Explain the Mintzberg’s Modes of Strategic Decisionon. (max 10 lines).. Mintzber

Question

Explain the Mintzberg’s Modes of Strategic Decisionon. (max 10 lines)..

Mintzberg’s Modes of Strategic Decision

Some strategic decisions can be made by one person who is a leader who has a clear vision and has the ability to convince others quickly. Some strategic decisions evolve through a series of small incremental choices that push the organization in a certain direction. Henry Mintzberg said that the three most important strategic decision-making modes are: • Entrepreneurial: It means that the strategy is made by one person with authority. The focus on new opportunities and problems is secondary, and the strategy is driven from the point of view or vision of the founder represented by bold or large decisions and the main objective is the growth of the organization. • Adaptive: This method is characteristic of the solutions to the problems that exist after they occur and not before they occur, that is, they are more responsive to the problems of the organization than the search for new opportunities and under this type of strategies there is no clear goal Because of the division of power between departments and members of the organization and decision-making in several steps because they work in a complex environment and decisions are taken as a result of the agreement of many allied forces and such decisions are taken in most universities and large hospitals and many government institutions. • Planning: Includes a structured and appropriate information package for case analysis, and then find appropriate strategic alternatives, a reasonable choice of the most appropriate strategies, and an effective solution to existing problems. • Logical instrumentalism: In this method, the higher authority has a rational idea of the subjects and objectives of the organization and in developing strategies it chooses to expedite the attractive processes in which the organization is able to explore the future and in this way planning is used to carry out the activities that lead to achieving the goals. Therefore, a set of decisions are adopted which depend on each other and focus on systematic analysis and evaluation of costs and benefits of alternatives, which integrates decisions taken. The schematic approach is the most rational and the best way to make strategic decisions. Studies have shown that the planned approach is appropriate for changing and complex environments.

Explanation / Answer

There are in fact four different modes of decision making, where the three main ones are

Entrepreneurial

Adaptive

Planning

And the fourth one, logical instrumentation is a mixture of a adaptive and planning.

In the entrepreneurial, the strategy is defined by the founder, who in most cases is the owner of the venture, has highest stakes and is the most aware. Hence the organization’s decision making is best defined through the leader with clear vision and highest capability for the specific organization. Its the case in new start ups.

In the adaptive mode, the strategy is defined by an reactionary approach, when a tough situation is faced only then a new strategy is defined to resolve those. These are the case in established businesses, who are doing well but new market conditions open them to new situations and hence new strategy is defined to tackle the issue.

The next one is planning, here the growth oriented companies, which are yet to establish their market and are changing regularly try to use. They try to analyse the situation and come up with solutions preemptively, they are more creative. They follow structural approach to define strategy for the future.

The fourth one Logical instrumentalism, the higher authority with rational view of the subjects and goals of the organization take part in developing strategies. It is a combinational approach between adaptive and planning.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.