According to a new study, managers produce better work results when not forced to choose between competing alternatives to complex situations.
Researchers from the University of Guelph and University of Waterloo found that constraint choices made by managers lead to poorer results with more negative consequences.
"One of the most powerful tools to combat high-risk or unethical decision-making may simply be offering managers the option not to choose," said Theodore Noseworthy, a professor in Guelph's Department of Marketing and Consumer Studies. He conducted the study with colleague professor Scott Colwell and lead author professor Michael O. Wood of Waterloo's School of Environment, Enterprise and Development.
The study also aims at how psychological mechanism works in a person's judgment and ability to make decisions. The study was conducted in two parts.
In the first part, 80 experienced managers took part. It was found that when managers felt a psychological distance between stakeholders, they were more likely to make decisions that could lead to several negative consequences. This was also true when managers knew the decision they took would be put into effect in the distant future.
"Increased psychological distance can lead to managers overlooking the ethical consequences of an outcome," Noseworthy said.
The second study involved 192 managers that were at both a "high" and "low" psychological distance from the stakeholders. These managers were asked to either choose between competing solutions or reject both alternatives.
Here too, it was found that the higher the psychological distance was, the more managers took the higher-risk choice. However, none of them opted for rejecting both options. Instead, they spent more time reflecting and opted for the less risky solution.
"Where this gets interesting is why this happens," Noseworthy said. "Managers were more likely to see the potential ethical consequences of their actions when they are given the option not to choose."
