What do you understand by the term “ policy”? Explain the different types of policies and describe how policies are formulated.

A policy is a general guide line for decision-making. It sets up the limiting conditions for a decision-making process. It also provides directions

Types of Policies

• Originated policies
• Appealed policies
• Implied policies
• Externally imposed policy

Formulation of policy is done by top management by way of discussions considering the purpose and environments