Why is planning mode of strategic decision making superior to adapative /entrepreneurial mode?
Answers
There are approaches adopted by managers to prepare and implement strategic management mode strategies. They address issues that have major impact in the strategic management process and how processes are done. Managers usually use one of three key approaches to strategic management: entrepreneur, adaptive and planning.
Entrepreneur Mode: In entrepreneur mode, the tactic is mostly established by a solid visionary chief executive who vigorously examines for new opportunities, is very oriented towards development and whenever it is necessary, making bold decisions or strategies Is ready to move Entrepreneurial mode is usually found in organizations that are young or younger, are a strong leader or are in such a serious problem that bold moves are their only hope. The vision and mobility of top leaders, who enjoy full power, shapes the future of the organization.
Adaptive modes: This is an approach to formulating strategies, instead of trying to satisfy opportunities and satisfy many organizational energy groups, stresses on taking small, incremental steps that react to problems. Adaptive mode is characteristic of this type, by some familiar features:
1) Focus is on solving problems of immediate concern instead of developing long-term strategies.
2) Rather than meeting the problems in a bold manner, the executive tries to follow a reactive approach.
3) This attitude is used by managers in recognized organizations who face rapidly changing environments and yet face many coalitions or power blocks, which are clear strategic goals and long-term plans (Mintzburg) Makes it difficult to achieve
4) The emphasis is on taking small, incremental steps for the purpose of evaluating the powerful alliance within the organization. Since the power is distributed, it is not always possible to develop major goals, to make bold initiatives and to move forward in an integrated manner.
Plan mode
This is an approach to formulating strategies which involves systematic, understanding analysis with the integration of different decisions and strategies. The purpose of the planning mode is to understand enough to understand the environment. It is commonly used in large organizations who have adequate resources to conduct a detailed analysis, there is an internal situation where major goals can be compromised, and operations can be conducted in an environment in which carefully conceived There is enough stability to enable the creation and implementation of strategies.
There are different modes of strategic decision making process available now.
When it comes to planning mode, it is a special kind of strategic decision making which is superior to entrepreneurial mode or adaptive mode.
In this mode, the production expert makes a plan after properly analysing the resources and objectives of an organization.
He considers every factor carefully before creating a plan.