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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.