The correct answer is option 2- Policy.
Policy lays down the course of action selected to guide and determine present and future decisions.
Policies are general statements that guide thinking or channelise energies towards a particular direction. Policies provide a basis for interpreting strategy which is usually stated in general terms. They are guides to managerial action and decisions in the implementation of strategy. Policies define the broad parameters within which a manager may function. The manager may use his/her discretion to interpret and apply a policy.
OTHER OPTIONS
- Method- Methods provide the prescribed ways or manner in which a task has to be performed considering the objective. It deals with a task comprising one step of a procedure and specifies how this step is to be performed. The method may vary from task to task. Selection of proper method saves time, money and effort and increases efficiency.
- Procedure- Procedures are routine steps on how to carry out activities. They detail the exact manner in which any work is to be performed. They are specified in a chronological order.
- Plan- An organisation has to prepare a plan before making any decision related to business operation, or undertaking any project. Planning essentially involves choice from among various alternatives and activities. If there is only one possible goal or a possible course of action, there is no need for planning because there is no choice. The need for planning arises only when alternatives are available. Plans can be classified into several types depending on the use and the length of the planning period. Certain plans have a short term horizon and help to achieve operational goals. These plans can be classified into single‑use plans and standing plans.
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