ABSTRACT

Complex decisions in organizations usually involve broad lines of strategy. What products or services ought to be developed? In what markets should the company operate? Will the aim be to achieve the lowest costs in the branch, or to provide the best quality and optimal service? What degree of diversification is best? Some authors speak of strategic decisions, being top management decisions, involving considerable company resources, committing the firm with implications for its profitability far into the future, requiring coordination of many businesses or many functional areas of the firm, and requiring the involvement of factors external to the firm (Pearce & Robinson, 1988; Taylor, 1992). Such issues imply other decisions on the most appropriate organizational structure, technology, management style, and organizational culture, sometimes called tactical decisions (Koopman, Drenth, Heller, & Rus, 1993).