Policy PPT by Emmanuel Aexander Jathanna, M.com.

1. Presentation By: Emmanuel
Alexander Jathanna
M.Com
Milagres College kallianpur.
©EMMANUEL A J
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2. INTRODUCTION:
Policies provide guide to action, objectives set the
target where we want to go and policies project out how we
can go there. A policy is a general statement which guides
thinking, decision-making and action in the organisation.
Policies decide the limits within which management can take
decisions. Usually, we come across certain policies such as
personal policy, recruitment policy, price policy, promotion
policy etc.,
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3. A few definitions of policies are given below:
“A policy is a guide to thinking action of those who take decisions”
-koontz & D’Donnel
“Policies are general statements which guide or channel the thinking of
all personnel charged with decision-making”
-Theo Haimann
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4. A sound business policy should possess the following
characteristics which are also known as its principles:
Flexibility
A policy must be flexible and the usual words which are added in the
policy to make it flexible are “whenever possible”, “as the case
may be”, “under usual conditions” etc., It should provide for
discretion so that subordinate manager can intelligently apply the
policy in a given situation. A rigid policy serves no purpose.
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5. Easily understandable:
A policy should be such that everyone in the
organisation understands it. It should therefore, be
stated in definite, positive and clear terms. There will
be no problem in the implementation of policy which
is definite, simple, clear and easily understandable.
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6. Precise And Written
A policy should be precise and written so that all
people understand it in the same sense. It is not
an easy thing to write a policy. Policies can also
be oral but written policies are of great help to
the subordinate staff.
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7. Consistent
There must be a consistency of sectional policies with
the main policy. If policies are inconsistent or
contradictory, it will lead to confusion at the
subordinate level. Thus different policies of the
company should be in harmony with each other. It
should also be consistent with the public policy.
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8. Fair And Equitable:
A policy should conform to economic principles,
business laws, equity and justice. It must be fair to
those who are effected by it, and should be in
accordance with the accepted business standards. It
should be formulated with due regard to the interests
of all the concerned parties. i.e., the employer, the
employee and the public.
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9. Practicable:
A policy should be such that it is actually possible
to implement it in real business situations. Thus
a policy should be founded upon facts, and
sound judgement.
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10. Stable:
Although some amount of flexibility in a policy is
desirable yet, it is one of the basic
characteristics of a policy that it should be
stable. If the concept of flexibility is taken to
mean as frequent changes in a policy, the very
objective of a policy is defeated.
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11. Review:
On account of the dynamic nature of business, it is
necessary to review the policies at frequent
intervals. A decision is then taken as to whether the
policies are to be modified, changed or replaced by a
new policies.
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12. Basic Policy Or Top Management Policy :
A policy laid down by the top management is a basic policy as its
object is to achieve the basic goals of an enterprise.
Middle Management Policies:
These policies are called general policies and they affect large
part of the organisation.
Departmental Policies:
A departmental policy applies to routine activities of a
department and it is used by the lower management such as supervisors.
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13. Written And Verbal Policies:
A policy which is written in the form of a statement is called a
written policy. A policy which is orally communicated is called
unwritten policy .
Implies Policies:
Those policies which are neither written nor verbal but actually
exist in a company are called implied policies.
Functional Policies:
Policies relating to various functional areas of management
are called functional policies.
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14. Policy Manual:
All written policies complied in a book which is called a policy
manual.
Advantages Of Policy Manual:
There is no misunderstanding or misrepresentation of any
policy.
All policies are readily available for guidance and reference.
The implementation of policies can be easily reviewed.
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15. Presented By : EMMANUEL
ALEXANDER JATHANNA
M.Com
©EMMANUEL A J
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