Abstract:
Purpose - This study seeks to propose self-governance in organisations based on
choice-making behaviour. Design/methodology/approach - The paper examines
selected literature on the behaviour of choice, moving from the individual as
the unit of analysis to the organisation, in order to draw lessons for proper
governance. To do so, it refers to a series of three independent studies,
namely, of luxury, leadership and the role of luxury in helping to cope with
organisational pressure. Findings - The paper reviews the need for choice (or
human logic), exemplified by the Theta and Lambda worldviews, and the
difficulties in its proper implementation. A study into luxury reveals the role
of luxury in choice-making behaviour and the language used for making these
choices. These findings are applied to a study into leadership and followed by a
third and ongoing study that provides empirical evidence that tension in
organisations results, in numerous cases, from an imposed lack of choice because
of improper governance. The paper concludes with recommendations for
organisational governance. Research limitations/implications - The claim that
conflicts in organisations are based on differences between Theta and Lambda
worldviews is based on some empirical evidence only. Criticising governance by
rules, the paper does not look in detail into the reasons behind the drive for
such a way of governance or how to help change an organisation's governance
approach. Originality/value - The paper introduces the concept of Theta and
Lambda worldviews, provides a psychological definition of what luxury is and its
importance to organisational life and questions the usefulness of enhanced
governance.
