Managerial rationality, dysfunctional cognition and organizational decision comprehensiveness

Christian Scholtes, Sabina Trif*, Petru Lucian Curseu

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Purpose: Our study aims to explore the interplay between dysfunctional cognitive schemas and rationality for decision comprehensiveness in organizational strategic decisions. Design/methodology/approach: We used a cross-sectional design in which we evaluated individual decision rationality using an objective decision competence test and dysfunctional cognitive schemas in a sample of 270 managers (145 women with an average age of 41 years old). In addition, we asked managers to rate the decision comprehensiveness of their organization’s strategic decision processes. Findings: Our findings support the detrimental impact of dysfunctional cognition in strategic decision-making in such a way that the association between individual managerial rationality and the comprehensiveness of organizational strategic decisions was positive only when managers reported low dysfunctional cognition, while when managers reported high levels of dysfunctional cognitive schemas, the association between rationality and comprehensiveness was negative. Originality/value: Our study provides initial empirical evidence for the interplay between dysfunctional cognition and managerial rationality in strategic decision processes, and it opens venues for future research to explore the detrimental role of dysfunctional cognitive schemas in strategy processes.

Original languageEnglish
Pages (from-to)490-503
Number of pages14
JournalJournal of Organizational Change Management
Volume37
Issue number3
Early online date22 Apr 2024
DOIs
Publication statusPublished - 28 May 2024

Keywords

  • Decision comprehensiveness
  • Dysfunctional cognitive schemas
  • Managerial decisions
  • Rationality

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