Burnout and its relationship with decision-making, performance, and leadership effectiveness across hierarchical levels: a systematic review

Authors

DOI:

https://doi.org/10.26439/pjm2026.n003.7938

Keywords:

burnout, decision-making, hierarchical levels, job performance, leadership, emotional exhaustion, cognitive functions

Abstract

Objectives: This study systematically investigates how burnout affects decision-making and leadership effectiveness across hierarchical levels—operational, middle management, and executive—while identifying key psychological and contextual moderators. Method/Design: A PRISMA-guided systematic review was conducted across Scopus, Web of Science, and Google Scholar, including 19 empirical studies published between 2015 and 2025. A bibliometric analysis using VOSviewer was also performed to map thematic clusters. Results: At the operational level, burnout impairs executive functions essential for decision-making, such as attention and working memory. Among middle managers, it is linked to increased risk aversion and reduced goal-oriented leadership. At the executive level, burnout diminishes cognitive clarity and is associated with poorer organizational outcomes. These effects are amplified by authoritarian leadership, excessive centralization, limited support, and organizational silence. Practical Implications: Interventions should be tailored by hierarchical level: operational staff may benefit from breaks and shift redesigns; middle managers from coaching and workload adjustments; executives from integrating well-being metrics into KPIs. Leadership training and employee participation in decision-making are critical. Social Implications: Reducing burnout can improve patient/client safety, talent retention, and institutional trust. Workplace mental health policies recommended by the WHO and ILO may reduce inequalities and foster healthy organizational cultures. Originality/Value: This study integrates psychological and organizational evidence on burnout’s impact across hierarchical levels. Its dual approach—systematic review and bibliometric mapping—provides a structural overview, identifies research gaps, and proposes level-specific interventions, highlighting burnout as a systemic risk with implications for well-being policies and leadership development.

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Published

2026-02-24

How to Cite

Burnout and its relationship with decision-making, performance, and leadership effectiveness across hierarchical levels: a systematic review. (2026). Peruvian Journal of Management (PJM), 003, 51-76. https://doi.org/10.26439/pjm2026.n003.7938