Safety procedures, safe operating
rules and equipment use rules help guard

SAFETY against accident and injury and also


reduce the company’s liability. For
example, posting dress code requirements
can help ensure employees that who enter
a manufacturing warehouse floor are
wearing closed-toed shoes and safety
goggles.
Having all employees on the same page

DECREASE about how jobs function and having set


rules to follow decreases errors and
improves productivity. Operational rules

ERRORS can decrease the potential for misuse of


company assets or a waste of resources.
Such internal controls also can create
more accurate accounting practices.
Having company rules in place helps
protect the business against potential
litigation. Provided that managers

LITIGATION
follow the rules as outlined and can
document their approach, the company is
better positioned to protect itself if
claims are launched in cases of
workplace bullying, harassment and
discrimination, for example.

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