Policy is a carefully planned system of rules to guide conduct and attain reasonable results. A policy is an objective statement of purpose and is usually implemented as a set procedure or code. Usually, policies are formally adopted by an governing board at an organization. However, there are instances where a company adopts a policy for the development of the organization and for specific purposes.
Policy evaluation enables managers to understand the importance of the business and identify the obstacles in its path towards achieving the goals. Policy evaluation also helps them measure the effectiveness of public policy. Policy analysis is thus very important for managers who aspire to achieve the desired results in the organization. The importance of policy analysis is illustrated in the case of public policy. In order to get an appropriate public policy, there are certain measures that have to be followed.
Policy analysis plays an important role in international affairs. International relations, which include foreign trade, economy, environment, and energy security, are sensitive issues and are prone to sudden change. Therefore, effective and successful management requires a sound knowledge of public policy that can be attained through proper research. There are various methods that can be adopted in order to understand public policies and find ways to implement them in an effective manner. Among them, one of the most common methods is the policy analysis.
Policy evaluation is necessary not only in organizations but also in the decision making stage of an organization. This is because in organizations, policies become the backbone of the operations. They determine the future course of action of the organization and thus form an important part of the plans and schemes of the organizations. Thus, it is essential for the managers to understand the policies thoroughly and analyze their effects on the organization. Understanding of public policy is different from other types of analysis because it is concerned with the objective, nature, and structure of the policies and the effects they have on the organizations.
Policy analysis covers formal and informal policies formulated by the organization. However, there are certain formal policies such as those governing corporate procedures related to patents, trademarks, copyrights, and trade secrets. There are also informal policies such as those governing recruitment of employees and selection of training instructors. Policies affecting strategic planning, development of strategies, and purchase of required commodities are also considered as the formal policies. In addition, internal policies such as those relating to financial management, procurement systems, quality management systems, and HR systems are also included in the scope of the analysis.
Policy evaluation helps in finding out how well the policies are being implemented by the organization. It also helps in identifying certain types of policies that may need to be modified, revised, or terminated. This is primarily done through cost-benefit analysis of the policies. Analysis of these policies helps in forecasting the problems that may occur in the near future as well as in the long run. Such appraisal also helps in identifying the drivers behind the success and failure of the organization’s policies and helps it improve its performance and effectiveness.