The absence of structure invites chaos. Countries which have strictly enforced road rules can be clearly told apart from those which don't just by spending a few minutes in heavy traffic. Schools with upheld boundaries and values result in demonstrable behavioural differences from those that don't. It, therefore, stands to reason that having up to date, relevant and complaint policies and procedures in your workplace is critical.
Policies and procedures set the guidelines and parameters for how your business operates. Without well developed and effectively communicated policies and procedures, there are no solid rules, and when there are no rules, people create their own.