Difference Between Policy and Procedure

Every organization needs a set of guidelines to ensure the smooth functioning of its operations. Two terms that are often used interchangeably in this context are policy and procedure. While they share some similarities, there are key differences between the two. Understanding these differences is essential for any organization to establish a clear and effective system of governance. In this article, we will explore the differences between policy and procedure and how they are used in organizational management.

What is a policy?

A policy is a set of rules and guidelines that define the principles, goals, and objectives of an organization. Policies are typically broad in scope and provide a framework for decision-making. They are often created to reflect the values and mission of an organization and establish the boundaries within which it operates. Policies are typically created by the leadership of an organization and are designed to guide the actions of its employees.

Policies are essential for establishing a consistent and predictable work environment. They are designed to help employees understand the expectations of the organization and provide a clear set of guidelines for their actions. Policies can be used to address a wide range of issues, including workplace behavior, safety and security, human resources, and financial management.

What is a procedure?

A procedure is a specific set of steps that must be followed to achieve a specific outcome. Procedures are typically more detailed than policies and provide a step-by-step guide for completing a task. They are designed to be followed consistently to ensure the quality of work and provide a measure of accountability.

Procedures are essential for ensuring that work is completed efficiently and effectively. They are used to establish a standard process for completing a task and ensure that all necessary steps are taken. Procedures are typically created by the operational staff of an organization and are designed to be followed by employees at all levels.

Differences between policy and procedure

While policies and procedures share some similarities, there are key differences between the two. Here are some of the main differences:

1. Scope

The scope of policies is generally broader than that of procedures. Policies are designed to provide a framework for decision-making, while procedures are focused on the specific steps required to complete a task. Policies are typically created by the leadership of an organization and are designed to guide the actions of all employees. Procedures are typically created by operational staff and are designed to be followed by employees at all levels.

2. Flexibility

Policies are generally more flexible than procedures. Policies are designed to be broad in scope and allow for some degree of interpretation. This flexibility allows policies to be adapted to different situations and provides a measure of discretion to employees. Procedures, on the other hand, are typically more rigid and must be followed exactly to achieve the desired outcome.

3. Level of Detail

Procedures are typically more detailed than policies. Procedures provide a step-by-step guide for completing a task, while policies provide a general framework for decision-making. Procedures are designed to ensure that all necessary steps are taken to complete a task, while policies are designed to establish the boundaries within which an organization operates.

4. Purpose

Policies are designed to provide guidance and establish the values and principles of an organization. They are often created to reflect the mission and vision of an organization and provide a framework for decision-making. Procedures, on the other hand, are designed to ensure that work is completed efficiently and effectively. They provide a standard process for completing a task and ensure that all necessary steps are taken.

5. Creation

Policies are typically created by the leadership of an organization and are designed to guide the actions of all employees. They are often created through a collaborative process that involves input from a range of stakeholders. Procedures, on the other hand, are typically created by operational staff and are designed to be followed by employees at all levels.

Why policies and procedures are important

Policies and procedures are essential for the effective governance of an organization. Here are some reasons why policies and procedures are important:

1. Ensuring Consistency

Policies and procedures help ensure that work is completed consistently across an organization. They establish a standard process for completing tasks, which helps ensure that work is completed efficiently and effectively. This consistency helps build trust with customers and stakeholders, who expect a consistent level of quality from the organization.

2. Providing Clarity

Policies and procedures provide clarity to employees regarding the expectations of the organization. They provide guidance on what is expected of them, and what they can expect from their colleagues. This clarity helps reduce confusion and misunderstanding, which can lead to mistakes and inefficiencies.

3. Establishing Accountability

Policies and procedures establish a clear system of accountability within an organization. They provide a measure of transparency that allows stakeholders to hold the organization accountable for its actions. This accountability helps build trust with stakeholders, who want to be confident that the organization is acting in their best interests.

4. Promoting Compliance

Policies and procedures help promote compliance with laws, regulations, and ethical standards. They provide a clear framework for decision-making, which helps ensure that the organization is acting in accordance with its values and principles. This compliance helps build trust with stakeholders, who want to be confident that the organization is acting in a responsible and ethical manner.

Examples of policies and procedures

Policies and procedures are used in a wide range of industries and organizations. Here are some examples of policies and procedures:

1. Human Resources Policy

A human resources policy outlines the principles and procedures for managing employees. It may include policies regarding hiring, compensation, benefits, performance management, and termination. This policy is designed to ensure that employees are treated fairly and consistently, and that the organization is compliant with labor laws and regulations.

2. IT Security Policy

An IT security policy outlines the principles and procedures for managing information technology resources. It may include policies regarding access control, data backup, virus protection, and incident response. This policy is designed to ensure the confidentiality, integrity, and availability of organizational data.

3. Financial Management Policy

A financial management policy outlines the principles and procedures for managing organizational finances. It may include policies regarding budgeting, accounting, purchasing, and reporting. This policy is designed to ensure that the organization is managing its finances responsibly and transparently.

4. Safety and Security Procedure

A safety and security procedure outlines the specific steps required to ensure the safety and security of employees and organizational assets. It may include procedures for emergency response, fire safety, access control, and incident reporting. This procedure is designed to ensure that the organization is providing a safe and secure work environment.

Conclusion

In summary, policies and procedures are essential for the effective governance of an organization. While policies provide a framework for decision-making, procedures provide a step-by-step guide for completing a task. Policies are typically created by the leadership of an organization and are designed to guide the actions of all employees. Procedures, on the other hand, are typically created by operational staff and are designed to be followed by employees at all levels. Policies and procedures are important because they help ensure consistency, provide clarity, establish accountability, and promote compliance. By understanding the differences between policies and procedures, organizations can establish a clear and effective system of governance.