Classification of Corporate Policies on the Basis of Scope

Financial Theory and Corporate Policy (4th Edition)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.