Chapter 17 Before You Move On Answers

1. What is ‘Upper Echelon Theory?’

‘Upper echelon theory’ places the senior leadership of the organization in a position from which they create the organization’s strategy based on their own biases and perception.

2. Identify two themes linked to the idea of a strategic leader creating a strategic definition of their organization.

Price, features, quality, support, availability, reputation.

3. Summarise what a strategic leader does.

The activities of a strategic leader can be placed into four main themes: strategic definition (linked to the creation of a vision), strategic thinking (systems thinking), strategic alignment (culture and control), and strategic enactment (HRM and ethics).