Essay on Policies, Procedures and Rules

Published: 2022/01/11
Number of words: 606


In an organization setting, policy refers to sets of protocol that guide decisions towards achievement of goals. The top management in organizations develops policies. Through such policies, organizations achieve goals by implementation with other team members. It is imperative to note that policies may take a subjective as well as an objective front (Waterhouse & Rogers, 2004). In comparison to rules, policies differ in terms of implementation. Rules, which at times relates to laws, prohibit behaviors. However, policies in organizations function by merely guiding actions. Therefore, policy formulation may be the process of making important decisions for organizations. An example of policy in an organization may relate to its recruitment principle. Certain job groups may entail certain qualifications on the part of a prospective employee.

Procedures on the other hand refer to a document designed to support a policy directive by the top management. Procedures are important in organizations since they describe responsibilities, time schedules and the places of operations. In project management, the term may be compared to a work schedule. Policy may be compared to the scope of the project while procedures refer to schedule of the project. In respect to this representation, procedures provide a map of the process of execution of organizational policies (Bolman & Deal, 2013). For example, in an organization the procedure of handling payment may begin at the clerk and ends at the chief accountant.

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Rules on the other hand refer to standards of for activities in organizations. In an organization, rules refer to the structure of behavior within teams. It may also refer to the norms of organizations. For example, it may be a rule for employees to arrive at the place of work before 8.00 am in the morning. Failure to observe such rules may have consequences. An employee may either be punished or warned and a repeat may lead to dismissal. Organizational rules are essential in influencing business behavior, promoting structure and control organizational behavior.

Development of Policies

Policies development in organizations follows a certain structure. The following is the structure to the development of policies. The first step to the development of policy is the identification of the need of policy in organization. The next step involves the identification of individuals who will take responsibilities. The next front to follow in the development of policies is the gathering of information, drafting and consulting stakeholders (Bolman & Deal, 2013). The next step to follow will be the approval of the policies, analysis of internal organizational needs. The next step to the formulation of the policy will be the implementation phase. The last step involves monitoring, review and revision if necessary.

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Importance of policies, Rules and Procedures

Organizational policies are important in organizations in diverse ways. Policies are important in maintaining internal controls in organizations. It is effective in limiting behavior of employees in organizations. It is also important in minimizing organizational costs. Through policies, organizations are able to find cheaper suppliers, limit fraud and other kind of losses. Policies are also important in building a learning culture and in maintaining compliance (Waterhouse & Rogers, 2004). Procedures on the other hand are effective in eliminating misunderstandings. It also assists organizations losses due to employee mistakes. Further, rules are in maintaining sustainability in organizations. Rules are important in resourcing, training and in maintaining health and safety standards.


Waterhouse, S., & Rogers, R. O. (2004). The importance of policies in e-learning instruction. Educause quarterly27(3), 28-39.

Bolman, L. G., & Deal, T. E. (2013). Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.

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