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Operating Policies
Operating policies acts as a lubricant for the effective, efficient, and smooth
operation of the organization.
Policies are often confused with the rules and procedures.
(1) POLICY: A verbal, written or implied guide setting up boundaries and
directions within which
managerial decisions should take place.
Hence, a policy is a guide to decision-making.
(2) RULE: A prescribed course of action which must be followed. Hence, a
rule is a guide to individual action.
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