Policy and Procedure

Policy and procedure is a business document that organizations use to describe the framework of approaches and various guidelines that its employees, stakeholders, and management follow to ensure smooth operations. Policies and procedures are a company’s lifeline, allowing them to produce quality goods and services for its customers. policy-and-procedure

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Policy and Procedure Definition & Meaning

A policy and procedure serve as a manual or handbook in organizations like nonprofits and small businesses to achieve consistency and define individuals who perform or oversee certain activities.

Individuals must take the time, effort, and overall expertise in researching and writing to craft an organization’s policies and procedures.

What Are Policy and Procedure?

Policies and procedures are business documents that contain processes and work instructions to regulate actions, decisions, and principles of a company or organization. The documentation provides standard operating procedures or SOP and office protocols with the essential information, authority, and guidance for an entire company or department on topics including recruitment,  risk management, dress codes, employee termination, and many others. Together, the document produces procedures about specific methods that individuals use to communicate policies in action, supporting the daily operations of an organization.

10 Types of Policy and Procedure

Sales Policy and Procedure

Sales policy and procedure is a document that aids an organization by writing and listing the best practices when making sales, including customer services processes, marketing strategies, and sales plans. The document contains and defines general sales approaches to assist the sales staff’s understanding of various promotional and marketing frameworks that the business runs in the industry. Creating clear policies and procedures helps the organization align its sales and marketing efforts to improve sales pipeline management.


Communication Policy and Procedure

An organization must have a communication policy and procedure document in clear and straightforward language for all employees, containing and separating the internal and external communication policies for better understanding. Internal communication policy and procedure must consider the various regulations and company policies for compliance to guarantee that employees understand the proper lines of communication and behavior towards one another. The external communication policy must give employees an idea of handling the incoming and outgoing information and spreading critical news and details to the public, stakeholders, and customers.


Finance Policy and Procedure

Finance policy and procedure documents refer to a management tool that enables an organization to focus on its financial needs and operations to guarantee employee productivity and service to its customers. Finance policies speak about the different rules and principles of the business in accounting and financial techniques, reflecting the company’s culture and values. Finance procedures contain an outline of the sample work instructions that employees need to abide by the policies.


Workplace Policy and Procedure

Workplace policy and procedure apply to various companies, including call centers, apartment real estate sales, police offices, or cyber security agencies. Workplace policy and procedures is a document demonstrating the different processes and practices that are part of the business, including day-to-day operations or adherence to employee legislation. The document plays a critical role in developing the organization’s values and culture and designing a positive and productive organizational workplace.


Company Policy and Procedure

A company policy and procedure contain the internal business guidelines and outline to establish rules, regulations, and expectations, allowing organizations to communicate the do’s and don’t for employees, including daily processes and activities. Organizations format the document as rules of conduct that outline the commitments of employees and employers to protect the employees’ legal rights and the business interests of employers. The document also seeks to communicate the company vision, mission, and values for employees to understand the management’s expectations of them in specific scenarios.


HIPAA Policy and Procedure

The Health Insurance Portability and Accountability Act sets out the HIPAA policy and procedure that requires medical organizations, including health care institutions, nursing homes, and medical offices, to develop regulations protecting the security and privacy of specific health information. The document seeks to establish the national standards for protecting health information in storing and delivering them through electronic form. It addresses the technical and non-technical safeguards that organizations must possess to secure the health information of different individuals.


Accounting Policy and Procedure

Companies prepare an accounting policy and procedure document containing principles and guidelines that the company implements through its management team in preparing financial statements, like employee payroll. These accounting manuals have various accounting methods, measurement systems, and processes explaining the approach to disclosing financial data. The account policy and procedure define a company’s strategy to adhere to the rules and regulations they set for financial management.


HR Policy and Procedure

HR policy and procedure represent a framework or outline of guidelines from management, particularly the human resources team and various department heads, describing the organization’s business and the business execution and performance. The document contains procedures about how staff members perform their jobs, including what they can and cannot do in the organization and business processes like exit interviews and safety policies. The policy and procedure documents the organization creates under the HR team are not enforceable by law; however, these policies and procedures have a foundation in law.


IT Policy and Procedure

IT policy and procedure set specific guidelines for using information technology within a company, outlining the organization’s expectations from its employees on what to do and what not to do while using company property and assets. By incorporating a clear and comprehensive document, an organization can perform clear, efficient, and complete actions, like updating maintenance checklists, revising index Excel sheets, and upholding a safety policy. The document also helps describe how the company manages and incorporates technology in the corporate setting.


Healthcare Policy and Procedure

Setting up healthcare policy and procedure sets expectations and guidelines on the proper processes in handling different actions. The document guides staff members and the entire organization in performing daily operations, helping promote consistent practices, reduce mistakes in medication administration and medical functions and keep patients and staff safe. The document also enables medical staff to make beneficial and accurate decisions, providing the best possible care for patients.


Policy and Procedure Uses, Purpose, Importance

Companies and organizations must have a  basic policy and procedure to ensure that employees and employers follow specific guidelines to focus on growth, simplify training, and eases the business’ ability to develop. Policy and procedures have multiple purposes, following the list below.

Increase Compliance

Industries have best practices, laws, regulations, and standards that organizations need to follow, and using policy and procedures helps an organization comply with international, federal, state, and local regulations. The policy and procedures set by the World Trade Organization and United Nations reflect local laws for each country. Human resource departments ensure compliance with the requirements of international organizations, with updates to new and changing laws and best practices.

Improve Internal Approaches

As an organization continues to grow and develop, internal processes also change, making them difficult to observe. Policy and procedures help clarify various internal approaches as these influence the quality of work and business reputation by ensuring consistency throughout the organization. The document guarantees the company achieves internal processes, helping staff serve clients and customers with value and accuracy.

Help Navigate Problems and Incidents

A clear and comprehensive policy and procedures prevent workplace accidents by introducing safety measures, preventing the incident from becoming a risk. Workplace incidents happen internally and can impact daily operations, and a risk crisis happens externally, making it more difficult to predict and solve. Policy and procedures that contain step-by-step processes for good customer service and communication techniques help organizations alleviate during times of crisis.

Let Employees Know Who They Can Turn To For Help

Policy and procedures enable employees to make clarifications, develop informed decisions, and reinforce standards with professional exchanges. Meanwhile, the document also allows managers to manage staff effectively by indicating acceptable and unacceptable actions in the workplace. Companies and the human resources department must thoroughly explain the policy and procedures to employees, providing them with a copy as necessary.

Demonstrate Consistent Systems and Structures

Constructing clear policies and procedures enables businesses to run smoothly and organizations to run according to plan, identifying and addressing mistakes quickly. When organization employees follow policies and procedures, it allows them to use their time wisely and efficiently with the company concentrating on growth and development to achieve its goals. It also gives employees a sense of ownership, identifying the expectations of employers and co-workers that allow them to do their functions confidently.

What’s In A Policy And Procedure? Parts?


The header section of the policy and procedures document incorporates the title, the publishing date, and an identification block that includes the policy number, effectivity date, approval authority, and department. Ensure that the document and page number appear on all pages, with the footer repeating the issuance date and document title.


The policy’s purpose and procedures describe the document’s existence, including the concerns of legal and regulatory needs and conflicts that the policy needs to avoid. The purpose must be a clear and concise statement that every user must know after reading it.

Policy Statement

The policy statement describes the overall framework of the document and the intention of creating it. The section must indicate the multiple reasons for completing the policy.


The definition section of the policy and procedures defines terms in the policy, including words and phrases with multiple meanings and unfamiliar words. Including the definition section in the document make it more precise and easily understandable, advantageous for impromptu litigations.

Table of Contents

The table of contents helps users to find specific sections of the policy and procedures, whether the output is a downloadable manual PDF or a printed document. Hyperlinking the topics in the table of contents is also advantageous for electronic files.

Policy and Procedures

The section contains the step-by-step instructions organizations follow for routine and daily tasks and operations. It incorporates information from individuals, groups, or departments who perform these tasks or activities.


The conduct section of a policy and procedures document lists the proper behavior and regulations on employee behavior and performance. It lists the violations and consequences the company implements when an employee violates them.


The scope covers the different individuals, teams, and departments that the policy and procedures blanket. For more depth and clarity, specify the persons or groups that the policy and procedure do not cover.


How to Design Policy and Procedure?

1. Choose a Policy and Procedure Size
2. Specify the Purpose of the Policy and Procedure
3. Pick a Policy and Procedure Template
4. Create a Priority List and Conduct Research
5. Write an Initial Draft
6. Validate the Policies and Procedures
7. Send Out the Draft for Review
8. Reproduce the Draft and Obtain Signoff


Policy and Procedure vs. Protocol

Policy and procedures are general guidelines leading an organization to its desired goals through written and approved instructions according to industry standards.

Protocols are written plans that specify procedures people follow to alleviate situations through concrete interventions.

What’s the Difference Between Policy and Procedure,  Policy, and Employee Handbook?

A policy and procedures is a business document that organizations produce for the entire company into a manual that contains the organization’s best practices, work standards, and core business processes.

A policy is a set of ideas or plans on what an entity can do in particular situations that a group of people or an organization agreed to perform.

Employee handbooks are essential communication tools for organizations between an employer and employees, providing guidance and information about the company’s history, mission, vision, values, culture, and procedures.

Policy and Procedure Sizes

There are various policies and procedures that organizations, agencies, and industries use to ensure that daily operations run smoothly and efficiently, ensuring employees’ safety and well-being. Produce the document in standardized formats using policy and procedure sizes through Microsoft Word or MS Word according to the paper sizes below.


Policy and Procedure Ideas & Examples

Policies and procedures are vital to ensure that a company runs smoothly, achieves its goals, and grows and develops into success. Creating policies and procedures ensures that a company functions effectively, and choosing from our list of blank policy and procedure ideas and examples, ensures the way to a healthy workplace.

  • Law Firm Policy And Procedure Ideas and Examples
  • Administrative Policy And Procedure Ideas and Examples
  • Cybersecurity Policy And Procedure Ideas and Examples
  • Communication Policy And Procedure Ideas and Examples
  • Procurement Policy And Procedure Ideas and Examples
  • Security Policy And Procedure Ideas and Examples
  • Real Estate Policy And Procedure Ideas and Examples
  • Construction Policy And Procedure Ideas and Examples
  • IT Policy And Procedure Ideas and Examples
  • Employee Policy And Procedure Ideas and Examples
  • Safety Policy And Procedure Ideas and Examples


What should be included in a policy and procedure?

A policy and procedure must incorporate a header, purpose statement, policy statement, definitions, table of contents, policies, procedures, and scope.

What policies and procedures should a small business have?

Every small business must have policies and procedures relating to workplace safety, discipline, device use, work hours and turnaround time, late payment, and return or refund.

How do you write policies and procedures?

In writing policies and procedures, the business must identify its goals, brainstorm about tasks and processes, determine a suitable policy format, develop policies and procedures, proofread, revise, and distribute.

What is the difference between a policy process and procedure?

A policy is a set of rules that an organization and its employees follow to achieve a goal, while procedures are instructions on how individuals follow the policy process.

How do you create a shipping policy?

When creating a shipping policy, research for examples, iron out necessary details, compose a simple policy, publish the shipping information on the company website, and follow specified guidelines.

What is policy and procedure in healthcare?

Policy and procedure in healthcare refer to a set of expectations for individuals to perform their tasks and duties properly.

How do you write a policy and procedure in accounting?

Accounting policy and procedures focus on the proper guidelines in handling financial documents, transactions, and processes.

How do you monitor compliance with policies and procedures?

To ensure compliance with policies and procedures, ensure managers’ and leaders’ buy-in, select the best format, make the document accessible, set deadlines for acknowledging the policies and procedures, and determine the best method of measuring understanding.

What are the contents of a policy and procedure manual?

The contents of a policy and procedure manual include the title, headline, introduction, policy statement, table of contents, policies, and procedures.

What are audit procedures?

Audit procedures are the processes that auditors use to obtain sufficient and meaningful evidence to make accurate decisions and judgments about the effectiveness of an organization’s internal controls.