The Influence of Strategic Decision Making on Organizational Performance

Abstract

Strategic decision making is very useful when dealing with poorly structured problems for which there are no clear solution procedures. In attempting to provide an evaluation of how much influence strategic decision making has on organizational performance, this paper posits that   effective strategic decisions are results of systematic and careful analysis of information. Factors that influence management decisions as well as organizational performance are explained, pointing out that though the strategic decision-making approach enables organizations to sustain a competitive edge and ensure survival, there is a likelihood that the scope and direction of the organization will be changed. This paper uses a systematic review of articles and contributes to an understanding of factors that contribute to organizational performance such as management, employee behavior, decision making processes as well as organizational environmental factors. Having adopted the administrative behavior theory of Herbert Simon, the study concluded by indicating that the strategic decision-making process plays an important role in the effective performance of an organization.