The influence of non-rational factors on managerial decision-making and their impact on organizational performance in Indonesian Information Institutions

Laksmi Laksmi, Nurdin Laugu, Kiki Fauziah, Tom Hoogervorst

Research output: Contribution to journalArticlepeer-review

Abstract

This study aims to identify non-rational factors that affect the decision-making of managers in Indonesian information institutions, and the impact these have on organisational performance. It was conducted using a quantitative descriptive research design. The 498 respondents were selected using purposive sampling, and questionnaires were distributed from August to October 2022. The findings showed that the influence of non-rational factors on organisational performance was weak, with an r-value of 0.246. Five non-rational factors were found to play a significant role in influencing the decision-making process: experience, religious beliefs, local wisdom, personality, and intuition. Other influence factors were obeying orders from superiors and workplace culture. Non-rational factors with a weak impact were emotions and irrational considerations. It can be concluded that the influence of the five non-rational factors on managers’ decisions, coupled with a working relationship based on negotiation, can help strengthen the quality of decision-making. It can also improve organisational performance.

Original languageEnglish
JournalJournal of Decision Systems
DOIs
Publication statusAccepted/In press - 2023

Keywords

  • decision-making
  • information institution manager
  • non-rational factors
  • organisational performance

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