Classification of Corporate Policies on the Basis of Nature of Management

Corporate Governance: Principles, Policies and PracticesThe main functions of an organization comprise of planning, organizing, actuating and controlling. The policies may therefore be classified as planning policies, organizing policy, actuating policy, and controlling policy.

Planning Policies:- These policies are concerned with the determination of ways to attain the objectives of the organization. Such policies decide corporate objectives, alternative courses of action, comparison of alternatives, establishment of budgets, schedules, procedures, etc.

Organizing Policies:- These policies are concerned with allocation of activities to members of the group so that through their collective efforts, objectives could be achieved. These are those policies which provide for issues like organization structure, authority, responsibility, delegation, centralization and various relationships.

Actuating Policies:- The actuating policies include providing leadership, integrating tasks, communication and organization climate. These policies are concerned with organizing the employees of the organization.

Controlling Policies:- Controlling is the process by which the performance is compared with the set objectives. These policies provide for establishment of standards, pointing out deviations, ascertaining causes for deviation and taking corrective actions.