Your assignment is to prepare and submit a paper on the ideal decision-making process is unrealistic. 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 the 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 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 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. The lateral relationships existing in the organization can be called ‘office politics’, where the executive is a tactician and philosopher who ‘must live by his wits, competitive instincts, understanding of social forces and ability as a leader. So the behavior perspective of organizational decision making makes it necessary to understand the Behavioral theory of the firm.
The behavioral theory of the firm helps to understand the actual process of making business decisions and provide detailed observations of the ways in which organizations make these decisions (Cyert and March 1963, quoted in Salaman, G. 2002, p. 62). Cyert and March propose two major organizing devices: a set of variable concepts and a set of relational concepts. The variable concepts are organizational .goals, organizational expectations, organizational choice and organizational control. .