Difference between Policies and Procedures

 The difference between policies and procedure 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 Procedures are work as two sides of one coin. Policies tell about the mode of achieving the objectives and the procedure describes the appropriate system which includes certain steps in a sequence.

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 ‘Donne

Meaning of Procedures:

Procedures refer to the steps/approaches determine in advance that how to do the work in a simple way so that organizational objectives can be achieved on time. These are framed in a proper sequence and systematic order in which activities will be done accordingly.

The Chart of difference between Policies and Methods

Points of differences

MeaningThese are meant for how to do the work.Procedures describe the best way of going the work step by step.
NaturePolicies are more rigid.Procedures are less rigid.
DescriptionThese describe what to do under different situations.Procedures tell about the way to do the actions.
PurposeThe purpose of policies is for decision-making and thinking.Procedures are guides to actions.
ObjectiveThe objective of making the policy is to achieve the organizational objectives effectively.The objective of procedures is to eliminate the misunderstanding and provide certain steps to accomplish the task.
ExampleThe policy of giving admission to students that they have to score more than 60%.For example, maintaining the admission is to keep admission forms in a file, checking data, keep original documents in a separate file.


Thus, Policies are generally derived from the objectives of the company. These are also known as a  particular blueprint and strategy of an enterprise. On the other side, procedures are explaining the implementation of the policy.

Thanks for reading the topic.

Please comment on your feedback whatever you want. If you have any questions, please ask us by commenting.

References: –


Also, Check our Tutorial on the following subjects: 

    1. https://tutorstips.com/financial-accounting/
    2. https://tutorstips.com/advanced-financial-accounting-tutorial


About us

About us, we are here to improve your knowledge in all financial & Business related topics and to get better carrier opportunities. The author has about 10-year Experience in tuition Business. It is very difficult to teach a large number of students with a personal touch or in a classroom. 

Animation's Resource websites

All Icons and images used on my website were downloaded from the following website please go and download free:-