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Difference between Policies and Procedures


February 16, 2017 / BUSINESS / 2 minutes of reading
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What You'll Learn?


1 POLICY
1.1 MAJOR HRM POLICIES
2 PROCEDURE
2.1 STEPS IN PREPARING HR POLICY AND PROCEDURE
2.2 COMPARISON TABLE
2.3 CONCLUSION

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Human Resouce Management follows different policies and procedures to ensure the
efficient working of an organization. Many of us think policies and procedures are alike
and similar but there exist many differences between them but they are considered as
interlinked and both of them acts as complimentary to each other. This article presents
you the top differences between Policies and procedures.

POLICY

The policy is defined as a definite course of action which guides and determines the
present and future decisions. A policy of a firm acts as a guide to corporate objectives,
goals, and management philosophies of an organization. The policy promotes
consistency and operational efficiency. To be clear Policy statement deals with “WHAT”
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the institution does operationally.

MAJOR HRM POLICIES

The management of every organization frames many policies, some of them are as
follows

► Recruitment policy
► Compensation policy
► Welfare policy
► Performance management policy
► Grievance policy
► Industrial Relations policy.

PROCEDURE

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The procedure is defined as step by step process for accomplishing something or can
also be defined as a series of tasks required to carry out in a regular order to complete
an action. Procedures guide members of the organization how to carry out or
implement a policy. It deals with “HOW” the organization plan to carry out the operation
policies.

STEPS IN PREPARING HR POLICY AND PROCEDURE


► Recognizing the need for establishing a policy Install App
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► Prepare the policy content
► Draft the policy
► Compose and frame the procedures
► Review and evaluation of the policy by key parties
► Approve and confirm the policy
► Implement the policy
► Policy review and update
► Communication of changes to the policy

COMPARISON TABLE

POLICIES PROCEDURES

Policy statement states the functional Procedures are the the operational
framework within which the institution processes which are required to implement
functions. the policies of the organisation.

 Nature

Policy statement is the formal direction Procedures can be formal or informal,


needed to coordinate and execute the depending on the activity of the department
operations of an organisation. in an organisation.

 Concern

Policies are concerned with "what" the Procedures are concerned with "how" it
institution does operationally. intends to carry out the operation policies.

 Framed by
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Difference Between POLICIES PROCEDURES

The steps in the procedures are framed by


Policy statements are framed by top
the middle and low level management of an
management officials of an organization.
organisation.

 Framed using

Policy statement is composed and framed Procedures are framed using the policy
from the objectives of an organisation. statement of an organisation.

 Alterations

Procedures can be changed according to


Policy statements are non-negotiable and
the requirement and usually go through
cannot be changed that easily.
continuous improvement.

CONCLUSION

Both Policies and Procedures are used by every organization both internally and externally to
promote efficiency throughout the organization. Policies focus their attention on high priority
issues, to achieve the institutional vision whereas procedures have a narrower focus and carry
on the activities which are given by the policy statement.

Spread the Differences

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