Common Practices in

Business Organizations
Business practice is a method, procedure, process,
or rule employed or followed by a company in the
pursuit of its objectives. Business practice may also
refers to these collectively.
A. Decorum

An individual who exhibits politeness and decorum is

often awarded with success in his chosen field. There are
however, additional formalities he must learn to assure that
he is viewed by superiors, peers and customers alike as a
pleasant and cultivated professional(Henderson,2016).
 Business etiquettes not just knowing what to discuss
during a business dinner or how to address colleagues: it is a
way of presenting oneself in such a way that he will be taken
seriously. This involves demonstrating that he has the self
control necessary to be good at the job, expressing a
knowledge of business situations and having the ability to
make other comfortable around him. Poor business etiquette
can cost him the trust of his workers and his customers, and
the loss of valuable business opportunities.
1. On Time and Promptness
2. On Preparation
3. On Agenda
4. On Attire and Appearance
5.On Decorum
6. On Basic Courtesy and Respect
7. On Greetings
8. On Handshakes
9. On Body Language
10. On Formal and Informal Address
11. On Speaking in Meetings
12. On Listening
13. On Cell Phones and laptops
14. On Business or Visiting Cards
15. On Breaks
16. On Appropriate Communication
17. On Bargaining
18. On Bringing in Guests
19. On Building Relationships
20. On Business Meals and Recreation
21. On Gift-giving
B. Protocol
In general, protocol means the unwritten rules or
guidelines that are peculiar to every culture or
organization, and are supposed to be observed by
all parties in the conduct of business, entertaining,
negotiating, politics.
1. The Basic of Protocol

The purpose of business protocol is to encourage

all employees in a company to act in a uniform
manner.
2. Training in Protocol

A business may provide business protocol and

etiquette training for its employees. These training
may occur at another location or on-site where the
business itself is located.
3. Benefits of Protocol
4. International Business Protocol
Some aspects related to international business protocol
are:
1. Greetings and Introductions
2. Names and Titles
3. Organizing Meetings
4. Punctuality and Time
5. Business Cards
6. Preliminary Conversations
7. Verbal Communication
8. Non- Verbal Communication
9. Business Meals
10. Gift Giving
11. Tipping Tips
12. Business Attire (“ What is International business protocol? Definition and meaning,” 2014).
5. Examples of Protocol
a. Filipino Family- Modeled Business
 Modeled Business
b. Business is Personal
• Successful business relationship are based
on personal interaction and trust
c. Status- Consciousness
 Filipinos are very status-conscious, and the use of
formal titles is an important way of showing respect
to your business partners and colleagues.
d. Politeness and Ambiguity
C. Policies
 Business Policy defines the scope or spheres with decisions
can be taken by the subordinates in an organization.
 Business policies are the guidelines developed by an
organization to govern its actions.
 Business policy is the study of the roles and
responsibilities of top level management, the significant
issues affecting the organizational success and the
decisions affecting the organization in long-run.
1. Features of Business Policy
An effective business policy must have the following features:

a. Specific: Policy should be specific/definite

b. Clear: Policy must be unambiguous. It should
avoid the use of jargons and connotations.
c. Reliable/ Uniform: Policy must be uniform
enough so that it can be efficiently followed by
the subordinates.
d. Appropriate: Policy should be appropriate to the
present organizational goal.
e. Simple: A policy should be simple and easily
understood by all in the organization.
f. Inclusive/ Comprehensive: In order to have a
wide scope, a policy must be comprehensive.
g. Flexible: Policy should be flexible in operation/
application.
h. Stable: Policy should be stable else it will lead to
indecisiveness and uncertainly in minds of those
who look into it for guidance.
2.Difference between Policy and Strategy
The term “policy” should not considered as synonymous with the term
“strategy”. The difference between policy and strategy can be summarized as
follows:

a. Policy is a blueprint of the organizational activities which

are repetitive/routine in nature. While strategy is
concerned with those organizational decisions which have
not been dealt/ faced before in the same form.
b. Policy formulation is the responsibility of top level
management. While strategy formulation is basically
done by middle-level management.
c. Policy deals with routine/ daily activities essential for the
effective and efficient running of an organization. While
strategy deals with strategic decisions.
d. Policy is concerned with both thought and actions. While
strategy is concerned mostly with action.
e. A policy is what is or what is not done. While a strategy is
a methodology used to achieve a target as prescribed by a
policy.
D. Advertising
Advertising is how a company encourages people to buy
their products, services, or ideas.
Types of Advertising
1. Newspaper
2. Magazine
3. Radio
4. Television
Producing a television advertisement and buying an advertising
slot is generally expensive. Advertising is sold in units (e.g. 20, 30, 60
seconds) and costs vary according to:
 Time slot
 Television Program
 Whether it is regional or nationwide
 If you want to buy spots on multiple networks
5. Directories
6. Outdoor and transit
7. Direct Mail, Catalogs, and Leaflets
 Direct mail means writing to customers directly.
 Catalogs, brochures, and leaflets can also be distributed
to your target area.
8. Online
E. Marketing
The term Marketing refers to the process of
product development as well as sales, promotion,
and distribution.
F. Bookkeeping

The most basic activity in accounting is

bookkeeping. Bookkeeping is the process of
recording all financial transactions to keep track of
the cash flow.
SINGLE-ENTRY BOOKKEEPING is an accounting system
under which every transaction is recorded in a single line
only
DOUBLE-ENTRY BOOKKEEPING is a kind of accounting
system governed by certain rules which ensure that each
transaction that takes place is reflected in two separate
accounts.
G. Reportorial Requirements

Business reporting or enterprise reporting is “the

public reporting of operating and financial data by a business
enterprise.” (Lymer, 2013).
1. Annual report
An annual report is a comprehensive report on a company’s
activities throughout the preceding year
2. Financial Statement
A financial statement or financial report is a formal
record of the financial activities and position of a business,
person, or other entity. They typically include basic financial
statements, accompanied by the management discussion and
analysis:
 Balance sheet
 Income Statement
 Statement of Changes in Equity
 Cash flow statement
A. Purposes of Financial Statement by
Business Entities
“The objective of financial statement is to provide information about the
financial position, performance and changes in financial position of an enterprise
that is useful to a wide range of users in making economic decisions.”
Financial statements may be used by users for different purposes:
 Owners and managers require financial statements to make important business
decisions that affect its continued operations.
 Employees needs the reports in making collective bargaining agreements with the
management, in the case of labor unions or for individuals in discussing their
compensation, promotion, and rankings
 Prospective investor use financial statement to assess the viability of investing in
a business.
 Financial institutions (banks and other lending companies) use them to decide
whether to grant a company with fresh working capital or extend dept securities.
B. Audit and legal implications
C. Standards and Regulations
D. Inclusion in annual reports
H. Documentation

The term documentation refers to the processes and

items which serve as evidence for the validity or truth of a
certain claim or statement.
K. Why is a Code of Ethics Important?
L. Sample Code of Ethics