Question

At which level of management policies are framed?

Hint:

Policy framing is a strategic activity and hence lies exclusively with top-level management.

Answer 1

Management policies are framed at the Top Level of Management.
The top level of management is responsible for framing policies because it deals with the overall direction, objectives, and long-term plans of the organization. This level generally includes the Board of Directors, Managing Director, Chief Executive Officer, and other senior executives.
Policies act as guidelines for decision-making and provide a framework within which all organizational activities are carried out. Since policies affect the entire organization and have long-term implications, they must be formulated by those who have a comprehensive understanding of the organization’s goals, resources, and external environment.
Top-level management analyzes internal strengths and weaknesses as well as external opportunities and threats before framing policies. Once formulated, these policies are communicated to middle-level management for interpretation and to lower-level management for implementation.
Thus, policy formulation is a strategic function and is always performed by the top level of management.