On the basis of scope of an organization, policies are classified as Basic Policies, General Policies and Departmental or Specific Policies.

Basic Policies:- These are framed by the top management and spell out the basic approach of a company to its activities and its environment.

General Policies:- These are framed by the middle level management and are more specific. They apply to large segments of the organization.

Specific Policies:- These are framed by the foremen and supervisors and are very specific in nature. They are applicable to routine activities.