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Antecedents of Irrationality in Organizational Decision Making

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  • Michael Sony

    (Namibia University of Science and Technology Windhoek, Namibia)

  • Neeta Baporikar

    (Namibia University of Science and Technology, Namibia & University of Pune, Pune, India)

Abstract

All other things being equal, it is the quality of decisions which decide the fate of any organization. Hence, decision-making is critical to the success and growth of any organization. Yet the decisions in organization are many times irrational. Previous research has suggested that billion dollars are lost due to irrational decisions. The purpose of this article is to explore the antecedents of the irrational decision-making process. This study conceptualises irrational decision-making process as a lived-in experience and an interpretative phenomenological analysis is undertaken. Participation is of hundred and twenty-three (123) employees working in various capacities in western India through theoretical sampling frame. The results indicate several antecedent's factors for irrational decision-making. Besides moderating factor is discussed. Thus, these findings can help the organizations to understand the irrational decision-making behaviours of employees and aid managers to recognize these behaviours of their employees to mitigate the bias in irrational decisions.

Suggested Citation

  • Michael Sony & Neeta Baporikar, 2019. "Antecedents of Irrationality in Organizational Decision Making," International Journal of Sociotechnology and Knowledge Development (IJSKD), IGI Global, vol. 11(1), pages 1-16, January.
    • Handle: RePEc:igg:jskd00:v:11:y:2019:i:1:p:1-16
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    File URL: http://services.igi-global.com/resolvedoi/resolve.aspx?doi=10.4018/IJSKD.2019010101
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