A policy framework is a set of policies that guide and direct management activities. The term is used in both private sector companies and non-profit organizations, especially those with multiple departments or divisions. Policy frameworks are helpful when they are comprehensive and contain specific goals, objectives, and metrics for each department. They help to ensure that all departments are working towards the same goal, even if they aren’t always working together directly.
Policy frameworks can be created for any business function or department. For example, one company may have separate policy frameworks for human resources and sales; another company may have one policy framework that covers all employees across the company. Some companies use separate policy frameworks for different types of employees (e.g., executives versus hourly workers).
When an organization has multiple departments or divisions, it needs a way to coordinate their activities so they work together effectively while still allowing each division some autonomy over its own operations. A policy framework can help accomplish this by setting out common goals to be achieved by everyone in the organization while also providing enough flexibility so that each division can fulfill its individual mission with minimal interference from others.