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5.4 Context and the influence on the decision processes

While a manager may be in control of most decision making within his or her sphere, there are many external influences beyond control. Many decisions are imposed on a corporation. A decision about budget, for example, may be imposed by a parent company, by government in the case of the public sector, or by some other external agent. Many management decisions are changed by superior force. For example, the board of directors may amend a management decision involving capital expenditure and a government control body may amend a public sector unit decision about similar matters. Management decision may be constrained by public pressure because the social and economic consequences of strategic decisions are often inextricably intertwined.

Although forces outside a manager's control may bear heavily on decision making, a manager is still expected to assume responsibility. They have responsibility for allocating resources to solve the problem (especially time and people), orchestrating action, ad specifying the outcomes required. The effectiveness of decision making depends on the values and beliefs communicated by the manager to the work group. Like a boomerang, the decision communicated by the manager to others will return to the manager via employee practices. In this way, the effectiveness of a manager's communication during the decision making process can be gauged.

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