The Cognitive Micro-foundations, and Socio-psychological Mechanisms, of Organizational Decision-Making in Public Management

Hodgkinson, Ian R. and Hughes, Paul and Leite, Higor (2023) The Cognitive Micro-foundations, and Socio-psychological Mechanisms, of Organizational Decision-Making in Public Management. British Journal of Management, 34 (2). pp. 787-804. ISSN 1045-3172

Abstract

How do cognitive micro-foundations impact organizational decision-making in public management? The study focuses on the relationships between two cognitive micro-processes (intuitive, type I and rational, type II) and the contrasting organizational decision-making approaches of strategic planning and organizational spontaneity. Drawing on survey data from managers working across a range of public services in Brazil, the findings reveal that rational reasoning drives both approaches to organizational decision-making. Intuitive reasoning, on the other hand, is observed to drive strategic planning only. Two socio-psychological mechanisms moderate the core relationships: bureaucracy strengthens the rational reasoning–planning relationship, but weakens the intuitive reasoning–spontaneity relationship, while organizational learning plays a critical role in activating the intuitive reasoning–organizational spontaneity relationship. Post-hoc analysis of variance reveals a group of public service organizations that rely heavily on both decision-making modes and highlights the core features enabling paradoxical decision-making.