Policy Formulation by Top Level Managers in Commerce

Policy formulation is a crucial function in the management process of any organization. It refers to the process of creating or developing a plan or course of action to achieve organizational objectives. This plan is then implemented through various strategies and tactics.

Top level managers are responsible for policy formulation in the organization. They are the ones who create the overall vision and direction for the organization. They set the goals and objectives for the organization and develop the policies to achieve them.

Importance of Policy Formulation

Policy formulation is essential for the smooth functioning of an organization. It provides a clear direction for the organization and helps in achieving its goals and objectives. It also helps in ensuring consistency in decision-making and promotes organizational efficiency.

Process of Policy Formulation

The process of policy formulation involves several steps, including:

1. Identifying the problem or issue that needs to be addressed
2. Collecting and analyzing data related to the problem or issue
3. Developing alternative solutions or courses of action
4. Evaluating the pros and cons of each alternative
5. Selecting the best alternative and developing a policy to implement it
6. Implementing the policy and monitoring its effectiveness

Role of Top Level Managers

Top level managers play a critical role in policy formulation. They are responsible for creating the overall vision and direction of the organization. They set the goals and objectives for the organization and develop the policies to achieve them.

Top level managers also have the responsibility of ensuring that the policies are implemented effectively and efficiently. They must monitor the implementation of policies and make necessary adjustments to ensure that they are working as intended.

Conclusion

In conclusion, policy formulation is a crucial function in the management process of any organization. It provides a clear direction for the organization and helps in achieving its goals and objectives. Top level managers are responsible for policy formulation in the organization. They create the overall vision and direction for the organization and develop the policies to achieve them.

Policy making is done by tope level manager because policy making comes under those people who have authority to formulate the policies.