Publication Type

Journal Article

Version

publishedVersion

Publication Date

1-2022

Abstract

Heuristics are fast, frugal, and accurate strategies that enable rather than limit decision making under uncertainty. Uncertainty, as opposed to calculable risk, is characteristic of most organizational contexts. We review existing research and offer a descriptive and prescriptive theoretical framework to integrate the current patchwork of heuristics scattered across various areas of organizational studies. Research on the adaptive toolbox is descriptive, identifying the repertoire of heuristics on which individuals, teams, and organizations rely. Research on ecological rationality is prescriptive, specifying the conditions under which a given heuristic performs well, that is, when it is smart. Our review finds a relatively small but rapidly developing field. We identify promising future research directions, including research on how culture shapes the use of heuristics and how heuristics shape organizational culture. We also outline an educational program for managers and leaders that follows the general approach of “Don't avoid heuristics—learn how to use them.”

Keywords

heuristics, adaptive toolbox, strategic decision making, leadership, personnel selection, less-is-more

Discipline

Human Resources Management | Organizational Behavior and Theory

Research Areas

Organisational Behaviour and Human Resources

Publication

Annual Review of Organizational Psychology and Organizational Behavior

Volume

9

First Page

171

Last Page

198

ISSN

2327-0608

Identifier

10.1146/annurev-orgpsych-012420-090506

Publisher

Annual Reviews

Additional URL

https://doi.org/10.1146/annurev-orgpsych-012420-090506

Download

Share

COinS