Table of Contents

Research Companion to Emotion in Organizations

Research Companion to Emotion in Organizations

New Horizons in Management series

Edited by Neal M. Ashkanasy and Cary L. Cooper

This Companion brings together many leading scholars to address a wide range of topics in 38 chapters, across five levels of organizational analysis – including within-person, between-person (individual differences), relationships, groups, and the organization as a whole. Chapters tackle structure and measurement of emotion, antecedents and consequences of positive and negative emotions, including effects on work satisfaction and performance. The expression, recognition, and regulation of emotion and the propagation of mood and emotion in groups are also dealt with. The Companion explores contemporary issues including leadership, organizational climate and culture, as well as organizational change.

Chapter 2: Emotion and Organizational Decision Making: The Roles of Negative Affect and Anticipated Regret in Making Decisions under Escalation Situations

Carmen K. Ng and Kin Fai Ellick Wong

Subjects: business and management, organisational behaviour


2 Emotion and organizational decision making: the roles of negative affect and anticipated regret in making decisions under escalation situations Carmen K. Ng and Kin Fai Ellick Wong Anyone who has ever made an important decision knows that emotions play a role. (Mellers, 2000, p. 910) Introduction The role of emotion in organizations has attracted increasing attention from researchers during the last decade (Fineman, 2000). In this chapter, we discuss how emotion influences decision making in organizational settings, with a particular focus on recent research that examines the influences of negative emotions on making decisions under escalation situations. We first begin with a brief review of research that examines the role of emotion in decision making. We then discuss the relationship between emotion and organizational decisions, particularly those under escalation situations. Finally, we discuss directions for future research. Emotion and decision making Since Bernoulli’s (1738 [1954]) initial work, research on decision making has focused primarily on how decision behaviors are shaped by factors pertinent to rationality (von Neumann & Morgenstern, 1947) and cognitive factors that limit rationality (Simon, 1956; Kahneman & Tversky, 1979). In later studies, researchers recognized that, in addition to rationality and cognitive determinants, decision behaviors are also influenced by affective factors (Fischhoff et al., 1981; Peters & Slovic, 1996, 1999; Loewenstein et al., 2001). Indeed, some researchers have argued that emotions play a functional and beneficial role in decision making (Kleinmuntz, 1990; Bazerman et al., 1998; Isen, 2000). Now, emotion is generally considered to...

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