BCom Notes Part II Management Characteristics of Policy

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Characteristics of Policy

Describe the characteristics or features of Policy. Characteristics Or Features of Policy

Policy has the following important features:

1. A policy is a standing, repeat-use plan for answering the recurring problem of the similar nature.

2. It is a guide thinking in decision making. It is not an exact order in which things are done. It provides the framework within which decisions should be taken. It unfolds the broad guidelines for achieving organizational objectives.

3. It allows some amount of judgement or discretion on the part of the executives.

4. It prescribes the course of action selected to guide and determine present and future decisions.

5. It lays down the limits within which decisions are to be made. This ensures consistent and unified performance and exercise of discretion on the part of the executives.

6. Policies are generally framed by top-level management, however, managers at other levels also can frame necessary policies to deal with recurring problems of similar nature, such as departmental policies, divisional policies – formulated at the level of department or division.

7. Departmental or divisional policies are formulated within the limits of the authority of the respective in charge and also within the limits set by the organizational policies.

8. A policy is not static. Policies are reviewed and modified from time to time as per requirements or demands of the changing environment.