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Strategic Planning & Decision Making - Coggle Diagram
Strategic Planning & Decision Making
In Organizations by Rainy
Power and Politics
Depends on
Bases of Power
French and Raven ’s typology(1968)
Reward power
Coercive power
Referent power
Expert power
Legitimate power
Dependency and Strategic Contingencies
External influence/influence of external agencies
Internal influence
Power at Different Levels
Top managers
Lower-level members
Middle managers
Empowerment
Multidimensional
Involvement in agency decisions
Skill development
Job autonomy
Creativity and initiative
Power Among Subunits
greater dependency result in more power
Decision Making
Through contingency theory
Rational Decision-Making Models
Contingency Perspectives on Decision Making
James Thompson (1967)
Two major dimensions of Decision-making
The degree to which the decision
makers agree on goals
The degree to which they have
well-developed technical knowledge
Rational Decision-Making Techniques
Lyndon Johnson
Planning and program budgeting system (PPBS)
Jimmy Carter
Zero-based budgeting techniques
Rodgers and Hunter(1992)
Management by objectives techniques
Downs and Larkey, 1986
Management science techniques
Mathematical models
Highly structured procedures
The Limits of Rationality
Cognitive limits
Uncertainties
In these situations
They satisfi instead of maximize
Time limits
Rationality Assumptions and the Behaviors
Individuals rationally maximize utility
Incremental Decision-Making Processes
An Incremental Model of Decision-Making Processes
Mintzberg, Raisinghani, and Theoret
(1976)
The model depicts decisions, even major ones, as involving numerous small, incremental steps moving through certain general phases
Logical Incrementalism
Quinn (1990)
long-range strategic decisions set a framework for
incremental steps
The Garbage Can Model
March and Olsen(1986)
The model emphasizes that the linkages between the elements are more temporal than consequential
Mixed Scanning
Etzioni (1967, 1986)
Mix of rational decision
making and incrementalism
Strategic Management
Prescriptive Frameworks
Bryson and Roering (1996)
Provided a summary
of eight major approaches
Ring (1988)
Modified portfolio model
Strategic planning systems
Stakeholder management
Competitive analysis
Strategic issues management
Process strategies & strategic negotiation
Logical incrementalism
Applications of Strategic Management
Usually use a version of the Harvard Policy and Stakeholder model of strategic planning
SMG typically manages the process and must agree on who will be involved
Analytical Research on Managerial Strategies
Hickson and his colleagues (1986)
Found that strategic decision-making processes is different in public & private organizations
Public organizations follow a “vortex- sporadic”
decision-making process
Miles and Snow (1978) strategy typology
Four orientations
Prospectors:
Defenders:
Analyzers:
Reactors:
Strategic Planning and Organizational Performance
SP contribution to overall OP
The theoretical logic(SP contributes to OP)
Harvard policy model (Andrews 1980)
Systematic, rational, and analytical approach
Synoptic planning theory (Dror 1983)
Organizations with goals perform better
Goal-setting theory (Locke and Latham 2002)
Organization-environment fit
SP doesn't contributes to OP
Incrementalism (Quinn 1978)
Complexity theory (Bovaird 2008)
Impacts of sp on op
Conditions
The conceptualization and subsequent
operationalization of SP and OP
Moderators
Formal, Participatory, and Comprehensive Strategic Planning
Dimensions of Organizational Performance
The practice of SP in public and
private organizations and in US and non-US settings
Moderator
Public and Private Organizations
US and Non-US Contexts
The research design implementation
Moderators
Common- and Multiple-Source Data
SP's contribution to OP
Meta-analysis
Conducting the meta-regression analysis
Using random-effects meta-regression with clustered standard errors
Identifying publication bias
To detect potential issues, conduct both visual and statistical tests
Conducting the meta-analysis
Using a random-effects metaanalysis with Fisher’s r-to-Z transformation
Results
27 articles focused on formal SP
7 on participatory SP
6 0n comprehensive SP
In relation to OP
10 articles focused on effectiveness
5 on efficiency
4 on responsiveness
3 on outcomes
4 on multiple dimensions
15 on financial performance
14 articles were from the United States
15 from a non-US
2 from both
16 articles focused on private organizations
10 on public organizations
5 included both
SP has a significant, moderate, and positive impact on OP
Georg & Walker(2019)
POLITICAL CAPITAL AND POWER
sources of power
Clegg et al. (2006)
Hard power
Soft power
Raven’s (1959)
The capacity to influence social relationships
Power can be positive or negative and encompasses cooperation and collective action
Spicer’s (2014)
The capacity to influence other actors with political
interests in mind
Lukes (2018)
The capacity to affect outcomes
Variety of capital
Bourdieu, 1986
Cultural capital
Social capital
Mechanism
Benefits through brokerage.
Benefits through bonding
Benefits through social status
Economic capital
Political capital
Power
Symbolic capital
Ocasio, Pozner, and Milner, 2020
Reputational capital
Organizational capital
Knowledge capital
Institutional capital
Contingent value of political capital
Cultural contingencies
Structural contingencies
Economic contingencies
Mechanisms to covert political capital to power
Status
Identification
Resource dependence
Legitimacy