Objective It refers to the desired future positions that an organisation seeks to reach. It is usually framed by the top management. They are the end results of managerial activities, set in specific, quantitative terms for all the departments and units of the organisation, e.g. to achieve 10% increase in sales in the next quarter.
Policy It is a general statement that defines the boundaries within which the decisions are made. It helps in solving recurring problems easily, e.g. sale on cash basis only.