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Decision-Making & Strategy - Coggle Diagram
Decision-Making & Strategy
Decision Making in Organizations
Miles & Snow Typology
Reactors
Lack of consistent strategy, no clearly defined approach, generally viewed as dysfunctional
Prospectors
Emphasize product development, keen learning orientation, strong in research, tend to adopt flexible structures
Analyzers
Mix of both Prospectors & Defenders: balance efficiency vs. learning, control vs. adaptability, efficiency vs. creativity
Defenders
Engage in little to no product development, centralized authority, little employee empowerment
Rational Decision-Making Models
Strict rational decision-making process
Decision makers know all relevant goals
Decision makers know & can rank order goal preferences
Decision makers select the most efficient alternative
Decision makers know all alternative means
There are limits to rationality assumptions
There are contingency perspectives on decision-making
Public organizations have rational decision-making techniques
Rationality assumptions affect managers' behaviors
Incremental Decision-Making Models
Incrementalism
Incremental steps to carry out broad objectives: priorities need adaptation, compromise is important
Garbage Can Model
Participation, preferences, and technology are ambiguous, uncertain, and rapidly changing
Organizational decisions involve more internal political activity than assumed, with conflict among coalitions
Mixed Scanning
Decision makers mix both perspectives, taking the time to broadly "scan" major issues & alternatives
Power & Politics within Organizations
Bases of Power
Expert
Control of knowledge, information, and skills
Legitimate
Authority to tell others what to do
Referent
Standard setting toward emulation
Reward
Confer or withhold rewards
Coercive
Forceful action against others
Dependency & Strategic Contingencies
Strategic contingencies
Crucial events/factors in the operations of the organization
Power accrues to units that manage these
Dependency
How much one must rely on the other for resources
Power at Different Organizational Levels
Middle managers
Influence potential between executives and employees
Lower-level members
Can also have substantial power
May serve as experts on key tasks
May obtain influence through effort, interest, informal coalitions
Have considerable autonomy
Can use rules and norms to advantage
Top managers
Considerable authority & control key decisions
Influence resource allocation
Can take advantage of network centrality
Getting & Using Power (Advice from Daft (2013))
Bring in external resources
Build coalitions & networks through trust/respect
Increase others' dependence
Influence information flow & shape agendas
Areas of uncertainty/strategic contingencies
Enhance legitimacy & prestige
Be reasonably aggressive & assertive, EXCEPT for when it comes to power issues
Strategic Planning vs. Organizational Performance
Prescriptive Frameworks - Bryson & Roering (1996)
Competitive analysis
Major forces acting on an industry (buyers/sellers, substitute products, market competition)
Strategic issues management
Major issues crucial for organization to achieve goals, deciding how groups respond & resolve issues
Stakeholder management
How key stakeholders evaluate an organization & form strategies to deal with each other
Process strategies & strategic negotiation
Decision making is highly political: prescribe ways of managing the constant barganing
Strategic planning systems
Formulate & implement strategic decisions. Allocate resources for backups across units & organization levels
Logical incrementalism
Incremental nature of strategic decisions: ways to bargaining along a consistent path
George et al. (2019)
SP must be analyzed under both internal & external environments of the organization
OP includes many different dimensions, which are affected by management, organization, and environment
SP has a significant, moderate, and positive impact on OP
Public organizations' characteristics (differ from private organizations)
Goals & criteria are more vague & conflicting
Absence of economic market indicators, idealized social objectives
More elaborate overlay of institutional constraints/laws
Difficult social tasks under vague mandates from legislative bodies
More political intrusions into management
Must jointly pursue complex goals: accountability, responsiveness, representativeness, openness, efficiency
Public employees are less extrinsically motivated, hard to encourage to engage with SP using external stimuli
Public organizations are more bureaucratic, managers are less committed to organizations
Varieties of Political Capital & Power in Organizations
Issues for Managers & Researchers
George et al. (2019)
Public employees are less extrinsically motivated, hard to encourage to engage with SP using external stimuli
Public organizations are more bureaucratic, managers are less committed to organizations
Conditions where officials have greater influence
They have strong professional capabilities & credentials
They have excellent knowledge of government, institutions, and policies
They have effective political support from the legislative branch, the executive branch, and interest groups
They are capable of achieving reputation for general stature & competence (intelligence, high energy, integrity, & commitment)
They play important roles relative to major policy issues & are key in budgetary decision-making roles
Conditions where public strategic decision-making takes place
More artificial time constraints
Shaky coalitions (unstable political coalitions)
Greater openness to media & political influences
Policy ambiguity
Framework for Political Capital & Power
Political Capital
Cultural
Knowledge
Economic
Social
Symbolic
Reputational
Institutional
Organizational
Contingent Valuation of Capital
Resource dependence, Status, Identification, Legitimacy
Convertibility
Investment
Culture
Structure
Economics
Power in Organizations
Accumulation & Diversification of Varieties of Capital
Activation & Mobilization
Convertibility
Organizational Outcomes
Career Outcomes
Organizational Performance
Decisions (Agenda control, rules of the game)