Policy and Strategy

Policy and Strategy  The success of an organization is strongly linked to how the management perceives the goals to be achieved and the ways devised to achieve those goals. These are two different but interrelated concepts of policy and strategy. Organizational success or failure is largely dependent on how the various functional areas in the organization are combined to produce and deliver value to different stakeholders. This integration of functions is taking place in a continuously changing and complex environment. The formulation and implementation of policies and strategies is an important issue as the organization strives to remain successful and grow in an increasingly complex, competitive and globalised world. It is therefore interdisciplinary by nature and requires an understanding of all functional areas. Organizational policy refers to the roles and responsibilities of top level management, the significant issues affecting organization wide performance and the decisions affecting organization in the long run. Organizational strategy is the strategy developed and implemented to the goals set by the organizational policy. More specifically, organizational strategy can be defined as the way a company creates value through the configuration and coordination of its various multi activities. Organizational policies and strategy provide guidelines for action. Unfavorable and ambiguous policies or strategy may affect the functioning of the employees adversely and they may experience stress. Organization wide policies are designed to achieve major organizational objectives. If an organization think about achieving something as involving ways, means and ends – policy is often engaged with the ‘ways’; strategy is concerned with the ‘means’; and finally planning is focused on the delivery of the ‘ends’. Fig 1 shows relationship of policy and strategy as compared with vision and mission. Fig 1 Relationship of policy and strategy with vision and mission  Policy Policy is a...