Policies are general statement or understanding which guide or channel thinking in decision making.
Philip Kotler, the marketing management guru has defined policy as “policies can be defined as how the company deals with its stakeholders, employees, customers, suppliers, distributors and other important groups.
Policies narrow the range of individual discretion so that employees act consistently on important issues.
Features of policies
- It provides the guidelines for the members of the organization to decide a course of action and thus restricting their freedom of action.
- Policy limits the area within which a decision is to be made and ensures that the desicion will be consistent with and contribute to the objectives.
- Policies are generally expressed in qualitative, conditional or general manner.
- It is a function of all managers because some form of guidelines for future course of action is required at every level.