Business policy is an important study of the major issues affecting organizational development, the key issues affecting organizational growth and the decisions impacting organization within short-term, medium-term and long-term perspective. There are many types of business policy, all of which deal with aspects of organization development like marketing, technical and production policies, employment policies, business valuations, regulatory policy, institutional investors policy, resource planning policy, ownership policy, sales policy, operations and administration policy, risk management policy, corporate governance policy, company integrity policy, and others. The primary objective of developing any business policy is to lay down the basic principles for managing the organization.
The main feature of business policies is that they lay down rules for managers or senior level employees to follow, giving them clear objectives to strive for and a clear path to achieve these objectives. Since these objectives must be attainable within a given time frame, they have to be specified with great care. For example, an employment policy might state that every employee should work 40 hours without taking a break. Since it takes a lot of time to formulate and understand these objectives, it is better not to be too rigid about their stipulations, allowing flexibility at the expense of providing equal opportunity to all employees.
Similar to other managerial decisions, business policies have to be formulated with the help of relevant experience and by coordinating with employees themselves. It is essential to keep the objectives of the organization in mind while coming up with the policy, and allow room for flexibility so that it can be changed as the circumstances change. The scope of business processes should also be considered, as different organizations have different requirements in this area. A policy for a single company may not be applicable to another organization with entirely different business processes.