M2: Learner Manual

2.1. Types of Policies

There are two broad types of policies: governance and operational.

Governance policies are made by the governing body. They cover the governing body’s accountabilities, attendance, codes of conduct, commitments, conflict of interest, decision making, governance values, leadership, roles and responsibilities, and a range of related cultural matters. 

They also include policies on the governing body’s relationship with the top manager and staff, its nation and community members, its financial commitments and its ethics. 

Operational policies are usually drafted by the top manager to apply to the administration and daily management of the organisation. They include policies on complaints procedures, diversity and harassment, employment, HR and managing staff. 

The top manager initially develops and oversees these policies, but the governing body will also be involved and finally approve them, often at its meetings when discussing communication with members, dispute resolution and cultural leave issues.