LPHR Magazine (March 2013) - Page 15

POLICY A policy is a formal guidance or rule to guide decisions and achieve rational outcomes. It’s needed to coordinate and execute activity throughout a company. When effectively deployed, policy statements help focus attention and resources on high priority issues. They align and merge efforts to successfully achieve a business vision. Policy provides the operational framework within which the business functions. Policies are typically written to cover topics of widespread application. They change less frequently, as they are considered the agreed upon standard within an entity. Usually, policies are expressed in broad terms and cover the “what” and the “why” of any given area. Policies also answer some of the operational issues related to the topic at hand.