Policies are guide-posts for managerial action. Discuss this statement and give at least two examples of policies in any area of business management.
OR
What is Policy? What characteristics do policies have? Also discusses various classifications of an industrial policy.
OR
What is Policy and What are the essentials of a sound policy?
OR
What is Policy? What characteristics do policies have? Also discusses various classifications of an industrial policy.
OR
What is Policy and What are the essentials of a sound policy?
Meaning and Definition of Policy
A policy is a general statement that guides thinking, action and decision making of managers for the successful achievement or organizational objectives Policies define the limits within which decisions are to be made. This ensures consistent and unified performance and exercise of discretion by managers.
The top managers generally frame the policies. However, a manager at any other level may low down policies within the limits of his authority and also within boundaries set by policies of his seniors.
A policy is not static and may be modified or reviewed in the light of changes in the environment. A policy may be verbal, written or implied.
A well defined policy help the manager to delegate authority without undue fear, because the policy lays down the limits for decisions by the subordinates. Moreover, policies operationalise objectives, speed up decision making, ensure coordination, help in training and orienting employees and ensure proper administrative control.
Different scholars have defined the term policy as follows:
Heinz Weihrich and Harold Kountz
Policies are plans in that they are general statement or understanding that guide or channel thinking in decision making. Not all policies are statements they are often merely implied from the actions of managers.
F.T. Hanker
A policy is a statement, verbal, written or implied of those principles and rules but are set by managerial leadership as guidelines and constraints for the organisation's thought and action.
E.F.I Brech
Policy is a patter of direction for the guidance of those who carry responsibility for the management of the activities of the enterprise.
Dalton McFarland
Policies are planned expressions of the company's official attitudes towards the range of behaviour within which it will permit or desire its employees to act.
George Terry
Policy is a verbal, written or implied overall guide setting up boundaries that supply the general limits and direction in which managerial action will take place.