Question

Which statement correctly describes policies?

Options

• They exist at all levels, with major policies for outsiders and minor policies for insiders

• They are intended only for insiders and show exactly how work is performed

• They quantify future facts and figures in numerical terms

• They are the simplest type of plan and allow no discretion

Answer 1

Policies exist at all organisational levels and define parameters within which managers act. Major policies affect outsiders, while minor policies guide insiders; examples include recruitment policy, pricing policy and Purchase Policy.