Strategic decision making

17 important questions on Strategic decision making

Why does bounded rationality exist and what is the result of bounded rationality

Because there is lack of cognition and time in decision making. result is that people look for satisfactory result instead of optimal solution.

Which 2 factors occur when people take decisions?

People look for satisfaction and simplify reality (rules of thumb/heuristics). This results in conformation bias. Even though there is evidence that concludes the opposite, people still want satisfactory result.

What is the difference between planning school (week 3) and process school (week 4)?

Planning school has a rational approach to strategy making. Process school has a behavioral approach to strategy making.
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What is the essence of Quinn (1989)?

Because organizations need to deal with formal systems, power and behavior, logical incrementalism can be used to manage both in order to create strategies.

Which three types of incrementalism exist?

event-driven incrementalism
learning-driven incrementalism
politically-driven incrementalism

When does incrementalism work?

When managers blend what emerges from each subsystem into a cohesive pattern

What is the essence of Eisenhardt and Zbaracki (1992)?

Organizations are political systems in which strategic decision makers have conflicting objectives and limited cognitive capacity

What is a strategic decision?

A fundamental decision that shapes the course of the firm

What 3 paradigms occur in strategic decision making according to Eisenhardt and Zbaracki (1992)?

1. rationality vs bounded rationality
2. politics vs power
3. garbage can

What do Eisenhardt and Zbaracki (1992) say about strategic decision makers?

They are bounded rational, power wins battles and chance matters

What is the main concept of Mintzberg, ahllstrand and Lampel (1998) regarding strategic decision making?

strategic decision makers deal with cognitive limits which construct the environment and influence decisions. (cognition vs. rationality). Strategists are largely self taught so their cognition is based on their experiences.

Which two perspectives on cognition mention Mintzberg et al (1998)

- objective perspective, reality as a given
- subjective perspective, reality can be constructed

Why cognition in strategic decision making according to Mintzberg et al (1998)?

- cognitive frames help interpret the world
- cognitive frames shape the world

What is the concept of Hambrick and Mason (1984) regarding strategic decision making?

Organizational outcomes are partially predicted by managerial backgrounds. It distinguishes cognition and demographics because cognition is difficult to observe. demographics are used as a proxy for cognition

What is the concept op Hatch (1997) regarding strategic decision making?

There are many definitions of organizational culture, but they all refer to something held in common or shared among group members. Organizational culture influences strategic decision making.

Hatch (1997) refers to national culture of Hofstede. What are the four dimensions and what do they mean?

- power distance, unequal distribution of power
- uncertainty avoidance, cope with uncertainty (religion vs technology)
- individualism, degree of independent action
- masculinity, separation of gender roles

Hatch (1997) refers to Schien's model of organizational culture. What are the three dimensions?

- beliefs and assumptions
- norms
- artifacts

Can be seen as a onion with different layers

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo