Make or break: The influence of expected challenges and rewards on the motivation and experience associated with cognitive effort exertion

Challenging goals can induce harder work but also greater stress, in turn potentially undermining goal achievement. We sought to examine how mental effort and subjective experiences thereof interact as a function of challenge level and the size of the incentives at stake. Participants performed a task that rewarded individual units of effort investment (correctly performed Stroop trials) but only if they met a threshold number of correct trials within a fixed time interval (challenge level). We varied this challenge level (Study 1, N = 40), and the rewards at stake (Study 2, N = 79), and measured variability in task performance and self-reported affect across task intervals. Greater challenge and higher rewards facilitated greater effort investment but also induced greater stress, while higher rewards (and lower challenge) simultaneously induced greater positive affect. Within intervals, we observed an initial speed up then slowdown in performance, which could reflect dynamic reconfiguration of control. Collectively, these findings further our understanding of the influence of task demands and incentives on mental effort exertion and wellbeing.

Identification of Factors Affecting Risk Appetite of Organizations in Selection of Mega Construction Projects

Risk appetite is a crucial component that plays a key role in the decision-making process of project risk management. Despite rising scholarly interest in project risk management, risk appetite has received little attention thus far. A well-defined risk appetite ensures that all decisions taken throughout the course of a project are consistent with an organization’s ultimate strategic aim. This research aims to identify the factors affecting the risk appetite of megaproject selection in the construction sector. The study adds to the knowledge of risk appetite in mega construction project selection and qualitatively examines the factors affecting risk appetite. Exploratory research design is used to identify these factors. The factors are identified using semi-structured interviews of 30 practitioners from the top and middle management working on mega construction projects. Thematic analysis was performed using NVIVO academic software. The most highlighted factors are financial attributes, board of directors’ agility, political factors, project location and demographics. The proposed conceptual framework identifies the factors affecting the risk appetite of mega construction project selection. These factors may be utilized as a starting point by construction project organizations to evaluate the risk appetite of a mega construction project. Risk appetite-based project selection will decrease chances of failures, delays, and cost overruns in mega-projects. These factors can be used by researchers as a rationale for developing predictive or descriptive models of project selection based on risk appetite.

Managerial decision making under specific emotions

Purpose

– The purpose of this paper is to investigate decision-processing effects of incidental emotions in managerial decision-making situations.

Design/methodology/approach

– A complex multi-attribute, multi-alternative decision task related to international human resources management is used as a research vehicle. The data are obtained by means of an electronic information board.

Findings

– Happiness and anger cause the decision maker to process less decision-relevant information, whereas fear activates more detail-oriented processing. The results are explained within the valence model and cognitive-appraisal framework.

Research limitations/implications

– A boundary condition of the study is the level of induced emotions. Processing effects of extremely high levels of emotions are not examined, which necessarily limits the generalizability of the findings. Also, the experiment focusses on the decision-processing effects of single isolated emotions extracted by manipulations; future research needs to examine decision-making implications of an entire emotion episode, which is likely to contain emotion mixtures.

Practical implications

– For managers, this study demonstrates the importance of being mindful of how incidental emotional states can bias choice processing in complex managerial decisions.

Originality/value

– This study extends earlier organizational research by focussing on decision-making consequences of emotion, rather than those of mood or stress. It brings together research on incidental emotions and process-tracing methodologies, thereby allowing for more direct assessment of the observed effects. Decision-processing consequences of emotion are shown to persist throughout a content-rich managerial decision task without being neutralized by an intensive cognitive engagement.

Escalate shamefully, de-escalate angrily or gratefully: the influence of discrete emotions on escalation of commitment

Decision makers often tend to escalate their commitment when faced with a dilemma of whether to continue a losing course of action. Researchers recently began to investigate the influence of discrete emotions on this decision tendency. However, this work has mainly focused on negative emotions and rarely considered positive emotions, to say nothing of comparing the effects of both of them simultaneously. The current study addresses this need by presenting the results of three experiments that examined the effects of four emotions of both positive and negative valences in escalation situations. Experiment 1 investigated the relationships of three trait emotions (hope, shame, and anger) and escalation of commitment. Experiments 2 and 3 examined the effects of three induced emotions (anger, shame, and gratitude) on escalation of commitment in a student sample and an employee sample, respectively. The results revealed that the effects of discrete emotions in escalation situations are mainly due to their associated differences on the appraisal dimension of responsibility that is related to escalation situations rather than their valence. The theoretical and practical implications are discussed.

Decision-making heuristics and biases across the life span

We outline a contextual and motivational model of judgment and decision-making (JDM) biases across the life span. Our model focuses on abilities and skills that correspond to deliberative, experiential, and affective decision-making processes. We review research that addresses links between JDM biases and these processes as represented by individual differences in specific abilities and skills (e.g., fluid and crystallized intelligence, executive functioning, emotion regulation, personality traits). We focus on two JDM biases-the sunk-cost fallacy (SCF) and the framing effect. We trace the developmental trajectory of each bias from preschool through middle childhood, adolescence, early adulthood, and later adulthood. We conclude that life-span developmental trajectories differ depending on the bias investigated. Existing research suggests relative stability in the framing effect across the life span and decreases in the SCF with age, including in later life. We highlight directions for future research on JDM biases across the life span, emphasizing the need for process-oriented research and research that increases our understanding of JDM biases in people's everyday lives.

Promoting de-escalation of commitment: a regulatory-focus perspective on sunk costs

People frequently escalate their commitment to failing endeavors. Explanations for such behavior typically involve loss aversion, failure to recognize other alternatives, and concerns with justifying prior actions; all of these factors produce recommitment to previous decisions with the goal of erasing losses and vindicating these decisions. Solutions to escalation of commitment have therefore focused on external oversight and divided responsibility during decision making to attenuate loss aversion, blindness to alternatives, and justification biases. However, these solutions require substantial resources and have additional adverse effects. The present studies tested an alternative method for de-escalating commitment: activating broad motivations for growth and advancement (promotion). This approach should reduce concerns with loss and increase perceptions of alternatives, thereby attenuating justification motives. In two studies featuring hypothetical financial decisions, activating promotion motivations reduced recommitment to poorly performing investments as compared with both not activating any additional motivations and activating motivations for safety and security (prevention).