Summary of the course Strategic Decision Making. This summary contains an overview of all key concepts discussed during the SDM course. SDM is required for the Bachelor Organization Studies, the pre-master Organization Studies and the pre-master Organization Studies for International Studies.
Strategic decisions Strategic decisions are intentional choices or programmed responses about
issues that materially affects the survival prospect, well-being and nature of the
organization and that guide the organization into the future and shape its
course
SDMP The process by which a strategic decision is made and implemented and the
factors which affect it, the process that leads to the choice of goals and means
and the way in which means are effectively deployed
Rational, comprehensive, political
Sequence of activities involving information gathering, developing
alternatives and choosing among alternatives
The process consists of formulation and implementation
Competitive Outperform your competitors, shifting and temporary in nature:
advantage See threats and opportunities sooner and more accurate
Stimulate quick conflict
Maintain a disciplined pace
Defusing time consuming political behavior
Cognition Refers to the way in which knowledge is represented, stored and transformed
in the human cognitive system. A mediating factor between situational cues
and behavior. It explains effectiveness in problem solving and decision making
Cognitive complexity The richness of knowledge structures that emerge from the analysis of
environmental cues. The ability to differentiate alternative perspectives and to
integrate these perspectives into a decision.
Cognitive map A set of interconnected concepts used to define a particular decisional situation
Outcomes The intended and unintended consequences of a strategic decision
Decision Level The intended and unintended consequences of a decision considered in terms
Outcomes of financial and/or nonfinancial outcomes isolated from other influences
Organization Level The intended and unintended consequences of a decision considered in terms
Outcomes of financial and/or nonfinancial outcomes in the aggregate of all influences on
the organizational outcomes
Context Refers to those aspects that are not subject to the choice situation to those
decision-makers present at the moment of the decision
Synoptic formalism (overzichtelijk/beknopt) procedural rationality is chosen as a representative of
the synoptic formalism perspective; and both intuitive synthesis and political
behavior are viewed as representatives of the political increment perspective.
An extension of the traditional rational model, analysis is its basic feat.
Rationality Certainty leads to more rationality. Measurement of rationality varies
Political Behavior Restricting information flows
Time consuming
Incomplete understanding of the environmental constraints
Comprehensiveness The extent to which organizations attempt to be exhaustive or inclusive in
making and integrating strategic decisions (greater when decisions is interpret
as a threat)
Environment The environment as a context factor in the integrative framework of SD’s refers
to that part of the context that lies distinctly beyond the boundaries of the
organizational system which takes the SD.
Environment add significant to the prediction of variance, however less
than decision and firm specific characteristics
Neo Institutional Organizations are driven to incorporate the practices and procedures defined
Theory by prevailing rationalized concepts of organizational work and institutionalized
in society. Organizations that do so increase their legitimacy and their survival
prospects
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