Question

briefly explain 'Rule' and 'Policy'as types of plans

Answer 1

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RULES (standing plan)

RULES spell out actions or non actions of the employees . there is no discretion allowed in rules i.e. they must followed strictly and if rules are not followed then strict actions can be taken against employees who is disobeying the rule .

for e.g.

no smoking in the organization

POLICY ( standing plan)

policy can be defined as organization's general response to a particular situation . In simple words it is the organization own way of handling the problems . The major policies are made to known to all the stakeholders like customer , clients , supplier etc . whereas minor policies are for internal use and are made to known to insiders only with minute details.

for e.g.

" No credit sales " or Make or buy policy.