ANNAMALAI UNIVERSITY

DEPARTMENT OF MECHANICAL ENGINEERING

Policy based management is an administrative approach that is used to simplify the management of a given endeavour by establishing policies to deal with the situation that are likely to occur.

POLICY MANAGEMENT

Policies are operating rules that can be referred to as way to maintain order, security, consistency or otherwise for a goal or mission.

In the computing world policy based management is used as an administrative tool throughout an enterprise or network or on work station that have multiple users.

ON THE BASIS OF SOURCES

1. Originated policies2. Appealed policies3. Implied policies4. Externally imposed policies

TYPES OF POLICIES

For effectively guide, the actions of the subordinates, the top management of the business formulates policies for the important functional area is known as originated policy.

ORIGINATED POLICIES

When a dilemma appeared in a unit of the organization over some issue, the unit head appeals his superiors for a decision. This appeal moves upward in the vertical hierarchy of the organization till a most suitable decision is made is known as appealed policy.

APPEALED POLICIES

Implied policies are not explicit polices policies, still a functionary can take decisions certain day to day matters that are not specifically stated in the approved policies. It will come under the broad policy framework of organization, Is known as implied policies.

IMPLIED POLICIES

The policies which are imposed by external agencies like government, legal authorities is called as externally imposed policies.

EXTERNALLY IMPOSED POLICIES

1. Production policies.2. Sales policies.3. Finance policies.4. Personal policies.

ON THE BASIS OF FUNCTION

A strategic rule or rules lowering now a good or service is promoted to potential consumers is known as production policies.

PRODUCTION POLICIES

Meaning of sale policies, a plan of action adopted by an individual or social group, It was policy of retribution is known as sale policy.

SALE POLICIES

Criteria describing a corporation choices

Regarding its debt/equity mix currencies of the denomination, maturity structure is known as financial polices.

FINANCIAL POLICIES

A personal policy a plan of action, a set of proposal and action that act as a reference point for managers in their dealing with employees is known as personal polices.

PERSONAL POLICIES

‘Determination of the basic long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals’’

‘A commitment to undertake one set of actions rather than another’

STRATEGY

‘...the “game plan” management has for positioning the company... entails choice among alternatives and signals organisational commitment to specific markets, competitive approaches, and ways of operating.’

The Strategic Management Process

Identify current

mission, objectives & strategies

AnalyzeEnvironment

Analyze Resources

Identify threats

Identify strengths

weaknesses

FormulateStrategies

ImplementStrategies

EvaluateResults

SWOT ANALYSIS

Managers have many other responsibilities

Boundaries between tasks:conceptual not real

Crafting/ implementing happens erratically

Strategy Making - Process or Event?

‘strategy is a combination of planned actions and on-the-spot adaptive reactions to freshly developing industry and competitive events.’

Respond to external/internal environment

Emergent Strategy

Intended and Adaptive Strategy

Develop a strategic vision/ business mission

set objectivesCraft a strategy

The Three Strategy Making Tasks

Builds portfolio of businesses Harnesses synergies between businesses◦Eg. Pepsi: cola sold via restaurant chain

Makes resourcing/investment decisions Reviews/unifies business unit strategies

Corporate Strategy

Lower level units of the organisationSpecific means and approaches for these unitsEg. Software development group trains people in use of GUI/client-server development

Operational strategy

BIBLIOGRAPHY

THROUGH WEB …SLIDESHARE.COMTEXT BOOK OF INDUSTRIAL ENGINEERING AND MANAGEMENT BY HAROLD KOONTZ AND HEINZ WRIHRIC

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