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A paradigm is proposed that views effectiveness as the ability of an organization to account successfully for its outputs and operations lo its various infernal and external constituencies. This framework can he used to assess effectiveness by examining organizational outputs and processes in a critical and holistic way. A review of (he existing literatures on organizational effectiveness and a case example are used to develop the proposed framework.

Discontinuous change is becoming the norm. This has consequences for how organisations are managed and led. Strategic entrepreneurship—the simultaneous practice of advantage-seeking behaviour and opportunity-seeking behaviour—has been proposed as a solution. But practice of strategic entrepreneurship confronts challenges requiring a special type of leadership for its successful implementation—entrepreneurial leadership. People who display such leadership behaviours are called entrepreneurial leaders. We know little about such individuals. We purposively studied three different types of organisations that renewed themselves under such leaders and inductively arrived at three unique mindsets—purpose-oriented, people-oriented and learning-oriented—which help us unpack one aspect of what makes a leader entrepreneurial. We contribute to the entrepreneurial leadership literature by contributing a more nuanced view to mindsets of such leaders which is an important cognitive filter. Our findings also contribute to the literature on strategic entrepreneurship by indicating how leaders with certain combination of mindsets are better at implementing renewal. We advance practice by enabling organisations better identify and develop mindsets among potential leaders who can take on entrepreneurial roles. Limitations and future research are discussed.

This article explores some of the basic shortcomings and fallacies of managerial behavior in dynamic situations. In a laboratory study, 20 groups of three participants each, all with an education in business management, were observed while trying to manage a computer-simulated industrial organization called MANUTEX. This is an interactive simulation of a small garment factory. For most groups, this problem proved to be extremely difficult. The analysis of the problem-solving process and the strategies that the participants employ show that several typical mistakes were responsible for the groups' difficulties. These mistakes are integrated into a number of generic behavior patterns and uncontested basic assumptions that guide action. The participants' difficulties are not due to insufficient managerial knowledge or cognitive limitations. Rather, they stem from an incorrect use of the available knowledge, a tendency to avoid risks and reduce uncertainty, and a motivational process directed at sheltering the subjective sense of competence.