NGOs create management policies to efficiently manage their employees, beneficiaries, and other stakeholders. Policies contribute to lowering the risks connected to institutional management. They also assist us in continuing to manage staff in accordance with all applicable rules and regulations. Considering that NGOs are institutions as well, it is crucial for them to uphold standardized policies and procedures. It is equally crucial for them to record these normative behaviors and procedures for increased accountability, good governance, and transparency. When donor organizations realize that NGOs have written policies in place to manage their people and organizations, they are frequently impressed.

A major advantage to have policies and procedures is that it reduces unnecessary conflicts, questions and misunderstandings that normally arise among employees and other stakeholders. Employees who are aware of the rules in place at their workplaces are less likely to cause issues. In order to construct effective governance styles, it is crucial for NGOs to define their management policies.

A methodical approach is needed while creating a policy or procedure. The steps of create a policy or procedures are as follows: