What are policies and procedures?

Policies and procedures are guidelines and rules that are established by an organization to ensure consistency, compliance, and efficiency in its operations. Policies are high-level statements that outline the organization's goals, values, and expectations, while procedures are detailed instructions that outline the steps to be followed to carry out a specific task or process. Together, policies and procedures help to standardize practices, promote accountability, and mitigate risks within an organization.

Policies:

- Definition: High-level statements that outline the organization's overall direction, principles, and values. They provide a general framework for decision-making and action.
- Characteristics:
- Broad and general in nature
- Set by executives or governing bodies
- Provide guidance on major issues, goals, and priorities
- May be mandatory or aspirational
- Examples:
- Ethical policies
- Environmental policies
- Quality management policies

Procedures:

- Definition: Detailed instructions that describe how specific activities or tasks should be performed. They provide step-by-step guidance to employees, ensuring consistency and efficiency.
- Characteristics:
- Specific and prescriptive
- Developed by managers or specialists
- Provide instructions for day-to-day operations
- May cover a wide range of activities, such as work processes, safety protocols, and financial controls
- Examples:
- Hiring procedures
- Purchasing procedures
- Inventory management procedures

Relationship between Policies and Procedures:

- Policies establish the "what" of the organization, while procedures outline the "how."
- Procedures are derived from and aligned with the organization's policies.
- Together, policies and procedures form a comprehensive framework that guides employee actions and ensures organizational compliance and effectiveness.