Difference between Policies and Procedures

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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” 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

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
► 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 framework within which the institution functions. Procedures are the the operational processes which are required to implement the policies of the organisation.
Nature
Policy statement is the formal direction needed to coordinate and execute the operations of an organisation. Procedures can be formal or informal, depending on the activity of the department in an organisation.
Concern
Policies are concerned with "what" the institution does operationally. Procedures are concerned with "how" it intends to carry out the operation policies.
Framed by
Policy statements are framed by top management officials of an organization. The steps in the procedures are framed by the middle and low level management of an organisation.
Framed using
Policy statement is composed and framed from the objectives of an organisation. Procedures are framed using the policy statement of an organisation.
Alterations
Policy statements are non-negotiable and cannot be changed that easily. Procedures can be changed according to the requirement and usually go through 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.
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