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ATLANTA PHILADELPHIA BALTIMORE HASKINS & SELLS PITTSBURGH BIRMINGHAM BOSTON PORTLAND PROVIDENCE BROOKLYN SAINT LOUIS BUFFALO CHARLOTTE CERTIFIED PUBLIC ACCOUNTANTS SALT LAKE CITY SAN DIEGO CHICAGO SAN FRANCISCO CINCINNATI SEATTLE CLEVELAND BULLETIN TULSA DALLAS WATERTOWN DENVER _ _ DETROIT BERLIN JACKSONVILLE LONDON KAN8A8 CITY PARIS LOS ANGELES SHANGHAI MINNEAPOLIS NEWARK E X E C U T I V E O F F I C ES HAVANA NEW ORLEANS 30 BROAD STREET, NEW YORK MEXICO CITY NEW YORK MONTREAL VOL. I X NEW YORK, JUNE, 1926 No. 6 Policies POLICY may be defined as a plan of action which will serve as a basis for guidance in human endeavor. An individual working alone, unless restrained by laws, or force of other circumstances, may act from hour to hour as the spirit of the moment moves him. When individuals begin to work together, necessity arises for some mutual understanding which will guide them in their common efforts. The importance of having business policies has become manifest more than ever before in history with the development of the modern corporation. Matters such as complexity of organization, geographical spread, heterogeneity of personnel, changing notions and demands of the purchasing public create a situation which corporation officials would have little hope of controlling were it not for the enunciation of certain guiding principles. Large scale accountancy organizations find themselves in the same economic group as industrial and other corporations. What with serving a clientele ranging from individuals to mammoth corporations, with service being rendered over the entire civilized world, with business conditions constantly changing, and with a personnel made up of all sizes, ages, types, temperaments, degrees of education, experience, and intelligence, the problem of pleasing everyone would not be simple even if it did not involve a technical subject concerning which there are, at the present time, many differences of opinion. With this added technical difficulty, the task assumes monumental proportions. An organization facing these problems without policies is like a ship without a rudder. And if it has policies, but they are locked up in a safe, they are of no more service than if they had not been formulated. The late Frederick W. Taylor once remarked, substantially: "If you expect a workman to do a piece of work the way you want it done, you must tell him how to do it." Accountancy organizations well may take a lesson from the experience of industry. Executive, managerial, and technical policies should be evolved, promulgated, and put into practice. No policy will fit every case under any and all circumstances. Deviation in application at times will be necessary. But any deviation, perforce, must first call for consideration of the necessity therefor and of the pertinent circumstances affecting the case. Policies are principles which serve as a guide to conduct. Most human beings work more intelligently when they have principles to guide them. The implication is that accountants who observe certain general laws will be more successful in their endeavors.
Haskins & Sells Bulletin, Vol. 09, no. 06 (1926 June), p. 41
|Source||Originally published by: Haskins & Sells|
|Collection||Deloitte Digital Collection|
|Digital Publisher||University of Mississippi Libraries. Accounting Collection|
|Identifier||HS Bulletin 9-p41|