Policies and procedures are important tools of management that guide organisational actions, but they differ in nature and application.
First Difference – Meaning:
Policies are broad guidelines or general statements that provide direction for decision-making in an organisation.
Procedures, on the other hand, are detailed and specific steps that must be followed to carry out a particular task or activity.
Second Difference – Flexibility:
Policies are flexible in nature and allow managers to exercise judgment depending on the situation.
Procedures are rigid and must be followed in a fixed sequence to ensure uniformity and consistency in operations.
Thus, while policies act as a framework for decision-making, procedures specify the exact manner in which work is to be performed.