MAKING SENSE OF STRATEGY B301-B tutorial week 4 Arab Open University-K.S.A.

Reading 16 Decision process

9.01 Introduction The objectives of this chapter are to: Define a decision Identify different levels of decision making Explain rationality in decision making Provide some strategic decision process models Relate theory to practice

You should be able to Understand the strategic decision making processes perspectives Identify the process Apply your learning compare and contrast Linking theories and practices of strategic decision making process Understand the board objective of strategic decision making

What is a decision: “a specific commitment to action”

Levels of decision making

Major approaches of strategic decision making Rational approach: Systematic, step by step method in which 'hard' (quantitative) data obtained through observation or mathematical (statistical) analysis or modeling is used for making long-term decisions. Political approach: Observable, sometimes covert helps executives to enhance their power and influence of a decision. Garbage-can approach: This situation leads to three kinds of decision making styles: Decision By Oversight: Decisions are made for the sake of making decision without considering if they are addressing the real problem or not, Decision By Flight: Decision is not made till the time problem leaves the existing and attached choice, Decision By Resolution: The problems are resolved on ad-hoc basis. Sense making approach:  is the process by which people give meaning to experience

Models of strategic decision making Basic strategic decision making process as per Simon 1) Problem recognition 2) Develop alternatives 3) Choice

A decision process

Hofer and Schendel’s strategic decision-making process

Higgins strategic decision –making process

Mintzberg’s strategic decision-making process

Linking theoretical and practical aspects of decision making Open discussion

Reading 19 Cognitively skilled organizational decision making: making sense of deciding

Introduction FTS 100 retail company case,, Computational and interpretive perspectives, both are important (Lant and Shapira, 2001a, b).

Sense making and deciding Sensemaking is the process by which people give meaning to experience. Skillful practitioners: influencing meaning and aligning interpretation. Hardy (1996) distinguished between three types of power: resources, process, and meaning Resources Processes Meanings

Thanks for listening Contact me: sattar.moj@arabou.edu.sa Your questions The next class: Date Time Do’s and don’ts Prepare Read Homework