TOPIC: POLICY AND STRATEGY ARE RELATED BUT NOT THE SAME AND THE TWO ARE NECESSARY FOR ORGANISATION TO ATTAIN ITS OBJECTIVES AND REMAIN COMPETITIVELY RELEVANT
POLICY: A contract of insurance, describing the term, coverage, premiums and deductibles also called insurance policy. Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization. It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which decisions must be made. Business policy also deals with acquisition of resources with which organizational goals can be achieved.
Business policy is the study of the roles and responsibilities of top level management, the significant issues affecting organizational success and the decisions affecting organization in long-run. According to the draft Glossary, Policy is clear and measurable statements of preferred direction and behaviour to condition the decisions made within an organization. It describes efficient and acceptable behaviour that assists in maintaining objectives. It defines how action should be taken; whereas strategy defines what action should be taken. A policy is typically described as a principle or rule to guide decisions and achieve rational outcome(s).
The term is not normally used to denote what is actually done; this is normally referred to as either procedure or protocol. Policies are generally adopted by the Board of or senior governance body within an organization whereas procedures or protocols would be developed and adopted by senior executive officers.
A Policy is a description of how people should use resources efficiently or acceptably, whilst maintaining the Strategy. It can be for the operation of the organization as a whole – corporate values...