The policy is the principle that determines the scope of decision-making for the managers of the organization or the board of directors. Planning and executive managers in any organization always consider the territory determined by the policy and make decisions subject to compliance with the organization’s policy. In addition, the policy should be considered an important criterion and indicator in controlling and evaluating operations.
The policies or policies of the organization are formally determined by the CEO or senior management of an organization. By formulating the macro policies of the organization, it is ensured that conflicts or conflicts in the decisions of the managers of the organization are prevented.