What is Standard Operating Procedure (SOP)?
Standard operating procedure can be defined as a detailed documented procedure which guide to every person of an organization to perform assigned activity step by step to ensure uniform and quality output. In an organization different personnel perform different task at different level. SOPs standardized the processes of task execution.
The requirement for SOPs and their format will range from industry to industry. SOP requirement could also depend on the type of activity an organization is undertaking, or by what regulation a business is governed.
Need for Implementation of SOPs in an Organization-
Many benefits can be derived from implementation of SOPs in an organization. Having an extensive network of SOPs can help eliminate disorganization from business thereby improving operations. Some of benefit are enumerated here under:
- Ensure task continuity-
Whenever any staff in organization is absent, the work of organization cannot stop. By referring the designed SOPs work can be taken over by the other staff.
- Meeting compliance standard-
Having SOPs in place ensure following of compliance standards. SOPs put measures in place so that activities are in accordance with relevant laws, policies and regulations.
- Reduction of errors-
A written procedure details a set of instructions for performing a task for each personnel in organization. As long as each every personnel individually or within team performs the task as it is written, there’s a greater chance of reducing errors.
- Communication within organization-
SOPs implemented in an organisation is for the benefit of communication. With improvements made to processes, the operating procedures are updated, and each update requires new training. Updating SOPs provides a method to communicate the process changes to staff.
- Enhance accountability-
SOPs fix the accountability of every personnel to perform organizational task on the guidelines provided.
- Standardize customer service-
Companies that do not have SOPs generally could find that their customer service is lacking whenever a problem arises.
This content is meant for information only and should not be considered as an advice or legal opinion, or otherwise. AKGVG & Associates does not intend to advertise its services through this.
CA Aman Aggarwal
AKGVG & Associates