Decision-making is the process of choosing among alternative courses of action in order to attain goals and objectives. Decisions made in an organization are subject to 'group thinking', which might lead to failure in implementation of policies and strategies, like what happened in the Bay of Pigs invasion by the US army (Janis, I. 1972, quoted in Salaman, G. 2002, p. 9- 38). The failures can be analyzed from two perspectives, namely (Valentine, E., 1994, quoted in Salaman, G. 2002);
The behavioral diagnosis is very important as the human information processing is influenced by external factors such as beliefs and political influences. According to Millar, S. J., Hickson, D. J. and Wilson, D. C. (1996), the complexity of the modern organizations increases the importance of making key decisions.
Pettigrew (1973, quoted in Salaman, G. 2002) suggests a 'contextualist' framework for exploring the behavioral dimension of organizational failures. Accordingly, at any point in time, the organization's capabilities, prospects, decisions and actions are rooted in the preceding events, choices, and experiences that comprise its history and shaped its culture. ...Show more