Policy
• These are the general guidelines which bring uniformity in decision making.
• It can be defined as an organisation's general response to a particular problem or situation.
• Policies are made at every level because the managers at every level need to decide or predetermine the way of handling a situation.
• These act as a guide to take decisions in an unexpected situation.
• For example, a school may have a policy of giving admission to the students who have secured more than 60 % marks.
Procedure
• These are those plans which determine the sequence of any work to be performed.
• They are specified in chronological order.
• Procedures are designed to execute policies and achieve objectives.
• For example, the procedure may be for the purchase of raw material, selection of employees, redressal of grievances, etc.