Cognitive School in Strategic Management


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  • The so-called Semmelweis reflex or effect is a metaphor for a certain type of human behaviour characterized by reflex-like rejection of new knowledge because it contradicts entrenched norms, beliefs or paradigms—named after Semmelweis whose perfectly reasonable hand-washing suggestions were ridiculed and rejected by his contemporaries. There is some uncertainty about the origin and generally accepted use of the expression.
  • Cognitive School in Strategic Management

    1. 1. St rategic Management <ul><li>The Cognitive School </li></ul>
    2. 2. The man Behind the Business Schools Of Thought <ul><li>Henry Mintzberg Henry Mintzberg is known for his pioneering work in the field of strategic management in organizations. Born in Montreal, he earned his BA from Sir George Williams University in 1962, BEng from McGill University, and his Master’s and PhD degrees from the Massachusetts Institute of Technology. </li></ul><ul><li>Since 1968, he has been a professor in the Management Faculty at McGill, where he holds the Cleghorn Chair in Management Studies. He is an Officer of the Order of Canada and recipient of the 1996 Léon-Gérin Prix du Québec. In addition to outdoor sports, Dr. Mintzberg enjoys short story writing. </li></ul>
    3. 3. The Cognitive School: Strategy Systems as Mental Processes <ul><li>It analyzes how people perceive patterns and process information. </li></ul><ul><li>Concentrates on what is happening in the mind of the strategist, and how it processes the information. </li></ul><ul><li>Strategies emerge as concepts, maps, schemas and frames of reality. </li></ul><ul><li>Stresses the creative side of the strategy process. Strong at the level of an individual strategist. very useful to explain why our minds are imperfect </li></ul>
    4. 4. Understanding The Mind <ul><li>People have different thinking preferences which they bring into their business interactions and decisions. </li></ul><ul><li>The Whole Brain Model is used to determine those thinking preferences. </li></ul><ul><li>Each individual falls under one of four categories </li></ul><ul><li>Figure illustrates the preferred thinking styles for each quadrant of Herrmann’s Brain Dominance Model. </li></ul>
    5. 5. The Four Thinking Styles in the Whole Brain Model <ul><li>Logician </li></ul><ul><li>Organizer </li></ul><ul><li>Communicator </li></ul><ul><li>Visionary </li></ul>Whole Brain Model Commnunication Style - How Do We Commnunidate? 】
    6. 6. Cognitive School Limitations <ul><li>Not very practical beyond the conceptual stage. </li></ul><ul><li>Not very practical to conceive great ideas or strategies. </li></ul><ul><li>Currently not very useful to guide collective strategy processes. </li></ul><ul><li>Errors in judgement stemming from cognitive factors (also known as cognitive bias) </li></ul>
    7. 7. Cognitive Bias <ul><li>Examples of individual cognitive biases that would negatively affect organisations and business decisions. </li></ul><ul><li>Bandwagon effect : the tendency to do and believe things because many other people do and believe the same. </li></ul><ul><li>Expectation Bias : the tendency for experimenters to believe, certify, and publish data that agree with their expectations for the outcome of an experiment. </li></ul>
    8. 8. <ul><li>Illusion Of Control : the tendency for human beings to believe they can control or at least influence outcomes that they clearly cannot. </li></ul><ul><li>Information Bias : the tendency to seek information even when it cannot affect action. </li></ul><ul><li>Outcome Bias : the tendency to judge a decision by its eventual outcome instead of based on the quality of the decision at the time it was made. </li></ul>
    9. 9. <ul><li>Planning Fallacy : the tendency to underestimate task-completion times. </li></ul><ul><li>Semmelweis reflex : the tendency to reject new evidence that contradicts an established paradigm. </li></ul><ul><li>Deformation Professionnelle : the tendency to look at things according to the conventions of one's own profession, forgetting any broader point of view. </li></ul>
    10. 10. Discussion <ul><li>As future business leaders and decision makers, would you or your organization rely on the Cognitive school in your strategy planning? </li></ul>