Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Courses
  • Tutoring
  • Home
  • Business Management & Operations
  • Strategy, Entrepreneurship, & Innovation

Mintzberg's Modes of Strategic Decisions - Explained

What are the Modes of Strategic Decision Making?

Written by Jason Gordon

Updated at April 7th, 2022

Contact Us

If you still have questions or prefer to get help directly from an agent, please submit a request.
We’ll get back to you as soon as possible.

Please fill out the contact form below and we will reply as soon as possible.

  • Marketing, Advertising, Sales & PR
    Principles of Marketing Sales Advertising Public Relations SEO, Social Media, Direct Marketing
  • Accounting, Taxation, and Reporting
    Managerial & Financial Accounting & Reporting Business Taxation
  • Professionalism & Career Development
  • Law, Transactions, & Risk Management
    Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
  • Business Management & Operations
    Operations, Project, & Supply Chain Management Strategy, Entrepreneurship, & Innovation Business Ethics & Social Responsibility Global Business, International Law & Relations Business Communications & Negotiation Management, Leadership, & Organizational Behavior
  • Economics, Finance, & Analytics
    Economic Analysis & Monetary Policy Research, Quantitative Analysis, & Decision Science Investments, Trading, and Financial Markets Banking, Lending, and Credit Industry Business Finance, Personal Finance, and Valuation Principles
  • Courses
+ More

Table of Contents

What Mintzberg’s Modes of Strategic Decision-making?What is the Entrepreneurial Mode?What is the Adaptive mode? What is the Planning Mode? What is Logical Incrementalism?

What Mintzberg’s Modes of Strategic Decision-making?

Henry Mintzberg proposed that there are 3 modes through which managers make decisions: 

  • Entrepreneurial mode
  • Adaptive mode
  • Planning mode
Back to: STRATEGY & PLANNING

What is the Entrepreneurial Mode?

Strategy is made by one powerful individual who has entrepreneurial competencies like innovation and risk taking. 

The focus is on opportunities. Problems are secondary. 

Generally the founder is the entrepreneur and the strategy is guided by his or her own vision of direction and is exemplified by bold decisions.

In any event, strategy is set by an authoritative decision maker. 

What is the Adaptive mode? 

The adaptive mode is where managers create reactive solutions to existing problems, rather than a proactive search for new opportunities. Simply wait on issues to arise. 

This a fragmented approach to strategic decision making. Because of the lack of directed focused development, there is generally a lack of clarity and consensus on strategic goals. 

The adaptive mode is commonly known as “muddling through”. It is more appropriate for dealing with complex and changing environments.

What is the Planning Mode? 

The planning mode of strategic decision making is characterized by the systematic gathering of relevant information for situation analysis, the generation of feasible alternative strategies, and the rational selection of the most appropriate strategy. 

In summary, it is a proactive search for new opportunities and the reactive solution of existing problems.

What is Logical Incrementalism?

Logical Incrementalism is a fourth decision-making mode was added  to Mintzberg’s modes by James Bryan Quinn (1980).

Pursuant to this mode, managers develop develop strategies through “an interactive process in which the organization probes the future, experiments and learns from a series of partial (incremental) commitments rather than through global formulations of total strategies”. 

As such, the company’s strategies are developed through a combination of debate, discussion, and experimentation. There is attempt to build consensus among stakeholders before pursuing a strategy. 

This approach appears to be useful when the environment is changing rapidly, or resources must be developed before committing the entire corporation to a specific strategy.

This approach is useful when the environment is changing rapidly and it is important to build a consensus before committing the entire company to a specific strategy.

Characteristics of Strategic Decisions

The characteristics of strategic decisions flow from the nature of strategic management. There are several important differences between strategic management and various management functions like operations, human resources, marketing, accounting, finance, and research and development. The distinguishing features of strategic management are listed here.

Strategic management entails multiple time horizons

Strategic management involves strategy formulation at three levels, namely, the corporate level, the business level and the functional level. The three levels have different orientations of time, though they are synchronized in their objectives. The corporate manager deals with the vision of your organization, which has a long-term perspective. The strategic business unit level managers deal with, translating the vision into the mission and objectives for your firm and they have a medium-term perspective. The functional managers tend to have a short-term perspective.

Strategic management is concerned with both efficiency and effectiveness

Strategic management lays emphasis on both efficiency and effectiveness. It deals with the environment over which your firm has little or no control. Accordingly, efficiency, that is, doing things right might lose validity and relevance if the environment conditions undergo a change. It is effectiveness which will align the activities and strategies to the dynamic environment. Effectiveness when coupled with efficiency will enable your firm to achieve its mission and hence strategic management places a balanced importance on both.

Strategic management integrates various functions

Strategic management adopts an integrative perspective of the various functional areas in your organization. This enables organization to build on its strengths and minimize its weaknesses across functional areas and also provides synergistic effects for your organization.

Strategic management considers a broad range of stakeholders

Strategic management deals with both the external environment (operating and remote) and the internal environment effectively, and meets the expectations of the various stakeholders. The hierarchical level of strategy formulation helps in meeting the expectations of a wide variety of stakeholders.

Related Topics

  • Strategy Implementation
  • Eclectic Implementation Model
  • Mintzberg's Modes of Strategic Decision-Making
  • Mintzberg's Five Configurations
  • Value Engineering
mintzberg's modes modes of strategic decision making modes of strategy strategic modes

Was this article helpful?

Yes
No

Related Articles

  • Forming a Business Team Overview
  • Startup Advisors & Equity Compensation - Explained
  • Can I Kick Out a Co-Founder?
  • Vertical and Horizontal Integration Strategies - Explained



©2011-2023. The Business Professor, LLC.
  • Privacy

  • Questions

Definition by Author

0
0
Expand