A pointing device is communicated with a computer system for controlling movement of a cursor shown on a display screen of the computer system. The pointing device includes a housing and a scroll wheel assembly. The housing has an opening therein. The scroll wheel assembly is positioned within the opening of the housing and a portion thereof protrudes away from the outer surface of the housing. The scroll wheel assembly includes a rotatable member, a soft member covering the rotatable member, and a sensing member arranged between the rotatable member and the soft member. The sensing member is actuated in response to deformation of the soft member when a lateral force is applied on the soft member, thereby controlling lateral movement of the cursor.