Question

Explain the following term with suitable examples:

Policy

Answer 1

A policy is a broad declaration that directs choices. Policies provide limits on the range of options available for decision-making and guide choices towards achieving goals. For example, providing women and minorities with equal employment opportunities advances the goal of fulfilling social commitments. It directs CEOs’ thoughts to ensure that personal preferences and ideals do not influence their hiring selections. It is against McDonald's policy to give a franchise to someone who already owns another fast food establishment. Policies both allow for discretion and serve as a medium for decisions. Therefore, “policies are general statements of understandings which guide or channel thinking in decision making of subordinates”.