1

CHAPTER 4
PRESENTED BY KIRAN.SHETTY
Email id :kiran.shetty763@gmail.com

kiran.shetty763@gmail.
com {BGSIT}

8/18/15

2
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

PUBLIC POLICIES
Introduction: public policy is an attempt by a govt
to address a public issue by instituting
laws,regualtions,decisions.
Public policy : it is a basically a set of rules and
regulations set forth that the public is expected to
adhere to.
Public laws are a classic example of public policy
in the legality sense, while the laws of society are
those that are unwritten but are still expected to
be followed in public

3
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Public policy is a course of action adopted and

pursued by a government.
Public: it comprises domain of human activity
which is regarded as requiring governmental
interventions or common actions
Policy: a purposive course of action taken or
adopted by those in power in pursuit if certain
goals and objectives

4
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

The following are the below points which

defines the features of public policy
Public policy is whatever governments chooses
to do or not to do
Public policy is the outcome of struggle in
government over who gets what.
Public policy consists of political decisions for
implementing programs to achieve societal goals
A public policy is a deliberate plan of actions of
the government to guide decisions and achieve
rational outcomes

5
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Categories of public policies

Substantive and procedural policies:
This is the classification of public policies with
respect to the time of execution. While the
former is the policy the government is
executing,doing,done or executed.
Distributive, regulatory, self regulatory
and re distributive policies:
This is the division of public policies with respect
to allocation and control.

6
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Distributive policies concern the allocation of

services and benefits of public resources to
various segments of the economy.
Material and symbolic policies:
This is the categorization of public policies with
respect to the tangibility of power and or assets
involved. Material policies are the policies that
involve tangible assets or substantive powers to
the beneficiaries or disadvantaged people in the
economy.

7
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Policies involving public goods and

private goods:
Public goods are collectively owned, divisible and
non excludable, so the policy is that they must be
provided for everybody in the economy.
Example of public goods is Defense. Private goods
are the goods that are privately owned,
indivisible and excludable. For
ex:food,book,clothes,houses

8
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Liberal and conservative policies:

This is the specification of policies with respect to
freedom and ability to influence or change
policies.
Liberal policies are the policies that are easily
amenable. For ex: Social policies on
equlaity,movement of
people,employment.conservative policies are the
policies that are rigid or difficult to change.

9
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Relevance of public policies

Scientific understanding
Improves our knowledge of society
Linkages between social and economic
conditions
Response of political system to those conditions

10
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

The role of public policy in governing

business
When new public policies are created, there are
generally three key things involved in the
process: the problem, the player and the policy.
The problem is the issue that needs to be
addressed, the player is the individual or group
that has to be addressed, and the policy is the
finalized course of action.

11
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

The rational model for the public policy making

process can be typically divided into 3 steps:
agenda setting, option formulation, and
implementation.
Government officials or the agencies meet to
discuss the problem at the end.

12
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Economic policy :
Economic policy is of vital importance that affects
the business.
It deals with the tools that the government uses to
manage the economy or solve economic
problems

13
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Social welfare policy:

The nation that the government is responsible for
its citizens is a relatively new idea. Social welfare
policy is implemented through many programs
designed to improve
health,education,housing,employment.

14
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Government and public policy

A policy is typically designed as principle or rule
to guide decisions and achieve rational
outcomes. The term is not normally used to
denote what is actually done, this is normally
referred to as either procedure or protocol.

15
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Classification of public policy

Policies may be classified in many different ways:
Distributive policies:
Distributive policies extend goods and services to
members of an organization, as well as distributing
the cost of the goods/services amongst the
members of the organization.
Examples include government policies that impact
spending for welfare, public education, highways
and public safety or a professional organizations
benefit plan.

16
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Regulatory policies: Regulatory policies or

mandates, limit the discretion of individuals and
agencies, or otherwise compel certain types of
behavior. These policies are generally thought to
be best applied when good behavior can be easily
defined and bad behavior can be easily regulated
and punished through fines or sanctions.

17
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Constituent policies:
It creates executive power entities or deal with
laws, it also deals with fiscal policy in some
circumstances.
Miscellaneous policies:
Polices are dynamic they are not just static lists of
goals or laws. Policy blueprints have to be
implemented, often with unexpected results.

18
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Types of public policies

1.Defense policy:
It is a public policy dealing with international
security and the military. it comprises the
measures and initiatives that governments do or
do not take in relation to decision making and
strategic goals such as when and how to commit
national armed forces

19
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Purpose of defense policy:

Defense policy identifies threats of hostility and
aggression based on intelligence analysis, and
defines military scope of national
security,defence alliances, combat readiness,
military organization of national forces and their
use of military technology.

20
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Development of defense policy:

A defense policy is created through the defense
policy process of making important
organizational decisions, including the
identification of priorities and different
alternatives such as defense personnel and
technology programs or budget priorities.

21
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

2. Domestic policy
It is an area of public policy which concerns laws
government programs, and administrative
decisions which are directly related to all issues
and activity within a nations borders.
It differs from foreign policy, which refers to ways
a govt advances its interests in world politics.

22
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

3. Economic policy
Every economy has economy policy :
A few example of types of economic policy include:
1. Macroeconomic stabilization policy tries to keep
the money supply growing, but not so quick that
it results in excessive inflation.
2. Trade policy refers to tariffs,trade agreements
and the international institutions that govern
them.
3. Policies designed to create economic growth

23
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

policies related to development economies

Redistribution of income,property or wealth
Regulation
Anti trust
Industrial policy
Technology based economic development policy

24
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

4. Education policy
It refers to collection of laws and rules that
govern the operation of education systems.
Education occurs in many forms for many
purposes through many institutions.
Ex: it include early childhood education, till 12
the school

25
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

5.Energy policy
It is the manner in which a given entity has
decided to address issues of energy development
including energy, distribution and consumption.
The attributes of energy policy may include
legislation, international treaties, incentives to
investment, guidelines for energy conservation,
taxation and other public policy techniques.

26
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

There are 4 major drivers for energy policy

Rapidly growing economy with a need for dependable
and reliable supply of electricity, gas and petroleum
products
Increasing household incomes, with a need for
affordable and adequate supply of electricty and clean
cooking fuels
Limited domestic reserves of fossil fuels and the need to
import a vast fraction of the gas
Indoor, urban and regional environmental impacts
necessitating the need for the adoption of cleaner fuels
and cleaner technologies

27
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

6.Environmental policy
It is useful to consider that environmental policy
comprises two major terms; environment and
policy.
Environment primarily refers to the ecological
dimension but also take account of social
dimension(quality of life) and an economic
dimension(resource management)

28
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Benefits from govt

To implement environment friendly policies the
government is announcing green initiatives, tax
exemptions for the companies who is following
environment friendly policy

29
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

7.Foreign policy
It is also called foreign relations policy, consists
of self interest strategies chosen by state to
safeguard its national interests and to achieve its
goals within the international relations milieu.

30
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

8. Health policy
Health policy can be defined as the
decisions,plans, and actions that are
undertaken to achieve specific health care goals
within a society. According to world health
organization, an explicit health policy can
achieve several things: it defines a vision for the
future; it outlines priorities and the expeceted
roles of different groups; and it builds consensus
and informs people.

31
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

There are many categories of health

policies,including personal health care
policy,pharmaceutical policy, and policies
related to public health such as vaccatination
policy,tobacco control policy.

32
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Need for business policy

Business policy defines the scope or spheres
within which decisions can be taken by the
subordinates in an organization.
It permits the lower level management to deal
with the problems and issues without consulting
top level management every time for decisions.

33
kiran.shetty763@gmail.c
om {BGSIT}

Features of business policy

Specific
Clear
Reliable
Appropriate
Simple
Inclusive
Flexible
Stable

8/18/15

34
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Elements of public policy

A public policy is an action by a government that
affects public welfare. It includes:
1. Laws
2. Rules and regulations(FDA)
3. Programs(welfare,Medicare) and practices
4. Specific policy changes
5. At international,national,state and local levels

35
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Corporate and public policy

In addition to being socially responsible firm, a
firms social responsiveness is also of interest.
Generally, companies react to issues after they
have been brought to light. Corporations should
have policies in place that identifies their views
on issues and willingness to stand behind those
views. This is known as corporate public policy

36
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Planning and implementing corporate public

policy
The adoptions of a corporate public policy agenda
involves 5 steps.
Scan the environment
Assess organizational assets meaning that once social
trends have been identified, the company must figure
out how it can address that trends and whether it has
the ability to do so with its current assets
The third step is to set the policy
The fourth step is to implement the policy
The fifth step is to measure the results

37
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Framing of public policy

Public policy is created by legislation. It is
generally defined as the principles or standards
regarded by legislature, or the courts, as being of
fundamental concern to the state and the whole
of society.
How is public policy framed?
It is formulated with active involvement on the
part of interest groups whose members do not
seek election.

38
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

It comprises of expert and panel to make final

judgment
Based on the feedback or opinion of the expert
committee the public policy is framed

39
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Levels of public policy

The below is the public policy cycle:
1. Agenda setting: problems are defined and
issues are raised. Gate keepers filter out those
which will be given attention by either the
executive or the legislative branches
2. Formulation: analysis and politics
determines how the agenda item is translated
into an authoritative decision.

40
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

3. Implementation-the authorized policy must

be administered and enforced by an agency of
govt. the agency must take instructions as stated
in the policy, but will probably be called upon to
provide missing pieces and to make judgments as
to intent, goals, timetables
4.Budgeting:
Financial resources must be brought to beat within
an ongoing annual stream of budget cycles.

41
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

5. Evaluation-the impact of the policy may be

assessed . If goals exist, the effectiveness of the
policy and its components can be determined.
The feedback provided by evaluation is injected
back to the agenda setting and frame new
policies

42
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Government controls and regulations

In 1951 the govt brought in Industrial development
and regulations act. This act made licensing a part of
industrial development
The objectives of licensing were started as :
Facilitate desired pattern of industrial development
Provide for development of backward regions
To encourage broad based ownership of industries
To prevent concentration of power in the hands of a
few

43
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Government regulations in business

Social, technological and value change
1. National society
2. Communal society
3. Entitlements
4. Quality of life

44
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Interaction of business, government and the

public
Government/ business relationship
Public/govt relationship
Business/public relationship
Two major regulatory issues
Industrial policy
privatization

45
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Governments non regulatory influence on

business

Industrial policy: Schools of thought

Accelerationists
Adjusters
Targeters

46
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Industrial policy
Pros
Declines of U.S competitiveness
Use by other nations
Ad hoc system
Cons
Reduces market efficiency
Promotes political decisions
Foreign success variable
National attempts uncoordinated and irrational
privatization

47
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Types of regulation

Economic regulation
Interstate commerce commission
Civil aeronautics board(CAB)
Federal communication commission
Social regulation
Environmental protection agency
Occupational safety and health administration
Equal employment opportunity commission

48
kiran.shetty763@gmail.c
om {BGSIT}

Benefits of regulation

Fair treatment of employees

Safer working conditions
Safer products
Cleaner air and water

8/18/15

49
kiran.shetty763@gmail.c
om {BGSIT}

8/18/15

Costs of regulation

Direct cost
Indirect cost
Induced cost
Reduced innovation
Reduced investment in plant and equipment
Increased pressure on small business