07-02-2017, 11:43 AM
Business policy as a discipline Meaning and nature of management What is strategy Generic Strategic alternatives The dynamics of competitive strategy Strategic management Strategic decision making The task of strategic management Vision, Mission and Objectives Strategic Levels n Organisation. Business Policy defines The scope or spheres within which decisions can be made by subordinates in an organisation. It allows lower-level management to deal with problems and problems without consulting senior management each time to make decisions.
Business policies are the guidelines developed by an organisation to govern its actions. They define the limits within which decisions must be made. The business policy also deals with the acquisition of resources with which the objectives of the organisation can be achieved. Business policy is the study of the functions and responsibilities of high-level management, the important issues that affect the success of the organisation and the decisions that affect the organisation in the long run.
Characteristics of corporate policy
An effective trade policy must have the following characteristics:
1. The specific policy must be specific / defined. If it is uncertain, then implementation will be difficult.
2. Clear: the policy must be unequivocal. Avoid jarring and connotations. There should be no misunderstanding in following the policy.
3. Reliable / Uniform - The policy should be sufficiently uniform so that it can be followed efficiently by subordinates.
4. Appropriate policy must be appropriate to the organisation's current purpose.
5. Simple - A policy should be simple and easy to understand by everyone in the organisation.
6. Inclusive / Comprehensive-To have a broad scope, a policy must be comprehensive.
7. Flexible - The policy must be flexible in operation / application. This does not imply that a policy should always be altered, but it must have a broad scope to ensure that line managers use it in repetitive / routine scenarios.
8. Stable-Policy should be stable, but it will lead to indecision and uncertainty in the minds of those looking at it for guidance.
Difference between policy and strategy
The term "policy" should not be taken as synonymous with the term "strategy". The difference between policy and strategy can be summarised as follows:
1. Politics is a model of organisational activities that are repetitive / routine in nature. Although the strategy refers to those organisational decisions that have not been dealt with earlier in the same way.
2. Policy-making is the responsibility of top management. While the strategy formulation is basically done by mid-level management.
3. The policy deals with the daily / daily activities essential for the efficient and efficient functioning of an organisation. While strategy deals with strategic decisions.
4. Politics deals with both thinking and actions. While strategy refers primarily to action.
5. A policy is what it is, or what is not done. While a strategy is the methodology used to achieve an objective as prescribed by a policy.
Business policies are the guidelines developed by an organisation to govern its actions. They define the limits within which decisions must be made. The business policy also deals with the acquisition of resources with which the objectives of the organisation can be achieved. Business policy is the study of the functions and responsibilities of high-level management, the important issues that affect the success of the organisation and the decisions that affect the organisation in the long run.
Characteristics of corporate policy
An effective trade policy must have the following characteristics:
1. The specific policy must be specific / defined. If it is uncertain, then implementation will be difficult.
2. Clear: the policy must be unequivocal. Avoid jarring and connotations. There should be no misunderstanding in following the policy.
3. Reliable / Uniform - The policy should be sufficiently uniform so that it can be followed efficiently by subordinates.
4. Appropriate policy must be appropriate to the organisation's current purpose.
5. Simple - A policy should be simple and easy to understand by everyone in the organisation.
6. Inclusive / Comprehensive-To have a broad scope, a policy must be comprehensive.
7. Flexible - The policy must be flexible in operation / application. This does not imply that a policy should always be altered, but it must have a broad scope to ensure that line managers use it in repetitive / routine scenarios.
8. Stable-Policy should be stable, but it will lead to indecision and uncertainty in the minds of those looking at it for guidance.
Difference between policy and strategy
The term "policy" should not be taken as synonymous with the term "strategy". The difference between policy and strategy can be summarised as follows:
1. Politics is a model of organisational activities that are repetitive / routine in nature. Although the strategy refers to those organisational decisions that have not been dealt with earlier in the same way.
2. Policy-making is the responsibility of top management. While the strategy formulation is basically done by mid-level management.
3. The policy deals with the daily / daily activities essential for the efficient and efficient functioning of an organisation. While strategy deals with strategic decisions.
4. Politics deals with both thinking and actions. While strategy refers primarily to action.
5. A policy is what it is, or what is not done. While a strategy is the methodology used to achieve an objective as prescribed by a policy.