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TOPIC 3 The Strategic Management Process - Coggle Diagram
TOPIC 3
The Strategic Management Process
Differentiate between Qualitative and Quantitative Strategic Management
Quantitative vs Qualitative Decision Making
Rational analysis and intuitive decision making is very important in decision making.
Pondy (1983) and Simon (1987) together agreed that theory of strategic decision making has to take into account both rational and intuitive processes.
Quantitative Strategic Management
Evidences
Figure (percentage, ratio)
Under stable environment
Documentation and databases as important sources of decision-making.
ANALYSIS: Quantitative Decision Making
Evidences
Figure (percentage, ratio)
Under stable environment
Documentation and databases as important sources of decision-making
How and why DANA BELIA 1MALAYSIA
Announced by Prime Minister, Datuk Seri Najib Tun Razak on Jan 21, 2011
Objective: To empower youth, to encourage youth to use their imagination to the fullest
The scope and the projects should address 3 criteria: nurturing unity in Malaysia, have a multiplier effect on the general community and be led by young people
Initial : RM20 mil fund allocated
Ministry of Youth and Sports
QUALITATIVE STRATEGIC MANAGEMENT
Past experiences
Judgement
Feelings
Conditions of great uncertainty
Conditions with little precedent
INTUITIVE: Qualitative Decision Making
Intuition means “being able to bring to bear on situation everything you’ve seen, felt, tasted, and experienced in an industry” (H. Ross Perot quoted in Rowan (1990:83).
Past Experience
Most of top executives relies on past experiences which are the accumulated memory of past impressions , actions and achievements to make decision.
Judgement
Intuitive synthesis involves making decision, when the decision is to be made quickly, in the absence of adequate information and without precedent. Such situation is call for judgment. Judgment of top executives is important to both organizational alignment and firm performance.
Feelings
Many researchers suggest that intuition manifests itself in the form of ‘gut-feeling’ (Harper, 1988;Mitzberg, 1994; Parikh, 1994; Harung, 1993; Agor, 1990b; Vaughan, 1990). Parikh (1994) described intuition as a process of ‘feeling-out’ the problem or trusting one’s ‘gut-feeling’.
Conditions with great uncertainty
Explain Strategic Management Process
Strategic management process can be studied and applied using a model. It attempts to organize quantitative and qualitative information in a way that allows effective decisions to be made under conditions of uncertainty.
It assists organization integrating intuition and analysis (qualitative vs. quantitative) in decision making. It involve management at all levels and influence all analyses. Positivist vs. Interactionists is another approach for decision making
Understand Positivist and Interactionists Strategic Management
POSITIVIST VS. INTERACTIONIST IN DECISION MAKING
Strategy developed as a direct consequence of cause-and-effect relationship. The decision must be made based on true knowledge that is clearly validated by empirical research. This means that the organizations must have specific structures and resources, that they pursue particular strategies and that they can posses at times a competitive advantage that explains superior performance.
3 Approaches
Strategy driven
TQM
HR Scorecard
Interactionist
Interactionism is a theoretical perspectives that derives social processes such as conflict, cooperation from human interaction. According to Mead, social life consist of people interacting, setting up mutual expectations or norms and then acting with reference to these norms.
This perspective is widely employed by consultant when implementing change activity (which requires understanding of the environment). It requires joint decision-making by managers and employees and broad-based constituencies also involved.
Example of interactionist decision making is action research
Strategic Management Model
SM PROCESS
STRATEGY PROCESS IN PUBLIC SECTOR
12TH PLAN
