Skip to main content
Log in

The rationality of emotions: A hybrid process model of decision-making under uncertainty

  • Perspectives
  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

Abstract

Decision-making continues to be a vital area of research on organizations, particularly in Asia. After years of research under the cognitive approach, there has been an upsurge of scholarly attention connecting decision-making to emotion. Nonetheless, competing accounts of the role played by emotion in decision-making have created a conundrum as to whether emotion is rational or irrational and whether it should even be considered along with other cognitive aspects of the decision-making process. In response, we derive a hybrid process decision-making model to integrate the effects from cognition and emotions varying with the levels of uncertainty. In proposing this model, we seek to differentiate the rationality of emotions from the instrumental, functional, and expressive mechanisms in decision-making. In particular, we proffer that affective construal legitimates the rational account of emotions under high uncertain situation. Finally, we draw some key implications and recommendations for organizational research in the Asian region.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2

Similar content being viewed by others

References

  • Ahlstrom, D. 2012. Continuing the progress at the Asia Pacific Journal of Management. Asia Pacific Journal of Management, 29(4): 841–848.

    Article  Google Scholar 

  • Ahlstrom, D., Chen, S.-j., & Yeh, K. S. 2010. Managing in ethnic Chinese communities: Culture, institutions, and context. Asia Pacific Journal of Management, 27(3): 341–354.

    Article  Google Scholar 

  • Ariely, D. 2010. The upside of irrationality. New York: HarperCollins.

    Google Scholar 

  • Ashforth, B. E., & Humphrey, R. H. 1995. Emotion in the workplace: A reappraisal. Human Relations, 48: 97–125.

    Article  Google Scholar 

  • Ashkanasy, N. M., & Humphrey, R. H. 2011. Current research on emotion in organizations. Emotion Review, 3: 214–224.

    Article  Google Scholar 

  • Ashton-James, C. E., & Ashkanasy, N. 2008. Affective events theory: A strategic perspective. In W. J. Zerbe, C. E. J. Härtel & N. M. Ashkanasy (Eds.). Research on emotion in organizations, vol. 4: Emotions, ethics, and decision-making: 1–34. Oxford: Elsevier Science.

  • Bargh, J. A., & Chartrand, T. L. 1999. The unbearable automaticity of being. American Psychologist, 54: 462–479.

    Article  Google Scholar 

  • Barsade, S. G., Brief, A. P., & Spataro, S. E. 2003. The affective revolution in organizational behavior: The emergence of a paradigm. In J. Greenberg (Ed.). Organizational behavior: The state of the science: 3–52. Mahwah, NJ: Lawrence Erlbaum and Associates.

    Google Scholar 

  • Bechara, A., Damasio, A. R., Damasio, H., & Anderson, S. W. 1994. Insensitivity to future consequences following damage to human prefrontal cortex. Cognition & Emotion, 50: 7–15.

    Article  Google Scholar 

  • Bechara, A., Damasio, H., Tranel, D., & Damasio, A. R. 1997. Deciding advantageously before knowing the advantageous strategy. Science, 275: 1293–1295.

    Article  Google Scholar 

  • Bell, D. 1982. Regret in decision making under uncertainty. Operations Research, 30: 961–981.

    Article  Google Scholar 

  • Bell, D. 1985. Disappointment in decision making under uncertainty. Operations Research, 33: 1–27.

    Article  Google Scholar 

  • Camerer, C. F. 2003. Behavioral game theory: Experiments in strategic interaction. Princeton, NJ: Princeton University Press.

    Google Scholar 

  • Chhokar, J. S., Brodbeck, F. C., & House, R. J. (Eds.). 2007. Culture and leadership across the world: The GLOBE book of in-depth studies of 25 societies. Mahwah, NJ: Lawrence Erlbaum.

    Google Scholar 

  • Damasio, A. R. 1994. Descartes’ error: Emotion, reason, and the human brain. New York: Grosset/Putnam.

    Google Scholar 

  • Damasio, A. R. 1998. Emotion in the perspective of an integrated nervous system. Brain Research Reviews, 26: 83–86.

    Article  Google Scholar 

  • Darwin, C. R. 1872. The expression and emotions in man and animals. London: John Murray.

    Book  Google Scholar 

  • Elfenbein, H. A., Foo, M. D., White, J. B., Tan, H. H., & Aik, V. C. 2007. Reading your counterpart: The benefit of emotion recognition ability for effectiveness in negotiation. Journal of Nonverbal Behavior, 31: 205–223.

    Article  Google Scholar 

  • Forgas, J. P. 1995. Mood and judgment: The affect infusion model (AIM). Psychological Bulletin, 117: 39–66.

    Article  Google Scholar 

  • Gilbert, C. G. 2005. Unbundling the structure of inertia: Resource versus routine rigidity. Academy of Management Journal, 48(5): 741–763.

    Google Scholar 

  • Gilbert, D. T., & Ebert, J. E. J. 2002. Decisions and revisions: The affective forecasting of changeable outcomes. Journal of Personality and Social Psychology, 82: 503–514.

    Google Scholar 

  • Goleman, D. 1995. Emotional intelligence: Why it can matter more than IQ. New York: Bantam Books.

    Google Scholar 

  • Gong, Y., Chow, I. H.-s., & Ahlstrom, D. 2011. Cultural diversity in China: Dialect, job embeddedness, and turnover. Asia Pacific Journal of Management, 28(2): 221–238.

    Article  Google Scholar 

  • Greene, J. D., Sommerville, R. B., Nystrom, L. E., Darley, J. M., & Cohen, J. D. 2001. An fMRI investigation of emotional engagement in moral judgment. Science, 293: 2105–2108.

    Article  Google Scholar 

  • Greifeneder, R., Bless, H., & Pham, M. T. 2011. When do people rely on affective and cognitive feelings in judgment?: A review. Personality and Social Psychology Review, 15(2): 107–141.

    Article  Google Scholar 

  • Griffin, D. W., & Ross, L. 1991. Subjective construal, social inference, and human misunderstanding. Advances in Experimental Social Psychology, 24: 319–359.

    Article  Google Scholar 

  • Heap, S. H. 1989. Rationality in economics. New York: Blackwell.

    Google Scholar 

  • Hochschild, A. R. 1983. The managed heart: Commercialization of human feeling. Berkeley: University of California Press.

    Google Scholar 

  • House, R. J., Hanges, P. J., Javidan, M., Dorfman, P. W., & Gupta, V. 2004. Culture, leadership, and organizations: The GLOBE study of 62 societies. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Howard, R. A., & Korver, C. D. 2008. Ethics for the real world: Creating a personal code to guide decision-making in work and life. Boston: Harvard Business Press.

    Google Scholar 

  • Huang, X., & Bond, M. H. (Eds.). 2012. Handbook of Chinese organizational behavior: Integrating theory, research and practice. Cheltenham, UK: Edward Elgar.

    Google Scholar 

  • Isen, A. M. 1993. Positive affect and decision-making. New York: Guilfore.

    Google Scholar 

  • Jones, E. E., Kanouse, D. E., Kelley, H. H., Nisbett, R. E., Valins, S., & Weiner, B. 1972. Attribution: Perceiving the causes of behavior: 79–94. Morristown, NJ: General Learning Press.

  • Kahneman, D. 2003. A perspective on judgment and choice: Mapping bounded rationality. American Psychologist, 58: 697–720.

    Article  Google Scholar 

  • Kahneman, D. 2006. New challenges to the rationality assumption. In S. Lichtenstein & P. Slovic (Eds.). The construction of preference: 487–503. Cambridge University Press

  • Kahneman, D. 2011. Thinking fast and slow. New York: Farrar, Straus, Giroux.

    Google Scholar 

  • Kahneman, D., & Tversky, A. 1979. Prospect theory: An analysis of decision under risk. Econometrica, 47: 263–292.

    Article  Google Scholar 

  • Kelley, H. H. 1973. The processes of causal attribution. American Psychologist, 28: 107–128.

    Article  Google Scholar 

  • Kozan, M. K. 1997. Culture and conflict management: A theoretical framework. International Journal of Conflict Management, 8: 338–360.

    Article  Google Scholar 

  • Law, K. S., Wong, C.-S., Huang, G.-H., & Li, X. 2008. The effects of emotional intelligence on job performance and life satisfaction for the research and development scientists in China. Asia Pacific Journal of Management, 25(1): 51–69.

    Article  Google Scholar 

  • Li, Y. 2011. Emotions and new venture judgment in China. Asia Pacific Journal of Management, 28(2): 277–298.

    Article  Google Scholar 

  • Li, Y., Ashkanasy, N., & Ahlstrom, D. 2010. Complexity theory and affect structure: A dynamic approach modeling emotional changes in organizations. In W. J. Zerbe, C. E. J. Härtel & N. M. Ashkanasy (Eds.). Research on emotion in organizations, vol. 6: Emotions and organizational dynamism: 139–166. Bingley, UK: Emerald Group Publishing Limited.

    Chapter  Google Scholar 

  • Li, Y., Hui, C., Ashkanasy, N. M., & Ahlstrom, D. 2012. A multi-level study of emergent group leadership: Effects of emotional stability and group conflict. Asia Pacific Journal of Management, 29(2): 351–366.

    Article  Google Scholar 

  • Loewenstein, G. 2001. The creative destruction of decision research. Journal of Consumer Research, 28: 499–505.

    Article  Google Scholar 

  • Loewenstein, G., & Lerner, J. S. 2003. The role of affect in decision-making. New York: Oxford University Press.

    Google Scholar 

  • Loewenstein, G. F., Weber, E. U., Hsee, C. K., & Welch, N. 2001. Risk as feelings. Psychological Bulletin, 127: 267–286.

    Article  Google Scholar 

  • Loomes, G., & Sugden, R. 1982. Regret theory: An alternative theory of rational choice under uncertainty. Econometrics Journal, 92: 805–824.

    Google Scholar 

  • Loomes, G., & Sugden, R. 1986. Disappointment and dynamic consistency in choice under uncertainty. Review of Economic Studies, 53: 271–282.

    Article  Google Scholar 

  • Mao, Y., Peng, K. Z., & Wong, C. S. 2012. Indigenous research on Asia: In search of the emic components of guanxi. Asia Pacific Journal of Management, 29(4): 1143–1168.

    Google Scholar 

  • March, J. G. 1958. A behavioral theory of decision making. Personnel Administration, 21(3): 8–10.

    Google Scholar 

  • March, J. G. 1978. Bounded rationality, ambiguity, and the engineering of choice. Bell Journal of Economics, 9: 587–608.

    Article  Google Scholar 

  • March, J. G. 2006. Rationality, foolishness, and adaptive intelligence. Strategic Management Journal, 27: 201–214.

    Article  Google Scholar 

  • Martin, J., Knopoff, K., & Beckman, C. 1998. An alternative to bureaucratic impersonality and emotional labor: Bounded emotionality at The Body Shop. Administrative Science Quarterly, 43: 429–469.

    Article  Google Scholar 

  • Mayer, J. D., Salovey, P., & Caruso, D. 2000. Models of emotional intelligence. In R. Sternberg (Ed.). Handbook of intelligence: 396–420. Cambridge: Cambridge University Press.

    Chapter  Google Scholar 

  • Mellers, B. A., Schwartz, A., Ho, K., & Ritov, I. 1997. Decision affect theory: Emotional reactions to the outcomes of risky options. Psychological Science, 8: 423–428.

    Article  Google Scholar 

  • Mellers, B. A., Schwartz, A., & Ritov, I. 1999. Emotion-based choice. Journal of Experimental Psychology, 128: 332–345.

    Article  Google Scholar 

  • Papineau, D. 2003. The roots of reason. Oxford: Oxford University Press.

  • Peters, E. 2006. The functions of affect in the construction of preferences. Cambridge: Cambridge University Press.

  • Salovey, P., & Mayer, J. D. 1990. Emotional intelligence. Imagination, Cognition, and Personality, 9: 185–211.

    Article  Google Scholar 

  • Sanchez-Burks, J., & Huy, Q. N. 2009. Emotional aperture and strategic change: The accurate recognition of collective emotions. Organization Science, 20: 22–34.

    Article  Google Scholar 

  • Savage, L. J. 1954. The foundations of statistics. New York: John Wiley & Sons.

    Google Scholar 

  • Schlevogt, K. A. 2001. Institutional and organizational factors affecting effectiveness: Geoeconomic comparison between Shanghai and Beijing. Asia Pacific Journal of Management, 18(4): 519–551.

    Article  Google Scholar 

  • Schwarz, N., & Clore, G. L. 1996. Feelings and phenomenal experiences. In E. T. Higgins & A. Kruglanski (Eds.). Social psychology: Handbook of basic principles: 433–465. New York: Guilford.

    Google Scholar 

  • Schwarz, N., & Clore, G. L. 2003. Mood as information: 20 years later. Psychological Inquiry, 14: 296–303.

    Article  Google Scholar 

  • Shafir, E., & BeBoeuf, R. A. 2002. Rationality. Annual Review Psychology, 53: 491–517.

    Article  Google Scholar 

  • Shiv, B., Loewenstein, G., Bechara, A., Damasion, H., & Damasio, A. R. 2005. Investment behavior and the negative side of emotion. Psychological Science, 16: 435–439.

    Google Scholar 

  • Simon, H. A. 1957. Models of man. New York: Wiley.

    Google Scholar 

  • Simon, H. A. 1959. Theories of decision-making in economics and behavioral science. American Economic Review, 49: 253–283.

    Google Scholar 

  • Slovic, P., Finucane, M. L., Peters, E., & MacGregor, D. G. 2002. Rational actors or rational fools? Implications of affect heuristic for behavior economics. New York: Cambridge University Press.

    Google Scholar 

  • Tiedens, L. Z., & Linton, S. 2001. Judgment under emotional certainty and uncertainty: The effects of specific emotions on information processing. Journal of Personality and Social Psychology, 81: 973–988.

    Article  Google Scholar 

  • Tsui, A. 2012. Contextualizing research in a modernizing China. In X. Huang & M. H. Bond (Eds.). Handbook of Chinese organizational behavior: Integrating theory, research and practice: 29–47. Cheltenham, UK: Edward Elgar.

    Google Scholar 

  • Tversky, A., & Kahneman, D. 1974. Judgment under uncertainty: Heuristics and biases. Science, 185: 1124–1131.

    Article  Google Scholar 

  • Von Neumann, J., & Morgenstern, O. 1944. Theory of games and economic behavior. Princeton, NJ: Princeton University Press.

  • Weary, G., & Jacobson, J. A. 1997. Causal uncertainty beliefs and diagnostic information seeking. Journal of Personality and Social Psychology, 73: 839–848.

    Article  Google Scholar 

  • Weick, K. E. 1995. Sensemaking in organizations. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Weiss, H. M., & Cropanzano, R. 1996. Affective events theory: A theoretical discussion of the structure, causes, and consequences of affective experiences at work. In B. M. Staw & L. L. Cummings (Eds.). Research in organizational behavior, vol. 18: 1–74. Greenwich, CT: JAI Press.

  • Wilson, T. D., & Gilbert, D. T. 2003. Affective forecasting. Advances in Experimental Social Psychology, 35: 345–409.

    Article  Google Scholar 

  • Wilson, T. D., & Gilbert, D. T. 2005. Affective forecasting: Knowing what to want. Current Directions in Psychological Science, 14: 131–134.

    Article  Google Scholar 

  • Wong, C.-S., & Peng, K. 2012. Chinese emotional intelligence. In X. Huang & M. H. Bond (Eds.). Handbook of Chinese organizational behavior: Integrating theory, research and practice: 87–102. Cheltenham, UK: Edward Elgar.

    Google Scholar 

  • Wong, S., Bond, M. H., & Rodriguez-Mosquera, P. M. 2008. The influence on cultural value orientations on self-reported emotional expression across cultures. Journal of Cross-Cultural Psychology, 39: 224–229.

    Article  Google Scholar 

  • Wyer, R. S., Clore, G. L., & Isbell, L. 1999. Affect and information processing. In M. Zanna (Ed.). Advances in experimental social psychology, vol. 31: 1–77. New York: Academic.

  • Zajonc, R. B. 1980. Feeling and thinking: Preferences and no inferences. American Psychologist, 35: 151–175.

    Article  Google Scholar 

Download references

Acknowledgments

The Asia Pacific Journal of Management would like to thank Rachel (Rae) Pinkham, Saraswathi “Sara” Sabapathy, and Marc Ahlstrom of Burlington County College for their editorial and research assistance.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Yan Li.

Rights and permissions

Reprints and permissions

About this article

Cite this article

Li, Y., Ashkanasy, N.M. & Ahlstrom, D. The rationality of emotions: A hybrid process model of decision-making under uncertainty. Asia Pac J Manag 31, 293–308 (2014). https://doi.org/10.1007/s10490-012-9341-5

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s10490-012-9341-5

Keywords

Navigation