Policy Management in Corporate Policies

Policy is an ordered system of rules to direct activities and attain reasonable results. A policy is an unchangeable statement of purpose and is usually implemented as a process or rulebook. Most policies are typically adopted by a governing body within an organization, such as an executive department. A number of organizations develop policies on the basis of their organizational objectives. Such policies provide a framework for an organizations management and also serve as the main control mechanism.

Policy is an order with detailed specifications and guidance concerning specific activities, objects, processes and events. A good policy should be clear, precise, unambiguous, practicable, consistent, efficient and flexible. There are four primary elements that form a policy. Policy is made up of three parts – description, purpose and procedures. These elements need to be carefully separated and understood to form a sound policy.

The most important aspect of any policy is the description. This helps in identifying the objects and actions that are to be undertaken with respect to the objects and it also gives a brief idea of the means to achieve those objects and the modes to carry them out. An effective policy has a concise description that identifies all the objectives and the procedures that are necessary to achieve those objectives and it should also be clear about the policies implementation, scope, design, administration, enforcement, resources required, and the risks that are involved in implementing those policies. The overall effect of a policy and its significance lies in its clarity and simplicity.

Purpose of a policy. A good policy should have a clear-cut-cut-and-for-all purposes reason behind it. Policies should be crafted keeping in mind what the organization’s needs, objectives and purposes are. Policies should not be so broad that they become regulations and it is always better to keep them simple rather than complex.

Powerdms in policy management. Policy-managed procedures are designed to create and maintain a particular kind of relationship between the organizations that require it, i.e. it is not the end but the means to the end. Policy-managed procedures allow for the easy implementation of policies and to create and develop them.

The benefits of having a proper policy. In addition to the above mentioned aspects that policy-managed procedures facilitate; it is also important to consider the organizational aspects that can be affected by the implementation of the policies. Corporate policies can affect both internal as well as external processes of the organization. These processes include training and development procedures, supervisory procedures, technical procedures, purchasing procedures, marketing procedures, customer satisfaction procedures, and many more.

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