OER for a Post Graduate Programme in HRM
Module 1 :
Principles of Management
Module Content Map
Types of policies
For effectively guide the actions of the subordinates, the top management of the business formulates policies for the important functional areas. Such policies are called originated policies. These policies stem from the declared objectives of the organization. These policies may be broad or specific depending on the delegation of authority within the organizations.
When a dilemma appears in a unit of the organization over some issue, the unit head appeals his superiors for a decision. This appeal moves upward in the vertical hierarchy of the organization till a most suitable decision is made. Such decisions becomes a ruling on the issue and such rulings in turn becomes appealed policies.
Implied policies are not explicit policies, still a functionary can take decisions on certain day to day matters that are not specifically stated in the approved policies assuming that it will come under the broad policy framework of the organization and will be accepted by the top management. It requires a better understanding of the approved policies, the views of the superiors, functioning of the unit concerned and future consequences to relate such instances to implied policies.
Externally Imposed Policies
Externally Imposed Policies are imposed by external agencies like Governments, Legal Authorities, Industry Associations, Trade Unions etc. Labour Laws issued by Governments, Court of justice verdicts, Demands of Associations etc come under this category of policies.