What is business policy and its importance

A business policy outlines which decisions the employees can take themselves and which decisions require approval or input from the manager. This decreases the breaks in the work process because the employees don't have to wait for their busy manager's time unless it is absolutely needed.

What is meant by business policy?

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.

What policies are important in business?

Policies define the goals of an organization and provide guidance about how to achieve objectives. Policies identify key activities, such as the collection of rental arrears and capital replacement planning. Policies also address things such as: general building rules.

What is the importance of policy?

Although different businesses may have different policies, any business policy has the same seven features. A business policy must be specific, clear, uniform, appropriate, simple, inclusive and stable. Specific: If a policy is not specific, implementation becomes inconsistent and unreliable.