This document discusses company policies. It defines what policies are, provides characteristics that sound policies should possess like flexibility and being understandable. It also categorizes different types of policies like basic, middle management, departmental policies. Policies should be written, reviewed periodically and compiled in a policy manual for easy reference and implementation. Periodic review ensures policies remain relevant with changing business needs.

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Presentation By: Emmanuel
AlexanderJathanna
M.Com
Milagres College kallianpur.

2. I
N
T
R
O
D
U
C
T
I
O
N
:
Policies provideguidetoaction,objectives setthe
target wherewewanttogoandpolicies project outhowwe
cangothere.Apolicyis ageneralstatementwhichguides
thinking,decision-m
akingandactionintheorganisation.
Policies decidethelimits withinwhichmanagement cantake
decisions. Usually
,wecomeacross certain policies such as
personal policy
, recruitment policy
,price policy
, promotion
policyetc.,
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3. Afewdefinitionsofpoliciesaregivenbelow
:
“
Apolicyisaguidetothinkingactionofthosewhotakedecisions”
-koontz&D’Donnel
“Policiesaregeneralstatementswhichguideorchannelthethinkingof
allpersonnelchargedwithdecision-making”
-T
h
eoHaimann
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4. Asoundbusinesspolicyshouldpossessthefollowing
characteristicsw
h
icharealsoknow
nas itsprinciples:
Flexibility
Apolicymustbeflexibleandtheusualwordswhichareaddedinthe
policytomakeitflexibleare“wheneverpossible”,“asthecase
maybe”,“underusualconditions”etc.,Itshouldprovidefor
discretionsothatsubordinatemanagercanintelligentlyapplythe
policyinagivensituation.Arigidpolicyservesnopurpose.
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5. Easilyu
n
derstandable
:
Apolicyshouldbesuchthateveryoneinthe
organisationunderstandsit.Itshouldtherefore,be
statedindefinite,positiveandclearterms.Therew
ill
benoproblemintheimplementationofpolicywhich
isdefinite,simple,clearandeasilyunderstandable.
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6. PreciseA
n
dW
ritten
Apolicyshouldbepreciseandwrittensothatall
peopleunderstanditinthesam
esense.Itisnot
aneasythingtowriteapolicy
.Policiescanalso
beoralbutwrittenpoliciesareofgreathelpto
thesubordinatestaff.
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7. Consistent
Theremustbeaconsistencyof sectionalpolicieswith
themainpolicy
.Ifpoliciesareinconsistentor
contradictory
,itwillleadtoconfusionatthe
subordinatelevel.Thusdifferentpoliciesofthe
com
p
anyshouldbeinharmonywitheachother
.It
shouldalsobeconsistentwiththepublicpolicy
.
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8. FairA
n
dE
quitable:
Apolicyshouldconformtoeconomicprinciples,
businesslaws,equityandjustice.Itmustbefairto
thosewhoareeffectedbyit,andshouldbein
accordancewiththeacceptedbusinessstandards.It
shouldbeformulatedwithdueregardtotheinterests
ofalltheconcernedparties.i.e.,theemployer
,the
employeeandthepublic.
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9. Practicable:
Apolicyshouldbesuchthatitisactuallypossible
toimplementitinrealbusinesssituations.Thusa
policyshouldbefoundeduponfacts,and
soundjud
gement.
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10. Stable:
Althoughsomeamountofflexibilityinapolicyis
desirableyet,itisoneofthebasic
characteristicsofapolicythatitshouldbe
stable.Iftheconceptofflexibilityistakento
meanasfrequentchangesinapolicy
,thevery
objectiveofapolicyisdefeated.
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11. R
e
v
i
e
w
:
O
naccountofthedynamicnatureofbusiness,itis
necessarytoreviewthepoliciesatfrequent
intervals.Adecisionisthentakenastow
hetherthe
policiesaretobemodified,changedorreplacedbya
newpolicies.
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12. B
asicP
o
licyO
r T
o
pM
a
n
a
g
e
m
e
n
tP
o
licy:
Apolicylaiddownbythetopmanagementisabasicpolicyasits
objectistoachievethebasicgoalsofanenterprise.
M
id
d
leM
a
n
a
g
e
m
e
n
tP
o
licies:
Thesepoliciesarecalledgeneralpoliciesandtheyaffectlarge
partoftheorganisation.
D
e
partm
e
n
ta
lP
o
licies:
Adepartmentalpolicyappliestoroutineactivitiesofa
departmentanditis usedbythelow
erm
anagem
entsuchassupervisors.
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13. WrittenA
n
dVerb
a
lP
o
licies:
Apolicywhichiswrittenintheformofastatementiscalleda
writtenpolicy
.Apolicywhichisorallycommunicatediscalled
unwrittenpolicy.
I
m
p
l
i
e
sP
o
licies:
Thosepolicieswhichareneitherwrittennorverbalbutactually
existinacompanyarecalledimpliedpolicies.
F
u
n
ctionalP
o
licies:
Policiesrelatingtovariousfunctionalareasofmanagement
arecalledfunctionalpolicies.
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14. P
o
licyM
a
n
ual:
Allwrittenpoliciescompliedinabookwhichiscalledapolicy
manual.
A
d
va
n
tagesO
fP
o
licyM
a
n
ual:
T
h
ereisnomisunderstandingormisrepresentationofany
policy
.
Allpoliciesarereadilyavailableforguidanceandreference.
Theimplementationofpoliciescanbeeasilyreviewed.
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15. Presented By : EMMANUEL
ALEXANDER JATHANNA
M.Com
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