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Weatherhead Doctor of Management Programs
Show moreThis paper is intended to provide a conceptual framework about the importance of cognitive biases and framing in the strategic decisionmaking (SDM) processes used by corporations when addressing socially responsible actions. Through crises, regulation, activism and attempts to gain competitive advantage, companies are facing a dynamic environment requiring increased incorporation of social actions into corporate strategy. However, the nebulous nature of social actions and the inertia of bureaucracies have led to inefficient implementation of those actions. The conceptual framework developed in this paper sheds light on SDM processes involving corporate social responsibility (CSR), and lays a foundation for research in the role of cognitive biases and framing in the SDM processes.
Doctorate of Management Programs
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Show moreThis paper describes how organizational culture affects individual level decision-making processes in large organizations. This is particularly notable in the effect on the relative communication of qualitative versus quantitative information. Different levels of success in communicating these two kinds of information affect the development of the situated cognition prior to making a particular decision. We present the findings of a qualitative research study of thirteen executive level decision makers representing four Fortune 100 companies from four diverse industries. These executives were involved in strategic decisions in the normal course of business and also had particular experience in decisions involving socially responsible actions. A grounded theory analysis revealed that the different visibility of quantitative and qualitative information affects the strategic decision making process by shaping the situated cognition of the decision maker. Visibility of quantitative information is perceived as consistent at all levels, but the visibility of qualitative information that influences the context of decisions deteriorates as it filters down through an organization. This “downward invisibility” of qualitative information was apparent in the discourse about any strategic decision making, but was most readily apparent in the discussion about values and principles surrounding socially responsible actions. Based on this finding, we introduce a “situated cognition continuum” to depict the range of situated cognition displayed by the decision makers in this study. As an organization empowers decision makers at lower and lower levels, the deterioration of qualitative information exposes that organization to variance in the situated cognition of individuals. This variance can lead to decisions that are misaligned with organizational strategy. In the worst cases, this misalignment becomes embedded through reinforcement of quantitative metrics without understanding the underlying qualitative mechanisms that are misaligned.
Doctorate of Management Programs
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Show moreOrganizations are challenged to adapt to changing conditions on a frequent basis. Leaders of these organizations communicate two critical ideas: clearly defining goals and generating the collective efficacy that those goals can be achieved. This study aims to explore the interrelationships between: (1) how communication develops path-goal clarity and collective efficacy, and (2) how clarity and efficacy interact to lead to the achievement of a performance objective. This paper captures results from a Fortune 100 company undergoing massive transformational change. The findings indicate that collective efficacy has a much stronger relationship to performance than path-goal clarity. For line workers, this study indicates that clarity plays an important mediating role in the development of collective efficacy, but this relationship is absent for managers. This disparity of variable importance between managers and line workers can lead to ineffective communication and eventual failure to change effectively. This paper addresses the relationships that are evident in only one time period. As such, the results of this paper are directional in nature and should be considered incomplete. The study will be continued in a future paper that addresses longitudinal relationships over eight consecutive time periods covering two years of the change effort.
Doctorate of Management Programs
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