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

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.

KEYWORDS:

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

Acknowledgments

We are grateful to the Directorate of Research and Development of Universitas Indonesia for providing funding assistance through the Q2 International Indexed Publication Grant Program (Program Hibah Publikasi Terindeks Internasional - PUTI). The Assignment Agreement for this grant can be found listed under the fiscal year 2022–2023 (Batch 2) with the reference number: NKB-1198/UN2.RST/HKP.05.00/2022. Our gratitude is also expressed to all those who assisted in the data collection.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the Universitas Indonesia [NKB-1198/UN2.RST/HKP.05.00/2022].