Several researchers have studied the N-policy for queues. In this paper, we modify the N-policy for M/G/1 queue as follows: The server on becoming idle waits for the accumulation of N units for service. As soon as there are N units, he starts service for these N-units all together and subsequent arrivals during the busy period initiated by this receive single service. The service time distribution for bulk service is different from that of single service. Steady-state distribution is obtained. Optimal N value is investigated under distributional assumptions on service times. Numerical illustrations are provided.