Question

Distinguish between: (i) Policies and objectives (ii) Rules and methods (iii) Policies and procedure

Answer 1

Policies and objectives

• There is a difference between the objectives and the policies of an organization.While the objectives can be described as the goals that have to be achieved by the organization, on the other hand, policies can be described as the tools that are used for achieving the objectives of the organization. In the same way, another difference that is present between objectives and policies is related to their need for the organization. While objectives can be described as the foundations of the organization and therefore, any organization without an objective is directionless as it will not be aware of the goals that have to be achieved by it and the direction in which it needs to go. On the other hand, policies provide the means that can be used by the organization to achieve these goals. In this way, while policies are essential for achieving the goals of the organization but they are not indispensable.
  

Rules and methods

• Methods are called directly.
  
• Specific instances are passed.
  
• One call results in a single execution.
  
• Rules execute by matching against any data as long it is inserted into the engine.
  
• Rules can never be called directly.
  
• Specific instances cannot be passed to a rule.
  
• Depending on the matches, a rule may fire once or several times, or not at all.
  

Policies and procedure

• Rules and regulation of the business organization are framed in the form of policies. These are the guiding principles of an organization. It should not be confused with procedures, as both are created by top-level management for middle and low-level management. Procedure implies the step by step sequence, for the performance of activity within the organization.
  
• Policies are the general statement that sets out the limits within which decisions are taken by the managers and thus assures the consistent performance. On the contrary, procedures, suggest the exact way of performing an activity. It indicates the sequence for handling various business activities.