What are the Limitations of Policies?

Policies can be described as the guidelines that have to be used in the day-to-day functioning of the organization. However, the policies do not provide instant answers regarding all the problems that are being faced by the managers. In this way, there are certain limitations that are present in case of policies.

1. It needs to be noted that the policies do not provide instant solutions regarding all the problems that may be faced by the managers in their day-to-day functioning. The reason is that the policies adopted by an organization regarding a particular matter only help by providing certain guidelines that can be used by the managers while making decisions. In this way, the decisions will still have to be made by the managers and similarly they will have to look for the solutions to the problems faced by them. In this way, it is still the responsibility of the managers to make these decisions and the policies of the organization can only help and guide the managers.

2. Similarly, policies do not provide universal solutions related with all the problems that may be encountered by the managers. Generally, policies are made by the management under certain circumstances and therefore, they are suitable only when they are applied under those particular circumstances. On the other hand, there are several factors like the changes in the political, economic or the social environment of the organization that regularly keep on taking place. Therefore, as a result of these changes in the organizational environment, it is required that new policies have to be implemented to deal with these changes.

3. It has also been felt that by implementing too many policies regarding each and every matter in the organization, the initiative and the innovativeness of the managers may be affected negatively. The reason is that in such a case, the managers will become used to act according to the policies only and they will stop using their own judgment. In this way, if too many policies are implemented, the scope for individual initiative becomes less.

4. At the same time, policies cannot take the place of human judgment. Policies cannot provide standard answers that can be used in case of all the problems. On the other hand, policies only provide the broad guidelines that can help the managers while making decisions. It is still the responsibility of the managers to evaluate the situation, keeping in view the prevailing environment of the organization. Therefore, policies cannot take place of human judgment, however meticulously they have been framed.