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Essay / Essay on Article How Organizations Can Overbalance
Essay on Article How Organizations Can OverbalanceFor my essay, I read the article How Organizations Can Overbalance: Decision Overreach as a Reason for failure by David C. Wilson, David J Hickson and Suzanne Miller. This article appeared in The American Behavioral Scientist, August 1996. In this essay, I will first objectively identify the thesis and how the authors have supported it, and second I will give a subjective interpretation of how this article affects strategic thinking and an evaluation of this article in terms of its value in strategic thinking. Let's get started. The thesis used by the authors in this article was to identify what constitutes an excessive decision. They concluded that there were two supporters who identified him, and that the decision was disproportionate and irreversible. Disproportionality has been defined as "the magnitude of the decided move relative to the size and scope of the organization", particularly when it involves at least doubling the size of the activity or organization. capacity (Wilson 999). Irreversibility is of course the inability to reverse or correct the situation. The authors also noted that both criteria must be met for an excessive decision, because even if the decision is disproportionate, if it was not irreversible they could still recover by cutting their losses, and also if it was irreversible but not disproportionate, they might also be able to recover because they would have sufficient assets. The authors also based their arguments on two specific cases among the 55 cases that were re-examined between 1990 and 1993, of which the 55 cases were representative of a third of the 150 cases covered in the "Bradford Studies". (Wilson 995) The two companies in which excessive decisions occurred were given the names Thomson, which was a brewery, and Jacobite, an engineering factory..