Mintzberg et al. (1998) proposed ten schools of thought in their book Strategy Safari, each offering a distinct perspective on the nature of strategy and how it is formulated. One of these schools is the Cultural School, which views strategy as a product of social interaction, shared beliefs, and traditions within an organization (Mintzberg et al., 1998).
Key Features of the Cultural School:
- Emphasis on social processes: Strategy emerges from ongoing interactions and negotiations between members of an organization, rather than being explicitly planned by leadership (Mintzberg et al., 1998).
- Shared beliefs and values: The organization's culture, including its underlying assumptions, values, and norms, play a significant role in shaping its strategic direction (Mintzberg et al., 1998).
- Emergence over deliberation: Strategy often develops organically and incrementally through shared experiences and interpretations, rather than through formal planning processes (Mintzberg et al., 1998).
- Power dynamics: Cultural influences are not evenly distributed, with some groups holding greater influence than others in shaping the organization's strategic direction (Mintzberg et al., 1998).
Implications for Management:
The Cultural School challenges the traditional view of strategy as a rational, top-down process. Instead, it encourages managers to:
- Recognize the importance of informal communication and social interaction in shaping strategy.
- Pay attention to the organization's culture and its underlying assumptions.
- Facilitate dialogue and collaboration to allow shared understanding and commitment to strategy to emerge.
- Be aware of power dynamics and ensure that diverse perspectives are considered in strategic decision-making.
Critiques of the Cultural School:
- Potential for inertia: Overemphasis on shared beliefs and traditions may lead to resistance to change and a lack of strategic adaptability.
- Difficult to manage: Cultural influences are often implicit and difficult to control, making it challenging for managers to deliberately shape strategy.
- Limited applicability: May be less relevant for organizations operating in dynamic or turbulent environments where rapid adaptation is crucial.
Conclusion:
The Cultural School offers valuable insights into the complex and often messy process of strategic formulation. By acknowledging the role of social interaction, shared beliefs, and power dynamics, managers can gain a more nuanced understanding of how strategy emerges and evolves within their organizations.
Referencing:
Mintzberg, H., Ahlstrand, B., & Lampel, J. (1998). Strategy safari: A guided tour through the wilds of strategic management. Free Press.
Additional References:
Burgelman, R. A. (2002). Strategic management: Shifting paradigms for an unpredictable world. Irwin/McGraw-Hill.
Ghemawat, P. (2002). Competition and business strategy in global markets. Harvard Business School Publishing Corporation.
Hrebiniak, L. G., & Joyce, W. F. (2010). Organizational behavior: An introductory textbook. Pearson Education.
In actuality, a lot of businesses understand the value of organizational culture, and the perspectives of the Cultural School can enhance those of other strategic management schools. Taking into account several schools of thought is often beneficial in creating a comprehensive strategy for strategic management.
ReplyDeleteYou're absolutely right! Many businesses are waking up to the power of organizational culture. As you say, the Cultural School's emphasis on shared meanings and values (Martin & Frost, 1996) can enrich the more structural or resource-based perspectives of other strategic management schools. Mintzberg (1998) himself advocates for considering diverse schools of thought to craft a holistic strategic approach
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