Coordinated by Mangaldan Cooperative Office in partnership with GETS Advocacy Cooperative, Calasiao, Pangasinan

1. Policy
Development
A Lecture-presentation for
Goodminds Empowerment & Training
Specialists and Advocacy Cooperative
February 26-27, 2014
Calasiao, Pangasinan

3. The direction and management of the
affairs of a cooperative shall be vested in a
board of directors elected by the general
assembly (Art.37, RA 9520). The directors’
responsibility are to strategize, direct, mobilize
and formulate policies in the best
interest of the cooperative

4. This training provides
frameworks, techniques and tools
that can be used by the board
of directors in identifying policy
problems, establishing criteria,
assessing policy alternatives,
deciding on the policy and
managing policy implementation

5. Topic Outline
 What is a policy?
 Importance of policies
 Types and Components of Policy
(Ethical, Strategic, Operational )
 Policy goals
 Policy formulation and processes
 Documenting/Codifying Policies
 Implementation of Policies
 Monitoring

6. Output
To be able to formulate
effective and
acceptable policies for
implementation

7. Effective Formulation

Effective Formulation means that the
policy proposed is regarded as a
valid, efficient, and implementable
solution to the issue at hand

8. Acceptable Formulation

Acceptable Formulation means that
the proposed course of action is likely
to be authorized by the legitimate
decision makers, usually through
majority-building in a bargaining
process

9. The Need for Policy Analysis
Policy Analysis –so often fails because
of:
a. Ignorance
b. Conflicting goals
c. Policy design
d. Problems in implementation and
politics

10. Many people think of organization
policies in a negative light which is a means
to control employee behavior. However,
there is a more positive side to policies.
They can actually empower employees. It is
true that many policies seem restrictive in
nature and may need to promote good
internal control however, policies also
provide staff with a degree of freedom
within defined boundaries.

11. With good policies in place, staff is able
to execute their duties and are free to
act within the limits set by policy
without constant managerial oversight.
In that way, policies empower staff to
do the right thing.

12. What is a policy?
POLICY is to guide the actions of all
persons involved or connected with the
cooperative in regard to any area of activity
in which the cooperative has jurisdiction.
Policies are guidelines for directors,
committee members, employees and
members

13.  A policy is a predetermined course of
action established as a guide toward
accepted objectives.
 A policy is a statement, verbal, written or
implied, of those principles and rules
that are set by Board of Directors as
guidelines on organizations actions

14. Importance of Policies
In some cases policies must be observed
(mandatory) while in other cases
policies serve as only as guidelines
(advisory) for the ethical, strategic,
operational.

15. The Role of Policies
• Provide specific guidance toward
implementing strategies to achieve the
cooperative’s vision
• Provide general guidance about the
cooperative’s mission
• Provide a mechanism to control the
behavior of the cooperative
• Enable the management to relate properly
to the organization’s work and its objectives

16.  The existence of practical and
comprehensive policies tends to increase
efficiency
Decisions made within a policy framework
have a higher probability of being
synchronized with other decisions within
the cooperative

17. Vision
Statement
“what we
want to
become”
Mission
Statement
“who we are
What we
value”
Goals &
objectives
“How we measure
our degree of
success
Strategy
“how we will
achieve our
vision”
Communicating Purpose to Stakeholders
Policies &
Procedures

18. Policy Goals
A policy is not formulated unless it is
thought to be necessary or to have a
benefit. In other words the policy exists for
a purpose and this may be often expressed
in the form of an "underpinning
principle".

19. Policy
1. Gender Equality
Policy
2. Quality
Customer Service
Policy
3. Social
Responsibility
Policy
Underpinning Principles
Equality and coexistence of
men and women
Increase satisfaction of
members/customers and
encourage membership
renewal
Concern for the Community

20. Policy
Legal Basis
1. Policy on
Savings
Mobilization
and Capital
Build Up
"ART. 6. Purposes of Cooperatives. A cooperative may be
organized and registered for any or all of the following
purposes
"(1) To encourage thrift and savings mobilization among the
members;
"(2) To generate funds and extend credit to the members for
productive and provident purposes
2. Loan
Policy
"ART. 7. Objectives and Goals of a Cooperative. The primary
objective of every cooperative is to help improve the quality of
life of its members. Towards this end, the cooperative shall aim
to:
"(a) Provide goods and services to its members to enable them
to attain increased income, savings, investments, productivity,
and purchasing power, and promote among themselves
equitable distribution of net surplus through maximum
utilization of economies of scale, cost-sharing and risk-sharing;
"(b) Provide optimum social and economic benefits to its
members;

21. Policy
Legal Basis
3. Policy on Social This is in full compliance of Section 2 Rule 8 of the
Implementing Rules and Regulations (IRR) of RA
Responsibility
9520, otherwise known as the Philippine Cooperative
Code of 2008.
Social audit is a procedure to assess the cooperative
social impact and ethical performance vis-à-vis stated
mission, vision, goals and code of social
responsibility. This will serve as a control mechanism
to account for the social performance and evaluate
the coop’s impact in the community taking into
account the community development fund.
4. Ethics and
Conduct Policy
Section 10 Function and Responsibilities of the Ethics
Committee, By-Laws
Recommend ethical rules and policy to the BOD;

22. Policy Formulation and Processes
Crafting a mission
and vision is not
easy, it helps to
follow the right steps.

23. Vision Mission Objectives, Policies
and Policies/Procedures

24.  Both statements
should be meaningful
to all in the
cooperative.
 It should be shared
to all members to
create a unified
direction for everyone

25. Vision
A vision statement
is a futureoriented
declaration of the
organization’s
purpose and
aspirations

26. Vision Statement
“ We envision ourselves to be the
best, efficient and productive
cooperative, dedicated and
committed in bringing prosperity
and positive transformation to its
members and the community”.

27. VISION
The best economic and social cooperative center in
Luzon
MISSION
 To pursue sustainability by providing quality and affordable
financial products and services responsive to members needs
in a gender fair environment.
 To deliver complementary solutions in enriching the lives of
members and communities.
 To ensure employees satisfaction for professional growth and
advancement.
To promote good environmental stewardship through
innovative programs, projects and socially responsive
services

30. VISION
VISION
A Globally Competitive and Gender Fair Credit
Cooperative
MISSION
The TUBAO CREDIT COOPERATIVE, a prospering and
growing institution uplifting the socio-economic
conditions of the members through its various gender
responsive financial products and services.

31. From a well written mission
statement, objectives can be set
and from objectives, policies can
be created. Just as a mission or
vision for your organization is a
prerequisite to policy
development, so too are
strategic objectives.

32. Objectives are like goals.
They direct the staff attention
to important factors in
running the cooperative and
help define unique ways to
enhance performance of
individuals and the
organization as a whole.

33. Policy-making is only
one part of the entire
policy process.

34. decisions are being made
in response to a new
situations, and often
where there is no previous
policy.
start with a decision
and consider how
research can feed
into this decision.
Source:http://www.impactandlearning.org/2012_11_01_archive.html

36. STRATEGIC MANAGEMENT MODEL
VISION
ENVIRONMENTAL
ANALYSIS
STRATEGY FORMULATION
MISSION
OBJECTIVES
STRATEGY IMPLEMENTATION
EXTERNAL
STRATEGIES
•OPPORTUNITIES
•THREATS
INTERNAL
•STRENGTHS
PROGRAMS
PROJECTS
PROCEDURES
BUDGETS
•WEAKNESSES
F E E D B A C K
PERFORMANCE

37. Models of Policy Change
• Rational decision-making model - policy-makers
make decisions on the basis of rational calculation of
advantages and disadvantages,
• This model tries to understand all the alternatives, take
into account all their consequences, and select the
best. It is concerned with the best way to organize
organization in order to assure and undistorted flow of
information, the accuracy of feedback, and the weighing
of values. Related to techniques such as PERT, CPM,
OR, and linear programming. This model tries to
improve the content of public policy.

39. Models of policy change
2. Incremental model - views public policies as continuation of
past government activities with only minor modifications

40. Models of Policy Change
Incremental Model - This model relies on
the concepts of incremental decisionmaking such as satisficing, organizational
drift, bounded rationality, and limited
cognition, among others. Basically can
be called "muddling through." It
represents a conservative tendency: new
policies are only slightly different from old
policies.

41. Policy-makers are too short on time, resources
and brains to make totally new policies; past
policies are accepted as having some
legitimacy. Existing policies have sunk costs
which discourage innovation, incrementalism
is an easier approach than rationalism, and
the policies are more politically expedient
because they don't necessitate any radical
redistribution of values.

42. Models of Policy Change
3. Two-Stage Mixed Scanning Model - suggests that decision-making process
consists of two stages: a “pre-decisional” stage of assessing and framing
problems, which can be explained by incremental model, and a second
analytical phase in which rational decision-model is more relevant

43. Models of Policy Change
4. Garbage Can Model - The Garbage Can model of
organizational theory was developed in 1972 by Michael
D. Cohen, James G. March and Johan P. Olsen.
"The theoretical breakthrough of the
Garbage Can Model is that it
disconnects problems, solutions and
decision makers from each other,
unlike traditional decision theory.
Specific decisions do not follow an
orderly process from problem to
solution, but are outcomes of several
relatively independent stream of
events within the organization."
(Richard L. Daft, 1982, p.139).

44. Models of Policy Change
5. Elitist Model — the
preferences of the elite
(key politicians, top
military leaders, or
corporate elites) dominate
policy outcome

45. Steps in Policy Development
Research and consultation are key steps in
the process. A sound policy is built upon good
consultation with those who will be affected
by the policy.

46. Workshop 1
Identify and define the problem or issue
that necessitates the development of a
policy

47. Steps in
Policy
Development

48. 1. Issue Identification and
Definition
Issue
identification
and
definition
Identify and define the
problem or issue that
necessitates the
development of a policy
Typically, policy making starts
with perception of a problem.
Getting the diagnosis right is
the key!
The cooperative also needs to know and understand the
purpose of policies and to recognize that the issue or
problem can be effectively dealt with by the creation or
modification of a policy.

49. Policy
Research
and
Analysis
2. Policy Research and Analysis
Systematic collection and
presentation of information is the
backbone of policy development.
Thorough research and data
analysis provides the body of
evidences necessary to justify
decision making
There are many factors which influence policy choices
including timeliness of response, responsiveness to
member needs, cost of implementation and projected
impact on the desired outcome supported by reliable and
timely evidence

50. Policy Analysis and Other Types of
Research
Major Objective
Client
Time Constraints
Academic
Social
Science
Research
Policy
Research
Construct theories for
understanding society
“Truth” as
defined by the
discipline; and
other scholars
Rarely external time
constraint
Predict impacts of changes
in variables that can be
altered by public policy
Actors in policy
arena; the
related
disciplines
Sometimes deadline
pressure, perhaps
mitigated by issue
recurrence
Policy
analysis
Schematic comparison and
evaluation of alternatives
available for public actors
for solving policy problems
Specific person Strong deadline
or institution as pressure –
decision-maker completion of
analysis usually tied
to specific decision

51. The Use of COOP-PESOS Tool
Indicators/Items
Compliance
Organizational
Structure and
Linkages
Operations and
Management
Plans and Programs
Portfolio Quality
Efficiency
Effectiveness
Stability
Operations
Structure of Assets
Very
Poor
Poor
Satisfactory
Good
Excellent

52. 3. Generating Policy
Solutions and
Alternatives
The worthiness of a list of
policy alternatives, and the
recommended policy option,
must reflect the thoroughness
and rigor which is applied to
the definition and analysis of
the issue, the degree and types
of consultation undertaken and
pre-considerations of the
measurability of the policy once
its been implemented.
Generating
Policy
Solutions and
Alternatives
Furthermore, the potential
viability of policy alternatives is
not only about integrity of
process, it is also dependent on
the degree to which political
realities, the public's
/stakeholder's tolerance of risk,
and policy response times are
considered.

53. Policy Solution in Loan Operations
•
•
•
•
•
•
•
•
approval
collection
payments by checks
cash collections (who is authorized?)
aging of accounts
credit limit policy
amnesty program
loan disbursements are covered by a
promissory note

54. The Policy Making
Process
4. Consultation
Agenda
Setting
Policy
Formulation
Policy
Adoption
revision
Policy
Evaluation
Policy
Implementation
Consultation helps to
build trust and
transparency and good
working relationships
which are necessary for
successful policy
implementation.
Consultations are carried out :
Within the lead Agency with their technical experts
Within Other Government Agencies which may be directly or
indirectly impacted
With Among committees, management and stakeholders

55. Consultation
•
•
•
•
•
•
•
•
collection of capital share, savings, dues, fine,
imposing penalty
disciplinary measures
legal actions
profit generation
capital build-up
members benefits
accounts payables

56. 5. Developing Policy
Proposal
The proposal often
consists of a written paper
outlining the basis for the
policy and the facts
supporting various policy
options. It articulates the
consultation process
followed and the potential
impacts of the policy
alternatives on the
members and various
stakeholder groups
Developing
Policy
Proposals
While policy proposals generally
list more than one alternative to
address the issue; the paper should
clearly articulate the preferred or
recommended option considering
the balance of the evidence
gathered.

57. Gather Evidence
Non-operational and non-functional
cooperatives are product of mismanagement,
lack of disciplined staff and managers,
uncollected loans, infrequent training of
management and members, dormant
membership, inability to evolve strong
communication and public relations,
dependence on local government, lack of
awareness, lack of quality management, poor
infrastructure

58. The final policy document
needs to be formally adopted
by the member of the Board of
Directors with an appropriate
record entered in to the
minutes

59. Communication
Following formal adoption of the policy
it should be communicated far and wide
throughout the cooperative and
stakeholders. Training sessions may need to
be conducted to ensure that personnel are
fully informed and able to implement the
policy. If the policy is not well
communicated it may fail.

60. 6. Policy Implementation
Issue
identification
and
definition
Policy
Implementation
Policy
Implementation is the
stage in the policy
process where policy
action occurs to address
a recognized policy
problem. At this stage,
the design of a policy
proposal is put into effect
and the policy is
executed by respective
administrative agencies.

61. Example: Education and Training
Policy
The implementation of education and training
program to professionalize the officers, staffs,
to train members for future officership and
for their familiarization to the day-to-day
operations of their cooperatives and to
inculcate among members the cooperative’s
principles and values

62. 6. Policy Implementation
According to Theodoulou and Kofinis (2004), how well
policy is implemented is affected by the three criteria:
1. Clarity. A goal stated with clarity and specificity not only
provides direction but also improves the basis by which policies can
be evaluated, for accountability, efficiency, and effectiveness.
2. Constant feedback as to how implementation is
progressing, as well as preliminary assessments of impacts
3. Strategic Planning. Essentially, strategic planning is a
tool with which the agency can evaluate its ability to achieve
the goals of the policy, as well as plan for how the policy will
be executed

63. Evaluation considerations must
begin early in the policy
development process as objectives
are formulated and indicators are
established in order to determine
policy effectiveness.
Evaluation is not simply about
assessing whether an initiative
was a success or failure.
Instead, evaluation is about
creating the information and
data about the initiative's
success and why. Evaluation
findings can lead to more
effective and efficient program
delivery
7. Policy Monitoring
and Evaluation
Policy
Monitoring and
Evaluation

64. Policies
loan operations
membership
expansion
program
human resource
capital build-up
deposits
community
development
fund
Internal control
Success/Failure
Why

65. The implementation of the policy should
be monitored. The policy may still
require further adjustments and
furthermore the reasons for the policy
existence may change. A general
practice is to set a date for the policy to
be reviewed, this might be one a year
or once in every three years. It just
depends on the nature of the policy.

66. Evaluation as Part of a Larger
Process
Evaluation is simply one component of the
policy cycle and an overall performance
management framework. As an initiative is
implemented, the outputs and outcomes are
monitored, refined and then evaluated.
Findings from the evaluation results will allow
for adjusting and modifying the various outputs
and outcomes of an initiative and the process
gets repeated.

67. Evaluation as Part of a Larger
Process
This process is shown in the Evidence
Wheel, a diagram that is part of a
curriculum given by British
Columbia’s Knowledge and
Information Services Branch.

68. Evidence Wheel
http://policynl.ca/policydevelopment/pages/evaluation-larger-process.html

69. Assessment Criteria
• Policies are proposed and thoroughly discussed in
the board meeting.
• Policies formulated and agreed on are consistent
with the vision, mission and goals of the cooperative.
• Policies agreed on are in accordance with existing
laws and regulations.
• Policies are reviewed and changes or updates
properly discussed and documented.
• Implementation of policies is regularly monitored.

70. Review of Policies or Programs
Started
Continued Modified
Stopped

71. Evaluate policy alternatives to
arrive at the best decision and
the latter focuses on how to
implement policies and
programs successfully.

72. Policy Content
1.
2.
3.
4.
5.
6.
Subject of Title
Policy Statement
Purpose
Scope
Responsibility
Effectivity
Optional:
1. Background
2. Definition of Terms

73. Subject or Title
• 01-s-01 2013
• Membership Policy

74. Policy statements. Indicating the
specific regulations, requirements,
or modifications to organizational
behavior that the policy is
creating. Policy statements are
extremely diverse depending on
the organization and intent, and
may take almost any form.

75. A purpose statement. Outlining
why the organization is issuing
the policy, and what its desired
effect or outcome of the policy
should be.

76. Policies are typically promulgated through
official written documents. Policy documents
often come with the endorsement or
signature of the executive powers within an
organization to legitimize the policy and
demonstrate that it is considered in force.
Such documents often have standard formats
that are particular to the organization issuing
the policy. While such formats differ in form,
policy documents usually contain certain
standard components.

77. An applicability and scope statement.
Describing who the policy affects and
which actions are impacted by the policy.
The applicability and scope may expressly
exclude certain people, organizations, or
actions from the policy requirements.
Applicability and scope is used to focus
the policy on only the desired targets,
and avoid unintended consequences
where possible.

78. A responsibility section, indicating
which parties and organizations are
responsible for carrying out individual
policy statements. Many policies may
require the establishment of some
ongoing function or action.

79. An effective
date which indicates
when the policy comes
into force. Retroactive
policies are rare, but can
be found.

80. Some policies may contain additional
sections including:
• Background, indicating any reasons, history, and
intent that led to the creation of the policy,
which may be listed as motivating factors. This
information is often quite valuable when
policies must be evaluated or used in ambiguous
situations, just as the intent of a law can be
useful to a court when deciding a case that
involves that law.

81. Some policies may contain additional
sections including:
• Definitions, providing clear and
unambiguous definitions for terms
and concepts found in the policy
document

82. Writing Good Policies
Be specific – mean what you say and say
what you mean.
- if action is mandatory, use “must” or “will”
- if recommendatory, use “should”
- if permissive, use “may”
- avoid “shall” – confuses between
mandatory or recommended
Source: Sumajit (2013)

83. Evidence
Need to know how
they can appraise it,
how to draw lessons
from evidence for
policy decisions etc
Source: http://www.impactandlearning.org/2012_11_01_archive.html

84. Types of Criteria for Policy
Analysis
1. Consequential criteria — “good” or
“bad”
2. Categorical moral principles — “right”
or wrong“
3. Political constraints

85. Tools &
Techniques

86. Stakeholders
Analysis

88. Resource-Based Approach to Strategy
Analysis
1
2
-Identify & classify the
Appraise the rent-generating
potential of resources &
capabilities
a)Potential for sustainable
advantage
b) Appropriability of their
returns
-Identify the ogrn’s
orgn’s resources.
-Appraise SW related
to competitors.
-Identify Opportunities
for better utilization
of resources
3
capabilities
-What can the orgn do
more than the competitors?
-Identify input resources per
capability & complexity of
each capability
RESOURCES
COMPETITIVE
ADVANTAGE
CAPABILITIES
5
- Identify resource gaps that
need to be filled . Invest in
replenishing, augmenting and
upgrading of organizational
resource base
4
Select a strategy
that best exploits
the orgn’s
resources and
capabilities
relative to
opportunities
STRATEGY

89. STRATEGIC MANAGEMENT OPTIONS
S-O
CRITERIA
1
MAGNITUDE
ACCEPTABILITY
RELEVANCE (VMO)
DOABILITY/ VIABILITY
COST-EFFECTIVE
IMPACT
SUSTAINABILITY
OTHERS
TO TAL
2
S-T
3
1
2
W-T
W-O
3
1
2
3
1
2
3

90. Documenting/Codifying Policies
Policy No.
Subject
Resolution
No
Date
Approved
/Adopted
01-s-01
2013
Membership
Policy
01-s-01- 2013
Jan 7, 2013
02-s-02
2013
Lending Policies
& Guideline
02-s-02-2013
January
15,2013

91. Adherence to laws, rules and regulations
PERFORMANCE AUDIT REPORT
1. Duties and responsibilities of
the Board well defined and
segregated and duly approved
- Special Order
- Appointment paper
2. Officers performing their
duties and responsibilities at all
levels (peers, self evaluation
and other form of evaluation
formulated and implemented
3. Oversight functions of the
Board
Board
Resolution
Board
Resolution
Board
Resolution
Board Policy

92. Adherence to laws, rules and regulations
4. Polices are reviewed regularly
5. Adherence to laws, rules and
regulations,
6. Duties and responsibilities of
the management well defined and
segregated and duly approved
Board
Resolution
Board Policy
Board
Resolution
7. Human Resource Policy
Board
(recruitment, selection, hiring,
Resolution
promotion, salary scaling program,
recognition, incentives, and benefit
packages of employees disciplinary
action, termination and retirement
Board Policy

93. Adherence to laws, rules and regulations
4. Incentives, and benefit
packages of employees
(Insurance protection
program, awards and
recognition, scholarship,
social, cultural, sports, team
and staff development)
5. Polices are reviewed
regularly
Board
Board
Resolution Policy
Board
Resolution
Board
Policy

94. Adherence to laws, rules and regulations
SOCIAL AUDIT REPORT
1. Feedback mechanism (feedbacks
and suggestions of Members )
membership meetings, area
consultation, suggestion and
grievance box, telephone logbook,
email, internet, social network,
correspondence, mail, SMS,
Freedom Board)
Board Policy
2. Responsiveness to gender, elderly, Board
youth, and person with special needs Resolution
Board Policy
3. Collaboration of
Board
programs/projects with any of the ff: Resolution
NGO, PVOs, CDCs, LGUs, GOS,
Business Organization and individual)
Board Policy

95. Adherence to Policies formulated in accordance
with laws, rules and regulations, and by-laws
1. Establishment of a cooperative branch
Legal basis
MC 2011-17
2. Training requirements for cooperative officers MC 2011-27
3. Article 27 (2) of RA9520 provides that "AII
MC 2011- 03
elective officials of the Government shall be
ineligible to become officers and directors of
cooperatives:
4 Article42. Officers of the Cooperative
MC 2011-04
(Degree of consanguinity and affinity)
5. 10 % Limitation on Share Capital
6. ARTICLE 37 OF R.A. 9520 – Term of Office
MC 2011-05
MC 2012-20

96. Adherence to Policies formulated in accordance
with laws, rules and regulations, and by-laws
Legal basis
7. Implementation of training requirements for
cooperative officers
8. Accountable officers
9. Put up Signage in cooperative places
10. Membership Registry
11. Establishment of Satellite Office
12. Prohibition of elective officials
13. Organization of Subsidiary cooperative
14. Art 46 Compensation
MC 2012-17
MC 2012-09
MC 2012-05
MC 2012-16
MC 2012-17
MC 2012-19
MC 2012–09
MC 2012-17

97. Adherence to Policies formulated in accordance
with laws, rules and regulations, and by-laws
Legal basis
14. Training requirements for directors,
MC 2013-02
officers, and committee members
15. Continuing subscription of share capital
MC-2013-04
16.Gender and Development & gender Equality MC-2013-22

98. Policies on Products and Services
Objectives
Timpuyog ti
Barangay MPC
Evangelista MPC
Banerle Credit
Savings
Mobilization
Savings
Mobilization
Lending
Lending
Trading
Lending
Marketing
Financial
Services
Marketing

99. Policies on Products and Services
Objectives
LCCrC
CPRC E MPC
Accounting
system
Condotel mgmt
Lending
Various loans
employee
benefits
Internal control
system
Linkages
collection
Education
Program
Services
Membership
Expansion
CFSCC
Retirement
Community
Development

100. Programs and
Services of
Cooperatives

101. Savings
Regular Savings Deposit
Time Deposit
Members Contingency Deposits
Youth Saver’s Club
Dream Savings Funds
Retirement Savings
Pension Savings
SAFE Savings
Build Savings
Emergency Savings Fund

102. Share
Capital
Common Share
Preferred Share

103. Loan
Express Loan
Regular Loan
Special Loan
Privilege Loan

104. LOAN
Regular Loan
Providential Loan
Commercial Loan
Financing Loan
Commercial Loan

105. LOAN
Special Loan
Salary Loan
Financing Assistance for Brgy Officials
Livelihood Loan
Show Money Loan
Pension Loan
Receivable Financing Loan
Loan Against Time Deposits
Allotment Loan (OCW, Seaman)
Micro and Small Enterprise Loan

106. LOAN
Privilege
Loan
Petty Cash
Farmers Assistance
Rice Loan

107. Other Services
Automated Teller Machine
(ATM)
Health Care Assistance
Program
Mortuary Assistance
Program
Life Insurance

119. Policy Constraints
If you are charged with the responsibility
to develop a policy, it will be important to
consider that the policy you write will be
constrained by policies, laws and
regulations of federation, union, regulatory
bodies, community expectations,
government policy and legislation. That is
why wide consultation is a key to
successful policy formulation.

120. Who Makes Policy?
Organizational policy makers i.e.
Board of Directors, and Management,
must go about the process of policy
formation in a careful way. Policy
makers must engage, and be seen to
engage, in the process of consultation

121. A charge of 'failing to consult' is a charge
of considerable magnitude. While
much information can be gleaned by
listening to people, there is also often a
need to conduct research i.e. statistical
surveys, monitor events, etc.

122. Hence we should not
operate in a vacuum
but instead a policy
space. Our space
overlaps the space of
many other
organizations with
whom we must so-exist
peacefully Webb,
Rowland and Fasano,
(1991) .

123. • The role of the policy maker is act as a
funnel to gather information through
consultation and research and to reduce
and extract from the information, a policy
or a set of policies which serve to
promote what is the preferred course of
action.
• Seeking information from experts from
outside the organization (this may include
government personnel, other cooperative
managers and practitioners)

124. Some of the skills that policy makers
need to ensure the development of
effective policies are:
• Collecting statistical information
• Convening and chairing discussion
forums
• Be able to write policy documents in
appropriate language and without
ambiguity.

125. Causes of Bad Policy
• A failure to consult the people
who will be affected by the policy
or who will implement the policy
• A lack of communication between
persons who are involved or
should be involved in the policy
formulation process

126. • A failure to define the
problem or the essential
issue(s), or an
oversimplification of the
issue(s)
• Policy makers are unable to
reach agreement over basic
facts.

127. • Policy makers are biased in their
research for the policy
formulation process.
• Policy makers take a different
and conflicting position on key
aspects of the policy
• Prejudice and stereotyping by
policy makers

128. • A change of key players in the
policy development process
before it is completed
• A lack of understanding of the
importance of policies in
organization management

129. Communicating Policy
Cooperatives leaders must be
able to communicate openly and
honestly which promote healthy
relationship and excel at problem
solving despite the challenges posed
by unintended events and
circumstances

130. When decisions are made about
what actions must be taken in certain
situations, it is necessary that they
are:
Written down and recorded for
future reference
Communicated to all persons
who need to be aware of the
new policy

131. • The process of writing down a
new policy (documenting) is very
necessary. If this does not occur,
then there is likely to be confusion
about the decision made, what
was agreed and what actions
should be taken.

132. • At the very least the policy decisions
should be noted in the minutes of the
meeting during which they were
made. However it is very unlikely that
members of the organization, or
customers, will ever read the minutes
of meetings.

133. Methods for
communicating
policies
• When a policy is put into
writing it can be
communicated in a variety of
ways including:
• Put on notice boards
• Sent to the membership by
email or in a letter
• Put on the organization's
website for download

134. • Displayed in a newsletter
• Placed on the back side of
forms such as the
membership form
• Inserted into a "member's
handbook"
• Made available in a policy
manual kept in the
organization's office

135. Benefit of Policy Manuals
• It would be prudent for organizations to
have a policy manual. This could be a ring
binder that collects all policies together in
one place.
• Once a policy manual is in existence
everyone has the chance to look up the
policy on a particular matter and then
follow the recommended course of action.
• As a policy is amended, the policy manual
must be updated.

136. Strategic
Policy
Ethical
Policy
Business
/Operational
Policy

137. A. Organizational Policies
SMCBUP
Membership
Education &
Training
Internal
Control
Ethics
Human
Resource

138. B. Business/
Operational Policies
Lending
Trading
Marketing

139. Reference
• Oro Integrated Cooperative
orointegratedcoop.com
• Sacred Heart Savings
Cooperativehttps://www.facebook.com/sa
credheartsavingscoop
• Narra Multi Purpose Cooperative
www.narracoop.org

140. Reference
• SACDECO
www.sacddeco.com
• Tubao Credit Cooperative
tubaocreditcooperative.com
• Gledco
www.gledco.org.ph
• Griffin, Michael. How to write a policy
manual at www.gobookee.org

141. References
• Leo Isaac. What are policies?
http://wwwleoisaac.com
• Maribeth R. Sumajit (2013) Policy
Formulation at www.sliddeshare.net
• Josefina B. Bitonio (2012) What is policy?
www.slideshare.net

142. • California State University Long Beach (2002)
Models of Public Policy Making
http://www.csulb.edu/~msaintg/ppa590/mod
els.htm

143. Workshop 2
From the issues
identified formulate
a policy for your
cooperative