Difference between Policies and Procedures
Policies and Procedures are two types of Standing Plan. Policies are the general statements that guide thinking and channel energy toward a particular direction. However. Procedures are the routine steps to carry out activities in an organization.
What are Policies?
The general statements that guide thinking and channel energy toward a particular direction are known as Policies. Policies are a type of Standing Plan and they provide a basis for interpreting strategy. A manager uses policies at his discretion. E.g. Decisions taken under recruitment policy can be in the case of recruiting employees for a new division, such as whether to recruit from the existing employees or to explore other external sources of recruitment, various policies under it regarding the salary structure, etc. A policy is used by organizations as a guide that avoids confusion and provides a structured and unified framework.
What are Procedures?
Routine steps to carry out activities in an organization are known as Procedures. They are established for repetitive activities. They describe the manner in which an activity is to be performed. Procedures are generally rigid and do not have any scope for creativity. It removes ambiguity in work and makes the work structured and unified.
Difference between Policies and Procedures:
|Meaning||Policies are general statements that guide thinking and channel energy toward a particular direction.||Procedures are routine steps to carry out activities in an organization. |
|Need||They are needed for achieving objectives.||They are needed for implementing policies.|
|Scope||They are flexible, and managers have discretion as per the organizational limit.||They are rigid, and managers have relatively less discretion. |
|Expression ||They are expressed as general statements.||They are expressed in specific terms.|
|Application Area ||The area of application is broad in the case of policies.||The area of application is limited in the case of procedures.|
|Example||Recruitment policy of an organization. ||Procedures for importing and exporting goods.|