Scheme vs. Policy: What's the Difference?

Edited by Huma Saeed || By Sawaira Riaz || Updated on October 4, 2023
A scheme is a systematic plan or arrangement for a particular purpose, while a policy is a set of guidelines or rules that guide decisions or actions in specific situations.

Key Differences
A scheme and a policy, while sometimes utilized in overlapping contexts, are inherently different in their purposes and applications. A scheme essentially refers to a structured plan or arrangement designed to achieve a specific goal or outcome. For instance, a city might have a transportation scheme to streamline its public transport routes. Conversely, a policy denotes a formulated principle or guideline, which helps in decision-making or ensures consistent actions in given scenarios. An example would be a company's refund policy, which clarifies the circumstances under which refunds are permissible.

Sawaira Riaz
Oct 04, 2023
Looking into governmental contexts, when a government introduces a new scheme, it might be presenting a program or project that serves a particular section of the population, such as a housing scheme for low-income families. On the other hand, when the same government announces a policy, it's laying down a foundational approach or guideline, like a foreign policy determining international interactions.

Sawaira Riaz
Oct 04, 2023
In business, while schemes often refer to structured plans such as incentive schemes to motivate employees, policies stand as official documents that elucidate the company's stance on various matters, like an HR policy. It's noteworthy that while a scheme generally has a more concrete and tangible blueprint with specific steps and actions, a policy tends to be more abstract, providing an overarching guideline.

Sawaira Riaz
Oct 04, 2023
While both schemes and policies are aimed at facilitating better organization and clarity, their primary divergence lies in their nature and functionality. Schemes provide a roadmap or a structured pathway, detailing steps or methods to realize a goal. Policies, meanwhile, offer a framework within which decisions are made, ensuring uniformity and coherence in choices and actions.

Sawaira Riaz
Oct 04, 2023
Comparison Chart
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Purpose
To achieve a specific goal or outcome
To guide decisions and ensure consistency

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Oct 04, 2023
Tangibility
Often has a concrete blueprint or steps
More abstract and overarching

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Oct 04, 2023
Application
Programs, projects, plans
Guidelines, principles, foundational approaches

Sawaira Riaz
Oct 04, 2023
Scheme and Policy Definitions
Scheme
A systematic plan or arrangement.
The new traffic scheme improved downtown congestion.

Janet White
Oct 04, 2023
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Policy
A plan or course of action, as of a government, political party, or business, intended to influence and determine decisions, actions, and other matters
American foreign policy.
The company's personnel policy.

Sawaira Riaz
Jan 10, 2023
Scheme
A secretive or devious plan.
She suspected him of some scheme to deceive her.

Sara Rehman
Oct 04, 2023
Policy
A course of action, guiding principle, or procedure considered expedient, prudent, or advantageous
Honesty is the best policy.

Sawaira Riaz
Jan 10, 2023
Scheme
A systematic plan of action
"Did you ever carry out your scheme of writing a series of sonnets embodying all the great epochs of art?" (Edith Wharton).

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Jan 10, 2023
Policy
Prudence, shrewdness, or sagacity in practical matters
It is never good policy to speak rashly.

Sawaira Riaz
Jan 10, 2023
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Scheme
An orderly plan or arrangement of related parts
An irrigation scheme with dams, reservoirs, and channels.

Sawaira Riaz
Jan 10, 2023
Policy
A principle of behaviour, conduct etc. thought to be desirable or necessary, especially as formally expressed by a government or other authoritative body.
The Communist Party has a policy of returning power to the workers.
It's company policy that all mobile phones are forbidden in meetings.

Sawaira Riaz
Jan 10, 2023
Policy
Wise or advantageous conduct; prudence, formerly also with connotations of craftiness.

Sawaira Riaz
Jan 10, 2023
Scheme
(astrology) A representation of the aspects of the celestial bodies for any moment or at a given event.

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Jan 10, 2023
Scheme
(mathematics) A mathematical structure that enlarges the notion of algebraic variety in several ways, such as taking account of multiplicities and allowing "varieties" defined over any commutative ring (e.g. Fermat curves over the integers).

Sawaira Riaz
Jan 10, 2023
Scheme
(internet) Part of a uniform resource identifier indicating the protocol or other purpose, such as
http:
or news:
.
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Jan 10, 2023
Policy
A document containing or certifying this contract.
Your insurance policy covers fire and theft only.

Sawaira Riaz
Jan 10, 2023
Scheme
A portfolio of pension plans with related benefits comprising multiple independent members.

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Jan 10, 2023
Policy
(obsolete) An illegal daily lottery in late nineteenth and early twentieth century USA on numbers drawn from a lottery wheel (no plural)

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Jan 10, 2023
Scheme
A combination of things connected and adjusted by design; a system.
The appearance and outward scheme of things.
Such a scheme of things as shall at once take in time and eternity.
Arguments . . . sufficient to support and demonstrate a whole scheme of moral philosophy.
The Revolution came and changed his whole scheme of life.

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Jan 10, 2023
Scheme
A plan or theory something to be done; a design; a project; as, to form a scheme.
The stoical scheme of supplying our wants by lopping off our desires, is like cutting off our feet when we want shoes.

Sawaira Riaz
Jan 10, 2023
Policy
The settled method by which the government and affairs of a nation are, or may be, administered; a system of public or official administration, as designed to promote the external or internal prosperity of a state.

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Jan 10, 2023
Scheme
Any lineal or mathematical diagram; an outline.
To draw an exact scheme of Constantinople, or a map of France.

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Jan 10, 2023
Policy
The method by which any institution is administered; system of management; course.

Sawaira Riaz
Jan 10, 2023
Scheme
A representation of the aspects of the celestial bodies for any moment or at a given event.
A blue silk case, from which was drawn a scheme of nativity.
He forms the well-concerted scheme of mischief;'T is fixed, 't is done, and both are doomed to death.
Artists and plans relieved my solemn hours;I founded palaces, and planted bowers.

Sawaira Riaz
Jan 10, 2023
Policy
Management or administration based on temporal or material interest, rather than on principles of equity or honor; hence, worldly wisdom; dexterity of management; cunning; stratagem.

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Jan 10, 2023
Scheme
To make a scheme of; to plan; to design; to project; to plot.
That wickedness which schemed, and executed, his destruction.

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Jan 10, 2023
Policy
Prudence or wisdom in the management of public and private affairs; wisdom; sagacity; wit.
The very policy of a hostess, finding his purse so far above his clothes, did detect him.

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Jan 10, 2023
Policy
Motive; object; inducement.
What policy have you to bestow a benefit where it is counted an injury?

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Jan 10, 2023
Policy
The writing or instrument in which a contract of insurance is embodied; an instrument in writing containing the terms and conditions on which one party engages to indemnify another against loss arising from certain hazards, perils, or risks to which his person or property may be exposed. See Insurance.

Sawaira Riaz
Jan 10, 2023
Scheme
A group of independent but interrelated elements comprising a unified whole;
A vast system of production and distribution and consumption keep the country going

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Jan 10, 2023
Policy
A method of gambling by betting as to what numbers will be drawn in a lottery; as, to play policy.

Sawaira Riaz
Jan 10, 2023
Scheme
An internal representation of the world; an organization of concepts and actions that can be revised by new information about the world

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Jan 10, 2023
Policy
A line of argument rationalizing the course of action of a government;
They debated the policy or impolicy of the proposed legislation

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Jan 10, 2023
Policy
A plan of action adopted by an individual or social group;
It was a policy of retribution
A politician keeps changing his policies

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Jan 10, 2023
Policy
Written contract or certificate of insurance;
You should have read the small print on your policy

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Jan 10, 2023
Scheme
An official program or project.
The government introduced a healthcare scheme for seniors.

Janet White
Oct 04, 2023
Policy
A set of guidelines or rules.
The company's privacy policy is very strict.

Sawaira Riaz
Oct 04, 2023
Policy
A course of action adopted by an organization.
The new environmental policy garnered public support.

Aimie Carlson
Oct 04, 2023
Scheme
A method of achieving an aim.
His workout scheme led to rapid improvements.

Janet White
Oct 04, 2023
Policy
A standpoint on a particular issue.
The president's foreign policy was under scrutiny.

Harlon Moss
Oct 04, 2023
FAQs
What's the role of policy in governance?
In governance, a policy sets out a foundational approach or stance on various issues.

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Oct 04, 2023
How does a policy function in an organization?
A policy provides guidelines or rules to guide decisions and ensure consistency.

Sawaira Riaz
Oct 04, 2023
Can a scheme be secretive?
Yes, the term scheme can also denote a secretive or devious plan.

Sawaira Riaz
Oct 04, 2023
Which term has a more tangible blueprint?
A scheme often presents a more concrete blueprint or steps.

Sawaira Riaz
Oct 04, 2023
Is a policy always official?
While policies often have official standing, they can also be informal guidelines.

Sawaira Riaz
Oct 04, 2023
What might a government housing initiative be called?
A government housing initiative might be termed a housing scheme.

Janet White
Oct 04, 2023
What is the primary meaning of scheme?
A scheme primarily refers to a systematic plan or arrangement.

Sawaira Riaz
Oct 04, 2023
Why are policies essential in companies?
Policies ensure uniformity, clarity, and consistent decision-making in companies.

Sawaira Riaz
Oct 04, 2023
What's the objective behind most schemes?
Most schemes aim to achieve a specific goal or outcome.

Sawaira Riaz
Oct 04, 2023
Do all schemes have positive connotations?
No, sometimes "scheme" can imply a questionable or dubious plan.

Sawaira Riaz
Oct 04, 2023
Is a policy generally broad or specific?
Policies can be broad, offering overarching guidelines, but can also be specific in detailing rules.

Sawaira Riaz
Oct 04, 2023
How does a policy differ in the insurance context?
In insurance, a policy is a contract specifying coverage and terms.

Janet White
Oct 04, 2023
Can a scheme refer to design elements?
Yes, in design, a scheme can refer to patterns or arrangements, like color schemes.

Sara Rehman
Oct 04, 2023
Which word can sometimes imply artistry or design?
"Scheme" can imply artistry, as in design patterns or arrangements.

Janet White
Oct 04, 2023
Which is more likely to be found in a company's handbook?
A policy, outlining guidelines or rules, is more likely to be in a company's handbook.

Sawaira Riaz
Oct 04, 2023
How do policies assist in decision-making?
Policies provide a framework, ensuring decisions align with established guidelines.

Janet White
Oct 04, 2023
In what context is a policy often scrutinized?
In political or governance contexts, policies (like foreign policies) are often scrutinized.

Sara Rehman
Oct 04, 2023
Which term, when used, indicates a roadmap or pathway?
The term "scheme" indicates a roadmap or structured pathway.

Sara Rehman
Oct 04, 2023
Can a scheme be official?
Yes, schemes can be official programs or projects introduced by entities.

Aimie Carlson
Oct 04, 2023
How does a policy provide clarity?
A policy outlines rules or principles, clarifying standpoints or actions to be taken.

Aimie Carlson
Oct 04, 2023
About Author
Written by
Sawaira RiazSawaira is a dedicated content editor at difference.wiki, where she meticulously refines articles to ensure clarity and accuracy. With a keen eye for detail, she upholds the site's commitment to delivering insightful and precise content.

Edited by
Huma SaeedHuma is a renowned researcher acclaimed for her innovative work in Difference Wiki. Her dedication has led to key breakthroughs, establishing her prominence in academia. Her contributions continually inspire and guide her field.
