Affect and decision-making

Muhammad Kamran Siddiqui

Chapter 2 in Elgar Concise Encyclopedia of Neuroscience and Management, 2026, pp 8-11 from Edward Elgar Publishing

Abstract: In this entry, the integral role of emotions in decision-making processes is examined across personal and professional contexts. Based on the evidence of neuroscientific and somatic marker theory, it is highlighted how affect, which refers to the experience of emotions such as anger, happiness, fear, and anxiety, shapes behavioural outcomes and cognitive evaluations. The discussion explores how the prefrontal cortex and amygdala interact to integrate rational and emotional processes. The entry further emphasises emotional insights into management that enhance organisational effectiveness by understanding emotional dynamics and the power of emotional intelligence in leadership that contributes to a higher level of organisational commitment and employee engagement. Eventually, by harnessing the power of emotions and understanding their impact on decision-making, leaders and managers can empower themselves to navigate challenges more effectively and lead the organisation with greater insight and empathy.

Keywords: Decision-making; Affect; Emotions; Somatic marker theory (SMT); Neuroscience; Emotional intelligence in leadership (search for similar items in EconPapers)
Date: 2026
ISBN: 9781035332885
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