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Difference between a policy and procedure

sivaram (Asst Mgr-Taxation) (6918 Points)

16 April 2010

Dear All,

It is a long back i studied organisation and Management and completlely forgot everything but

Can any one tell me the difference between a policy and a procedure in simple lay mans language

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4 Replies

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 16 April 2010

Hello,

A policy according to me is a kind of principle or rules fixed by superior authority in the country based on their understanding of system or problem or requirement. It is a way to the decision making process. A true policy involves the solution for overall objective/need towards framework of policy itself.

A procedure is a way to implement the policy keeping in view the objectives of introduction of policy. It may involve various steps for accomplishment of policy.

For example maintaining capital structure in a corporate is a kind of policy and ROC work for modify the structure is a kind of procedure.

Am not sure whether able to bring something useful?

Regards

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