Basic Principles of Business Policy and Strategy
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Every organization has a purpose for which it was established - either for profit-making or non-profit making and closely allied to the purpose of an organization are the principles on which it is to be conducted. These principles in business parlance are commonly called "Policy". Every business requires guidelines that are to be embedded in policy. The policy is a decision rule, not a decision (Ackoff 1993). Principles in business parlance are commonly known as policy. Policy denotes a future course of action of intent towards the activities of an organization. Business Policy defines the sco...
Every organization has a purpose for which it was established - either for profit-making or non-profit making and closely allied to the purpose of an organization are the principles on which it is to be conducted. These principles in business parlance are commonly called "Policy". Every business requires guidelines that are to be embedded in policy. The policy is a decision rule, not a decision (Ackoff 1993). Principles in business parlance are commonly known as policy. Policy denotes a future course of action of intent towards the activities of an organization. Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization (Wikipedia, 2012). 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 within which decisions must be made. Business policy also deals with the acquisition of resources with which organizational goals can be achieved.
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