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

2. Reading 16
Decision process

3. 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

4. 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

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

6. Levels of decision making

7. 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

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

9. A decision process

10. Hofer and Schendel’s strategic decision-making process

11. Higgins strategic decision –making process

12. Mintzberg’s strategic decision-making process

13. Linking theoretical and practical aspects of decision making
Open discussion

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

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

16. 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

17. Thanks for listening Contact me: sattar.moj@arabou.edu.sa
Your questions
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