An individual’s perception of circumstances and events is largely shaped by his/her knowledge and experience, beliefs, values, and biases. In the organizational setting, this perception is influenced by the organization’s shared history, its culture, and the individual’s relationships with seniors, peers, and subordinates. Additionally, event perception is often limited by the individual’s finite, relevant knowledge and experience, as well as his/her employment impact concerns and desire for self-promotion. To be effective, a strategic analysis must be free of the impairments and limitations individuals within the organization have when assessing internal events and impactful external circumstances.
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