Strategic Planning as an Integrative Device

Administrative Science Quarterly, Vol. 49, pp. 337–365, 2004

29 Pages Posted: 7 Oct 2010

See all articles by Mikko Ketokivi

Mikko Ketokivi

Fundación Instituto de Empresa, S.L. - IE Business School

Xavier Castañer

University of Lausanne

Date Written: 2004

Abstract

While alleviating the adverse effects of employees’ pursuit of their subgroups’ goals over organizational goals is important, finding ways to avoid them may be even more important. In this paper, we investigate whether strategic planning can be used to reduce organizational members’ position bias, or the extent to which they direct their attention toward the immediate goals and priorities attached to their position. We examine the hypothesis that involving employees in the strategic planning process and communicating the agreed-upon priorities to them afterwards enhance goal convergence by attenuating position bias. We examine these questions in a sample of 164 manufacturing plants from five countries and three industries, where we asked middle-level managers to assess the importance of various organizational goals. We find that participation and communication function as complements to jointly reduce managerial position bias.

Keywords: goals, planning, integration, organizational design, convergence

JEL Classification: D21, L21

Suggested Citation

Ketokivi, Mikko and Castañer, Xavier, Strategic Planning as an Integrative Device (2004). Administrative Science Quarterly, Vol. 49, pp. 337–365, 2004. Available at SSRN: https://ssrn.com/abstract=1687641

Mikko Ketokivi

Fundación Instituto de Empresa, S.L. - IE Business School ( email )

Calle Maria de Molina 12, Bajo
Madrid, Madrid 28006
Spain

Xavier Castañer (Contact Author)

University of Lausanne ( email )

Lausanne, Vaud CH-1015
Switzerland

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