Difference between Policies and Methods

Difference between Policies and Methods

The management decides and makes an accurate system for the accomplishment of future goals in many ways. The difference between policies and methods tells about the decisions taken by the management and the appropriate system/framework given by the management to do the work in the right direction. Policies and methods are going in different directions. Policies tell about the mode of achieving the objectives and methods describe the appropriate system and the best way to do the work.

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Meaning of Policies:

The course of action adopted by an organization is called policies. These basically guide the manager that how to acts in a certain situation. These are also known as a  particular blueprint and strategy of an enterprise. In every organization policies are used for major decision making. On the other hand, we can say that policies are the standing plans made at every level because managers at every level have to decide about the way of handling the situations. 


“Policies are general statements or understandings which guide managers thinking in decision making”.

-Koontz and O ‘Donnel

Meaning of Methods:

Methods can be defined as the systematic way of doing repetitive jobs. Managers decide in advance that in which method the work should be done and they circulate the message to the employees for doing the work with the decided method.

Features of Methods:

  1. Methods act as a guide for action.
  2. These methods are helpful for the employees to do the operations/activities in a systematic manner.
  3. Methods can be different according to the specialization of work, if there are two departments(production and sales) in an organization the method of going the work in the sales department may differ from the production department’s activities.
  4.  Accurate methods of doing the work save time, money and helps in increasing work efficiency.

The Chart of difference between Policies and Methods

Points of differences

Policies Methods
Meaning These are meant for how to do the work. Methods describe the best way of going the work. 
Nature These are general and less rigid. Methods are specific according to the nature of work and these can be changed as per the requirements.
Description These describe what to do under different situations. Methods help in co-ordination the activities.
Purpose The purpose of policies is for decision-making and thinking. Methods tell about the standardization.
Objective The objective of making the policy is to chive the organizational objectives effectively. The objective of Methods is to simplify the job.
Example The policy of giving admission to students that they have to score more than 60%. For example, the direct or indirect method only used to calculate the depreciation

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Chart of difference between Policies and Methods


Thus, Policies are generally derived from the objectives of the company On the other side, procedures are explaining the implementation of the policy. On the other hand, Methods define the systematic way of doing repetitive jobs. We can say the rule and methods are playing a vital role to enhance the productivity of the organization.

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