BU288 Lecture 2: Bu288 lesson 2
Document Summary
Business policies are the guidelines formulated by an organization to govern its actions. They define the limits and the scope within which decisions must be made by the subordinates. It allows the lower level management to deal with the issues and challenges without consulting top level management every time for making decisions. The term "business policy" comprises of two words, business and policy. Business as we know means exchange of goods and services for increasing utilities. Policy may be defined as "the mode of thought and the principles underlying the activities of an organization or an institution. " Policies are general statements of principles which guide the thinking, decision- making and actions in an organization. Business policy is a set of principles and rules which directs the decisions of the subordinates. Policies are framed by the top level management to serve as a road map for operational decision making.
