However, most of the organizations hardly understand the real purpose of SOPs and do not know how to establish SOPs from scratch.
Every business has specific processes for completing various tasks. Putting those processes with clear guidelines in writing leads to consistent performance with less error and that is how SOPs work for each organization.
So how many sets of SOPs does each organization require? It mainly depends on how much risk the organization could bear.
The greater the risk to the business, the more rigorous the management must be, and the work procedures have to be more detailed and specified as it could be one of the most useful management tools for all organizations.
SOPs exist in our daily life for our day-to-day routine and it presents everywhere within the organization regardless of business sizes.
For example, the Company provides employee handbook containing key policies regarding employees’ benefits, code of conduct in business, standardized procedures in managing accounts and payment, reporting, etc.
In addition, there will be clear guidelines on production standards, the procedures of handling customer affairs, and to provide standard inspection and descriptions for product quality control, and many more.
SOPs are a powerful tool for ensuring compliance with industry regulations and the Company’s policies and best practices to increase the uniformity of performance and quality output.
Have you wondered how an organization without established SOPs in place could work smoothly, especially when all businesses require formal reporting hierarchies?
Since SOPs are required daily, how should the organizations find out what they need? Here are some suggestions for all:-
1. Employee Handbook
It serves as an employee manual to understand the Company’s policies and work ethic from various aspects such as the employees’ welfare and benefits with compliance of labor laws, holidays, salary calculations, overtime and payment settlement, clothing regulations etc.
Secondly, disciplinary action guides on how to deal with difficult employees and dismissing them in a proper and legal way as when required.
Performance appraisal management could also be added into the manual for employees to fully understand how they are evaluated and how the evaluation results affect their job prospects, including job promotion within the organization.
2. Accounts Payable Manual
It is the guidelines on handling accounts payable for better cash flow management. It also helps the accountants in daily work planning and to provide financial reports to the management on time on a monthly basis.
3. Automation Technical Manual
Many businesses are now implementing intelligence automation systems especially for internal operations. Therefore, the automation technical manual is essential because it provides clear guidelines on daily operations, such as internal data backup, network security management, how to prevent and restore electronic disaster and how to operate when the system is down, etc.
4. Production Manual
Contain the full procedures from handling sales order, production and transportation to ensure timely delivery. Also, it helps in monitoring product quality to reduce product return rate, stock inventory management, etc.
5. Logistics Manual
Describe how the goods are delivered from the Company to the customer safely, on time, and without error.
6. Sales Manual
The sales manual is important in stating how each business process should be handled, and the requirements for reporting in order to let the managers make more accurate decisions and better strategies based on the compiled statistics and feedback.
The above mentioned are the basic frameworks to set up standard operating procedures within an organization. It is strongly advisable to review and improve the work processes even if your organization already has SOPs in place for better performance!
- What is Standard Operation Procedure (SOP)? Why is it important?
- The 6 Most Common Organizational Problems without SOPs! How to Overcome Them?