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.
TYPES OF POLICES
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.
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.
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.
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
anyobjection 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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