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POLICY AND STRATEGY.pptx
This document defines strategy and policy, and compares the key differences between them. Strategy is defined as a comprehensive plan made to accomplish organizational goals, gain competitive advantage, and achieve a desired market position. Policy is defined as guiding principles that direct organizational decision-making. The main differences are that strategy is an action-oriented flexible plan formulated by top and middle management, while policy are fixed rules formulated by top management to guide repetitive decisions.
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POLICY AND STRATEGY.pptx
- 1. POLICY AND STRATEGY RamyaB Assistant Professor B.com(PA) Sri Ramakrishna College of Arts and Science Coimbatore - 641 006 Tamil Nadu, India 1
- 2. Definition of Strategy The strategy is a game plan, chosen to achieve the organisational objectives, gain customer’s trust, attain competitive advantage and to acquire a market position. It is a combination of well-thought intent and actions which lead to the organisation towards its desired position or destination. It is a unified and integrated plan made to achieve the basic objectives of the enterprise like:
- 3. • Effectiveness • Handlingevents and problems • Taking advantage of opportunities • Full resource utilisation • Coping with threats
- 4. The strategyis a combination of flexibly designed corporate moves, through which an organisation can compete with its rivals successfully. lowing are the features of the Strategy: It should be formulated from top-level management. However, sub-strategies can be made by middle-level management. It should have a long-range perspective. It should be dynamic in nature. The main purpose is to overcome from uncertain situations. It should be made in such a way, to make the best possible use of scarce resources.
- 5. Definition of Policy The policy is also regarded as a mini-mission statement, is a set of principles and rules which direct the decisions of the organisation. Policies are framed by the top-level management of the organisation to serve as a guideline for operational decision making. It is helpful in highlighting the rules, value and beliefs of the organisation. In addition to this, it acts as a basis for guiding the actions.
- 6. Policies aredesigned, by taking the opinion and general view of a number of people in the organisation regarding any situation. They are made from experience and basic understanding. In this way, the people who come under the range of such policy will completely agree upon its implementation.
- 7. COMPARISON BETWEEN STRATEGYAND POLICY BAS IS FO R CO MP ARI SON STR ATE GY POL ICY Mea ning Strat egy is a com preh ensi ve plan, mad e to acco mpli sh the orga nizat ional goal s. Polic y is the guidi ng prin ciple , that help s the orga nizat ion to take logic al deci sions . Wha t is it? Acti on plan Acti on prin ciple Natu re Flexi ble Fixe d, but they allo w exce ption al situa tions Rela ted to Org aniz ation al mov es and deci sions for the situa tions whic h have not been enco unte red prev iousl y. Org aniz ation al rules for the activ ities whic h are repe titive in natu re. Orie ntati on Acti on Tho ught and Deci sion For mula tion Top Lev el Man age ment and Mid dle Lev el Man age ment Top Lev el Man age ment App roac h Extr over ted Intro vert ed Des crib es Met hodo logy used to achi eve the targ et. Wha t shou ld be done and what shou ld not be done . BAS IS FO R CO MP ARI SON STR ATE GY POL ICY Mea ning Strat egy is a com preh ensi ve plan, mad e to acco mpli sh the orga nizat ional goal s. Polic y is the guidi ng prin ciple , that help s the orga nizat ion to take logic al deci sions . Wha t is it? Acti on plan Acti on prin ciple Natu re Flexi ble Fixe d, but they allo w exce ption al situa tions Rela ted to Org aniz ation al mov es and deci sions for the situa tions whic h have not been enco unte red prev iousl y. Org aniz ation al rules for the activ ities whic h are repe titive in natu re. Orie ntati on Acti on Tho ught and Deci sion For mula tion Top Lev el Man age ment and Mid dle Lev el Man age ment Top Lev el Man age ment App roac h Extr over ted Intro vert ed STR ATE GY POL ICY Strat egy is a com preh ensi ve plan, mad e to acco mpli sh the orga nizat ional goal s. Polic y is the guidi ng prin ciple , that help s the orga nizat ion to take logic al deci sions . Acti on plan Acti on prin ciple Flexi ble Fixe d, but they allo w exce ption al situa tions Org aniz ation al mov es and deci sions for the situa tions whic h have not been enco unte red prev iousl y. Org aniz ation al rules for the activ ities whic h are repe titive in natu re. Acti on Tho ught and Deci sion BASIS FOR COMPARISON STRATEGY POLICY Meaning Strategy is a comprehensive plan, made to accomplish the organizational goals. Policy is the guiding principle, that helps the organization to take logical decisions. What is it? Action plan Action principle Nature Flexible Fixed, but they allow exceptional situations Related to Organizational moves and decisions for the situations which have not been encountered previously. Organizational rules for the activities which are repetitive in nature.
- 8. BASIS FOR COMPARISON STRATEGY POLICY OrientationAction Thought and Decision Formulation Top Level Management and Middle Level Management Top Level Management Approach Extroverted Introverted Describes Methodology used to achieve the target. What should be done and what should not be done.