INTRODUCTION
A lot of decisions are being made by each management. These decisions might be made for a long or short period of time. Occasionally, a choice is made in the context of a previous decision. Similarly, a decision establishes instructions for carrying out a plan in the future. In this case, policy, which is a component of planning, is critical in giving guidelines for making an informed decision.
Policy comes from the Latin word “politis,” which meaning “refined.” To make a decision, clear information is provided. With the support of policy, the decision maker can self-regulate. In other words, the policy establishes norms.
MEANING OF POLICY
A policy is a standard or guideline that is used to make decisions about accomplishing goals while taking into account the corporate climate.
The New Webster Dictionary defines policy as “the art or style of administering a nation,” “the line of behaviour which rulers of a nation choose on a specific topic, particularly with relation to other nations,” and “the basis on which any measure or course of action is founded.”
A standing plan is a form of policy. Subordinates might be guided by policy in order to do the task that has been allocated to them. Subordinates can make choices within the policy framework without consulting higher authorities. In this sense, a policy is a predefined course of action developed to direct job performance toward the achievement of agreed-upon goals.
DEFINITION OF POLICY
Eduin B. Flippo, “A policy is a man – made rule or predetermined course of action that is established to guide the performance of work towards the organization. It is a type of standing plan that serves to guide subordinates in the execution of their task”.
George A. Steiner, John B. Miner and Edmund R. Gray, “Policy is a management’s expressed or implied intent to govern action in the achievement of company’s aims”.
James B. Bom, “Policies are statements of the organization’s overall purposes and its objectives ir, the various areas with which its operations are concerned personnel, finance, production, marketing and so on”.
L.M.Prasad, “A Policy is the statement or general understanding which provides guidelines in decision – making to members of an organization in respect to any course of action”.
Dale Yoder, “A Policy is a pre-determined and accepted course of thought and action that is defined and established as a guide towards accepted goals and objectives”.
According to Newman, Sumner and Warren, a policy may:
(i) Be specific or broad in nature
(ii) Deal with one or many aspects of a problem or situation
(iii) Place wider or narrow limits within which action is to be taken
(iv) Specify the steps to be taken when a decision is to be made.
Therefore, a policy can be defined as follows: “A policy is a predetermined course of action and thought that are defined and established as a guide to achieve accepted goals and objectives”.
FEATURES OF POLICY
The following characteristics are recognised based on the preceding definitions.
1. A policy provides direction to the organization’s personnel in making decisions.
2. A policy limits the freedom of an organization’s personnel. An employee must make a decision that is consistent with the policy.
3. Rather of telling an employee what to do, a policy instructs and explains how and what he should do.
4. Employees have some discretion under a policy. As a result, an employee might make a decision based on the current scenario. If this is not the case, policy will become the rule.
5. A policy is developed in accordance with the organization’s goals.
6. A policy allows senior executives to allocate power while maintaining control over execution.
7. A policy is a set of instructions that must be followed.
8. Policies can be presented qualitatively, conditionally, or broadly.
9. In their respective domains, all managers in a company formulate policy.
10. Policies are the top management’s stated intentions.
NEED AND IMPORTANCE OF A POLICY
The goal of creating a policy is to help an organisation accomplish its overall goals. Policy encourages employees to make operational decisions. It is possible to treat an employee fairly. Employees’ spontaneous cooperation can be accomplished through the design of policies.
1. Achieving the goals: Policies are utilised as guidance for completing tasks and achieving an organization’s overall goals. As a result, policy allows employees to focus and raise their efforts in order to attain the goals.
2. Clear thinking: The top executives may be fully aware of policy gaps, inconsistencies, and ambiguity. With clear thinking, the discovered gaps, inconsistencies, and ambiguity will be addressed.
3. Uniformity: Decisions are made in a consistent manner by following policy rules. Line managers make decisions in accordance with the personnel policies in their respective departments. Due to the organization’s predefined regulations, if a person is transferred and another person takes over the office, the new staff member’s actions will be fairly similar to those of the prior staff.
4. No Exploitation: When making a judgement, there is no personal prejudice. As a result, there is no risk of employee exploitation. Minimizes the impact favouritism.
5. Continuity: Written policy ensures that the company’s legacy is passed down from generation to generation. When more than one generation follows a policy, there is consistency. The senior executives of a business may retire, die, or quit, but the policies they established must be followed by their successors.
6. Delegation of authority: Policies allow CEOs to assign power to others. Every time authority is delegated, it must be done without contacting superiors.
7. Stability: A policy’s consistency supports organisational stability. The following employees are aware of their predecessors’ painful experiences and accomplishments. Stability will be maintained in this manner.
8. Improved control: Policies define the connection between management and employees, as well as between employees themselves. As a result, there is no risk of conflict in both management and staff policy execution. Policies act as benchmarks or yardsticks, allowing for more effective management.
9. Orientation: A company’s new workers are given orientation. The policy assists new employees in comprehending how an organisation operates.
10. Evaluation of employee efficiency: Employees’ efficiency is assessed in light of the regulations they follow. Employees’ actual performance is evaluated based on the results obtained. The present policy may be updated, or a new policy may be created, taking into account the level of efficiency demonstrated by the staff.
11. Training: Both new and existing employees require training, which is divided into two categories: on-the-job training and off-the-job training. Training schedules are created individually for new and current personnel, as well as on-the-job training and off-the-job training.
12. Self-assurance: A policy is a set of rules that guarantees security if followed. Employees who know where they stand in the organisation gain self-confidence as a result of policy.
13. Teamwork: Well-structured regulations help employees to understand the organization’s broad picture and how their efforts contribute to the achievement of the organization’s goals. Employees acquire a sense of teamwork as a result of this.
14. Motivation: The organization’s policy directs employees in accomplishing their goals. Workers are motivated by policy in some way. The set targets may be met without much difficulty if the personnel are motivated. Employee participation in policy formulation enhances mutual understanding between management and workers.
15. Loyalty: Employee participation in policy formulation increases mutual understanding between management and employees. Employees are motivated to work together to achieve goals when they have a common understanding.
16. Morale: A well-defined policy allows employees to see the big picture of the company. Employees have access to fair treatment and justice. These are in charge of improving employee morale.
17. Management Guide: Policy directs how employees are treated by management. This treatment strategy minimises personnel issues to the greatest extent possible. Management has a comprehensive understanding of the task at hand and can select how to do it.
18. Quick Decision: A well-defined policy allows management to make important and timely choices. This technique eliminates time and energy waste.
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SOUND POLICY
A policy is a decorative element of a company. The policy determines an organization’s prestige. Furthermore, policy offers specific instructions or recommendations for making managerial decisions.
As a result, policies should be created on solid foundations. Otherwise, management will be unable to make excellent judgments. On some occasions, a policy may be sound, but on others, it may not. Circumstances or scenarios are used to determine if a policy is sound or not.
A good policy reflects the management’s general procedures and behaviour. A good policy prevents misunderstandings and aids the organization’s early success. Practical obstacles in policy implementation are given considerable consideration.The strength of an organisation is taken into account while formulating a policy.
CHARACTERISTICS OF SOUND POLICY
1. Relationship with objectives: An organization’s policy and its objectives are inextricably linked. As a result, the policy aids an organisation in achieving its goals in a short period of time. A sound policy removes non-essential activities while prioritising those that are critical to the fulfilment of goals.
2. Definite and simple: A policy should be clear and simple to understand for anybody. A defined policy is the only way for management to make a choice.
3. A realistic approach: A policy should only be created after serious consideration. Because policies are largely permanent in nature, such a policy should be able to address any future issues. Before forming a policy, it is necessary to consider reality.
4. Evidence: As much as feasible, a policy should be set down. The rationale for this is that documented evidence will serve as a foundation for future evidence.
5. Ensure Consistency and Understanding: Policies can help you avoid losing money. There is the option of ensuring that a policy is clearly understood. This will guarantee that policies are applied consistently.
6. Broad outlines: A policy might define the scope of the manager’s decision-making authority. If the policy is detailed, it dilutes the executives’ initiative and flair. Furthermore, in other circumstances, the entire details may be interpreted differently.
7. Consistency: Every action of the organisational functions must follow the same policy. The reason for this is that each function is linked to the organization’s other functions. If one function’s policy differs from that of another, there may be a conflict between the two functions, which can lead to inefficiency.
8. Changes: Once a policy has been developed, it can be implemented for a long time. At the same time, if there is a necessity, the policy should be revised at quite lengthy intervals.
9. Balance: A sound policy maintains balance between stability and flexibility. On the one hand, a policy must be adhered to for an extended length of time. It enables CEOs to focus on the most essential issues. The policy, on the other hand, can be altered. If this is not the case, policy becomes outdated. The policy is subject to change depending on the circumstances.
10. Adequate policies: An organisation should have a sufficient number of policies. Production, sales, purchasing, finance, people, and other aspects of the business must all have their own policies. Simultaneously, there should be no duplication of policy.
11. Communication: When a policy is created, it must be adequately conveyed to the people who will be affected. If this is not the case, there is no use in developing such a policy. As a result, a method for communicating policies inside an organisation should be devised.
12. Interest recognition: A good policy considers the interests of all parties involved, including the employer, employees, and the broader public. To put it another way, a policy should take into account the interests of all parties involved.
13. Realistic: The policies that an organisation adopts define it. In the corporate world, policy is the image maker. As a result, the policy should be rational in every way. Only then can the policy be relied upon by the management leaders.
14. Compromise: A good policy is one that works with the organization’s overarching policies. The organisational aim will be met in this manner.
15. Flexible: A formulated policy may have to be changed at regular intervals. While being executed, the established policy must be adaptable. For the time being, the policy should be flexible enough to be altered to the conditions.
16. Involvement: Only with the active participation of executives, supervisors, and employees at all levels of the trade unions can a sound policy be established.
17. Acceptable: Whatever policy the organisation formulates, it must be accepted by everybody. It indicates that an organization’s policies must be appreciated and accepted by all of its personnel.
FACTORS INFLUENCING POLICY MAKING
Several elements have an impact on policymaking. Some elements are evident, while others are hidden. Among them, some of the more important ones are listed below.
1. The owner’s or businessman’s psychology.
2. The owner’s or businessman’s willingness
3. The owner’s or businessman’s experience
4. Perceptions of the policy.
5. The owner’s and upper management’s perspectives.
6. Financial assets.
7. Employee reaction.
8. Competitors’ policies.
9. Competitors’ accomplishments.
10. Government oversight and regulation
11. The business climate.
12. The organization’s objectives
13. Cost
14. Attitudes and behaviour of the general public.
15. Consumer behaviour and customer service
FORMULATION OF A POLICY
1. Identification of area: Management must define the policy’s scope. In other words, topics for which policy should be developed must be identified. This method can even be used to alter an existing policy. Only after picking the area for policy formation could a management have a clear concept.
2. Objectives: In the creation of a policy, organisational objectives are critical. The cornerstone for policy formation is objectives. The formulation of a policy is guided by objectives. The reason for this is that the policy is designed to achieve the goals.
3. Environmental Analysis: A policy reflects the context in which it is formed. A policy is created in response to a certain scenario. In whatever circumstance, management strives to fulfil its goals. As a result, before formulating policies, management should conduct an environmental analysis.
4. Corporate Analysis: Environmental analysis refers to the examination of external elements. The term “corporate analysis” refers to a study of internal issues. When creating a policy, it is important to consider an organization’s strengths, weaknesses, opportunities, and dangers. This form of study provides a clear picture of the organization’s operation.
5. Information gathering: The gathering of information is the next phase in the policy formulation process. In the event of a small organisation, an intelligent individual may be assigned to gather information. In the event of a large corporation or a global corporation, a committee may be constituted and tasked with gathering data. Information may be gathered not just from within the company, but also from outside the company.
6. Information Analysis: Collected data may be analysed to determine the information’s value. The attitudes, aspirations, and habits of employees should be carefully studied, as should the ideology of senior management personnel. For the purpose of analysing the data, a wide range of consultations and conversations with specialists are undertaken.
7. Alternative Policy Development: Using the information gathered, multiple alternative policies are established to help an organisation accomplish its goals. Alternative policies are developed here with the active engagement of employees. The workers’ active engagement aids in the policy’s execution.
8. Policy Appraisal: Policy appraisal is extremely important. When evaluating a policy, the feasibility, financial implications, and benefits and drawbacks of any policy are all taken into account. Only via the process of policy assessment could the value of a policy be accurately appraised.
9. Policy Selection: Management can choose from among the assessed policies which policy is best suited to a certain circumstance. The policy assessment process aids management in selecting or formulating the optimal policy.
10. Policy Approval: The policy draft should be delivered to high management for approval at the appropriate time. Top management must only accept a policy after determining if it is consistent with the organization’s objectives.
11. Communicating the Policy: The approved policy should be conveyed to personnel, together with instructions on how to implement it. distributing the policy Furthermore, an instructional programme or sessions may be held to educate staff on how to apply the new policy.
TYPES OF POLICIES
1. Internal Policy: It is also known as internal policy. Management executives at various levels—top, medium, and lower—formulate this sort of policy. Internal policies are created based on the nature of the business and the extent of management.
When senior management creates a policy, it applies to the entire company. Similarly, if a policy is created by the department manager, it is exclusively relevant to the department in question.
2. Appealed Policy: This sort of policy is created solely in response to subordinate demands. This policy aids subordinates in dealing with certain situations. If the present policies do not allow for the handling of unusual situations, a new policy must be developed.
3. External Policy: This is also known as external policy. An outsider who is not a member of the organisation may be helpful in the formation of a policy.
For example, if the government issues a directive governing employee working conditions, the organisation is obligated to develop a policy to meet those requirements. External policy is established in this manner.
4. General Policy: This is a policy that has no bearing on the employees’ performance. The policy might express the top management leaders’ ideology, such as inspiring people to accomplish their jobs better. It is a policy that applies to everyone.
5. Specific Policy: A policy is created for a specific issue, such as a transfer, promotion, or pay. The broad concepts given in the basic policies must be followed by a specific policy.
6. Written Policy: A written policy is established and communicated. It is a policy that has been written down. There isn’t any room for error in this situation. The written policy should be followed by everyone. a
7. Implicit Policy: A policy can be deduced from the superior’s actions. It’s an unspoken rule. These policies are more adaptable than others.
MERITS OF POLICY
The following rits may be credited to an organisation with the aid of a well-formulated policy. These advantages will be briefly outlined below.
1. Guide to Thinking: Policy assists the management in making sound judgments. As a result, a policy serves as a roadmap for thinking and making decisions.
2. Uniformity: The policy guarantees that workers are treated consistently throughout the organisation. Favoritism is avoided, and prejudice is minimised.
3. Consistency: Policy gives management leaders a foundation on which to make decisions. There is a resemblance between a choice made in the first year and a decision made in the fifth year if a policy is followed for 5 years in a row. As a result, there is a level of consistency.
4. Applicability: A policy should only be established after careful consideration of the benefits and drawbacks, as well as an evaluation. Prior to the creation of a policy, practical issues relating to its execution are considered. Such regulations can be implemented in the real world.
5. Continuity: The organisation has employed well-written policies for more than one generation. Implementing the policy can provide valuable experience to future generations. This form of policy, which may be followed for a long time, allows an organisation to retain stability.
6. Builds Confidence: A well-crafted policy provides ready-made responses. As a result, the executives in charge of management may face the problems with confidence.
Furthermore, if the management executives carefully follow to the policies, they will not have to be concerned about the outcomes. In the perspective of management leaders, such a quick strike instils trust.
7. Security: Adherence to the policy gives management leaders a sense of security. If an organisation suffers a loss as a result of the adoption of ineffective or inappropriate policies, no one is held accountable. As a consequence, senior management executives feel safe.
8. Quick choice: For regular and recurrent concerns, the manager can make a quick decision. Policy protects top management personnel from squandering their golden years. As a result, the situation may be readily handled by making a rapid decision.
9. Delegation of Authority: A policy can assist a management in delegating authority. Subordinates are willing to take on more responsibility and authority. The reason for this is that the policy specifies what subordinates can anticipate.
10. Control: Policy serves as a benchmark or yardstick against which activities are judged. Top management has a lot of control over the functions. The reason for this is that the deviation is readily identifiable, allowing the control function to be exercised.
11. Orientation and Training: The policy can be utilised to provide new workers with orientation and training. Policies can help new workers comprehend the top management’s perspective. As a result, the policy exempts senior management executives from delivering new employee orientation and training.
12. Team Work: A well-designed policy paints a clear picture of a company. It encourages workers to work together more and improves mutual understanding. In this method, the organisation may simply develop teamwork.
13. Loyalty: Favoritism is not an option. By following the policy, management may ensure that all employees are treated fairly at all times. Employees become more loyal to the company as a result of this.
DEMERITS OF POLICY
1. Not applicable to every problem: A policy may be used to solve any problem. However, a single policy will not be able to tackle all of the issues. Despite the fact that the organisation has a lot of rules, some of them may be obsolete. The reason for this is because things are likely to alter in the coming days.
2. No Instant Solution: A policy is a guideline, not a solution. The executives in charge of management must find a solution. The decision-maker is constrained by policy. As a result, the decision-maker will be frustrated in his or her attempts to solve every problem.
3. Human beings have no value: When a policy is being developed, human beings are not taken into account. Furthermore, while a policy is being implemented, human people are not taken into account. As a result, human beings have no worth. Employees’ interests are minimised as a result.
4. Minimize Initiative: Management leaders are required to address the issue within the policy’s parameters. It does not allow for the employees’ inventive thinking. As a result, policy naturally lowers employee initiative.
5. No alternative for human judgement: The management executive’s choice is based on his own judgement. There is no criterion for judging one’s sense of judgement. As a result, management leaders will be unable to discover a substitute for human judgement.
PROCEDURE
Procedures are used to complete the actual performance of the job. A policy serves as a road map. Policy does not provide any method or methods for achieving an organization’s objectives. With the aid of procedure, a well-formulated policy is properly applied.
Between the formulation of a policy and its execution, there is a gap. This void is filled with a surgery. The method specifies the task to be completed and the people who will complete it in a certain amount of time. The procedure spells out the steps to be taken and the tasks that must be completed. Policies are general guidelines, whereas procedures are particular applications, according to Ernest C. Miller.
For the commencement of a job and the completion of a job under process, a schedule might be established. The technique is meant to help an organisation accomplish its goals while also making efficient use of its resources. The method identifies the various stages of the work. These are used to determine the best methods or strategies for completing a task.
DEFINITION OF PROCEDURE
George R. Terry has defined a procedure as “a series of related tasks that make up the chronological sequence and the established way of performing the work to be accomplished.”
Procedure may be described as the process of constructing a sequence of actions by defining distinct stages of work and effectively finishing the task with the aid of available resources in order to meet an organization’s objectives.
IMPORTANCE OF PROCEDURE
Procedure is critical to an organization’s ability to function effectively. The following table shows the relative importance:
1. The procedure relieves the management of the responsibility of managing subordinates. Procedure can effectively direct a subordinate. A procedure describes the steps to be followed, as well as the time and order in which they should be completed.
2. The procedure makes it easier for management to exert control. The management by exception approach is used in this situation.
3. Procedures provide a ready-to-use remedy to situations that recur. It helps management leaders save time and energy.
4. Procedure may be utilised as a criterion to determine whether or not a job is completed correctly. Control is established on the basis of procedure.
5. The procedure aids employees in increasing their productivity while sticking to the norm.
6. The procedure makes new employee onboarding and training easier for both existing and new workers.
8. The procedure guarantees that actions are consistent and uniform.
7. The procedure may be utilised to boost/increase staff morale.
9. Procedure improves the pace of information flow and speeds up not just clerical labour but all types of work.
10. A well-designed system makes proper transfer of power and responsibility fixation easier.
11. The procedure makes it easier for senior management to coordinate their functions.
ESSENTIALS OF SOUND PROCEDURE
A procedure should be well-thought-out. If this is not the case, it leads to a lot of uncertainty and a lot of money spent, as well as a delay in the completion of any task. When creating a sound method, consider the following factors.
1. A technique is based on sufficient data for a specific circumstance. No method is based on an employee’s estimates or wants.
2. Through the implementation of an organization’s policies, procedures must assure the attainment of objectives.
3. Procedure establishes the responsibilities of an employee who has been entrusted with sufficient authority delegation.
4. The procedure is steady for a set amount of time.
5. The procedure is evaluated on a regular basis to ensure that it is updated to reflect changing business situations.
MERITS OF PROCEDURE
1. Standard: A procedure specifies the order in which actions must be completed in order to complete a task. It defines how work should be done in a methodical manner. As a result, a standard is established for improved performance.
2. Improved Communication: For open flow of communication inside the organisation, a certain protocol is followed. As a result, all staff were able to access all information without difficulty.
3. Best Control: The control feature is quite simple to use. A method is used to establish a standard for any work. As a result, protocol guarantees that personnel are under the greatest possible management.
4. Coordination: Top management is in charge of the coordination function. There is a relationship between one operation and another, which makes it easier for top management to coordinate diverse staff actions. As a result, the method aids function coordination.
6. Time and Energy Savings: The procedure reduces needless staff moves and canalises the flow of work. Employees save time and energy as a result of the procedure.
6. Better Resource Utilization: A well-written method prevents unnecessary waste. Employees make effective use of an organization’s resources.
7. Consistency: In today’s world, doing work in an organisation requires following a routine. The next day, the same technique is used to finish the same sort of task. As a result, the technique is being followed consistently.
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LIMITATIONS OF PROCEDURE
1. Reduces the need for initiative: Once a technique is framed, it may be used for many years. As a result, outdated practises are no longer relevant in today’s company environment. Employees are also forbidden from developing new procedures.
2. Rigidity: The procedure forbids employees from varying even a small amount in their work performance. If a method is to be framed, it must be rigid.
3. Outdated: Procedures must be examined and updated on a regular basis. According to the changing business situations, the present technique can be appropriately adapted or altered. Many organisations are unable to implement such procedures.
DIFFERENCES BETWEEN POLICY AND PROCEDURE
| SI.No | Policy | Procedure |
| 1 | It guides the thinking and decision-making process | It guides the action process |
| 2 | It is derived from the objectives of an organisation | It is derived from the policies of an organisation |
| 3 | It discloses the attitude of management towards certain specific issues | It discloses the ways to be used for handling events systematically |
| 4 | It is formulated by top management people | It is framed by middle level and lower level management people |
| 5 | It gives more discretion | It gives less discretion |
| 6 | It is not based on procedure | It is based on policy |
| 7 | It lays down broad area | It lays down little area |
| 8 | It acts as a bridge between purpose and performance | It acts as a bridge between activities and results |
| 9 | It is a part of strategy | It is a tool of tactics |
METHODS
A technique is a long-term strategy that is more precise and particular than a process. The method indicates how the stated job will be carried out.
The manual or mechanical methods by which each job or process is carried out is referred to as a technique. As a result, it is beneficial in the application of a technique with the least amount of time, money, and effort.
A technique has a smaller scope than a process. A procedure’s method is the execution of a single operation. Methods are standardised and formalised procedures for completing repetitive and routine tasks.
The best way to do a task, according to standard techniques, is to do it one way. In this way, the technique aids in the planning process while also ensuring that activities operate smoothly.
Furthermore, approaches avoid ambiguity, promote economy and efficiency, and maintain a clear communication line. Methods are used to guide and regulate operations and performance as standard norms. In a nutshell, a method describes an operation in greater depth than a procedure.
ADVANTAGES OF METHOD
1. Methods, like the nails, nuts, and bolts of a product, are components of the company structure.
2. There is just one best method to execute a thing, which eliminates subjective decision-making.
3. It facilitates the seamless operation of departments.
4. The communication channel has been freed.
METHODS VS PROCEDURES
In the following respects, methods differ from procedures.
1. A method focuses on a single step, whereas a procedure focuses on a sequence of stages.
2. While methods are precise, procedures are not.
3. Although the methods are standardized, the technique is not.
4. A method entails only one department, but a procedure entails many departments.
5. Methods define the best technique to carry out a certain procedure step.
RULE
A rule, like a process, is a guidance for people operating in an organisation. However, unlike a method, the rule does not follow a set of steps. In a particular scenario, a rule outlines what should be done and what should not be done.
There is no room for decision-making in the rules. “No admission without authorization,” for example. This is a set of guidelines. There is no room for discretion on the side of the entrant under these guidelines. The regulation will be strictly enforced, and if the rule is broken, a fine or penalty will be levied.
A rule is a long-term strategy. A procedure is made up of rules. It’s stricter than a policy. The administrative portion of a procedure is usually covered by rules. A rule establishes the boundaries of permissible behaviour for an organization’s personnel.
The manager can use the rule to increase efficiency and forecast subordinate behaviour in a specific circumstance. Employees’ behaviour is channelled by rules in order to achieve goals. The use of a rule is used to compare the behaviour of individuals and groups.
Discipline may be maintained with the use of rules. Problems emerge not because of the regulations themselves, but because of how they are applied to employees. As a result, management should explain the objective of each regulation to the workforce. Rules should be designed in such a way that they do not stifle initiative and originality while still facilitating the seamless flow of work.
FEATURES OF A RULE
1. It is the most basic form of strategy.
2. The rules are fairly strict.
3. If the regulation is broken, a fine is applied.
4. No decision-making authority exists.
DIFFERENCE BETWEEN RULE AND POLICY
| Rule | Policy |
| 1. Rule is a specific statement telling the employees what should or should not be decision done. | Policy is a general statement of a management |
| 2. Rule is a guide of behaviour | Policy is a guide to decision making |
| 3. Rule constitutes the most specific type of standing plan | Policy is a less specific type of standing plan |
| 4. Rule is rigid, no exceptions or deviations. | Policy is flexible and has some exceptions |
| 5. Rule does not give any scope of discretion and its implementation. | Policy gives some discretion to the executives concerned with its implementation. |
DIFFERENCE BETWEEN RULE AND METHODS
| Rule | Methods |
| 1. Rule gives norms for performance | Methods are standard ways of doing things. |
| 2. Rule wants to ensure discipline | Methods are helping to increase efficiency of operation. |
| 3. No standardization is required | Standardization is required |
| 4. Rule is based on common sense and objectives | Methods are based on research and analysis |
| 5. Penalty is specified for rules violation | There is no penalty for violation of method. |
| 6. Rule is regarded as official and authoritative | Methods are regarded as logical or rational |
| 7. Rule is associated with control. | Methods not directly associated with are control. |
| 8. Rule is related to the behavior of individuals and groups. | Methods are related to physical and other tasks. |
DIFFERENCES BETWEEN RULE AND PROCEDURE
| Rule | Procedure |
| 1. Rule is a specific statement to do or not to do something Example: No Admission | Procedure specifies series of steps to be taken. |
| 2. No time sequence is specified in rule | A chronological order (in which steps are to be taken) is laid down in the procedure. |
| 3. Rule is rigid in nature There is no discretion allowed. | Procedure may allow discretion. |
| 4. Rule can be positive and negative. | Procedure is always positive in nature. |
| 5. Rule may be a part of procedure | Procedure is not a part of rule. |
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