Strategic decision-making and emotions

Senior management decisions play a critical role not only in organizational performance but also in the competitiveness of Australia in the international arena. In this conceptual paper, I present a multi-level model of affect in strategic decision-making to understand the impact that emotions have on senior managements' decision-making processes. The aim of the model is to extent on current theory (specifically Affective Events Theory) to minimize the negative impact of emotions on decision-making to produce high quality decisions and, consequently, more effective and competitive organizations. Hypotheses, practical implications and future research opportunities are also discussed.