MANAGERIAL DECISION FATIGUE AND STRATEGIC ERROR ANALYSIS THROUGH COGNITIVE TESTING

Abstract

Strategic blunders can result from an executive decision lapse, which can occur due to excessive mental work. This research focuses on how mental fatigue influences decision-making among mid to senior-level managers. Using simulated cognitive tests that replicate managerial tasks, data were collected from 112 professionals from different fields. The findings point to a notable correlation between decision fatigue and strategic blunders, primarily with risk assessment and long-term forecasting. Specific cognitive deficits, mainly diminished attention, working memory, and inhibition, were identified as causing the faulty decisions. The research uses ego depletion and dual process theories to explain these gaps. Suggested practical strategies include decision-support systems, recovery strategies, and scheduling frameworks designed to mitigate the impact of fatigue. From the results, cognitive assessment emerges as a decision-making capability evaluation tool and as a way to improve managerial effectiveness. The research outcomes can be used to shape organizational policies and to develop business leaders.