Emotions in Decision-making

Introduction

Emotions play a central role in decision-making, influencing not just what we choose but how we think about choices, risks and outcomes. Modern psychology and neuroscience have overturned the old idea that good decisions are purely rational; instead, effective decision-making involves an integration of emotion and logic.

Research shows that 95% of decisions are emotionally driven; from what you buy, to how you spend your time, to how you navigate relationships. Even when we think we’re being logical, our feelings, shortcuts and hidden biases are in the driver’s seat.

You need to be aware

• Why too much empathy can actually cloud your judgment
• How to stop second-guessing (or re-doing) decisions
• Simple ways to spot and outsmart your own biases
• How to use emotional intelligence to make choices you won’t regret

Some ways emotions influence decision-making:

1. Emotions as Information

Emotions act as data points, ie quick, intuitive summaries of complex experiences.

When something feels right or feels off, your emotional system is drawing on past experiences and unconscious cues.

For instance, anxiety might signal risk or uncertainty; excitement might indicate opportunity.

It has been suggested that bodily emotional signals (“gut feelings”) help narrow down choices and guide behaviour efficiently, ie somatic marker hypothesis.

(for more detail, see elsewhere in Knowledge Base)

2. Emotions Shape Priorities and Values

Decisions are rarely about logic alone; emotions help us determine what matters most.

• Love, pride, fear or guilt can shift priorities dramatically.
• For example, a leader might choose a slower but fairer change process because it “feels right” for team morale, ie reflecting emotional intelligence rather than pure efficiency.

3. Emotions Influence Risk Perception

• Fear and anxiety heighten risk aversion, ie leading to cautious or defensive choices.
• Anger and overconfidence can lead to greater risk-taking.

These emotional states colour how we interpret probabilities and potential outcomes; a process known as affect heuristic.

(for more detail, see elsewhere in Knowledge Base)

4. Emotions Affect Memory and Attention

We notice and recall emotionally charged information more strongly.

• Positive emotions broaden attention and creativity, ie broaden-and-build theory.

(for more detail, see elsewhere in Knowledge Base)

• Negative emotions narrow focus and promote analytical thinking that can be useful for troubleshooting, but limiting for innovation.

5. Emotions Drive Action

Emotions often provide the energy behind decisions.

• Motivation is essentially emotion in motion; without emotional engagement, people procrastinate or stay indecisive.
• For change leaders, appealing to both the head and the heart is crucial: logic convinces, but emotion moves people to act.

6. Emotional Regulation and Decision Quality

How emotions are managed determines decision quality.

• High emotional intelligence (EQ) allows for emotional awareness, regulation and empathy, reducing impulsive reactions.
• Poor emotional control, eg, making decisions in anger or fear, leads to myopic or biased judgments.

7. Organisational Application

In organisational or change settings:

• Recognising emotions in self and others helps anticipate resistance or commitment.
• Emotional climates shape collective decisions, eg, anxious teams avoid innovation while optimistic teams embrace it.
• Developmental conversations, change communication and leadership engagement all rely on understanding emotional undercurrents.

Summary

Emotions are not enemies of reason; they are its partners. They filter, prioritise, energise and humanise our decisions.
The best decision-makers use emotions as data, not dictators, ie informed by feelings, yet guided by reflection.

(main sources: Jean Decety, 2025; Paul Blom, 2016)