Managing an existential threat: how a global crisis contaminates organizational decision-making

Abstract

PurposeThe paper introduces a new model, the evolutionary-existential model of organizational decision-making. The purpose of the model is to provide an empirical framework for understanding the context for decision-making under conditions of existential threat to organizations, such as the global COVID-19 pandemic during the year 2020.Design/methodology/approachThe model is built on an extensive interdisciplinary literature review, drawing from research in social psychology, management, behavioral economics, evolutionary psychology and consumer behavior. In general, the authors follow Bargal's (2006) call for action research in the spirit of Lewin (1951).FindingsAccording to the model, organizational decision-making during the pandemic threat is influenced by (1) existential threat and (2) an unprecedented macroenvironmental context for decision-making. The authors argue that these psychological and macroenvironmental forces may lead to suboptimal decision-making, based on (1) their basic cognitive architecture and (2) specific evolutionary triggers activated by the pandemic. The authors highlight how the interaction between these inputs and the decision context manifest in various social psychological phenomena that are known to impact judgments and decisions.Practical implicationsSimply put, the magnitude and the urgency of the global pandemic call for new and integrative ways of understanding organizational decision-making.Originality/valueThe model is new. Although the authors draw on prior research and theory, the model is uniquely interdisciplinary; further, the authors are able to make specific and unique predictions about the inputs, decision context and their social–psychological consequences for decision-making.

Corporate Fight against the COVID-19 Risks Based on Technologies of Industry 4.0 as a New Direction of Social Responsibility

“…The results obtained clarified the concept of corporate social responsibility through the prism of the COVID-19 crisis. In contrast to the existing work of Hinojosa et al (2020); Norris et al (2020);and Popkova et al (2020); Issa et al (2021); Vasenska et al (2021) this study led to the following new results:…”

“…The significance of corporate social responsibility for sustainable development is noted in the works of ; Bhattacharyya and Jha (2020);Milwood (2020). The specific features of manifesting corporate social responsibility amid the COVID-19 crisis are outlined in the works of Hinojosa et al (2020); Norris et al (2020);and Popkova et al (2020).…”

Disruptive crisis management: lessons from managing a hospital during the COVID-19 pandemic

“…It is not always possible to predict or plan for crisis. The novel nature of crisis means there is no single model of response, and that management should rather implement a decision-making process which facilitates adjustment (Jones, 2006) possibly based on modular actions (Norris et al. , 2020).…”

“…Redefinition of activities, including effective mobilization of personnel and resources and a well-functioning emergency operations center, is important. At the same time, it is crucial for leaders and managers to adapt, and be willing to recognize the failure of managerial intuition, and change strategy when new data and solutions arise (Norris et al. , 2020).…”

“…Modular solutions can avoid the risk of deterioration and obsolescence of temporary activities and protocols in the medium term (Mithani and Kocoglu, 2020) which might jeopardize organizational survival. Managers and leaders need to continually revisit decisions based on new data and information as it arises (Noris et al. , 2020).…”