Ex-Post Rationalisation in Business Decision Making: Objective Performance and Subjective Satisfaction

Abstract

Business decision making theory and practice mostly focus on either normative prescriptions and/or descriptive analyses of decision making behaviour, decision making situations and contexts, decision making criteria, and decision making heuristics. Much lesser frequently, emphasis is placed on the problem, whether the actual outcomes and results of decision making processes, measured by “objective” indicators are in line with the subjective satisfaction of the decision makers with their efforts, commitment and performance. Various empirical findings, however, suggest that “objective performance” and “subjective satisfaction” with the procedures and the outcomes of decision making are not at all positively related. A field study and a laboratory experiment, hereto, show mixed findings, as reported in this paper.