Organizational Beliefs and Managerial Vision
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 man...
| Main Author: | |
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| Format: | Working Paper |
| Language: | en_US |
| Published: |
2003
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| Subjects: | |
| Online Access: | http://hdl.handle.net/1721.1/1845 |
| _version_ | 1826207871872794624 |
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| author | Van den Steen, Eric |
| author_facet | Van den Steen, Eric |
| author_sort | Van den Steen, Eric |
| collection | MIT |
| description | 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 |
| first_indexed | 2024-09-23T13:56:16Z |
| format | Working Paper |
| id | mit-1721.1/1845 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T13:56:16Z |
| publishDate | 2003 |
| record_format | dspace |
| spelling | mit-1721.1/18452019-04-12T08:22:50Z Organizational Beliefs and Managerial Vision Van den Steen, Eric vision organizational beliefs culture heterogeneous priors differing priors 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 2003-03-28T20:11:09Z 2003-03-28T20:11:09Z 2003-03-28T20:11:09Z Working Paper http://hdl.handle.net/1721.1/1845 en_US MIT Sloan School of Management Working Paper;4224-01 461578 bytes application/pdf application/pdf |
| spellingShingle | vision organizational beliefs culture heterogeneous priors differing priors Van den Steen, Eric Organizational Beliefs and Managerial Vision |
| title | Organizational Beliefs and Managerial Vision |
| title_full | Organizational Beliefs and Managerial Vision |
| title_fullStr | Organizational Beliefs and Managerial Vision |
| title_full_unstemmed | Organizational Beliefs and Managerial Vision |
| title_short | Organizational Beliefs and Managerial Vision |
| title_sort | organizational beliefs and managerial vision |
| topic | vision organizational beliefs culture heterogeneous priors differing priors |
| url | http://hdl.handle.net/1721.1/1845 |
| work_keys_str_mv | AT vandensteeneric organizationalbeliefsandmanagerialvision |