Business policy is the study of the roles and responsibilities of top- level management, the significant issues affecting organizational success and the decisions affecting organization in the long-run.
Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization.
It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions.
Business policies are the guidelines developed by an organization to govern its actions. They define the limits (Do’s & Don’t’s) within which decisions must be made.
Business Policy includes guidelines, rules and procedures established to support efforts to achieve stated objectives.
Policies are guides to decision making and address repetitive or recurring situations.
Policy defines the area in which decisions are to be made, but it does not give the decision.
A 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.
Examples of Business Policies :
HR Policy
- Hiring-Firing
- Employee profile
- Training
- Transfers
- Promotions
- Wages
- Incentives & Bonus
Marketing Policy
- What to sell
- Where
- To Whom
- Through Whom
- Communication
Materials Policy
- Quality-Quantity
- Vendors
- Payment terms
- Stores & Handling
- Documentation
Quality Policy
- Standards
- Checks & Controls
- Feedbacks
- Corrective Measures