Managing Strategic Risk - ch.13

5 Pages
Unlock Document

University of Toronto Scarborough
Financial Accounting
Prof.Jan Klakurka

MGTD54 Week 10 March 24, 2011 Ch. 13 Managing Strategic Risk - Communicate effective boundaries and internal control systems - Communicate risks to be avoided - Remove ability to rationalize actions risky to the firm Beliefs and Boundaries - Managing tensions of short-term vs. long-term, self-interest vs. organizational successresults in innovation that enhances firm value and strategy - Inspire commitment to core set of values Core values: beliefs that define basic purpose, direction, principles Guides responsibilities to customers, employees, stockholders, communities Top mgmt view tradeoffs Inspirational leaders: 1. Articulate vision 2. Explain how to contribute to achieve vision 3. Enthusiastic support for effort 4. Encourage public recognition and reward for success - Formalize communication of core values by articulate formal beliefs systems Belief systems: explicit set of organizational definitions that senior managers communicate formally and reinforce systematically to provide basic values, purpose, and direction for the organization - High level of abstraction and generality Controlling human behaviour: Tell people what to do through command and control approach Hold ppl accountable for outcomes, leave to initiative and creativity to perform job effectively - Define boundaries by telling what not to do Inspire employees for maximum effort by:
More Less

Related notes for MGAD40H3

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.