A policy can be defined as a political agreement that is set regarding a course of action, or rather inaction, for the resolution or mitigation of certain problems or issues, especially on political agenda (Mohanty & Mohanty, 2014). As a result, public policy has come to be understood as an imitative by the government to address certain public issues or problems by instituting laws that govern how certain members of the public operate within society. Public policy as the government’s initiative to address certain public issues is characterized by the formulation of not only instituting laws but also decisions, regulations as well as lines of action pertaining to the public problem addressed by a certain policy (Mohanty & Mohanty, 2014). There are numerous definitions of public policy including the one on “what the governments choose to do or not to do,” which takes into account the government’s intentions regarding certain public issues (Mohanty & Mohanty, 2014). Public policy is the product of the policy-making process, which is characterized by various steps that ensure effective product establishment, which is typically public policy.
Leaders, as well as managers within organizations and businesses, ought to understand public policy as well as its processes since it influences the operation of their businesses and organizations. There are various reasons as to why leaders and managers of organizations and businesses should study and understand public policy and its process including the fact that it influences the operation of their businesses and organizations. The aim of this paper, therefore, is to explain why it is important for leaders and managers of an organization or business to study public policy and understand its processes, including how public policy impacts the operation of an organization or business.
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Public Policy and Its Processes
Public policy cannot necessarily be deemed as a single outline governing or regulating the manner in which certain operations are conducted, making understanding the same rather complex. In addition to that, policy-making entails a rigorous process involving various stages, which are all attributed to the development and establishment of an effective initiative. The initiative is among the ways in which governments are able to institute laws, decisions, regulations, as well as lines of action pertaining to the public problem addressed by a certain policy. It is therefore important for those impacted by public policy to understand how policy is made (Hill & Varone, 2014). In various instances, leaders and managers of organizations and businesses experience difficulty with regards to their operations owing to the misunderstanding of the nature of public policy and its processes (Hill & Varone, 2014). For instance, public policy establishes the need for certain guidelines, as well as regulations pertaining to certain operations that should be based on facts as opposed to the interests of certain groups of individuals.
The Importance of Studying Public Policy & Its Process among leaders and managers of organization and businesses
Among the reason why leaders and managers of organizations should study public policy and its processes is that it creates awareness of the existing laws and regulations. The operations of all organization, as well as business entities, are governance by the regulations, laws as well as lines of action that are attributed public policy and its processes. Therefore, in order to know what the regulations, decision, lines of action as well as laws governing the operations of organization, leaders, and managers need to study public policy and its processes (Hill & Varone, 2014). Being aware of the existing laws and regulations concerning operations of organizations facilitates the ability of leaders and managers to execute effective leadership and management. Owing to the nature of the role of leaders and managers within organizations, it is important for them to be aware of the laws and regulations governing operations of their entities in order to make beneficial and well-informed decisions. Therefore, by studying public policy and its processes, they are able to know of the existing laws and regulations which inform their decision making within the organization for excellent and profitable performance.
Another reason why leaders and managers should study public policy and its processes is so as to gain an understanding of how it influences business decision making, thus an organization’s operation and performance (Falkner, 2014). Public policy has a direct impact on the operation of an organization, which can either be positive or negative. Leaders and managers play a vital role in decision making within their entities, which in turn influence the performance of those entities. It is therefore important for leaders and managers to understand all the factors influencing their decision making including understanding the role of public policy and its process in organizational decision-making. Business and politics are connected by the mere fact that top government official or rather politicians influence public policy. The government regulates, through the development and introduction of public policy, all organizations including how a business entity can conduct its operations within a certain location (Falkner, 2014). It is therefore important for leaders and managers to understand how public policy influences decision making since it will facilitate decision making that promotes the operations of their organizations thus ensuring profitability. Understanding whether public policy promotes or negative influences decision making within the organization can help leaders and managers mitigate or reinforce the influence of public policy on decisions within organizations.
Leaders and managers of organizations should study public policy and its processes in order to effectively conduct planning, owing to future policy changes. By studying public policy and its processes, leaders and managers will be able to predict future policy changes, which will help them plan on how to operate in the future in order to maximize on such changes (Randolph, Tasto & Salvino, 2017). By understanding how future legislation will change the business environment in the future, leaders and managers can engage in pre-emptive planning, which will promote the competitiveness of their organizations. Constant studying of public policy and its process can facilitate the ability of leaders and managers to predictive as well as be informed of future changes in policy that may influence their operations. This, in turn, helps such leaders and managers to plan ahead of time in order to prevent any negative implications of future changes in public policy that influences the operations of their organizations. Therefore, studying public policy and its processes also promotes the effective performance of the roles of leaders and managers within their organizations.
Through studying public policy and its processes, leaders and managers can seize opportunities that promote profitability through excellent performance within their businesses (Randolph, Tasto & Salvino, 2017). For instance, if the government introduces public policy in which technological advancement is required, organizations dealing with such services and goods can prepare to offer such goods and services in the future. Only leaders and managers who study public policy and its processes will be able to seize such opportunities, hence the importance of doing the same. Similarly, constant and precise studying of public policy and its processes enables leaders and managers to predict future policy changes that can help them seize certain opportunities that are unknown to their competitors, thus promoting their competitiveness within their operating industries (Randolph, Tasto & Salvino, 2017). Therefore, studying public policy and its processes enables leaders and managers to promote competitiveness within their organization. This is because doing so enables them to make decisions that promote the seizing of opportunities, as well as conduct effective planning based on predictions of future changes in public policy.
Studying public policy and its process enables leaders and managers to promote organizational specializing within their organization’s operating industry. Area legislation, which is public policy, influences the manner in which businesses operate, hence the need to study public policy and its processes (Balla, Lodge & Page, 2015). Once a leader or a manager understands how particular legislation works within their area of operation, they can establish the best methods of operation to come up with goods and services that thrive within the specific legislation, thus promoting specialization within the industry. For example, if the government introduces a public policy in a certain location where there is a limit with regards to carbon emission in cars organization can become specialized in those areas. This may entail an instance in which a car manufacturing organization can specialize in the manufacture of low carbon emission cars to meet the requirements of the legislation as opposed to moving the company. Not only does specialization within the industry promote meeting the set regulation, but also promotes the competitiveness of such business entities, thus promoting excellent performance and profitability within their industry. Therefore, by promoting industry specialization, through studying public policy and its processes, leaders and managers promote the performance, competitiveness, and profitability of their organizations.
Public policy influences the manner in which markets change whether it is with regards to the supply chain, exchange of commodities, as well as methods of operation (Balla, Lodge & Page, 2015). By studying public policy and its processes, leaders and managers can better understand market changes, which will enable them to make operational adjustments and improvements to keep up with the changes. Leaders and managers make decisions such as those of change of organizational structure in an effort to operate in a manner that well caters for market changes attributed to public policy. Therefore, in order to make an effective organizational change in reaction to market changes caused by changes in public policy, leaders and managers have to constantly study public policy and its processes. Public policy has the ability to influence the social market behavior, which may, in turn, require businesses to change their mode of operation in an effort to remain relevant, as well as profitable (Balla, Lodge & Page, 2015). Therefore, studying public policy will enable leaders and managers to tell the sort of influence public policy and its processes have on the market, thus better prepare for the same. For instance, if public policy was introduced requiring consumers to purchase a certain amount of particular products, a company producing the same will have to look for ways of adapting to the change. This may entail changing the production process in an effort to avoid overproduction or underproduction. Leaders and managers of such organization will, in turn, have to introduce certain changes within the organization in an effort to mitigate or maximize in such market changes, thus the importance of having adequate knowledge on the public policy in question.
Public policies also influence the manner in which businesses operate with regards to operational costs (Balla, Lodge & Page, 2015). It is therefore important for leaders and managers to study public policy, as well as its processes in an effort to establish how they influence costs. Establishing how public policy influences business costs facilitates the ability of leaders and managers to come up with decisions that will help the business remain both relevant and profitable (Balla, Lodge & Page, 2015). For instance, knowledge of public policies on taxation will enable a business to establish whether operating within certain financial boundaries is profitable or not. Similarly, leaders and managers who study public policy and its process will be aware of certain changes such as a rise in taxation, which will help them manoeuvre around such changes and keep their companies operating at a profit. For example, when public policy is introduced that results in a rise in corporation tax, a business leader or manager that studies public policy will know that such an action will result in an increase in business costs, thus be in a better position to address such a change. Therefore, they can act with immediate response to change certain ways of operation in an effort to prevent losses, which may result in less profit. Therefore, by studying public policy and its processes, managers and leaders are at a better position to help their organizations survive the influence of public policy on the costs of operations.
Leaders and managers should also study public policy and its processes so as to be able to adequately participate in the policymaking process for the benefit of their organizations. Certain companies play an active role in the policymaking process, thus making it important for leader and managers in such companies to study public policy and its processes (Hill & Varone, 2014). Businesses and other non-profit organizations participate in various ways in the development and establishment of public policy, which influence the manner in which businesses operate. In order to effectively contribute towards the process in a manner that promotes organizational performance, leaders and managers should study public policy and its process. This will enable such leaders to provide a valuable contribution that also has positive implications for performance. Therefore, by studying public policy and its processes, leaders, and managers are able to positively contribute towards the establishment of legislation, lines of action, as well as regulations that promote organizational performance, hence profitability.
How Public Policy Impacts the Operation of an Organization or Business
Public policy, depending on the associated implications can either positively or negatively impact the operation of an organization or business. Public policies have a direct impact on the operation of any organization. Among the negative implications of public policies on the operations of a business is that of imposing higher taxes and duties within a particular sector, which results in a decrease in the profit margins, which in turn negatively affects its operations by either slowing them down or stopping them altogether (Randolph, Tasto & Salvino, 2017). This then goes to show how public policy can have a direct and negative implication on the operations of an organization. Among the ways in which public policy positively influences the operation of an organization is by introducing beneficial public policy (Randolph, Tasto & Salvino, 2017). For instance, if the government introduces public policy such s low-interest rates on business loans, it makes it easier for businesses to borrow money, which promotes the ability of the businesses to operate efficiently. Therefore, the direct impact of public policies and either be positive or negative depending on the implications they have on the operation of an organization.
Conclusion
Public policy and its processes are an important aspect in the world of business as it is a legislative initiative by the government. Public policy results in the development and establishment of regulations, decision, lines of action, as well as laws governing the operations of an organization. It is important for leaders and managers of organizations to study public policy and its processes owing to the benefits of having knowledge of the same. Awareness and understanding of public policy and its processes enable leaders and managers to plan for the future, promote sustainability and relevance within the industry, as well as promote the competitiveness of their organizations. In addition to that studying public policy and its processes enables leaders and managers to effectively participate in policymaking. Public policy has a direct impact on the operation of an organization, which can either be positive or negative. Therefore it is important for leaders and managers to study public policy and its processes in order to maximize the positive impact of public policy as well as mitigate its negative impact.
References
Balla, S. J., Lodge, M., & Page, E. C. (2015). The Oxford handbook of classics in public policy and administration . Oxford: Oxford University Press.
Falkner, R. (2014). Business power and conflict in international environmental politics . Basingstoke: Palgrave Macmillan.
Hill, M., & Varone, F. (2014). The public policy process . Routledge.
Mohanty, S., & Mohanty, R. K. (2014). Community policing as a public policy: Challenges and recommendations .
Randolph, G. M., Tasto, M. T., & Salvino, R. F. (2017). Public policy, productive and unproductive entrepreneurship: The impact of public policy on entrepreneurial outcomes .
