New Horizons in Management series
Edited by Neal M. Ashkanasy and Cary L. Cooper
Chapter 2: Emotion and Organizational Decision Making: The Roles of Negative Affect and Anticipated Regret in Making Decisions under Escalation Situations
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 ) 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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