Resource allocation decisions and organizational structure

Authored by: Robert J. Harrington , Michael Ottenbacher

Handbook of hospitality strategic management

Print publication date:  July  2008
Online publication date:  September  2008

Print ISBN: 9780080450797
eBook ISBN: 9780080914343
Adobe ISBN: 9781136439520


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Resource allocation decisions are tactical methods to implement organizational goals and objectives. These allocations are tied to firm action plans and policies that impact organizational structure, and, ultimately, performance. The basic concepts of resource allocation decisions and organizational structure are at the heart of an ongoing debate fundamental to management theory. Resource allocation decisions represent the strategic choice perspective. Central to the strategic choice perspective is the notion that management has a substantial amount of latitude in making strategic decisions about the future direction of the organization and its structure including how to respond to a variety of environmental pressures, changes, and other influences (Child, 1972; Pennings, 1975).

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