Notes on Essential Of Sound Policy In Management:

Meaning And Definition Policy:

      A policy is a general statement that guides thinking, action and decision making of managers for the successful achievement of organisational objectives. Policies define the limits within which decisions are to be made. Top Management generally frames policies. However, Managers at any level may lay down policies within his limits and authorities. Policies ensure consistent and unified performance and exercise of discretion by managers. Policies may be written or verbal. Policies help managers to delegate authority and chalk out the limits for decisions by the subordinates.

      The following are some precise definations.

Defined by E.F.L. Breach:

       In the words of Breach, policy is "a pattern of direction for the guidance of those who carry responsibility for the Management of the activities of the enterprise."

Defined by George Terry:

      As penned by 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."

Characteristics Of Sound Policy:

       The following are the important features of policy.

  1. A policy is a standing plan for answering the recurring problems of same nature.
  2. It provides a framework for decision-making.
  3. It prescribes the course of action selected to guide and determine present and future decisions.
  4. It lays down the limits within which decisions are to be made.
  5. Top Management generally frames policies. However, Managers at lower level may also frame policy within their limits.
  6. Departmental or divisional policies are formulated within their respective limit of authority.
  7. A policy is not static. Policies are reviewed and modified from time to time as per requirements or demands of the changing environments.
Essential Of Sound Policy:

      The following are the essentials of sound policy.

       A sound policy must be designed in a Manner so as to lead to the accomplishment of some Organisational objective.

  1. It should be clearly and precisely written with no chance for misinterpretation.
  2. It should be communicated to all concerned people.
  3. It should be realistic and feasible.
  4. It should prescribe the current and future course of action.
  5. It should be a written one to make it definite and explicit.
  6. It should be flexible enough to make necessary modifications as and when required.
  7. It should be just, fair and equitable without any discrimination.
  8. It should be constantly reviewed so that required improvements may be brought it.
  9. Finally, it should not conflict with another policy. Rather all the policies of the organisation should be supporting to each other.