Question

"KOHINOOR FOODS Ltd. has banned smoking in the factory premises".
(a) Identify the plan stated in above lines
(b) State the features of this plan
(c) Differentiate between policy and this plan

Answer 1

The plan stated in the above lines are related to rules.

Features of rules

1) Disciplined culture

2) Introduced method

3) Effective utilization of resources

Following are the difference between policy and rule stated in a paragraph:

• Rules and Policies are sometimes so packed together that it becomes impossible to segregate one from the other. And it varies from one perspective to the other that whether rules are based on policies or policies are based on rules. Therefore, it will be good if we first confine our discussion to an understandable perspective so that we can understand the difference.
  

• In the context of business entities, rules usually mean the rules applied by the government or some other body responsible for regulating business entities.
  

• Rules are clear instructions that must be followed by the entities. And in case if rules are not followed then the entity will have to face some legal action in the form of penalties, suspension etc. So basically rules are given the ability to have the protection of their own.
  

• Policies related to how the rules are going to be implemented. Entities design their policies on the basis of rules applied by regulatory authorities AND their business objectives. Policies basically give a direction to the entity that is in line with both applicable laws and aims that business wants to achieve.
  

• But here is another thing. Based on these policies, management may design internal rules for the imposition of such policies.