Policies are specific statements of principles and guiding actions that provides a basis for consistent decision-making.
Policies of an organization are meant to guide behavior and activities in a particular direction to help achieve goals and aims.
Rules are meant to guide the behavior and attitude of the employees to help them behave according to situations arising in day to day operations.
Rules are clear instructions that must be followed by the entities.
Policy: Safety is our first concern.
Rule: A hard hat must be worn in a construction site.
Policy: Cigarette smoking is detrimental to health.
Rule: No smoking is allowed in the hospital premises.