This chapter explains about policy: one of the most significant activities that politicians and the machinery of government engage in and something that impacts on people’s lives everyday. Legislation places legal and enforceable responsibilities and/or prohibitions on the actions of individuals, groups, and organisations and is enforceable by a court of law operating at the relevant level of jurisdiction. Politics has been increasingly analysed from the point of view of outputs rather than through analyses of structures and institutions. The modern state has a fundamental effect on people. Wars, intervention in economic and industrial policy, and the development of welfare programmes have all extended the role and scope of the state. A wide range of policy outcomes may be accommodated by the explanation given the assumption that there are several sources of power in society. Neo-pluralism has adapted the pluralist model by emphasising the unequal distribution of power between groups.