The two terms are NOT interchangeable at all!
Policy defines the value systems and guiding principles of an organization. These represent the durable approach of the organization on any issue of interest to the organization,
Procedure on the other hand is the way how the policies will be translaed in to reality.
Policy describes the stance of the organization on any issue and the procedure details the actions stipulated to translate an abstract stance into a visible, concrete reality!
Policy is to be free of cast, creed, religion consideration in matters of recruitment. The procedure would ensure that the organization, in fact and in reality has work-force free of such (undesirable) biases.
December 7, 2005
7th December 2005 From India, Pune