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Three types of policies include Public Policy, Organizational Policy, Functional Policy, and Specific Policy. A policy is a set of ideas or plans that is used as a basis for making decisions, especially in politics, economics, or business.

A purposeful set of rules designed to direct behaviour and produce logical results is called a policy. A policy is a declaration of intent that is carried out through a method or protocol. Typically, a governance board inside a company adopts policies. Both subjective and objective decision-making can benefit from policies. Policies used in subjective decision-making typically help senior management with choices that must be based on the relative merits of a variety of variables and, as a result, are frequently challenging to assess objectively, such as work-life balance policies. In addition, governments and other institutions have policies in the form of laws, rules, guidelines, administrative procedures, rewards, and voluntary practices. Resources are frequently distributed in accordance with policy choices. A policy is a roadmap for the repetitive and routine organizational tasks.

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