Lecture line Risk Management Week 2:

Slide 1:
To function efficiently, every organization, regardless of industry, need well-written policies and
procedures.
Policies and procedures should be established as soon as possible by organizational leaders. They
not only safeguard your company and its employees from noncompliance, but they also define and form
the culture of your company.
So, lets differentiate the two. First, what is a policy? A policy is a statement or rule about an issue
in the workplace and says what the business intends to do about the issue. It is a set of general guidelines.
This communicates the connection between the organization’s vision and values and its day-to-day
operations.

Slide 2:
Policies, at their most fundamental level, communicate an organization's values, philosophy, and
culture. They include, but are not limited to:
 What employees can expect from the organization- employee benefits, vacation policy, work
hours’ policy etc.
 What the company expects from employees- code of conduct, confidentiality of agreements and
contracts etc.
 What customers and the community can expect from the organization- customer service policies

Slide 3:
Now, let’s consider different of many policies in a certain organization or corporation especially in
the hospitality industry:
 Hours of operation (Hours of Work Policy- this defines the normal number of hours that a certain
employee must work)
 Use of safety gloves and glasses (Safety Policy on PPEs)
 Use of warning signs when cleaning (Safety Policy on Safety Signs)
 Amount of keys to be given to a guest (Key Control Policy or One-key; One-guest Policy)
 Information about guests to be given to non-guests (Guest Privacy Policy)

Slide 4:
Every business owner's dream is to have effective personnel, effective communication, and
growth! However, keeping all three together isn't easy! In that sense, have the right procedure will make
the business working efficiently and effectively. Now, let us define the word procedure.

A procedure sets out step-by-step instructions on how to deal with an activity in the workplace.
The “how” is explained in procedures. They give step-by-step directions for doing specific activities. They
may even offer a checklist or instructions to follow throughout the process.
Slide 5:
On your screen are the following information that a certain procedure must outline:
 Who is responsible for each task- there must be an identification of the specific personnel or
worker in each task. This is not to complicate the work load of every employee. This is to make
every task systematic and more efficient to accomplish.
 What steps need to be taken- it is important to understand the step-by-step activities within a
certain job or task.
 Who the responsible party reports to- each department of an organization or corporation must be
accompanied with team leaders or supervisors to check if the procedure is being followed
faithfully and cordially or not.

Slide 6:
Standard Operating Procedures or SOPs are detailed documents that provide step-by-step
guidance on how personnel within a company should complete specific duties and processes.

SOPs are designed to increase efficiency, quality output, and performance uniformity while
reducing miscommunication and noncompliance with industry laws.

Slide 7:
There 4 types of SOPs that you need to know.
First is the checklist. Checklist, it’s one of the most straightforward ways to create a standard
operating procedure (SOP) document. It's also known as a "to-do list."
Second is the Step-by-Step List. Similar to checklists, a step-by-step list works in the same way
where you describe a procedure in relevant, easy to follow steps.
Third is the Hierarchical List. If your procedures are more complex and need additional info, you
can create hierarchical checklists or bullet lists. If you are unable to explain a task in a single step and at
the same time, don’t want to make the SOP lengthy, adding hierarchical steps can be beneficial.
Fourth is the Process Flowchart. It is a wonderful way to represent how a process works visually
and help give better context around the workflow. A flowchart also shows how one step is related to
another, helping employees conceptualize the whole concept and have a better understanding of the work
they are doing.

Slide 8:
Why do you need Operating Procedures (SOPs)
1. Time-saving- If all employees perform the same task in different ways, some are going to do it
faster while others might take a long time. From that, the employee will become productive.

2. Ensures the safety of the employees- Standard operating procedures (SOP) make sure that
employees perform all tasks and activities in a consistent yet safe manner.
 If everyone is doing a task in their own way, it’s not only inefficient but can also result in
adversities. This puts the business in a tough situation and opens it up for lawsuits and liabilities.
3. Ensures compliance standard are met- Having standard operating procedures in place ensures
that industry compliance standards are followed and met properly. SOPs put measures in place so
that employees comply with relevant laws, policies, and regulations, and avoid any sort of
litigation or risk.

4. Improved communication- Standard operating procedures make your manager’s job easier as
they don’t have to communicate the policies and procedures to each and every employee
individually. Employees too, don’t have to go back to their managers or coworkers and ask for
guidelines in case they forget as they can quickly go-through the SOP document and get to work.

5. Provides consistency- All employees have the same document which they can go through and
know exactly what needs to be done and how. This leads to consistent performance with fewer
resources wasted.

6. Provides a guiding hands- Employees are guided in their quest to do amazing work by standard
operating procedures, which act as a compass. It serves as a road map for employees, both new
and old, to follow and expect a positive outcome every time.

Slide 9