Understanding the distinctions between policies and procedures is crucial for effective management and operational efficiency in any organization. These concepts guide the daily operations and strategic planning, ensuring consistency and compliance across all levels.

What are Policies?

Policies are formal guidelines established to govern an organization's decisions and actions. They set the foundational rules and principles that define the organization's culture, values, and expectations. Policies are often broad, providing a general framework within which decisions are made and actions are taken.

Examples of Policies:

1. A company's privacy policy outlining how customer data is collected, used, and protected.
2. An equal employment opportunity policy ensuring all employees have a fair chance regardless of background.
3. A return policy specifying the terms under which a customer can return purchased goods.

What are Procedures?

Procedures are specific methods or steps that describe how particular tasks should be completed. They provide detailed instructions to achieve consistency in daily operations. Procedures are practical applications of policies, ensuring that the principles outlined in policies are executed consistently and correctly.

Examples of Procedures:

1. Steps for submitting a leave request in a company's HR system.
2. Procedures for handling customer complaints from receipt through resolution.
3. The checkout process at a retail store to ensure accurate billing and inventory management.

Difference Between Policies and Procedures: 

Basis	Policies	Procedures
Definition	General guidelines or rules to guide decisions and behavior in an organization.	Specific steps to be followed to carry out organizational tasks.
Purpose	To set out what is considered acceptable and unacceptable in the organization.	To provide detailed instructions on how to implement policies.
Scope	Broad, setting out the rules under all circumstances within an organization.	Narrow, focused on specific actions and tasks.
Detail	Less detailed, providing general guidelines.	Highly detailed, providing step-by-step instructions.
Flexibility	More flexible, allowing some degree of interpretation depending on circumstances.	Less flexible, requiring strict adherence to ensure consistency.
Focus	Focuses on the "what" and "why" of a rule.	Focuses on the "how" of implementing the rule.
Enforcement	Policies are enforced through the organization's governance structure.	Procedures are enforced through operational management and supervision.
Examples	A no-smoking policy within company buildings.	A procedure detailing the steps for evacuation in case of fire.