TOPIC: POLICY AND STRATEGY ARE RELATED BUT NOT THE SAME AND THE TWO ARE NECESSARY FOR ORGANISATION TO ATTAIN ITS OBJECTIVES AND REMAIN COMPETITIVELY RELEVANT
POLICY: A contract of insurance, describing the term, coverage, premiums and deductibles also called insurance policy. Business Policy defines the scope or spheres within which decisions can be taken by the subordinates in an organization. It permits the lower level management to deal with the problems and issues without consulting top level management every time for decisions. Business policies are the guidelines developed by an organization to govern its actions. They define the limits within which ...view middle of the document...
It can be for the operation of the organization as a whole â€“ corporate values - or for the use of a particular resource, such as technical IT standards or personnel policy.
Features of Business Policy
An effective business policy must have following features-
1. Specific- Policy should be specific/definite. If it is uncertain, then the implementation will become difficult.
2. Clear- Policy must be unambiguous. It should avoid use of jargons and connotations. There should be no misunderstandings in following the policy.
3. Reliable/Uniform- Policy must be uniform enough so that it can be efficiently followed by the subordinates.
4. Appropriate- Policy should be appropriate to the present organizational goal.
5. Simple- A policy should be simple and easily understood by all in the organization.
6. Inclusive/Comprehensive- In order to have a wide scope, a policy must be comprehensive.
7. Flexible- Policy should be flexible in operation/application. This does not imply that a policy should be altered always, but it should be wide in scope so as to ensure that the line managers use them in repetitive/routine scenarios.
8. Stable- Policy should be stable else it will lead to indecisiveness and uncertainty in minds of those who look into it for guidance.
Strategy is an organizationâ€™s overall plan of development, describing the effective use of resources in support of the organization in its future activities. It involves setting objectives and proposing initiatives for action. The draft Glossary for strategy adds that strategy is the choice of objectives for the organization as a whole. It defines what must be achieved in the future. The science and art of employing the political, economic, psychological, and military forces of a nation or group of nations to afford the maximum support to adopted policies in peace or war. It can be for the outcome of the organization as a whole - corporate strategy - or for the outcome of the use of a particular resource, such as IT strategy or Human Resource strategy. Ideally, all strategic planning should be carried out at once, as a whole. That is, there should not be an IT strategy separate from the corporate strategy. Both should be prepared by the same people, using the same process, and reported in the same document.
In game theory, a strategy refers to one of the options that a player can choose. That is, every player in a non-cooperative game has a set of possible strategies, and must choose one of the choices. A strategy must specify what action will happen in each contingent state of the game-e.g. if the opponent does A, then take action B, whereas if the opponent does C, take action D.
Strategies in game theory may be random (mixed) or deterministic (pure). That is, in some games, players choose mixed strategies. Pure strategies can be thought of as a special case of mixed strategies, in which only probabilities 0 or 1 are assigned to actions. Strategy...