Skip to content

COMMERCEIETS

STUDY TO ENLIGHTEN YOURSELF

  • BCOM GNDU NOTES – SCORE BEST IN YOUR EXAMS!!!
  • MANAGEMENT ACCOUNTING
  • BUSINESS ORGANISATION
  • DIRECT TAX LAWS
  • INTERNATIONAL BUSINESS
  • INDUSTRIAL AND LABOUR LAWS
  • OPERATIONS RESEARCH
  • RISK MANAGEMENT AND INSURANCE
  • BUSINESS STATISTICS
  • PARTNERSHIP ACCOUNTS
  • CORPORATE ACCOUNTING
  • COMMERCIAL LAW
  • MANAGERIAL ECONOMICS
  • BUSINESS MANAGEMENT
  • 11 ACCOUNTANCY
  • GOODS AND SERVICE TAX
  • MICRO ECONOMICS
  • 12 ACCOUNTANCY
  • KEY DIFFERENCES
  • COST ACCOUNTING
  • FINANCIAL ACCOUNTING
  • FINANCIAL MANAGEMENT
  • Toggle search form
POLICY AND PLANNING

POLICY AND PLANNING

Posted on December 17, 2019 By commerceiets No Comments on POLICY AND PLANNING

Table of Contents

  • POLICY AND PLANNING
        • Policy and Planning are complementary to each other.

POLICY AND PLANNING

Policy and Planning are complementary to each other.

POLICY AND PLANNING
POLICY AND PLANNING

Policy formulation is an important aspect of the planning. The smooth working of an organization requires the formulation of the policies. A well thought exercise is essential to formulate the sound and effective policy. The following is the procedure to formulate the policies:

DEFINING POLICY AREA

Management has to identify the areas of the policy. In other words, the areas have to be found out for which the policies are to be made or formulated. Even the existing policy may be changed in this manner. A management could have a clear cut idea only after selecting the area of policy formulation.

EVALUATING OBJECTIVES

Organizational objectives play a vital role in the formulation of the policy. Objectives are the foundation for policy formulation. Objectives give clear cut directions to formulate the policy. The reason is that the policy is formulated to achieve the objectives.

ANALYSIS OF BUSINESS ENVIRONMENT

A policy reflects the circumstances under which the policy is formulated. A policy is formulated according to the situation. But the policy should be designed by taking into consideration the expected changes in the legal, political, social, economic, demographic, technological business environment.

CORPORATE ANALYSIS

Corporate analysis refers to the internal analysis of the organization. The SWOT analysis should be conducted for the same. SWOT:

S- Strengths

W- Weaknesses

O- Opportunities

T- Threats

This type of analysis gives a clear picture of the functioning of the organization and is of utmost help in policy formulation.

COLLECTION OF INFORMATION

The next step in the formulation of policy is the collection of information. An intelligent person may be appointed to collect the information in case of small organization. In case of bug organizations or multinational organization, a committee may be formed and assigned the duty of collecting the information. Information can be collected not only from within the organization but also from outside the organization.

ANALYSIS OF THE INFORMATION

Collected information must be analyzed to assess the value of the information. Proper attention should be paid to the attitudes, aspirations and customs of the employees and the philosophy of the top management people should also be considered. Widespread consultation and discussions ate held with experts for analyzing the information.

IDENTIFICATION OF ALTERNATIVES

On the basis of collected information, different alternative policies are developed to achieve the objectives of the organization. Here the alternative policies are formed with the help of active participation of the employees. Active participation of the employees helps the easy implementation of the policy.

APPRAISAL OF THE POLICIES

Appraisal of the policies is very important. Feasibility, financial implication, pros and cons of each policy are taken into consideration while appraising a policy. Value of a policy could be correctly assessed only through the process of appraisal of policies.

SELECTION OF A POLICY

Management can select anyone of the policies among the appraised policies which is most suitable for a particular situation. The appraisal process of policies facilitates the management to select or formulate the best policy.

APPROVAL OF THE POLICY

The policy draft should be sent to the top management at the right time for its approval. The top management has to approve the policy only after considering whether a policy represents the objectives of the organization or not.

COMMUNICATION THE POLICY

The approved policy should be communicated to the concerned persons. Policy manual has to be prepared or meetings have to be conducted for communicating the policy. Besides, an educational programmer may be conducted to educate the employees as how to apply the new policy.

ALSO STUDY:ALSO STUDY:ALSO STUDY:ALSO STUDY:
ManagementObjectives of managementFunctions of managementProcess of management
Management as an artManagement as a scienceManagement as a professionCompany
Incentive plans14 principles of management by Henry FayolPrinciples of scientific managementScientific management
Work studyTime studyMotion studyMethod study
PlanningImportance of planning in managementAdvantages of planning in businessProcess of planning
Types of planning in businessSetting objectives in managementObjectivesSMART test
Management by objectivesPolicies in BusinessManagement and business administrationFunctional areas of management
Limited Liability partnershipLLP Vs companyLLP vs Partnership
CONNECT ON LINKEDIN
POLICY AND PLANNING
POLICY AND PLANNING
BUSINESS MANAGEMENT Tags:PLANNING, POLICIES

Post navigation

Previous Post: TYPES OF POLICIES
Next Post: FACTORY

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • 11 ACCOUNTANCY
  • 12 ACCOUNTANCY
  • BCOM GNDU NOTES
  • BUSINESS MANAGEMENT
  • BUSINESS ORGANISATION
  • BUSINESS STATISTICS
  • COMMERCIAL LAW
  • CORPORATE ACCOUNTING
  • CORPORATE OR COMPANY LAW
  • COST ACCOUNTING
  • DIRECT TAX LAWS
  • FINANCIAL ACCOUNTING
  • FINANCIAL MANAGEMENT
  • FINANCIAL MARKET OPERATIONS
  • GOODS AND SERVICE TAX
  • INDUSTRIAL AND LABOUR LAWS
  • INTERNATIONAL BUSINESS
  • KEY DIFFERENCES
  • MANAGEMENT ACCOUNTING
  • MANAGERIAL ECONOMICS
  • MICRO ECONOMICS
  • OPERATIONS RESEARCH
  • PARTNERSHIP ACCOUNTS
  • RISK MANAGEMENT AND INSURANCE

Copyright © 2023 COMMERCEIETS.

Powered by PressBook WordPress theme