Question

Explain 'policy' and 'procedure' as types of plan.

Answer 1

• Policy can be defined as organisation’s general response to a particular problem or situation. In simple words, it is the organisation’s own way of handling the problems. Policies are made at every level because the managers at every level need to decide or predetermine the way of handling a situation and policy acts as a guide to take decisions in unexpected situation.
• Procedures are required steps established in advance to handle future conditions. The sequence of steps to be followed by employees in different situations must be predetermined so that everyone follows same steps.The procedure can be defined as the exact manner in which an activity has to be accomplished.Procedures are made common for all the departments to co-ordinate their activities. So procedures cut across all the departmental lines. For example, the procedure to handle the order by manufacturing department may involve sales department also.