Q.Distinguish between a policy and a procedure, giving one example of each.

Policy and procedure are both standing plans, but one sets a boundary for judgement while the other prescribes an exact sequence of steps.

A policy is a general guideline that lays down the boundaries within which decisions are to be taken, without specifying the exact action — it leaves room for judgement. Example: a company policy of "promote employees from within the organisation wherever a suitably qualified internal candidate is available."

A procedure is the exact, chronological sequence of steps to be followed to carry out a specific activity, allowing very little discretion. Example: the fixed sequence of steps for processing an employee's leave application — application submitted to the immediate supervisor, supervisor's recommendation, forwarding to HR, HR's approval, and updating of leave records.

The key difference: a policy guides thinking/judgement in decision-making, while a procedure prescribes a specific, standard way of doing a specific piece of work, step by step.

Treating policy and procedure as interchangeable terms, when a policy guides judgement while a procedure eliminates the need for judgement by prescribing exact steps.