Emotions are ubiquitous
Effects of experienced emotions on JDM are predictable
Effects of emotions can be changed
Conclusion
Selected bibliography
Vitae
“I’ll have time for feelings after I’m dead. Right now,we’re busy.”- Michael Griffin (2006), former Administrator of NASAMany people believe, as Griffin does, that judgment anddecision making (JDM) should be devoid of emotion. Managerswho share this belief risk misunderstanding the basis oftheir decisions and the decisions of those around them.Overlooking emotion will result in missed opportunitiesnot only to correct biases, but also to use emotions as toolsto improve decision making.Scientific research examining the role of emotion in JDMhas expanded exponentially in the last several decades.Researchers now acknowledge that emotions constitute,for better and worse, potent and pervasive drivers of behavior.Emotions, such as fear and anger, trigger a chain ofbiological, behavioral, and cognitive reactions; even whenfleeting, they alter hormone secretion for hours, triggerreadiness for action, and shape the encoding, processing,and recall of information. Emotions, in this sense, form aperceptual lens through which individuals interpret theworld.Emotions pervade JDM processes in both personal andprofessional contexts, which can overlap. Consider threeexamples, each derived from results of studies:1. A manager spends two hours in bumper-to-bumper trafficon the way to work. Upon arrival, she angrily declines arequest for a potentially profitable partnership withoutgiving it due consideration.2. A chronically anxious banker avoids taking higher riskswhen trading stock options than his competitors do. Inturn, he reaps lower returns than they do.3. A mayor, deeply saddened at the enormous loss hercommunity experienced from a hurricane, settles foran immediate relief option rather than a more long-termsolution to failing infrastructure.To avoid situations such as these, it is useful to develop anuanced understanding of human emotion. Here we reviewthe empirical evidence, highlighting three key insights fordecision making within organizations. First, emotions perme-ate JDM, taking the forms of expected emotion, experiencedemotion, or dispositional emotion. Second, emotions exerteffects on JDM via three predictable pathways: content ofthought, depth of thought, and implicit goal activation. Third,effects of emotions can be systematically dampened or chan-neled to optimize JDM, depending on the needs of the situa-tion. Predicting the likely effects of any given emotion createsopportunities to design decision environments in such a waythat emotions useful to JDM are enhanced and emotions thatmay undermine JDM are reduced. In sum, this review aims toprovide a foundation for improved JDM within organizations byilluminating the role of emotion.