Definition of Strategy: The strategy is a plan of action established to realize organizational goals, win over customers, develop a competitive edge, and establish a market position. The organization is guided toward its desired position or destination by a combination of well-thought-out aims and actions.
Definition of Policy: The policy, which is a set of values and guidelines that guide an organization’s decisions, is also viewed as a miniature mission statement. The senior management of the organization creates policies to act as a guide for operational decision-making. It is useful for emphasizing the organization’s values, regulations, and principles. Additionally, it serves as a foundation for decision-making.
Policies are created by incorporating the viewpoints and opinions of numerous organization members for any given issue. They are the result of experience and fundamental knowledge. This will ensure that everyone affected by the policy is wholly in favor of its execution.
Differences Between Strategy and Policy: The following are the differences between strategy and policy
- The strategy is the best plan chosen out of a variety of plans in order to accomplish the aims and objectives of the organization. The policy is a set of general guidelines that serve as the foundation for daily decisions.
- While the policy provides a guideline for action, the strategy is a plan of action.
- Strategies are dynamic in nature since they can be changed depending on the circumstances. Policies, on the other hand, are uniform in character. However, accommodations can be made for unforeseen circumstances.
- Strategies relate to organizational actions and choices for contexts and circumstances that have not before been encountered or experienced. Quite the opposite. Routine, repeated activities have regulations that are defined by policies.
- Policies are decision-oriented, whereas strategies are focused on actions.
- Strategies are always created by the top management, but sub-strategies are developed by the intermediate management. They are often decided by the senior management, unlike Policy.
- Strategies address elements in the external environment. However, policies are created for the workplace’s internal environment.
- Methodologies for achieving the goal are frequently included in strategies. Contrarily, policies specify what must be done and what must not be done in particular situations.
