MPA 604:

CHAPTER 01 Policy Analysis

and Decision Makin
BROAD
UNDERSTANDING
OF POLICY
OBJECTIVES
• To have a broad understanding of what policy means
• To identify the sources of policy in organizations
• To appreciate the importance of policy in an organization.
• To understand the characteristics of a good policy
• To discuss and comprehend the policy making process
• To distinguish the problems and issues in a public and private
organization setting
POLICY
SOURCES OF POLICY IN ORGANIZATIONS

• What is policy?
• What are its sources
in organizations?
 POLICY
• Middle English term • Statement of principles
“policie”, means with their rules of action,
“government” or “civil that governs the
administration” achievement of certain
objectives to which a
business is directed.
• A general guide to
action.
WHAT ARE THE SOURCES OF
POLICY IN ORGANIZATIONS?
1. Management
• controller of the organization
• establishes an organization’s mission,
goals and objectives
2. Subordinate Executives
• represent the workers in the policy making as  they
are the ones doing the actual job
• help in policy acceptance
3. Customs and Traditions
• habitual practices that made policies to
exist since they are customary
• attempting to change may result in
worker resistance
4. External Environment
• everything outside the organization that
affects the operations of the organization
IMPORTANCE
OF POLICY
 Importance of
• Makes for efficient decentralization in an Policy
organization policies and defines the means for
achieving the organizations objectives.

• Helps in fostering an intelligent exercise of

initiative.

• Provides a good basis for evaluating

performance.
 Importance of
Policy

• Promotes cooperation and facilitates coordination.

• Maintains quality service.
• Creates a safer workplace.
CHARACTERISTICS
OF A
GOOD POLICY
CHARACTERISTICS OF A GOOD POLICY

1. Must be based on Organizations Objectives

2. Must clear and specific
3. Must be plain and understandable language
4. Must confirm to ethical standards
 CHARACTERISTICS OF A GOOD POLICY

5. Should be stable and flexible

6. Should be sufficiently comprehensive
7. Should reflect internal and external environment
8. Should not be mutually contradictory
 STEPS IN
POLICY MAKING
PROCESS
 STEPS IN POLICY MAKING PROCESS

1. Policy Formulation
• planning, analyzation and
selection of principles
2. Policy Promulgation
• Awareness of policy
existence
 3. Policy Education
• Understanding of the
policy
4. Policy Acceptance
• Understanding of the
policy
5. Policy Application
• Identifying its result

STEPS IN POLICY MAKING PROCESS

 STEPS IN POLICY MAKING PROCESS

6. Policy Interpretation
• Clarifications (answering
queries regarding to the
policy)
7. Policy Control
• Evaluating the policy
objectives
PROBLEMS AND ISSUES:
PRIVATE AND PUBLIC
ORGANIZATION SETTINGS
Public Organization Problems
• Inefficient Management
• Delayed Decisions.
• Lack of Innovations.
Private Organization Problems
• Poor access to funds.
• Low Ratio of Profit
• Lack of Credit Facilities
RECOMMENDATIONS
 R
Public Sector Issues E
C
O
1. INEFFICIENT MANAGEMENT M
M
• Builds open, diversified and transparent E
workplace policies N
• Conducts Competency Assessments D
A
• Evaluation Surveys, revisit organization's T
policies I
O
N
S
R
E II. DELAYED DECISION-MAKING
C
O • Construct Strategic Plan
M • Pressure on setting deadlines
M
E
• Principle & Evidence-based decisions
N
D
A III. LACK OF INNOVATIONS
T
I • Invest in Research and Development, Information
O Technology
N
S
 R
E
III. LACK OF INNOVATIONS C
O
• Increase public engagement with M
M
technology E
• Develop Organizational N
D
Innovations A
• Create value and impact to the T
public I
O
N
S
 Private Sector Issues R
E
C
I & III. POOR ACCESS TO FUNDS, LACK CREDIT O
FACILITIES M
• Promote public-private sector "access to finance M
E
partnerships" N
• Set up financial and accounting literacy training D
• Broadening access to financial services (banks & non- A
T
banks) I
• Promote inclusive finance and access to credit O
• Promote private sector investment N
S
 R
II. LOW RATIO OF PROFIT E
C
• Audit your strategies to identify O
inefficiency. M
M
• Streamline operations and reduce E
operating expense N
• Strategically increase prices D
A
• Reshape your brand identity and T
reputation I
• Focus on customer retention O
N
S
 SOURCES

• Official reference book- Public Policy Analysis PDF

• https://www.workplace.com/blog/workplace-inefficiency
• https://excellerateassociates.com/2015/02/26/3-questions-to-overcome-delayed-decis
ion-making/
• https://www.beyondintractability.org/essay/delay
• https://info.nicic.gov/ebdm/
• https://www.oecd-ilibrary.org/sites/6593ec90-en/index.html?itemId=/content/compon
ent/6593ec90-en
• https://www.investopedia.com/ask/answers/043015/what-are-benefits-research-and-d
evelopment-company.asp
• https://www.cbd.int/financial/doc/Chapter%203-challenges%20in%20raising%20pri
vate%20sector%20resources.pdf
 SOURCES

• https://www.investopedia.com/ask/answers/043015/what-are-benefits-research-and-d
evelopment-company.asp
• https://www.cbd.int/financial/doc/Chapter%203-challenges%20in%20raising%20pri
vate%20sector%20resources.pdf
• https://www.inc.com/david-finkel/5-simple-ways-to-improve-your-profit-margins.ht
ml
• https://blog.hubspot.com/sales/how-to-increase-profit-margin
• https://www.dictionary.com/browse/policy#:~:text=It%20comes%20from%20the%2
0Middle,united%20group%20of%20any%20kind
• https://www.powerdms.com/policy-learning-center/following-policies-and-
procedures-and-why-its-important