Organizational Beliefs and Managerial Vision
Name
4224-01.pdf
Size
450.76 KB
Format
Adobe PDF
Checksum (MD5)
e93882a2d139d86fa1b656a512b5906b
Author(s)
Van den Steen, Eric
Date Issued
March 28, 2003
Series/Report no.
MIT Sloan School of Management Working Paper;4224-01
Abstract
This paper studies, in a world with differing priors, the role of organizational beliefs and
managerial vision in the behavior and performance of corporations.
The paper defines vision operationally as a very strong belief by the manager about the
right course of action for the firm. The interaction between employees' beliefs and the
manager's vision influences decisions and determines employees' motivation and
satisfaction. Through sorting in the labor market, the manager's vision also shapes
organizational beliefs. Under weak conditions, a company's board should select a
manager with stronger beliefs than its own, although spurious effects may make vision
often look better than it really is.
The analysis shows that beliefs play an important role that goes beyond their
information content. It also has implications for theories of corporate culture and
business strateg
Subjects
vision
organizational beliefs
culture
heterogeneous priors
differing priors
Persistent DSpace Link
