Management Concepts & Organisational Behaviour - Policies


   Posted On :  17.05.2018 10:20 pm

Polices come into being in any organization in different ways. Koontz and O’donnel have classified policies under the following types, based on their source.

Polices come into being in any organization in different ways. Koontz and O’donnel have classified policies under the following types, based on their source.

Originated Policies

Top management formulates policies for the important functional areas of business such as Production, Marketing, Finance, Personnel and so on. The objective is to help the concerned managers in decision making in their respective areas. Thus, originated policies are the result of top management initiative. These policies are formulated in the light of organizational objectives. They may be broad or specific depending on the centralization or decentralization of authority. If they are broad, they allow the subordinates some operational freedom. On the other hand, if they are specific they are implemented as they are.

Appealed Policies

Managers quite often confront with peculiar situations as to whether they have the authority to take a decision on a particular issue or problem. The policies regarding some issues may be unclear or may be totally absent. There may not be precedents to guide the manager. In such a case, he appeals the matter to the superiors for their thinking. Thus, appeals are taken upwards till they reach the appropriate level in the hierarchy. Depending upon the nature of issues involved, after a thorough examination, policy decision would be taken at the appropriate level. The decision taken by the higher-ups becomes a policy. For example, during festival seasons, the manager at the branch level may be in a dilemma to offer discount to the customers. There may not be any explicit policy to guide him. But to meet competition in the market management, on the basis of an appeal made by the branch manager may allow him to offer discount on such occasions. Unless otherwise stated, it becomes an unwritten policy and guides the manager’s decision making in all such future situations.

Implied Polices

In some cases, there may not be specific policies for all the contingencies. Managers draw meanings from the actions and behaviour of their superiors. For example, if customer service is on top of the agenda of the organisation and if such a philosophy is constantly reinforced by the actions of top management from time to time, a manager may go all out to help a customer who is in a difficult situation. There may not be any
objection from the top management to the stand taken by the lower level manager in support of the customer. Though there is no explicit policy, mangers may assume it in a particular way and go about in their day-to-day operations.

Externally Imposed Policies

These are the policies which are not deliberately conceived by the managements. They are rather imposed on the organizations by the agencies in the external environment like government, trade unions, industry associations, consumer councils, etc. These agencies, in order to protect the interests of the respective groups may lay down certain policies to be followed by the business. As the interaction of the business with external environment is increasing, one can find many policies thus coming into being. The organization has to obviously comply with them. For instance, the recruitment policy of the organisation is influenced by the government’s policy towards reservations to weaker sections. Anti-pollution measures, concern for the quality of the product and customer service also fall in this category.


Tags : Management Concepts & Organisational Behaviour - Policies
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