2.2.3 The Role of Policies, Practices and Procedures

Lesson Progress

2.2.3 The Role of Policies, Practices and Procedures

Much like in human resources, there is a need to align organisational policies, practices and procedures with your resource acquisition processes. These are fundamental in guiding the direction, method and means through which you engage in any operation. Moreover, the procurement and purchase of your physical goods and services ought to be reflected in your operational plan. The strategies and processes discussed above are part and parcel of what should be seen in your operational plan.

It is likewise important to recognise the overarching relationship that guides resource acquisition, operational planning, and organisational policies, practices and procedures. All of these are rooted in your organisational goals, which are the basis and guiding force for the policies, practices and procedures you have set in place. These policies, practices and procedures are necessary mechanisms that will enable you to successfully align your operational plan with your organisational goals. Finally, resource acquisition is a key operation within your organisation that you must plan for and ensure alignment with organisational goals by checking them against existing policies practices, and procedures being followed.

Fair trading laws

One example that shows how policies, practices, and procedures are relevant to your resource acquisition process is seen through the fair trading laws. At both a national and local level, these laws are in place to protect both your business and your stakeholders from unfair trading practices. Along with industry codes of practice, fair trade laws are in place in order to ensure that all businesses operate fairly and engage in healthy competition. Moreover, they ensure your customers that they are protected and properly informed at all costs. It is important that you are aware of both the rights and obligations of your business. One key piece of legislation that merits further discussion is the Competition and Consumer Act 2010.

Competition and Consumer Act 2010 (CCA)

This is a national law that regulates trading in the country to ensure that businesses deal with their customers, competitors and suppliers properly. Moreover, the act makes it illegal for businesses to limit or prevent competition. 

The act discusses the following key points:

  • Collective bargaining
    • Company mergers and acquisitions
    • Industry codes
    • Industry regulation
    • Price monitoring
    • Product labelling
    • Product monitoring
    • Unfair market practices

The act is administered and enforced by the Australian Competition and Consumer Commission, with the aid of state and territory regulators.

Further Reading

The Fair Trading Act 1989 regulates trade practices and the supply of goods and services in Queensland. Access the Act through this link Fair Trading Act 1989.

Environmental Issues 

Another example that shows how policies, practices and procedures are related to the resource acquisition process is in terms of environmental issues. Modernisation and commercialisation have created problems for the environment. Everything from air and water quality to denuding of forests is affected. Given this, all business projects are subject to environmental influences. It is, therefore, of vital importance that the environmental influences involved in your operations are determined at the onset so that you can incorporate the appropriate measures to address these and build them into your operational plan. 

Further Reading

Learn more about environmental issues, you may check the official website of the Australian Bureau of Statistics’ report linked here Environmental Issues: Energy Use and Conservation.