Difference Between Objective and Policies (With Table)

Objective and policies are two terms that are often mistaken in their usage. The fine line of difference is that an objective is an aim or the target that the organization or the person aims to achieve which is unsusceptible to any kind of personal feelings and emotions.

Objectives vs Policies

The main difference between objectives and policies is that objectives are the goals that are desired to be accomplished whereas policies are the tools to achieve them.

Any organization should be well aware of its objectives at the primary level so that they are not rendered directionless in the future. The objectives are of the utmost importance whereas policies, on the other hand, are important means of progress but are not indispensable.

Policies are the designed system of principles that guide people or organizations to achieve the desired goals. It is a statement that is implemented and followed as a procedure or the protocol.

Objectives are the goals to be achieved whereas policies help to achieve these goals by setting a set of rules and guidelines for the process to be followed to achieve those goals. Objectives form the basis of any kind of organization.


Comparison Table Between Objective and Policies (in Tabular Form)

Parameters of comparison




Objectives are the set of predetermined ideas or goals for any organization or the individual to achieve the desired destination.

Policies are the means to achieve the desired goals by stating various guidelines and set of rules.


These are of the primary and utmost importance to the individual and the organizations.

Policies are not of basic importance to the existence of the organization.


Objectives are required for better functioning of any organization to let them fall directionless.

Policies are required to provide an organized way of achieving what is desired.


Objectives are usually created by the top-level officials of the management companies.

Policies can be created or suggested by anyone in the organizational committee.


The purpose of the objective is to summarize the plans of the company in a precise manner

The main purpose of the policies is to help in the achievement of the objectives.


What is Objective?

An objective means a thing aimed at or any desired goal. Objectives are the purposes for which the organization exists. Without objectives, any organization will be purposeless, directionless, and chaotic. Objectives are usually created by the top-level officials of the management companies

Objectives are the basic requirements to fulfill the predestined target and for the efficient and smooth functioning of any organization.

 Advantages of objectives are-

  1. Objectives help to clarify the actions and procedures to achieve the desired targets.
  2. They help the organization to function smoothly without future impediments.
  3. Objectives form the framework for the working of people because they are managed and formed by top-level management.

What is Policy?

Policies are the course or principle of actions proposed by any organization or the individual to fulfill the desired goal. Policies are the broadways to achieve objectives that are not always of the absolute importance because they only provide the guideline to reach the target. 

Since policies are determined by all the determinant levels in any organization, they are more flexible and open-ended to be changed when required by the organization.

Advantages of policies are:

  1. Policies are the tools for accomplishing the targets set by the organization.
  2. Policies can be formed and suggested by people at various levels in any organization which makes them approachable to a large number of people.
  3. They are the designed tasks of any organization that makes the working easy and quick in action.

Main Differences Between Objective and Policies

  1. The objective is the target that any organization or individual wants to fulfill whereas policies are the tools to achieve those targets.
  2. Objectives decide the purpose of an organization and are the path setters for other actions whereas policies are not of the extreme importance to any organization because they can be modified at any point in time.
  3. Objectives are formed by the top-level management for efficient functioning whereas policies can be formed by all level determinants in the companies.
  4. The main purpose of having objectives is to provide a framework and direction to any organization whereas policies only serve as a means to do so.
  5. Objectives are the concrete plans to design the concrete future whereas policies are adaptable and adjustable because they can be changed for better functioning of the organization. 



Objective and policies are important terms in the management setting because of their importance in an individual’s work and personal life. The objective is the target or the goal which needs to be fulfilled whereas policies are the mere tools that help to do so. Objectives form the basis of any kind of organization whereas Policies are the path directors to achieve objectives.

They are not always of the absolute importance because they only provide the guideline to reach the target. Policies are the means for the achievement of goals. They help to consistently achieve the objectives. Objectives are the desirable results or organizational or individual activities. They are the purposes for which the organization exists. They are the ends towards which organizations direct their energies and concerns

The basic difference between the two terms can be that objectives form the basic level of any organization and everyone works accordingly keeping that particular goal in mind whereas policies are not the concrete plans rather these are deliberately created protocols that allow people to work in coherence with each other for a sufficient time.


  1. https://marketbusinessnews.com/financial-glossary/objective/
  2. https://en.wikipedia.org/wiki/Policy