By Kirschkamp A.
Firms have to determine dangers and possibilities of environmental alterations so one can adapt to or very likely even to steer them. Early caution which contains scaning and interpretation performs an enormous function during this procedure. while the conventional contingency technique considers early caution as part of the organizational constitution, the prolonged contigency conception assumes the extra impression of an individual's character on early caution.
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Extra resources for A Contigency-Based View of Chief Executive Officer's Early Warning Behavior: An Emirical Analysis of German Medium-Sized Companies
Of scanning, differ according to the nature of the decision. In this context AGUILAR distinguishes between two types of decisions: routine and innovative ones. Routine decisions are decisions with easily definable dimensions, whereas innovative decisions deal with unforeseeable ones. For routine decisions, one can generally specify the information needed and get all necessary information. “For these problems the full range of relevant information can often be identified, acquired, and understood.
See Ansoff (1972). For further information about the nature of strategic management see also Müller-Stewens and Lechner (2001), p. 17ff. Understanding of Early Warning in Literature and Definition of Important Terms Part B 14 Reach Tools Concreteness of Data Scenario Analysis Long Term (Strategic Low Early Warning) (Soft Facts) Indicators Short Term (Operational Early Warning) Figure 3: High Business Ratios (Hard Facts) Summary of Operational and Strategic Early Warning 97 The overview of German literature has been related to the topic of anticipation of future chances and risks and has shown that this literature focuses on instruments of early warning.
P. 300. The assumption of a limited number of structural types is in line with the Darwinistic view. “ Darwin (1968), p. 231. See Mintzberg (1979), p. 305ff. See Miller and Friesen (1984), p. 31ff. ”210 Based on this idea, they found four organizational archetypes: defenders, prospectors, analyzers and reactors. The difference between the two approaches of the contingency theory is also illustrated below. Configuration Approach Cartesian Approach High Performance High High High Performance High Performance Contextual Context Variable Contextual ontext Variable High Performance Low Low Low High Structural Variable Figure 10: Low High Structural Variable Difference between the Cartesian and Configuration Contingency Approach 211 Finally, the role of organizational members according to the classical contingency theory is analyzed.