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Irrationality refers to decision making and behavior in the workplace that is emotion-driven and counter to the goals set forth by the organization. The act of irrationality is often associated with being illogical and less focused on the more rational alternatives for action. With the study of the irrational side of workplace behavior only recently becoming a prevalent and growing field in organizational research, many unanswered questions and areas for continued inquiry remain for students and scholars of organization studies.

Conceptual Overview

The study of irrationality in the workplace has been traditionally overshadowed by the emphasis on rationality. From the influential works of Max Weber and Frederick Taylor to Charles Barnard and Herbert Simon, the trajectory of organizational research has placed emotions and corresponding irrational behavior in a box, considering them problematic and troublesome for management. Organizations were structured and tasks were designed with the assumption that humans were rational beings with the ability to make choices designed to achieve a goal in the most efficient and logical fashion without influence from emotion. While Simon's seminal work in 1947 moved the Tayloristic focus on strict rationality to one of bounded rationality, there remained an enduring neglect for understanding the irrational side of humans. Simon argued that humans are incapable of being completely rational because they are bounded by the limited awareness of multiple alternatives and the potential consequences associated with decisions. Nonetheless, the preoccupation with the rational actor remained at the forefront of scholarly research until recent interest in emotions in the workplace began to surface.

Any examination of irrational behavior in the workplace must first consider the role of emotions, rather than judgment or heuristics, as Simon noted in 1987. Emotions are immediate positive, negative, or conflicted reactions to a social relationship, object, or event and are accompanied by physiological changes, interruptions to thought processes and alterations in behavior. In addition, there is an underlying appraisal process that defines the relative pleasantness or unpleasantness of the event, as Nico Frijda described in 1988. The direction of the emotional experience is based on certain factors that influence how individuals interpret and make sense of the event. Value and goal assessments pertaining to the event, in addition to social cues from the organization's cultures, often help define the type of emotional reaction and the ensuing decision and behavior. Factors relating to the event such as uncertainty, risk, ambiguity, known or unforeseen consequences, and dilemmas often lead individuals to act on emotions instead of reason.

For example, in a 2004 field study, Sarah Tracy examined how prison officials respond to conflicting organization policies guiding behavior and the contradictory realities of working in a correctional facility. The findings reveal that informants acted out their frustrated emotions in a variety of irrational behaviors that contradicted policy, such as placing emphasis on one rule over others and favoring select inmates while discriminating against others. In another study exploring irrational behavior in the workplace, Mark Stein found that narcissism, rather than lacking information or cognitive ability, can often result in organizational failure. In this 2003 field study, Stein found that feelings such as pride permeated throughout the organization under investigation, and as a result a sense of omnipotence overcame its members. The collective hubris also resulted in an irrational sense of immunity and independence from competition or challenges in the environment. These two studies represent a trend in organizational research for the inclusion of emotions and irrational behavior.

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