Psychological features of managerial decision-making in conditions of social and economic crises

Abstract

Introduction. Studying the features of managerial decision-making in in times of crisis have great social significance. For decades, Ukrainian society has been experiencing a series of sever social-political, economic, and environmental crises. Aim: to analyze the theories and research that explain the process of decision-making by managers in crisis situations and to develop a conceptual model of psychological determinants on this basis. Methods. The article contains a theoretical overview of classic and modern works on the psychological determinants of decision-making in crisis conditions. Results. The key role of managers' readiness and ability to make decisions was determined and possible positive and negative effects of crises on organizations were explained. Theoretical approaches to decision-making proposed by cognitive psychology, behavioral economics, management and various branches of psychology were described. According to the theory of bounded rationality, decision-making in an externally-induced crisis has four stages: understanding the need for decision-making and updating organizational goals; formulation of possible alternatives and analysis of their possible effects; choosing the most affordable and effective (satisfactory) solution to the problem; verification and adjustment of the approved decision in the process of its realisation. The impact of cognitive biases and emotions on the decision-making process at all stages were described. The results of the studies on the features of decision-making by heads of organizations in the conditions of the war in Ukraine were analyzed. Conclusions. Based on the generalization of the data from the relevant scientific sources, a conceptual model of the impact of psychological factors (motivational, emotional, and cognitive) at various stages of decision-making process in crisis situations was proposed. The importance of managers' prompt psychological adjustment to changes in working conditions and organizational goals was emphasized, which makes it possible to make effective decisions in a crisis situation.