Chapter 7: The Effects of Conflict on Strategic Decision Making Effectiveness and Organizational Performance
Allen C. Amason & David M. Schweiger
The effects of conflict on strategic decision making effectiveness and organizational performance Most scholars and practitioners agree that the complexities and pressures of strategic decision making can often produce conflict (Carter, 1971; Hickson, Butler, Cray, Mallory & Wilson, 1986; Mintzberg, Raisinghani & Theoret, 1976). The effect this conflict has on the decision making process, however, is unclear (Eisenhardt & Zbaracki, 1992). Traditional wisdom holds that conflict hinders decision making. Conflict can disrupt the exchange of information among the team of decision makers, reducing decision quality. Conflict can undermine the commitment that is needed to get the decision properly implemented. Finally, conflict can reduce satisfaction and affective acceptance among the team members, threatening cohesion and the prospects for future decisions (Schweiger, Sandberg & Ragan, 1986; Schweiger & Sandberg, 1991). However, there is also reason to believe that conflict improves decision making. Conflict can enhance decision quality by encouraging thorough evaluation of ...