Managerial rationality, dysfunctional cognition and organizational decision comprehensiveness

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.

Citation

Scholtes, C., Trif, S. and Curseu, P.L. (2024), "Managerial rationality, dysfunctional cognition and organizational decision comprehensiveness", Journal of Organizational Change Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JOCM-01-2024-0021