The principles and rules, which govern the activities of an organisation for the attainment of well-defined objectives, are called policies. It guides in decision making. The features of policies are:
(a) It lies in the area in which decision is made.
(b) It gives emphasis on predecide on a issue and delegate authority.
(c) There are different levels of policies. The board of directors may decide the broad policies of the firm and the departmental heads may frame general policies keeping in mind the broad policy.
Well-defined courses of action necessary to implement policies for the attainment of objective are called a programme. These are prepared in the form of narrative or in the form of table.