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The management decides and forecasts for the future in many ways and these decisions are also different from each other. The difference between policies and procedures also tells about the decisions taken by the management in separate ways. Policies and procedures are going in the opposite direction. Policies tell about the mode of achieving the objectives and procedures are explaining the implementation of the policy.
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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.
Definition:
“Policies are general statements or understandings which guide managers thinking in decision making”.
-Koontz and O ‘Donnel
Meaning of Procedure:
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The procedure tells about the appropriate method or sequence to do activities or to accomplish the task. Every person in the organization also follows the prescribed method to do the job. It tells about the steps to achieve the target.
Example: To get admission for graduation in the college, the procedure is to collect all required documents and deposit them in the college office then secondly pay a fee for the course. So by these steps, a person got admission.
The Chart of difference between Policies and Procedures
Points of differences | Policies | Procedures |
| Meaning | These are meant for how to do the work. | Procedures meant for a sequence of steps. |
| Nature | These are general and less rigid. | These are more rigid and hard to change. |
| Description | These describe what to do under different situations. | Procedures tell about the way of doing the job step by step. |
| Purpose | The purpose of policies is for decision-making and thinking. | The rule is a guide to actions in the organizations. |
| Example | The policy of giving admission to students that they have to score more than 60%. | To get admission for graduation in the college, the procedure is to collect all required documents and deposit them in the college office then secondly pay a fee for the course. |
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Conclusion:
Thus, Policies are generally derived from the objectives of the company On the other side, procedures are explaining the implementation of the policy. These procedures tell about the steps to achieve the target. Both statements are important for the business units or organizations to run their functions/activities smoothly.
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