More on Decision-Making

Introduction

Some Ways Managers Currently Make Decisions

1. Emotional Intelligence as Practical Intelligence

Emotional intelligence (EI) is described not as being about maximising empathy, sensitivity, or self-control, but about using them selectively to make effective decisions in context.

• Empathy helps when understanding others’ feelings is essential; however, too much can distort judgment.
• Social sensitivity aids prediction of others’ reactions; however, without self-awareness, it risks projection.
• Self-regulation prevents impulsive behaviour; however, overuse can make a leader seem detached or inauthentic.

NB EI is situational intelligence, ie knowing when and how to apply emotional skills to improve decisions.

2. How Managers Actually Make Decisions

Most managers rely heavily on peer consultation rather than formal tools or structured reflection.

• Over half of managers seek advice from other managers before deciding how to handle emotionally charged challenges (influencing, resolving conflict, difficult conversations, etc.).
• This “manager-to-manager coaching” is common but inconsistent, because each manager’s biases, experiences and heuristics influence the advice they give.
• Such peer reliance helps socially but often spreads cognitive shortcuts or faulty generalisations.

An example:
A manager advises against hiring from startups because one previous hire from a startup left abruptly; this is a heuristic error based on emotional memory rather than data.

3. The Problem: Emotional and Cognitive Bias

Managers’ decisions are frequently shaped by:

• Emotional triggers (fear, frustration, loyalty, etc).
• Heuristics (mental shortcuts such as availability or representativeness).
• Peer influence (absorbing others’ biases as “wisdom”).

This can create a self-reinforcing culture where habits, not insight, guide decision-making.

(main source: MindTools, 2024a)