managerial cognition looks at how the top management team forms decisions based on their personal characteristics

1. BBA 933: Assignment
Topic SIX
Managerial Cognition

2. Overview
Possession and Processing of
knowledge both (un)consciously by interpreting the
environment
Never static -action relationships between managers
and organization’s external environment (Timo 2015).
Successful decisions: dependent on awareness and
mental model by identifying O & T to forecast the fuure(
L.Nui et al 2009).
Mental models of managers and internal fit not
researched enough (Espoo 2015)
Its like a drug – perception (kim 2015)

3. Formation of cognition- Timo 2015, Mason 1984
Cognition = Behavior + personal + environmental factors
(subjective interpretation )-Timo 2015,mason 1984 Sucheta 2008

4. M.C and DCV
M.C is enabled through DCV
by seizing market opportunity
and threats thus mobilizing
resources and reconfiguring
resources accordingly.

5. Areas of Cognition
1.Environmental Scanning: Timo 2015, Narayan 2011, Porac
2002, Cyet et al 1992)

6. 2. Sense making
Understanding new concepts
Nature= social: different people collaborate to form a
view on changed circumstances and change according
to environment ( Antaki 1994)
Scanning of VUCA environment for T & O, is key in
managerial sense making.
External environment = complex force + loads of
information : managers have to know and react to
(Mintzberg 1973)

7. 3.Opportunity spotting
Entrepreneurial thinking and action to
identify unmet needs and expectation not
existing market opportunities( Egger et al
2013)
Further supported by blue ocean strategy
that states an organization should identify
uncontested market space and make
competition irrelevant. (kim &
Maubornnr 2005)

8. Cognition and Decision making
Rose colored glasses.
Decisions are subject to manager’s view about
Organization (Anderson 1985) which includes
information processing( McCall 1985).
Strategic decisions – complex and long-term made by
TMT of organization(deborah 2014).
Innovation and knowledge creation is based on
cognitive management (Wiley 2017) by modifying
knowledge structure and affecting the way we
perceive our environment .

9. ELEMENTS OF COGNITION STRUCTURE
narayanan et al 2010

10. Strategic decision: influenced by
Context and Process.
(Olson & Simerson 2015)
Strategic thinking conceptualizes
strategic decision focusing on how
TMT attempts to understand VUCA
environment. (Bonn 2005)
Subjective representation of
Environment defines firms strategic
agenda

11. Emerging Issues
Human resources AS A CAPABILITY
C.A only by investing in Human resources (pfeffer
1994)
Human’s are humans…
Biased, influenced
by environment.

12. Cognitive Bias
Decision making: cognitive Bias and inertia forces
undermine Sensing seizing and transformation
capabilities (hodgkinson 2011)
How we should reason – How we reason = Bias gap

13. Cognitive flexibility
Ability to present a task using various perspectives ,
reconfiguring knowledge to respond to VUCA
environment ( Spiro 1988).
Seeking multiple perspectives- TMT should be of diverse
origins
R & D =information and data
processes to avoid personal bias
Reflection on own views and values of individual TMT
members: - Central bank governor.

14. Cognition in global arena
Knowledge is power esp. for MNCs (Peter 2013)
Which FDIs do we invest in?
Information processing and internalization is a
prerequisite of the managers capability
Complex informational environment = cognitive
capabilities for C.A (Orly 2007)

15. Group MEMBERS
Ninah Muthamia Reg. No: D86/CTY/38548/2017
Kenneth Nyagiloh Reg. No: D86/CTY/37284/2017
Hebron Adoli Reg. No: D86/CTY/38829/2017
Victor Nyaribari Reg. No: D86/CTY/38676/2017
01/31/19

16. Comments, Additions,
Q & A