form the content of a new direction whilst strategic thinking identifies the underlying context. Strategy formulation is the search for a new business paradigm.
There are two types of paradigms that apply to management, namely the business and the organisational or managerial paradigms. The business paradigm defines a company s position in the marketplace with respect to customers, technology and products. The organisational or managerial strategy relate to suppositions on how the company inspires and co-ordinates collective activity, their fundamental assumptions about human beings at work and their expectations concerning their capabilities Strategy causes us to query the basic premises on which all else rests. Strategic thinking involves the understanding of basic economics of business identifying one s sources of competitive advantage, and allocating resources to ensure that ones distinctive capabilities remain strong.
Approaches to Understanding Organization
Structure Elitist versus Pluralist Functional superiority can only be achieved if there is enough reliability and focus within each business unit. Pascale uses the term elites to describe those specialised organisational units with closeness to power and or superior capability. These functions signify a particular organisation s typical capability. It is, however, important that more than one such elite function exist. They need to be complementary so as to make sure that they serve as a check on another. Pascale uses the term pluralist to explain these essential forces that play a important role in decision making. The tension that is created amongst these forces stimulates thoughts and lead to self-improvement and competitiveness. Elite functions bring main strengths to an organisation, but must assist with the whole plurality to attain shared results.The stronger and more competent the elites are, the more difficult it is to achieve cross-functional teamwork. The organisation s challenge is therefore to ensure that these functions are on a par with that of competition, but at the same time they need to ensure that they respond to market demands by cutting across these functional compartments.
Systems Mandatory versus Discretionary Systems do not only refer to hard copy reports and procedures but also to informal mechanisms such as meetings and conflict management routines. It is important that systems emphasise key themes, but at the same time it should permit discretion and exception. Systems are powerful influences of behaviour. Although well-managed companies try to get rid of inconsistencies by creating good fit, they must guard against inward-centredness, which could restrain the business.
Style Managerial versus Transformational Pascale defines managerial as an administrative orientation whose aim is to