Bus 8010:V. Dynamics of Behavior

SEDEM YENERDBA - 476190

10. Model of Strategic Choice10.1 Action Potential & Influence Potential

Two aspects of behavior: 1) The forces combine to

produce strategic choice The perception of the

environmentThe choice of aspirationsThe choice of the

strategic thrust 2) The forces interact

during the transition from one state model to another

An influential effect on strategic activity◦ The strategic culture = The

strategic action propensity◦ The gap between the

competence and the thrust◦ Traditional system ◦ The capacity of the

organization

10.1 Action Potential & Influence Potential

The forces that effect of strategic action◦ The performance aspirations of individuals or

groups ◦ The cultural aspirations which affect the choice of

strategic thrust. The achievement The power structure Organizationally rational behavior

10.1 Action Potential & Influence Potential

History Past in terms of

events and forces

Past in terms of capacity

10.2 Model of performance expectation

Map of Past and Future Turbulence

•It is a different ways which information is acquired by an ESO and translated into expectations about the future.•Turbulence level of Historical environment = HTurbulence level of Future environment = F

Effective issues…

Formula …

E is the managerial performance expectation

== in stable culture in which an ESO will rely on the past,

= in reactive cultures; = in inquiring cultures; == in creative cultures;

The performance of influential groups or individuals

The forces of habit Traditional and Past

successes These influences

are difficult to separate from one another.

The influential actors:

The manager The stakeholders

10.3 Model of Aspirations

The fraction of the difference between the performance and expectation:◦ The expectation of the

managerial role ◦ The personal

managerial drive ◦ The managerial

authority

The political influence process which individuals and group negotiate and/or bargain about their performance preferences.

10.1 hypothesis : Determinants of Managerial Performance

The factor which contribute to the aspirations are:◦ The managerial

aspirations◦ Aspirations of the

influential stakeholders

◦ The historical aspiration behavior.

10.2 hypothesis: Determinants of organizational aspirations

graduated with a computer science degree in 1971

managed to duck, bob and weave her way through Silicon Valley’s male-dominated technology industry in the 1980s.

had become one of the first women to run a large corporation. (1990)

have made in navigating corporate hierarchies over the last 30 years

have highly visible roles as chief executives

Article for 10.1 and 10.2 hypothesizes: Ms. Bartz…

The factors: ◦ 1) the level of managerial performance aspirations ◦ 2) the perception by management of the level of the

environmental turbulence ◦ 3) The perception by management of the thrust ◦ 4) The choice of the preferred thrust◦ 5) The Energy and the drive

10.4 Choice of strategic Thrust

Power organization, political performance aspirations and the preferred political thrust aspirations will be contradictory.

The choice of thrust is brought to bear by historical culture, capability and tradition.

10.3 Hypothesis: Inconsistency of political thrust and performance aspiration

In ESOs in which the managerial authority is weak, performance aspirations and the thrust are likely to be mismatched in the sense that the thrust will not be the best suited for attaining the performance aspirations.

10.4 Hypothesis: Mismatch of aspirations and thrust.

These countries tightened monetary policy during 2005 and 2006 amid overheating concerns, Just as for the US, the outlook for these economies would, under normal circumstances, have been for slower growth during this year and next.

While Asia-Pacific growth rates will slow somewhat, the region will still grow at a relatively fast pace.

The inflation outlooks for most of the region's sovereigns are relatively benign in the baseline scenario. Inflation rates are expected to remain close to 2006 and 2007 levels. This is the expected outcome of the tight monetary policy stance that central banks in the region have typically maintained over the past two years.

Article for 10.3 &10.4: Asia and US

A prolonged slump in the US economy and the effect it will have on demand for imports

This has clearly emerged as the most significant threat to macroeconomic stability in the region.

Food prices have been increasing over the past couple of years, driven by a wide range of factors.

RISKS…