Policies are 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.
Policies are principle-based, defining what an organization expects, with a focus on broad issues, guidelines, and principles. Procedures, on the other hand, define how those expectations are carried out. This makes procedures more specific, governing specific tasks, processes, and workflows.
It’s important to understand the difference. Policies are a set of general guidelines. They outline your organization’s plan for tackling certain issues. The purpose of policies is to communicate an organization’s values, philosophy, and culture. They include, but aren’t limited to, the following: