How can policies control decisions while defining allowable discretion in which operating personnel can execute business strategies? Describe several ways in scholarly detail. Solution FUNCTIONAL TACTICS THAT IMPLEMENT BUSINESS STRATEGIES Functional tactics are short-term activities each functional area within the firm undertakes to implement the grand strategy. Exhibit 9-4 illustrates the difference between functional tactics and corporate and business strategy. Differences between Business Strategies and Functional Tactics Three basic characteristics that differentiate functional tactics from business strategies: 1.    Time Horizon: focus on immediate activities. Corporate information about Delta Airlines can be found at: www.deltaairlines.com/gateway/index.htm / 2.    Specificity: business strategies provide general direction, functional tactics specify activities and how they are expected to be achieved 3.    Participants: general managers are responsible for business strategies. Operating managers establish short-term objectives and functional tactics that lead to business-level success. Exhibit 9-5 illustrates the nature and value of specificity in functional tactics versus business strategy. EMPOWERING OPERATING PERSONNEL: THE ROLE OF POLICIES Empowerment in organizations is being created in many ways. Training, self-managed work groups, eliminating whole levels of management in organizations, and aggressive use of automation are some of the ways. At the heart of the effort is the need to ensure that decision-making is consistent with the mission, strategy, and tactics of the business while at the same time allowing considerable latitude to operating personnel. One way operating managers do this is through the use of policies. Policies are directives designed to guide the thinking, decisions, and actions of managers and their subordinates in implementing a firm .

1. How can policies control decisions while defining allowable discretion in which operating
personnel can execute business strategies? Describe several ways in scholarly detail.
Solution
FUNCTIONAL TACTICS THAT IMPLEMENT BUSINESS STRATEGIES
Functional tactics are short-term activities each functional area within the firm undertakes to
implement the grand strategy. Exhibit 9-4 illustrates the difference between functional tactics
and corporate and business strategy.
Differences between Business Strategies and Functional Tactics
Three basic characteristics that differentiate functional tactics from business strategies:
1.    Time Horizon: focus on immediate activities. Corporate information about Delta
Airlines can be found at: www.deltaairlines.com/gateway/index.htm /
2.    Specificity: business strategies provide general direction, functional tactics specify
activities and how they are expected to be achieved
3.    Participants: general managers are responsible for business strategies. Operating
managers establish short-term objectives and functional tactics that lead to business-level
success.
Exhibit 9-5 illustrates the nature and value of specificity in functional tactics versus business
strategy.
EMPOWERING OPERATING PERSONNEL: THE ROLE OF POLICIES
Empowerment in organizations is being created in many ways. Training, self-managed work
groups, eliminating whole levels of management in organizations, and aggressive use of
automation are some of the ways. At the heart of the effort is the need to ensure that decision-
making is consistent with the mission, strategy, and tactics of the business while at the same time
allowing considerable latitude to operating personnel. One way operating managers do this is
through the use of policies.

2. Policies are directives designed to guide the thinking, decisions, and actions of managers and
their subordinates in implementing a firm