Manag., December-2019 – Q5
- Option : B
- Explanation : Mintzberg’s Model: According to Mintzberg,
the modes of strategic decision-making are:
1. Entrepreneurial mode: Formulation of strategy is done by a single person in this mode. The focus is on opportunities. The strategy is guided by the founder’s vision and is characterized by bold decisions. In the Indian set-up, we can cite the case of Wipro Infotech as an example of this model of strategy formulation.
2. Adaptive mode: This mode of decisions aking is referred to as “muddling through”. It is characterized by reactive solutions rather than a proactive search for new opportunities. We can again cite the example of Wipro Infotech introducing the sale of customized Personal Computers in response to Dell Computers entering the Indian market.
3. Planning mode: This mode of decisionmaking involves systematic information gathering for situational analysis, generating alternate strategies and selection of the appropriate strategy. As could be inferred, this mode includes both the proactive mode and reactive solutions to current problems. For example, entry of MNCs into the automotive markets in India has made the lead player Maruti Suzuki to come out with new models and discard/ slow down the production of non-moving and old models.
Sometimes organizations may adopt a fourth mode called the logical instrumentalisation mode. This is a synthesis of all the three modes of strategic decision-making listed above. Quinn describes logical incrementalisation as: “An interactive process in which the organization probes the future, experiments and learns from a series of partial (incremental) com commitments rather than through global formulatio n or total strategies.”
