Page 11 - IC90 Human Resource Management
P. 11
Otherwise, the policy records may not reflect the payments made and service
to policyholders will suffer. It is also necessary that the payments are banked
speedily. Otherwise, they will remain idle without being invested, causing loss
of valuable earnings.
Therefore, procedures are laid down as how these payments should be
received and handled, the records to be maintained, and updated, how to
ensure that lapses do not occur and so on. The procedures may also provide
for checking of every one of these activities by another person as there can be
no room for any errors in these activities.
b. Difference between procedure and policy.
A procedure lays down step-by-step details of actions while a policy lays
down a general guideline.
Example :
For example, in the matter of purchasing, the policy may be that purchases
beyond a certain value can be made only on the basis of quotations from at
least three vendors. The procedure will lay down that the quotations must be
opened only in the presence of specified persons, who should sign on the
