Policies are directives designed to guide the thinking, decisions, and actions of managers and their subordinates in implementing a firm’s strategy. Sometimes called standard operating procedures, policies increase managerial effectiveness by standardizing many routine decisions and clarifying the discretion managers and subordinates can exercise in implementing functional tactics.

Webster Dictionary Meaning

1. Policies
- of Policy
Share it:  Cite

More from this Section

  • External environment
    The term External Environment refers to factors and forces outside the organization that ...
  • Agency costs
    The cost of agency problems and the cost of actions taken to minimize agency problems ...
  • Grand strategy selection matrix
    One valuable guide to the selection of a promising grand strategy is the grand strategy ...
  • Growth Strategy
    Growth Strategy is a corporate strategy that’s used when an organization wants to expand ...
  • Referent power
    Referent power is the power that arises because of a person’s desirable resources or ...