hat decision making is consistent with the mission, strategy, and tactics of the business. One way operating managers achieve this is through the use of policies. Creating Policies That EmpowerPolicies are directives designed to guide the thinking, decisions, and actions of managers and their subordinates in implementing a firms strategy. In the past, policies were referred to as standard operating procedures. Policies increase the effectiveness of managers by:Standardizing many routine decisions, andClarifying the discretion managers and subordinates are allowed to exercise in implementing functional tactics.Policies achieve this in a number of ways:1.Policies establish indirect control over independent action by clearly specifying how action is to be taken now. In addition, by defining discretion, policies in effect control decisions while empowering employees to act without direct intervention from top management.2.They promote uniform handling of similar activities hence facilitating the coordination of tasks. This reduces antagonism arising from favoritism, discrimination, and the diverse ways of handling common functions that often hampers operating personnel.3.Ensure quicker decisions by standardizing answers to previously answered questions that would otherwise recur and waste a lot of top managements time. The operating personnel can thus take decisions without constant recourse to their managers.4.Policies institutionalize basic aspects of organization behavior thereby minimizing conflicting practices and establishing consistent patterns of action in implementing strategy. This empowers operating personnel to act.5.Reducing uncertainty in repetitive and day-to-day decision making. Operating staffs are thus provided with the necessary foundation for coordinated and efficient efforts.6.Policies check resistance to or rejection of chosen strategies by organization members. When a major strategic change is done, precise operating ...
