Policy:
(i) Policies are general guidelines/statements that guide thinking or channelise energies towards a particular direction. It provides a basis for interpreting strategy.

(ii) There are policies for all the levels and departments in an organisation, such as major policies and minor policies.
(iii) Policies define the parameters within which a manager can function. They are flexible as they may be changed as per requirement.
(iv) E.g., selling goods on cash basis only, purchasing decisions etc.
Method:
(i) Methods provide the systematic/ prescribed ways or manner in which a task can be performed considering the objective.
(ii) Selection of proper method saves time, money, efforts and increases efficiency.
(iii) Methods are flexible.
(iv) E.g., various methods of training adopted by an organisation to train its employees like apprenticeship training, induction programmes etc.