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POLICIES

POLICIES

Meaning and Definition: policies may be defined as guides to thinking and action of those who have to make decisions in the course of accomplishments of the enterprise. Policies are formulated in broad terms and provide a comprehensive and flexible course of action to be pursued to attain the given objectives. Thus they give a concrete touch to objectives. However it should be noted that policies do not provide any decisions as such. They only lay down the limits within which decisions have to be made. For example an enterprise which has set the objective of promoting the development of people of the area may follow the policy of selling only against or of filling up managerial posts from among its own employees.

According to Joseph L. Massie, "policies include that body of understanding (generally known by the members of the group), which makes the action of each member of the group in a given set of circumstances more predictable to other members".

According to the Koontz and 0' Donnell, "policies are the general statements or understandings which guide or channel thinking in decision making of subordinates".

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