This paper explores the relation between decision theoretic conceptions of risk and the conceptions held by executives. It considers recent studies of risk attitudes and behavior among managers against the background of conceptions of risk derived from theories of choice. We conclude that managers take risks and exhibit risk preferences, but the processes that generate those observables are somewhat removed from the classical processes of choosing from among alternative actions in terms of the mean (expected value) and variance (risk) of the probability distributions over possible outcomes. We identify three major ways in which the conceptions of risk and risk taking held by these managers lead to orientations to risk that are different from what might be expected from a decision theory perspective: Managers are quite insensitive to estimates of the probabilities of possible outcomes; their decisions are particularly affected by the way their attention is focused on critical performance targets; and they ...

Managerial perspectives on risk and risk taking

Recent research in risk perception has examined the role of affect and worldviews as orienting dispositions that guide people’s decisions about complex and risky topics such as nuclear energy. This study tests and supports the hypothesis that worldviews and affect-laden imagery are highly predictive of perceptions of risk from nuclear power and support for that technology. Furthermore, affect and worldviews each contribute independently to the prediction of nuclear support. We find also that a person’s affective imagery associated with nuclear power is systematically related to their worldviews. We conclude that affect and worldviews appear to play similar roles as orienting mechanisms, helping people navigate in a complex, uncertain, and sometimes dangerous world. The implication of this view for the practice of risk communication is briefly discussed.

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The Role of Affect and Worldviews as Orienting Dispositions in the Perception and Acceptance of Nuclear Power1

This paper critically reviews a number of cross-national studies of perceptions of risks which have been conducted in accordance with the 'psychometric paradigm' developed by the Oregon research group in the 1970s. It considers attempts to study risk perception comparatively, from other theoretical and methodological perspectives, and discusses various issues that are highlighted in a comparative framework, relating to distinctions between 'objective' and 'perceived' risk, the role of communication and the media, the political system and various societal determinants such as marginality, gender and ethnicity. One of the main conclusions is that comparative studies of risk perception need to be further refined, both methodologically and theoretically.

Comparative studies of risk perception: a review of twenty years of research

The first goal of this paper is to sketch a three-part, synoptic framework that could ease the way beyond the current impasse of competition among the various metatheoretical orientations (e.g. realism vs. social constructivism, positivism vs. cultural theory, etc.) in the risk field. The framework will be constructed on a foundation of metatheoretical principles and its form will accommodate the best features of the competing orientations. Because the articulated principles will build first on a position of realism, we can refer to the framework as a whole as Reconstructed Realism (RR). Because the content of the framework comprises its first two key parts, ontological realism and epistemological hierarchicalism , we can refer to the content by the acronym OREH. The second goal of the paper is to epistemically connect the synoptic framework, RR, to a methodological framework for conducting risk analysis, thereby providing a bridge between theory and practice. The existing methodological framework that be...

Metatheoretical foundations for post-normal risk

Risk surrounds and envelopes us. Without understanding it, we risk everything and without capitalising on it, we gain nothing. This accessible book from Glynis M. Breakwell, first published in 2007, comprehensively explores the psychology of risk, examining how individuals think, feel and act, as well as considering the institutional and societal assessments, rhetorics and reactions about risk. Featuring chapters on all the major issues in the psychology of risk including risk assessment, hazard perception, decision-making, risk and crisis management, risk and emotion, risk communication, safety cultures, the social amplification and social representation of risk and mechanisms for changing risk responses, Breakwell uses illustrations and examples to bring to life the significance of her research findings. She provides an innovative overview of current knowledge on the subject but also suggests that there are many fascinating questions still to be answered.

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The Psychology of Risk

A comparative analysis of risk perception in Hungary and the United States

Introduction Working from home has become increasingly prevalent due to the COVID-19 pandemic, creating new challenges for organizations and employees. According to the latent deprivation model proposed by Jahoda, work provides latent benefits alongside its material rewards, and losing such benefits leads to a decline in well-being. Organizational affective commitment, or affective commitment within the organization, is a prominent concept in organizational psychology that is linked to lower workforce fluctuation and increased work performance. The present research examined the impact of time spent working from home on affective commitment by examining Jahoda’s “latent functions,” including social contact and collective purpose, representing an innovative application of the latent deprivation model in the context of home office. Methods Using an online questionnaire, we collected data from 456 participants (239 female and 217 male) who had been employed for at least 2 years and who had spent a proportion of their time working from home in March and April 2021. The data were analyzed using a path model, in which the potential adverse effect of time spent in home office on affective commitment to the workplace was mitigated by latent functions. Results Specifically, we found that more time spent in home office was associated with a decrease in social contact, the impact of which on affective commitment was mediated through the perception of collective purpose. Discussion Our findings emphasize the role of the latent benefits of work experienced by employees even when working from home, and the role of those benefits in supporting employees’ commitment to the workplace. We argue that a deeper understanding of such factors is vital, as working from home is expected to remain widespread even after the pandemic.

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The impact of time spent working from home on affective commitment in the workplace: The mediating role of social relationships and collective aims

Introduction We investigated the effect of time spent at home on employee voice behavior and leadership openness during Covid 19. According to DeRue’s adaptive leadership theory which offers an interactionist perspective to explain adaptive organizational behavior during an environmental crisis, we proposed that in the WFH’s (work from home) reduced and limited communication space, leaders, who need more feedback, will encourage employees to express their opinions and will show more willingness to listen to them. Meanwhile, employees will ask more questions and make more suggestions to alleviate uncertainty and misunderstanding. Methods Using an online questionnaire, a cross-sectional study (N = 424) has been carried out with employees working from home for a different amount of their working time during the pandemic. Data were analyzed using structural equation models (SEM) in which the effect of leadership openness on employee voice behavior was assessed through the mediation of affective commitment, psychological safety, and intrinsic motivation. Results The results showed that in the WFH situation, time spent in home office had a low but significant direct negative effect on promotive voice behavior. At the same time, leadership openness was growing with the amount of time spent at home. Leadership openness counteracted the negative effect of WFH on voice behavior: although leadership openness did not have a direct significant effect on voice behavior, it had a positive effect on psychological safety and work motivation which, in turn, influenced positively both promotive and prohibitive voice behavior. Employee’s voice, for its part, further augmented leadership openness. Discussion In our research we could demonstrate the contingent nature and the mutual influence patterns and feedback loops of leaders-employees exchange. In the WFH situation the openness of the leader is growing with the amount of time spent at home and with the amount of promotive voice manifested by the employee. In consent with DeRue social interactionist adaptive leadership theory, a mutually reinforcing process of leadership openness and employee voice could be demonstrated. We argue that leadership openness is a key factor to motivate employee voice behavior during WFH.

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Klara Farago

Papers

A comparative analysis of risk perception in Hungary and the United States

The impact of time spent working from home on affective commitment in the workplace: The mediating role of social relationships and collective aims

Organizational adaptation to working from home in a crisis situation (COVID-19): the interaction between leaders’ openness and followers’ voice