29 Jun 2019





1.0   INTRODUCTION                                          2
2.0   TYPES OF POLICY                                       4
        2.1 Distributive policy                   
        2.2 Re-distributive policies                            5
        2.3 Regulatory Policies                                  6

3.0   WHY HAVE POLICIES?                              7
        3.1   Policy goals and objectives                    7
        CONCLUSIONS                                             10

        REFERENCES                                               11


A policy is a voluntary system of principles to guide decisions and achieve rational outcomes. A policy is a statement of intent, and implemented a procedure or protocol. Policies are generally adopted by the board or highest governance body within an organization while procedures or protocols would be developed and adopted by senior management. Policies can help in decision-making both subjective and objective. Policies to assist in decision-making would usually subjective assist senior management in decisions that must consider the relative merits of a number of factors before making decisions and therefore are often difficult to objectively test example work-life balance policy. In contrast policies to help the objective decision making are generally operational in nature and can be objectively tested by political example password.

The term can apply to government, private sector organizations and groups, and individuals. Presidential Executive Orders, the privacy policies of companies, and parliamentary rules of order are examples of the policy. Policy differs from rules or the law. Although the law may require or prohibit behavior (eg a law requiring the payment of income taxes), the policy simply directed actions towards those who are most likely to achieve a desired result.

Policy or policy study may also refer to the process of making important organizational decisions, including the identification of different alternatives such as programs or spending priorities, and choosing among them on the basis of impact they will have. Policies can be understood as political, management, financial and administrative mechanisms arranged to reach explicit goals. In the public finances of the company, a critical accounting policy is a policy for a corporation / company or industry which is considered a particularly high subjective element, which has a significant impact on the financial statements.

Policies are typically promulgated through official written documents. Policy documents often come with the endorsement or signature of the executive powers within an organization to legitimize the policy and demonstrate that it is considered in force. Such documents often have standard formats that are particular to the organization issuing the policy. While such formats differ in form, policy documents usually contain certain standard components including:

  • A purpose statement, outlining why the organization is issuing the policy, and what its desired effect or outcome of the policy should be.
  • An applicability and scope statement, describing who the policy affects and which actions are impacted by the policy. The applicability and scope may expressly exclude certain people, organizations, or actions from the policy requirements. Applicability and scope is used to focus the policy on only the desired targets, and avoid unintended consequences where possible.
  • An effective date which indicates when the policy comes into force. Retroactive policies are rare, but can be found.
  • A responsibilities section, indicating which parties and organizations are responsible for carrying out individual policy statements. Many policies may require the establishment of some ongoing function or action. For example, a purchasing policy might specify that a purchasing office be created to process purchase requests, and that this office would be responsible for ongoing actions. Responsibilities often include identification of any relevant oversight and/or governance structures.
  • Policy statements indicating the specific regulations, requirements, or modifications to organizational behavior that the policy is creating. Policy statements are extremely diverse depending on the organization and intent, and may take almost any form.


The categorization of public policy is a reflection of rests and idiosyncrasies of scholars of public policies. It equally centers on the ecology of the political system and focuses on the internal operation, issues and clientele.

For the purpose of this study, three categories are adopted for discussion:

a)      Distributive policy
b)      Redistributive policy
c)      Regulatory policy

2.1             Distributive policy
This brand of public policy that cares about who gets what, when and how. It is the authoritative allocation of public revenues to a section of society or a particular recipient in order to meet their needs. According to Ikelegbe (1996):

These are the policies that involve the gradual dispersion, unit by unit, to different segments of the population, and to individuals and institutions.

Values ​​are distributed as favors, loot, benefits and patronage to certain people or group of people and organizations. In terms of distributive policy, the government provides the method and national share method or the common wealth (Okereke 1998). As the most common form of politics, it uses general tax revenues provide benefits to individuals or groups.

When federal, state or local government allocates specific subsidy for the purpose of solving public problems such actions are distributive policies. Some benefits are distributed without taking the others, for example, free education: emergency services projects, the supply of water or electricity. But this category of politics has no confrontation or dissent beneficiaries. Rather, it brings the people closer to the government and vice versa.

Ultimately, the distribution policies are the nerve center of politics and governance. Political decide that individuals or groups benefit or favor they deserve in society. In response to the request of the policy, the government comes up with models impartial distribution of these resources to meet the citizens.

2.2             Re-distributive policies
Re-distributive policies involve a transfer of resources to benefit large groups or categories of persons to another segment of society. This is done by the position of tax benefits and used to help the less privileged. It is the gain and loss of relationship among the beneficiaries of the redistributive policy. The advantages are discriminatory since the gain of one is the loss of the other. class interests in this regard still characterize the distribution of resources, a group or a conflict and good business related class. These policies as Pay As You Earn (PAYE) tax system, value added tax (VAT), welfare for groups of people with disabilities or disabilities in society, and educational policies are anchored on the principle of re-distributive. Most redistribution policies are not factual, especially at the stage of policy implementation from those who favored could challenge and accuse the government of deprivation and marginalization. In Malaysia, the Goods and Service Tax (GST), value added tax (VAT), the Petroleum Fund Tax (TFP) and so on are examples of redistributive policies.

The government collects tax through these and redirect the funds to other areas of need. If so, the gain and loss results occur because a group, pay, other groups have.

2.3             Regulatory Policies
The history of government has always been linked to the desire of mankind to be secure through law and order.. This informs the introduction of regulatory measures. Thereafter, regulatory policy is a design to harmonize the actions of groups to protect citizens. As Egonmwan (1993) says:

Regulatory policies are those involving the establishment of standards and ivies to restrict the activities of sound groups in society in order to avoid undesirable consequences of their action.

The essence of regulatory policies is to prescribe a code of conduct in human relations, especially in private companies in the sector relationship. The policies include texts to ensure that human relationship is performed according to accepted standards, as prescribed by the policy. Regulatory policies have succeeded in changing society characterized by brutality and wickedness of a tolerant and understanding society.

Regulatory policies are always associated with the punishment resulting from the breach or violation of rules or laws. In this case, the punishment, coercion and imprisonment are still applied as instruments for achieving regulatory policies.

In Malaysia, instruments and regulatory institutions include labor law, land use and distribution Act, the National Anti-drugs Agency; (AADK) Other regulators include the Election Commission of Malaysia (EC) Malaysian Human Rights Commission (SUHAKAM), Joint Administration Council registration (leg), Securities Commission Malaysia (SC) and many others. As a regulatory policy is to provide protection and competition rules, they are sometimes difficult to make and implement because of the interest in negotiating.


It is fundamentally important for organizations to develop policy. An organization without policy is an organization without control. If there were no formal documented policies, then organization personnel at any level would have no guidance on how to make decisions.

Imagine if you had a faulty product and you wished to return it to the shop from which it was purchased. If the shop has no policy on refunds, the result on whether you were able to obtain a refund might depend upon which person you spoke to, or whether the person you spoke to was having a bad day. In short, an absence of policy leads to inconsistency of decision making.

From the point of view of the business of organization manager, policies provide really useful and necessary assistance. The manager cannot be everywhere all the time to ensure staff carry out their tasks correctly and responsibly. Instead the manager will develop and communicate policies, and ask staff to read and adhere to them. Therefore policies help to decrease the amount of direct supervision by the manager, and at the same time increase the efficiency of work processes.

Not everyone understands why policies exist. Some people may view them as being bureaucratic and overbearing. In reality, however, the existence of policies provides many benefits provided they are written well and kept up to date.

            3.1       Policy goals and objectives
Policies are a mechanism for controlling the behavior of an organization by governing the behavior of people who work within that organization. Policies exist to ensure, in a given situation, that people will behave in a way that is predictable, advisable and in the best interests of the organization and the person.

There should be a reason why a policy exists. A policy is not formulated unless it is thought to be necessary or to have a benefit. In other words the policy exists for a purpose and this may be often expressed in the form of an "underpinning principle".

For example, the underpinning principle for a Quality Service Policy might be to protect the brand of the organization. Here are a few more examples.

Example underpinning principle
Child Protection Policy
Increase the acceptability of the sport (and organization) by the Community
Coach Education and Accreditation Policy
Ensure standards of coaching meeting expectations of members/customers
Club Development Policy
Promote participation growth
Quality Customer Service Policy
Protect the organization’s brand

Policy Goals
Following on from the Underpinning Principle, a policy will also have "goals". These goals describe the range of desired outcomes or what is to be achieved by implementing the policy.

For example, if you developed your own driving policy, the underpinning principle might be the preservation of life while you drive. However the policy might have several goals not necessarily directly connected with the underpinning principle.

For example, a Driving Policy might have the following goals:

Goal 1: Minimize the risk of injury and damage

Goal 2: Maintenance of good driving record

Goal 3: Low insurance premiums

Goal 4: Lower repairs and maintenance costs

Note: There may be other worthy goals not mentioned here.

When there is a need to write a policy where none existed before, a worthwhile and appropriate place start by determining the underpinning principle and formulating goals.

Policy Objectives
There is always confusion about the difference between Goals and Objectives but they are not the same. Measurability is always considered to be an important principle in setting objectives. In regard to the above policy goals the following might be policy objectives.

Minimize the risk of injury and damage
No accidents, self-caused or otherwise
Maintenance of good driving record
Driving infringement points to 3 per year
Low insurance premiums
Insurance premiums below RM300 p/a
Lower repairs and maintenance costs
Repairs and maintenance below RM 1000 p/a

It is perfectly possible to write a policy that does not have measurable objectives and it will serve the organizations need. Goals are probably sufficient enough but if you have to write objectives at least the above table provides some example.

Perhaps more important that Policy Objectives is the written guidance contained within the policy that helps the reader understand what they have to do in order to adhere to the policy. This written guidance needs to very well worded, unambiguous and clear, otherwise the policy will be of little use.


 A "policy" is very much like a decision or a set of decisions, and we "make", "implement" or "carry out" a policy just as we do with decisions. Like a decision a policy is not itself a statement, nor is it only a set of actions, although, as with decisions, we can infer what a person's or organization’s policy is either from the statement he makes about it, or, if he makes no statement or we don't believe his statement from the way he acts. But, equally, we can claim that a statement or set of actions is misleading and does not faithfully reflect the "true" policy.

Policies should not be seen only as a set of rules for people to follow. Governments, organizations and even individuals may formulate policies that are trend setting or future shaping. For instance, a recreation organization may have a policy for fostering recreation activities that are non-competitive in nature. Such a policy will determine the future of the organization in terms of the people who are likely to be members, the types of events that will be organized and the future growth potential of the organization.

In some cases policies must be observed (mandatory) whilst in other cases policies serve as only as guidelines (advisory). The consequences of acting in contravention to a policy, which is mandatory, will be different to the consequences of acting in contravention to a policy, which is advisory. In the case of a failure to observe a policy which is mandatory there will be prescribed penalties.


Anderson, James E. (1994). Public policymaking. 2nd ed. Princeton, NJ: Houghton Mifflin.

Baar, Kenneth K. (2001). Open competition, transparency and impartiality in local government contracting out of public services. In Péteri, Gábor and Tamás M Horváth (Eds.). Navigation to the market: Regulation and competition in local utilities in Central and Eastern Europe. (pp. 103–139). Budapest: LGI/OSI. [Available on the internet at: http://lgi.osi.hu/publications/2001/76/Reg-Ch2.PDF]

Bartle, Phil (2002). Preparing a community development policy paper: Guidelines for ministry leaders. Retrieved April 9, 2002 from http://www.scn.org/ip/cds/cmp/ modules/en-pol.htm.

Bazerman, Charles (1985). The informed writer: Using sources in the disciplines. (2nd ed). Boston: Houghton Mifflin.

De Leon, Peter (1994). Reinventing the policy sciences: Three steps back to the future.
Policy Sciences, 27; 77–95.

Dye, Thomas (1992). Understanding public policy. (7th ed.). Englewood Cliffs, NJ:
Prentice Hall.

Egonmwan, J. (1993). Public Policy Analysis: Concepts and Applications, Benin: S.M.O. Aka and Brothers Press.

Ikelegbe, A. (1996), Public policy making and analysis Benin City: Uri Publishing Ltd

Okereke, O.O (1998). Public Policy Analysis and Decision Making. Abakaliki: WillyRose and Applesed Publishing Com.

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