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Characteristics of a good policy

Characteristics of a good policy

To be effective, a policy must be formulated after carefully considering all aspects of the situation to which it is to be applied. The following points must be borne in mind while formulating a policy:

1.       Broad outlines: a policy should only abroad outlines, leaving it to the managers to decide within its framework. If it is made to cover every detail, it would only hamper individual initiative and style. But at the same time, it should be definite enough to prevent it from being twisted through divergent interpretations.

2.       Consistent: there may be a number of policies dealing with different questions. Hence it is, necessary to ensure that the policies are not mutually contradictory. In case there is inconsistency between any two policies, decision making is bound to be slowed down, because managers will not known which of the two policies has greater backing and support of their superiors.

3.       Adequate number: there should be an adequate number of policies to guide thinking and action in the different fields of activity, for example, there should be definite policies dealing with the production, sales, personal, advertising, finance, etc. at the same time, and there should not be any duplication.

4.       Sound and practicable: an enterprise is known by the policies it follows. Policies are granting image builders. For this reason, policies decided by an enterprise should be sound and logical in every respect. Only then managers can rely on them and confidently tackle a variety of problems.

5.       Flexible: through policies are not meant to be changed off and on, there is needed to keep them flexible enough to be adjusted to suit the needs of changing times.

Importance of policies: the importance of the policies can be judged from the following points:

1.       Policies lead to a uniform pattern to action in respect to various matters relating to an organization.

2.       Policies speed up in decision making since they provide a framework within which the decisions can be taken.

3.       A policy helps in securing effective coordination of efforts and activities in the organization.

4.       A policy helps both men and boss to work for a better performance.      

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