Research Reveals That Room Environment Influences Decision-Making Techniques.
Paula Jarzabkowski, Professor of Strategic Management at Bayes, and researchers from the University of Queensland, Macquarie University, and Leuphana University of Lüneburg discovered that diverse environments influenced how participants made sense of plans.
A somber atmosphere, for example, prompted cautious decision-making, but a curious setting encouraged experimental thinking. In contrast, when the atmosphere was heated or contemptuous, individuals became contentious, preventing consensus.
Over the course of 18 months, the study examined video recordings, seminars, interviews, and observations made by a strategic project team at an Australian electronic bank. The team was evaluating a digital product that uses AI-powered technology to help customers manage their expenditures.
The researchers discovered that slight modifications in tone of voice, speech, or body language might quickly alter the environment and influence group reactions to ideas. The study concluded that in group situations, the environment is critical to collective sensemaking during decision-making.
“We wanted to explore how people’s subconscious signals like tone of voice, attitude, emotional interaction, and body language could affect others’ views around decision-making,” Jarzabkowski, our professor, said. “Our research demonstrates that strategy development is more than just making optimal judgments. The way people feel—the mood in the room—when strategizing influences the strategies organizations choose.”
Professors Eric Knight and Jaco Lok of Macquarie Business School underscored the study’s significance, adding, “While we are all aware that surroundings can influence how we feel, their impact on how we make sense of difficult issues has not been thoroughly investigated. This is why our research is significant and unique.”
Matthias Wenzel, Professor of Organization Studies at Leuphana University of Lüneburg, continued, “We frequently presume that there is some consensus or common knowledge in managerial decision-making. Our research demonstrates that the mood in the room influences the decisions made.
