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Policy is a precise statement which contains the set of principles acting as guidelines for achieving the goals of an organization.

Source: Policy

A Policy is, simply, an official or prescribed plan or course of action.

A Policy itself provides no compliance and no enforcement.

Guidelines for making an effective Policy are as follows:

• Policy as far as possible should be in writing.
• They should be clearly understood by those who are supposed to implement them.
• They should reflect the objectives of the Organizational Entity.
• To ensure successful implementation of a Policy, the top managers and the subordinates who are supposed to implement them must participate in their formulation.
• Conditions change, and policies must also change accordingly. Hence, a Policy must strike a reasonable balance between stability and flexibility.
• Different policies in the Organizational Entity should not pull in different directions and should support one another.
• Policies should not be detrimental to the interests of society.
• Policies should be periodically reviewed in order to see whether they are to be modified, changed or completely abandoned.