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Chapter 12: Strategic Leadership (SL) - page 5 / 25

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The Role of Top-Level Managers

Top level managers play a critical role in strategy formulation and implementation

Their strategic decisions influence how an organization is designed and how goals are achieved

Top managers also develop structure, culture, reward systems, and policies/SOPs

Having a top management team with superior managerial skills is critical (and can be a source of CA and AAR)

Managers use their discretion when making strategic decisions and this discretion influences firm performance

Several factors determine the amount of manager’s decision-making discretion including:  

External environmental sources

Organizational characteristics

Characteristics of the manager

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