COMMERCE 4PA3 Lecture Notes - Lecture 9: Strategic Choice, Performance Appraisal, Fallacy

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 4PA3
• Professor: Nick Bontis

Document Summary

For every advantage of strategy there is a disadvantage according to mintzberg. Advantage: strategy charts the future course of an organization to help it navigate in the environment. Disadvantage: a formulized strategy can prevent the organization from scanning the environment more. Disadvantage: groupthink can form when effort is too focused. Advantage: model show people should understand the organization and what it does. Disadvantage: defining it too specifically or too simply can mean loss. Disadvantage: improvising and creativity come inconsistently and help find new possibilities. Debates on the planning-learning debate: intended strategy versus emergent strategy. Intended strategy = cold water: emergent strategy = hot warder, see table 9. 1 for comparison. Ambidextrous organization: organizations that have the capacity to use both intended and emergent strategies. Intended strategy is formulated through strategic planning process. Unfortunately, this type of planning tends to often come down to just an annual budgeting exercise. Good conversation is more important than a budget.