Policies and Objectives are key elements of organizational planning, but they differ in purpose and focus. Policies are established guidelines or rules that direct decision-making and actions within an organization, ensuring consistency and compliance with overall goals. Objectives, on the other hand, are specific, measurable targets that an organization aims to achieve within a defined timeframe, providing a clear direction for efforts and resources.

What are Policies?

Policies are like the rules of the game. They're set by organizations to guide the way people make decisions and take actions. Think of them as the framework within which everyone operates, ensuring that actions are consistent and aligned with the organization’s values and legal requirements. For example, a company might have a policy that requires all reports to be double-checked before submission to maintain accuracy.

What are Objectives?

Objectives, on the other hand, are the finish lines or targets that an organization aims to hit. They are specific goals set to be achieved within a certain timeframe. Objectives give direction and a clear idea of where the organization wants to go. For instance, a business objective could be to increase sales by 10% within the next year.

Difference between Policies and Objectives

To put it simply, policies are the rules that govern how things are done, while objectives are the end goals that need to be reached. 

Basis for Comparison	Policies	Objectives
Definition	Guidelines or rules designed to influence decisions and actions within an organization.	Specific targets or goals that an organization aims to achieve.
Purpose	To ensure actions within the organization are consistent and align with its values and standards.	To provide a clear direction and endpoint that the organization strives to reach.
Nature	Broad guidelines that offer a framework for decision-making.	Concrete milestones or targets that are often quantifiable.
Focus	On the way actions are performed within the organization.	On the outcomes or results that the organization aims to achieve.
Change Frequency	Policies are relatively stable but can be updated as needed to reflect changes in the organization or its environment.	Objectives are set for specific timeframes and are updated more frequently to reflect new goals or directions.