After understanding the concept of corporate policy, following features can be identified:
- General Statement of Principles: Policies are general statement of principles followed by corporate for the attainment of organizational objectives. These principles provide a guide to action for the executives at different levels.
- Long Term Perspective: Corporate policies have a long life and are formulated with a long term perspective. They provide stability to the organization.
- Achievement of Objectives: Corporate policy is aimed at the fulfillment of organizational objectives. They provide a framework for action and thus help the executives to work towards the set goals.
- Qualitative, Conditional & General Statements: Corporate policy statements are qualitative in nature. They are conditional and defined in general manner. These statements use words as to maintain, to follow, to provide etc. They can be specific at times but most of the times, a corporate policy tends to be general.
- Guide for Repetitive Operations: Corporate policies are formulated to act as a guide for repetitive day to day operations. They are best as a guide for the activities that occur frequently or repeatedly.
- Hierarchy: Corporate policies have an hierarchy i.e. for each set of objectives at each level of management there is a set of policies. The top management determines the basic overall policy, then the divisional and / or departmental policies are determined by the middle level management and lower level policies are more specific and have a shorter time horizon than policies at higher levels.
- Decision Making Process: Corporate policy is a decision making process. In formulating corporate policy one has to make choices and the choice is influenced by the interests and attitudes of managers engaged in making the policies.
- Mutual Application: Corporate policies are meant for mutual application by subordinates. They are made for some specific situation and have to be applied by the members of the organization.
- Unified Structure: Corporate policies tend to provide predetermined issues and thus avoid repeated analysis. They provide a unified structure to other types of plans and help mangers in delegating authority and having control over the activities.
- Positive Declaration: Corporate policy is a positive declaration and a command to its followers. It acts as a motivator for the people following it and thus they work towards the attainment of the objectives efficiently and effectively. The corporate policy lays down the values which dominate organization’s actions.
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