Bus 8010: V. Dynamics of Behavior

1. Bus 8010:V. Dynamics of Behavior SEDEM YENER DBA - 476190

2. 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 environment • The choice of aspirations • The choice of the strategic thrust • 2) The forces interact during the transition from one state model to another

3. 10.1 Action Potential & Influence Potential • 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

4. 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

5. 10.2 Model of performance expectation • History • Past in terms of events and forces • Past in terms of capacity Map of Past and Future Turbulence

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

7. Effective issues…

8. Formula … • == in stable culture in which an ESO will rely on the past, •  =  in reactive cultures; • = in inquiring cultures; • == in creative cultures; E is the managerial performance expectation

10. 10.3 Model of Aspirations • The influential actors: • The manager • The stakeholders • The performance of influential groups or individuals • The forces of habit • Traditional and Past successes • These influences are difficult to separate from one another.

12. 10.1 hypothesis : Determinants of Managerial Performance • The political influence process which individuals and group negotiate and/or bargain about their performance preferences. • The fraction of the difference between the performance and expectation: • The expectation of the managerial role • The personal managerial drive • The managerial authority

13. 10.2 hypothesis: Determinants of organizational aspirations • The factor which contribute to the aspirations are: • The managerial aspirations • Aspirations of the influential stakeholders • The historical aspiration behavior.

14. Article for 10.1 and 10.2 hypothesizes: Ms. Bartz… • 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

15. 10.4 Choice of strategic Thrust • 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

17. 10.3 Hypothesis: Inconsistency of political thrust and performance aspiration • 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.

18. 10.4 Hypothesis: Mismatch of aspirations and thrust. • 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.

19. Article for 10.3 &10.4: Asia and US • 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.

20. RISKS… • 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.