Flexibility in strategic decision making: informational and ideological perspectives

Article Abstract:

Adaptation is a crucial challenge for organizations, and an important theme in the strategy and organization theory literature. We still have much to learn, however, about the strategic processes by which adaptation is achieved. In this paper we focus on a basic element in the adaptation process, i.e. flexibility within the strategic decision-making process. We concentrate on strategic decisions because these choices are the most important adaptations the firm makes. We suggest that the core of all organizational adaptation is a decision-making process. Unless the decision-making process itself is flexible, it is unlikely the organization can be flexible enough to adapt. We derive hypotheses concerning the factors that lead to flexibility (versus rigidity) from both information processing and ideological perspectives, and test them in a study involving 57 strategic decisions in 25 companies. Our results identify three contextual factors related to both perspectives - including competitive threat, slack and uncertainty - that are helpful in understanding flexibility in strategy decision making. While managers appear to be more flexible when decisions are uncertain, we found that in the very conditions where managers need the most flexibility (high competitive threat and low slack), they are least likely to be flexible. (Reprinted by permission of the publisher.)

Organizational Methods NEC, Management Functions, Management, Organizational change

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Analysing management decision-making: further thoughts after the Bradford studies

Article Abstract:

Despite the vast range of contributions, the study of decision-making has remained highly fragmented. Early writers adopted a psychological perspective, viewing the individual as an information processing system, and this detracted from a consideration of political aspects such as conflict and power. The subsequent move towards an approach that saw decision-making more as a political process has to be welcomed, and this article argues that this owed much to the work of Thompson and Tuden (1964). Their matrix model was extended further by Astley et al. (1982) and Hickson et al. (1986) in what became known as the Bradford Studies, and the author believes that this lineage in theoretical development can be taken further by focusing upon the 'flow' of management decision-making. Two explanatory case studies are used to show how, in the specific case of computer installations, different decision-making processes can move along alternative routes through the matrix. The hypothesis put forward is that a particular process flow depends primarily on the nature of organizational power (i.e. whether it is specialist or structural), and consequently upon the level of management involved, and at the stage at which they become involved. (Reprinted by permission of the publisher.)

Choice (Psychology)

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Whatever happened to the philosopher-king? The leader's addiction to power

Article Abstract:

This article postulates the existence of a number of conscious and unconscious forces which make leaders reluctant to relinquish power. It is suggested that a major reason for the unwillingness to let go is the transferential effects of leadership. Both mirroring and idealizing transference reactions are discussed. In addition, there is the aging factor which may contribute to the addictiveness of power, since aging can evoke a strong need for compensatory strivings. The talionic principle - meaning in this case the conscious or unconscious fear that the loss of power will be followed by some form of retaliation for previous acts - may be another factor contributing to power's addictiveness. In this context the role of envy is emphasized. Finally, the existence of a 'fear of nothingness' is postulated, that is, a form of anxiety which leads to a need to defeat death by leaving some kind of legacy. It is suggested that holding onto power is linked to the fear that this legacy may be destroyed. (Reprinted by permission of the publisher.)

Psychological aspects, Social aspects, Leadership, Political science, Control (Psychology)

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