Beliefs refer to managers beliefs about their

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Beliefs  refer to managers’ beliefs about their competences and the capabilities of their colleagues and about the right way  to handle strategic issues. Job contexts  refer to the scope and nature of a manager’s responsibilities and manner in which performance will be  measured and assessed. The expectation of bosses, peers and subordinates have a significant effect on a manager’  approach strategic question. Identifying the required management preferences, testing the strategy-preferences linkage, developing gap-closing  analysis are important. o Your personal preferences; what you want the business to accomplish and how you think it should be done  play an inevitable and critical role. o On the positive side, preferences serve to focus and motivate the efforts of the firm.  The realties of the  external environment and internal circumstances seldom determine a single feasible course of action.  Therefore, there is a driving force needed to take hold of the situation and press for choices and performance. o On the negative side management preferences may lead to pressures for inappropriate ventures, potential  inflexibility, a focus on personal vs. shareholder interests and so on. 1) Basic Needs:  achievement & power ( can lead to the support of risky, expansionary projects), security ( can lead to the support of cautious, methodical projects), recognition managers’ basic needs stay consistent over time and therefore managers should be fit  to the  strategic requirements of a job 2) Beliefs:  own capabilities, colleagues’ capabilities, ability to handle strategic issues the strategic direction that the firm takes will be impacted by areas of comfort and confidence of  managers (i.e. they will be more likely to take on projects in their areas of expertise because they are  confident that they can be successful) 3) Job Context:  Job Definition & Job Relations impact how managers perform and their strategy preferences Job Definition : status, responsibilities, performance measures Job Relations:  expectations of bosses, peers, and subordinates In addition, sometimes managers are unable to change their strategic position after having openly taken a stance on a  strategic issue because of the impact it would have on their credibility and reputation. This is a situation of  frozen  preferences  and can also impact management preferences in evaluating and selecting a particular strategic proposal.
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  • Winter '13
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