This work was carried out for the purpose of finding out the effect of policy and decision making on employee performance. We felt obliged to let those seeking knowledge who may come across this work to understand and know the cause or effect of policy and decision making which is an exercise aimed at matching the knowledge acquired in the classroom with what is actually in operation with Federal Government of Nigeria policy. Since it affects all sectors of the policy be it government companies, private organizations, individual business set-up and co-operative bodies etc. policy does not affect only business sectors but also the standard of living through income level for wages and salaries earners, it also affects international goods which as a matter of fact need urgent attention by the government of the Federation in order to improve the standard of living for individuals. So its control has become necessary for the government of the particular federation which it affects.