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STRATEGY AND POLICY DISTINGUISHED

STRATEGY AND POLICY DISTINGUISHED

Policy is a guide to the thinking and action of those who make decisions while strategy relates to the direction in which human and physical resources are to be used in order to maximize the change of achieving a selected mission in the face of competition and other hurdles. Secondly policy is a contingent decision whereas strategy is a rule for making decision. Thirdly the implementation of policy can be delegated downward in the organization whereas the strategy cannot since it requires a last minute executive decision.

Relationship and Distinction between Policies and Objectives: objectives are end points of planning while policies prescribe the broad ways in which the objectives can be realized. Objectives and policies may be distinguished along the following lines:

1 objectives are basic to the existence and functioning of an organization but policies are not while we cannot visualize an organization without a mission or objective it is possible for an organization to function without policies.

2 objectives are ends policies are means to ends they throw light on the question of how objectives are to be achieved. Objectives and policies are related to each other in an ends means chain or hierarchy.

3objectives are stated in board ideological terms and tend to take the shape of vague abstract aspirations expectations and intents of an organization. Policies on the other hand give meaning and content to objectives. Clarify the intents of top management and express its aims in more specific terms.

4 objectives are often branded as official or stated goals which in many cases remain on paper. In contrast policies indicate the real intents of the organization and reflect its true character.

5 objectives are meant to be achieved but policies are meant to be observed by managers. Policies clarify the perspectives of managers for handing the managerial problems in a disciplined manner.

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