Policies are the elementary doctrines and consecutives instructions that are defined and imposed by the administrative body of an organization, to govern and check the process of achieving the long-term goals of the organizations. They also help the higher management in decision making.
The stages of policy formation are:
• Problem identification: Recognizing the problem areas that are in need of the administrations attention
• Policy formation: Exploring the different ways in which the issue can be resolved
• Decision making: Deciding the best and final option
• Implementation: Putting the chosen idea into practice
• Evaluation: Quantifying the success or failure of the implemented action by evaluating its outcome and effectivity
A policy typically contains:
• Purpose statement: Explaining the reasons for promulgating the policy and its intended effects or outcomes
• Scope of statement: Describing the policy and all those areas that it would be affecting.
• Date: The date from which the policy would be effective
• Responsibilities: Chalking out the distribution of responsibilities among people and organizations for carrying out the policy actions smoothly
• Statements of Policy: It contains the regulations and requirements of the policy
Following are the different types of policies:
• Distributive policies: These policies are created for the processes related to distribution f cost of goods or services to members of an organization. Example: Benefits policies
• Regulatory policies: These policies limit and decree certain kind of behavior. Example: Policies pertaining to fairness and integrity
• Constituent policies: These policies deal with power distribution and laws.
Policies are often misrepresented as rules. However, they are two entirely different things. Rules are guidelines that employees of an organization are entitled to follow. In case of violation of rules penalties can be imposed. Policies on the other hand are the guidelines that describe how these rules can be used and implemented effectively to reach the organizational goals.