Leadership decision-making: A behavioral reasoning theory analysis

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Abstract

Behavioral reasoning theory proposes that context-specific reasons are critical in decision-making, intention formation, and behavior. Reasons are especially important for leaders because of their frequent need to justify their decisions to others. Past behavioral intention theories, such as the theory of planned behavior, have not accounted for the impact of reasons on decision-making processes. Moreover, behavioral reasoning theory hypothesizes that reasons not only influence leaders' attitudes, subjective norms, and perceived control to act, they also directly influence leaders' intentions to act (through explicit or implicit processes). We tested theoretical propositions in a special case of executives' decisions to employ youth workforces (N = 283). Results demonstrated support for the theory, including its predictive validity over the theory of planned behavior. Regarding theoretical extensions for future research, the theory suggests that leaders' decisions could benefit from a careful analysis of their attitudinal, normative, and control perceptions as well as an explicit consideration of their specific behavioral reasons that are grounded in relevant fact, objective evidence, and empirical research. Finally, the possible link between leaders' justifiable reasoning and followers' perceived procedural justice and satisfaction is discussed.

Section snippets

Leadership decision-making and behavioral reasoning theory

A visual representation of the central hypotheses in behavioral reasoning theory is displayed in Fig. 1. In the section that follows, we use this framework to guide our hypotheses about leadership decision-making. Consistent with past theoretical treatments (Ajzen, 1991), we start with the prediction of behavior, given its centrality in behavioral studies.

Participants and procedure

To test the hypotheses in this study, we solicited participation from a representative sample of employers (e.g., company owners, executives, and high-level managers) that have control over their organizations' employment of youth workers. In other words, all participants were employers with direct responsibility for executive-level workforce decisions in their companies. This was ensured through our solicitation methodology, which stated the pre-requisites for participation in the study.

Results

Descriptive statistics and intercorrelations are presented in Table 1. AMOS 4.0.1 with maximum likelihood estimation was used in covariance modeling analyses. We used Anderson and Gerbing's (1988) two-step approach to test the conceptual model. The first step uses confirmatory factor analysis to test the measurement model, while the second step examines hypothesized linkages in the conceptual framework via structural equation modeling (SEM). Finally, to test mediation hypotheses and model

Discussion

This article examined the utility of behavioral reasoning theory in the study of leadership decision-making. The theory was empirically evaluated in the case of executives' decisions to employ youth workforces, which is a serious issue for many leaders in high-risk industries. Results provided support for the theory. First, leaders' intentions were related to behavioral outcomes in this study. This finding supports the notion that managerial intentionality is associated with organizational

Acknowledgement

This research was funded in part by the National Institute for Occupational Safety and Health (U50 OH008107).

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