Business policies are usually guidelines which facilitate the ability of a company or organization to reach predetermined objectives formulated by top-level management. Business objectives are generally the endpoints associated with plans designed to reach company goals. Both policies and business objectives may be formulated into plans as determined by a business organization. While the objective is the end to a plan, policy is the mode and manner used to reach each objective.
Management Roles
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Management's role consists of organizing, planning, staffing, directing and leading a business organization for the purpose of accomplishing business goals. Management uses human, natural, technological and financial resources to develop policy and actionable plans to conduct business. For example, an organization's management may design a system to use in facilitating production and providing services. Business management organizes the activities which connect people for the purpose of accomplishing company goals.
Business Policies
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Business policies may begin as brief statements which demonstrate a company's commitment to providing a product or service to its public. Top management generally devises a quality system based upon specific policies. Policies may also deal with company commitment to continuous improvement toward effective business systems. For example, an organization may develop a "quality policy," to ensure that staff adhere to the highest level of integrity when designing products and providing services in the company's name.
Business Objectives
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Business objectives can be developed based upon a company's production and service policies. Management creates policies which establish and review company objectives that are relevant to its business needs. Business objectives may include the ideal that the success of any company system involves participation by all levels of employees in order to be reach their goals.
Role of Policy
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Policy serves to clarify the business intent, describe how it will be administered and define company objective particulars. Policies may also protect organizations from misunderstandings which could lead to unacceptable behavior or lawsuits. Policy statements are used by management to devise objectives, and then goals, for companies. For example, when a company's intent is to provide the best type of product to serve its public, management then oversees the development of a suitable system to provide that product.
Policy Objectives
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Policy developed by businesses, companies and organizations usually underpin the delivery of strategically developed objectives. Policy objectives may be developed in a context from which specific goals and guidelines may be devised. Companies can include policy within master plans which include long-term visions and foundations to create more specific statements of purpose. An action plan could include policy-related tasks to link general policy to actual guidelines for business objectives.
