The domain of government policy is defined by the processes and structures through which a governing body produces policies and how those policies produce social outcomes. This domain is distinct from politics (although it is deeply intertwined with it) and administrative functions (the civil service that takes political ideas, codifies them into systems and translates those systems into the field).
Policy makers have a broad range of tools at their disposal to solve public problems. Some of these tools are regulatory while others involve spending money and still more employ a mixture of spending programs and regulations. Nevertheless, it is possible to broadly divide all public policies into four categories: agenda setting, formulation, implementation and evaluation.
Agenda setting involves identifying problems that deserve attention and deciding which issues merit immediate action. This is often accomplished through a combination of empirical evidence and the interpretation of dominant social and ideological values.
Formulation is the process of creating policy instruments, which can take the form of laws or other regulatory measures. Examples of these might include minimum wage laws, workplace safety standards, banking regulations and drug approval processes.
Implementation involves establishing the organizational structures and legal authority to carry out the policy, as well as determining how the instrument will be used. This stage also involves identifying the cost and effects of the instrument, and the means through which it will be legitimized (via consultation or referendums). Finally, evaluation focuses on measuring whether or not the policy has been successful in achieving its objectives, or if it was the correct policy to begin with.