4. great minds in management part ii nu 2020

1
Part II: Behavior of Organizations
13. Double-Loop Learning in Organizations: A Theory of Action Perspective
15. Organizational Effectiveness: Its Demise and Re-Emergence Through Positive
Organizational Scholarship 
16. Managerial and Organizational Cognition: Islands of Coherence 
20. The Development of Stakeholder Theory: An Idiosyncratic Approach 
21. Developing Resouce Dependence Theory:
How Theory is Affected by its Environment 
22. Institutional Theroy: Contributing to a Theoretical Research Program
Part III: Environmental Contingencies
and Organizations
19. The Experience of Theorizing: Sensemaking as Topic and Resource
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1 4. Great mind in Management Part II Nu 2020 - 25 September BE 2563

13. Double-Loop Learning in Organizations:
A Theory of Action Perspective
Chris Argyris
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Chris Argyris
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Theory of Action Approach (Argyris and Schon, 1974, 1978)
“espoused theory,” “theory-in-use,”
explicit and implicit knowledge
double-loop learning – learning capable of
yielding insight and change at the level of
values, not just strategies or tactics
An action is often made dependent on
“intention” and through “intention” related to
notions such as “purpose” and “goal” on the
one hand and to notions such as “will”,
“motivation” and “reason” on the other hand.
These notions are, in turn, related to notions
such as “cause”, “effect” and “result” but also to
notions such as “means”, “ends”, “rationality”
and “responsibility”. …Jens Allwood 
.
Action theory conceives social action as a process
in the actor-situation system which has motivational
signiﬁcance to the individual actor or in the case of
collectivity, its component individuals.

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Double-Loop Learning Theory
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Double Loop Learning
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Triple Loop Learning
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Triple Loop Learning
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Adaptive Learning and Generative Learning
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15. Organizational Effectiveness: Its Demise and Re-
Emergence Through Positive Organizational Scholarship
Kim Cameron

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Positive Organisational Scholarship (POS) applies the same basic philosophy to studying
what makes organisations work.
Its base is a focus on the importance of the strengths of the organisation’s employees, rather
than trying to ﬁx their shortcomings. Other areas of attention will also be familiar from the
world of Positive Psychology:
• Cultivating exception and positive approaches
• Building wellbeing and resilience – especially psychological and emotional
• Developing optimism and hope
• Giving individuals responsibility, so they feel able to make a difference
What is the Positive Model?

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Positive psychology is the scientific study of optimal human functioning, happiness, well-being and success — the strengths and virtues that enable individuals,
communities and organizations to thrive.
Positive Psychology
His PERMA™ theory of well-being suggests that there are five key
pathways that enable flourishing:
Positive Emotion – cultivating joy, mindfulness, optimism, gratitude
& awe
Engagement – feeling engaged with our world, our activities, our
work & our inner strengths
Relationships – establishing & fostering quality relationships
Meaning – finding purpose and meaning
Accomplishment – achieving goals and ambitions

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POS: A New Lens for Organizational Research and Leadership
Cameron set out to research what factors lead to “especially positive outcomes, processes, and attributes of organizations and their members” (2003).
A central tenet of Cameron’s approach to POS is that the “desire to improve the human condition is universal and that the capacity to do so is latent in most
systems” (Cameron et al., 2003, p. 11).
the heliotropic principle of appreciative inquiry, which assumes that all living beings tend to lean toward life-giving positive energy, and by the same token, away
from negative energy (Cameron, 2013, p.4).
The Heliotropic Principle
POS: A New Lens for Organizational Research and Leadership
POS Areas of Investigation
The focus areas of POS include:
• Developing strengths and resilience;
• Creating meaning and purpose;
• Developing positive relationships;
• Building positive emotions.
What Can We Learn from POS Research?
The first is the creation of a positive climate.
The second positive leadership strategy is positive relationships,
a key part of which is developing positive energy networks.
The third strategy is positive and supportive communication.
The final strategy Cameron (2013) suggests is creating positive
meaning by setting specific kinds of goals that he calls “Everest”
goals; which go beyond the concept of stretch or SMART goals.

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According to their new orientation, "Positive organizational scholarship" focuses on the dynamics in organizations that lead to the development of human
strength, foster resiliency in individuals, make possible healing and restoration, and cultivate extraordinary individual and organizational performance. It
investigates virtuous elements in organizations such as compassion, forgiveness, dignity, respectful encounters, optimism and positive affect, integrity,
and wisdom. This emphasis parallels a new movement in psychology that is shifting from the traditional focus on illness and pathology (e.g., deviancy,
abnormality, and therapy) toward a positive psychology that focuses on human strengths and virtues.
"Positive organizational scholarship"
Kim Cameron

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Psychological capital is conceptualised as an individual’s positive
psychological state of development characterised by:
(1) having confidence (self-efficacy) to take on
and put in the necessary effort to succeed at challenging tasks;
(2) making a positive attribution (optimism) about succeeding now and in
the future;
(3) persevering towards goals and, when necessary, redirecting paths to
goals (hope) in order to succeed; and
(4) when beset by problems and adversity, sustaining and bouncing back
and even beyond (resiliency) to attain success
(Luthans, Youssef, et al., 2007, p. 3).
behavior modification and the influence of
organizational behavior modification processes
on task performance.
social reinforcement interventions
financial and material reinforcement interventions
Luthans (2007) set out to investigate organizational behavior and
motivation in the context of such emotional motivators as hope, optimism
and resilience (p. 774).
In an effort to reemphasize its importance, the authors defined the nature
of “positive organizational behavior” (p. 774) and compared it with similar
research in “positive affectivity (PA), positive reinforcement, procedural
justice, job satisfaction and commitment, prosocial and organizational
citizenship behaviors, core self-evaluations, and many others” (p.
774-775).
“postheroic” leadership
“followers” are the true sources of power, energy, and momentum.
organizational behavior and motivation
emotional motivators as hope, optimism and resilience
“positive organizational behavior”
“positive psychological capacities and work-related outcomes”
based in the theories of behavioral psychology,
behavior modification, and organizational behavior.
research in behavioral psychology with
an emphasis on positive psychology.
Behavior modification technique
Psychological resource capacities:
Organizational Motivation and Behavior Modification

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What is Positive Psychology?

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Luthans and his colleagues have identified Psychological
Capital (PsyCap) as the critical component in Positive
Organizational Behavior. PsyCap is characterized by four
qualities:
• Self efficacy: having confidence to take on and put in the
necessary effort to succeed at challenging tasks
• Optimism: making a positive attribution and expectation
about succeeding now and in the future
• Hope: persevering toward goals and, when necessary,
redirecting paths to goals in order to succeed
• Resilience: when beset by problems and adversity,
sustaining and bouncing back and even beyond to attain
success
on appliance of positive psychology to
micro level analysis and on the processes
which are capable of improving
performance at workplace.

Positive Organizational Scholarship: The Key to a Positive Workplace

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What is Positive Organizational Psychology?
topics include:
• Positive Leadership
• Positive Organizational
Development and Change
• Positive Individual Attributes
• Positive Emotions
• Strengths and Virtues
• Positive Relationships
• Positive Human Resource
Practices
• Positive Organizational Process
• Psychological Capital
• Flow
• Organizational Virtuousness and
Ethics
• Employee Work Engagement
• Workplace Wellbeing
Positive organizational
scholarship also brings attention
to variables not previously
recognized or seriously considered
in the organizational science of
human behavior, and some of
them include:
• positive energy (Baker, Cross,
& Wooten, 2003);
• moral capital (Godfrey, 2003);
• flow (Quinn, 2002);
• inspiration (Thrash & Elliot,
2003);
• compassion (Dutton et al.,
2006);
• elevation (Vianello, Galliani, &
Haidt, 2010); and
• calling (Wrzesniewski, 2003).
Proactivity and Creativity
• intrinsic motivation,
• differential functions of positive
versus negative mood states,
• individuals’ self-concepts such
as creative self-efficacy and
creative role identity,
• creative role models,
• creative process,
• creativity in international
contexts,
• social networks,
• different types of creativity,
• measurements of creativity, and
• team creativity.
Positive organizational psychology is the scientific study of positive subjective experiences and traits in the workplace and positive organizations, and its
application to improve the effectiveness and quality of life in organizations……………………….Donaldson & Ko, 2010
Positive Individual Attributes
Psychological Capital and
Prosocial Motivation
Positive Identity and
Engagement at Work
Proactivity and Creativity
Positive Emotions
Strengths and Virtues
Positive Relationships
Positive Human
Resource Practices
Positive Organizational
Practices
Positive Leadership and
Change

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Creating a Positive Organizational Culture

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Establish and Achieve Everest Goals
Everest goals are SMART and have the following five unique attributes:
1. Are positively deviant (target abundance gaps)
2. Represent goods of first intent (good in itself)
3. Possess an affirmative orientation (focus on possibilities)
4. Represent a contribution (benefit others), and
5. Create and foster sustainable positive energy (are energising).
Cameron’s positive leadership framework is comprised of four strategies and five practices.
Positive Leadership Strategies
1. Positive climate
2. Positive relationships
3. Positive communication
4. Positive meaning
Positive Leadership Practices
1. Create a culture of abundance
2. Develop positive energy networks
3. Deliver negative feedback positively
4. Establish and achieve Everest goals
5. Apply positive leadership in organisations
Positive Leadership

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Positive Leadership and Extraordinary Organizational Performance

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Some of the signs of being in flow are:
• The task you are completing is challenging and
requires skill
• You have to concentrate
• You have clear goals detailing what you want to
achieve
• You have deep, effortless involvement
• You have a sense of control
• Time stops
Research has shown, in general, those who report
periods of flow in their lives:
• Have higher self-esteem
• Are happier
• Are more engaged in activities
• Report higher performance (e.g., in teaching,
learning, creativity, sport)The four strategies
that help individuals to get into flow at work
There are four strategies in particular which we use
in order to get into flow. These are based on the idea
of self-determinism:
1. Self-leadership
2. Job-crafting
3. Playful work design
4. Use of strengths.
All four of these strategies play directly into the idea
of self-determination and the psychological needs of
competence, autonomy and relatedness.
What makes us happy at work?

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The Concept of Flow
The number of likely characteristics include:
• positive or growth potential challenge
• skills and resources
• Task significance
• autonomy
The three elements of ﬂow
1. Total immersion or absorption in a task.
2. Enjoyment in the work without necessarily being
aware of this due to the focus involved.
3. An underlying and intrinsic sense of motivation.
Again, because of the level of focus involved in
flow, one may not be aware of this motivation.

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Psychological Capital and Well-being
positivity, particularly PsyCap,
can promote well-being, both at
and beyond the workplace.

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Abundance Tools

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Organizational Resilience: The Theoretical Model and Research Implication
Lei XIAO, Huan CAO
organizational theory
recovery ability after destruction
multi-level conception
resources, routines and process.
robustness, redundancy,
resourcefulness and rapidity.
robustness, agility and integrity.
Cognitive resilience,
Behavioral resilience and
Contextual resilience

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Organizational resilience: a capability-based conceptualization
In highly volatile and uncertain times, organizations need to develop a resilience capacity which enables them to cope effectively with unexpected
events, bounce back from crises, and even foster future success

16. Managerial and Organizational
Cognition: Islands of Coherence
Anne S. Huff

Anne S. Huff

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Cognitive Psychology

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Strategy and Cognition
Cognition is defined as the assumptions, expectations, values and
beliefs held by individuals in an organizational context (Orlikowski &
Gash, 1994). Individuals use their cognition to help interpret and make
sense of the events that occur around them (Weick, 1995, 2001).
Cognitive Mapping:
A cognitive approach to understanding variations in cognition
begins with the recognition that managers organize their own
experiences into patterns. A representation of these patterns is
considered a cognitive map.
conscious and non-conscious levels
From Conscious to Nonconscious and Cold to Hot
subconscious goals implicit attitudes implicit affect
typologies of competitive positioning strategies
‘thought-listing’ competitors by name
trait affectivity
subconscious goals(Latham & Piccolo,
2012; Shantz & Latham, 2009),
goal commitmentconscious goals
implicit attitudes(Greenwald & Banaji 1995;
Greenwald, McGhee, & Schwartz, 1998;
Greenwald et al., 2002)
implicit affect (Johnson et al., 2010)
Cognitive Psychology

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ON COGNITIVE MACHINES IN ORGANIZATIONS
FARLEY SIMON MENDES NOBRE
A thesis submitted to The University of Birmingham 2005
Anatomy of Cognitive Machines
A General Structure of Information-Processing Machines
Relative Demand of Energy and Information over Time

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Cognition and Management : Managerial Cognition and Organisational Performance
Geoffrey Goodhew December 1998
Submitted to the University of Canterbury for the degree of Doctor of Philosophy.

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The Cognitive Perspective in Strategy: An Integrative Review
January 2011Journal of Management 37(1):305-351
What Is Strategic Cognition?
“linkages between ‘cognitive structures’ and
decision processes in strategic management with
respect to strategy formulation and
implementation” (Porac & Thomas, 2002: 165)
What Strategic Cognition Research Has
Contributed to the Study of Management
the role of human agency
the framing of decisions
sensemaking and sensegiving
cognitive inertia
upper echelons
the heterogeneity of decisions

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Socio-cognitive processes in strategy formation – A conceptual framework
ThomasWrona, Tina Ladwig, Markus Gunnesch

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Absence-Neglect and the Origins of Great Strategies
Thomas C. Powella a Said Business School, University of Oxford, Oxford OX1 1HP, United Kingdom
Absence-neglect is the cognitive ten- dency to notice
presence more than absence—for example, movement more
than stillness and noise more than silence.
exploration- minded cognitive schema
blind spots and delusions information search visionary beliefs
(e.g., scenario analysis, dialectical inquiry, “devil’s advocate”),

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Neurostrategy: An Advance through the Paradigm Epistemological in Strategic Management?
David Ascher, Pontifical Catholic University of Paraná,Wesley Vieira da Silva, Pontifical Catholic University of Paraná,Jan Polowczyk, Poznan University of
Economics and Business,Eduardo Damião da Silva, Pontifical Catholic University of Paraná,Claudimar Pereira da Veiga, Federal University of Parana
Neurostrategy is an interdisciplinary joint that evaluates the nervous system and the brain of the individuals by studying the brain regions used in the time when individuals make decisions, through brain mapping or
psychophysiological equipment. According to Polowczyk (2012), researchers can use the strategy models and tools of cognitive neuroscience, which deals with decision making, learning and perception as a way of
answering questions about latent decision-making.
To Powell et al. (2011), “behavioral strategy merges cognitive and social psychology with strategic management theory and practice", looking for better integration between the process of strategic management and human
factors such as social interaction, emotion and cognition.
Thus, "behavioral strategy aims to bring realistic assumptions about human cognition, emotions and social behavior to the strategic management of organizations and thereby, to enrich strategy theory, empirical research
and real-world practice" (Powell et al., 2011), applying social and cognitive psychology to the challenges of management to override some empirical contradictions (De Jong & Veijer, 2014). The behavioral strategy goals are
very similar to the aims of the neurostrategy, but the diﬀerence remains the methods and the unit of analysis, as discussed above. The behavioral strategy is set in psychological cognition and decision biases (Gippel, 2013;
Powell et al., 2011) and it is linked to the analysis of the individual, through design of experiments, surveys and using mathematical modeling, but without using the neurological and psychophysiological equipment, which
belong to neuroscience and hence neurostrategy.

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Сognitive management
the perspectives of processes and representations
The processes of sense making and knowledge creation
mental images, knowledge models and cognitive maps
Organizational Intelligence
Organizational Autonomy
Organizational Learning
COGNITION AND THE CONTROL OF UNCERTAINTY
FUZZY MODEL OF COMPLEX ORGANIZATIONAL SYSTEMS
Networks of Organizations
NATURALISTIC DECISION THEORY
Task Analytical Techniques
Applied Cognitive Task Analysis (ACTA)
Cognitive Task Analysis (CTA)
The Cognitive Knowledge Dimension
Cognitive Assets
“collective cognition”
Organizations as Structures of Distributed Cognition

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Cognitive Asset

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Cognitive Asset

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Cognitive debiasing 1: origins of bias and theory of debiasing
Croskerry P, Singhal G, Mamede S BMJ Quality & Safety 2013;22:ii58-ii64.
Figure 1
Dual process model for decision making
Figure 2
Origins of biases in Type I processes
Figure 3
Successive steps in cognitive debiasing (adapted from Wilson and Brekke).35
Green arrows=yes; Red arrows=no

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Human Minds: 'Information Processing vs. Sense Making'
abstraction and reasoning,
characteristic of human cognition
"extreme generalization": an ability to adapt to novel, never
experienced before situations, using very little data or even no
new data at all... This stands in sharp contrast with what deep
nets do, which I would call "local generalization": the
mapping from inputs to outputs performed by deep nets
quickly stops making sense if new inputs differ even slightly
from what they saw at training time."
'sense making' (unstructured vs. structured,
non-routine vs. routine, and, non-procedural
vs. procedural - data and information processing,
but most particularly, constructing meaning, such
as in personal construct psychology, cognitive
psychology, and, other ﬁelds related to human
sense making)

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What’s the Difference Between Artificial Intelligence, Machine Learning, and Deep Learning?
Herding cats: Picking images of cats out of
YouTube videos was one of the ﬁrst breakthrough
demonstrations of deep learning.
Thanks to Deep Learning, AI Has a Bright Future
neural networks
Ng put the “deep” in
deep learning, which
describes all the layers in
these neural networks.
image recognition by machines
trained via deep learning

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Strategy-pull model of KM
Outcomes-driven paradigm of KM
‘‘Knowledge Management refers to the critical issues of organizational adaptation, survival and competence against discontinuous environmental change.
Essentially it embodies organizational processes that seek synergistic combination of data and information-processing capacity of information technologies,
and the creative and innovative capacity of human beings’’ (Malhotra, 1998b)
Coming of the real time enterprise: the new knowledge management
crease of business process velocity that are often attributed to information technology

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machine learning is about prediction
Not all learning algorithms work the same, and the differences have consequences."
How do we learn? Is there a better way? What can we predict? Can we trust what we’ve learned?
"The main ones are five in number, and we’ll devote a chapter to each. Symbolists view learning as the inverse of
deduction, and take ideas from philosophy, psychology, and logic. Connectionists reverse engineer the brain, and are
inspired by neuroscience and physics. Evolutionaries simulate evolution on the computer, and draw on genetics and
evolutionary biology. Bayesians believe learning is a form of probabilistic inference, and have their roots in
statistics. Analogizers learn by extrapolating from similarity judgments, and are influenced by psychology and
mathematical optimization."
"Each of the five tribes of machine learning has its own “master algorithm,” a general purpose learner that you can in
principle use to discover knowledge from data in any domain. The symbolists’ master algorithm is inverse deduction,
the connectionists’ is backpropagation, the evolutionaries’ is genetic programming, the Bayesians’ is Bayesian
inference, and the analogizers’ is the support vector machine. In practice, however, each of
these algorithms is good for some things but not others. What we really want is a single algorithm combining
the key features of all of them: the Master Algorithm. For some this is an unattainable dream, but for many
of us in machine learning, it’s what puts a twinkle in our eye and keeps us working late into the night."

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"If it exists, the Master Algorithm can derive all knowledge in the world—past, present and future—from data.
Inventing it would be one of the greatest advances in the history of science. It would speed up the progress of knowledge across the
board, and change the world in ways that we can barely begin to imagine."
"The second goal of this book is thus to enable you to invent the Master Algorithm. You’d think this would require heavy-
duty mathematics and severe theoretical work. On the contrary, what it requires is stepping back from the mathematical
arcana to see the overarching pattern of learning phenomena; and for this the layman, approaching the forest
from a distance, is in some ways better placed than the specialist, already deeply immersed in the study of
particular trees. Once we have the conceptual solution, we can fill in the mathematical details; but that is not for
this book, and not the most important part."
In our MIT AI Business Strategy Community of Practice "dialog" over the recent few weeks, we have focused on the above approach but
taken a broader and more wholistic view of non-deterministic unpredictable contexts and environments in addition
to deterministic predictable contexts and environments. In particular, we have emphasized the critical need for going beyond mere
data to drive future, such as by relying upon human intuition, imagination, insights, and, creativity. Everything in the world
germinates in an idea, an idea has to exist in imagination before it results in any data. Many who are credited for some of the
greatest discoveries and innovations in Science and Technology such as Newton and Einstein and others recognized for path-breaking
discoveries in fields of Business such as Finance, examples including Fischer Black and Edward Tharp, have recognized the above points
as documented by respected scientists and practitioners.
Einstein himself had made the key distinction in following terms: "I am enough of an artist to draw freely upon my imagination.
Imagination is more important than knowledge. For knowledge is limited, whereas imagination embraces the entire world, stimulating
progress, giving birth to evolution."
"If you’re a machine learning expert, you’re already familiar with much of what the book covers, but you’ll also find in it many fresh
ideas, historical nuggets, and useful examples and analogies. Most of all, I hope the book will provide a new perspective on machine
learning, and maybe even start you thinking in new directions. Low-hanging fruit is all around us, and it behooves us to pick it, but we
also shouldn’t lose sight of the bigger rewards that lie just beyond."
Wishing you all the best in action learning and active practice.

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A THEORY OF ORGANIZATIONAL COGNITION:PRINCIPLES AND CONCEPTS
Figure 1 A Model of the Organization (Scott, 1998)
Figure 4 The Organization Levels of Analysis
Such schools emerged from the first decade of the 20th century, giving rise and maturation to the discipline of organization theory (KHANDWALLA,1977; MARCH, 1965; SCOTT, 1998). They started with
theories of bureaucracy, principles of scientific management and administrative theory, and they received new insights from the experiments of the human relations school (PUGH, 1997). They advanced
with the contributions provided by the schools of administrative behavior and decision- making (MARCH; SIMON, 1958, 1993; SIMON, 1947, 1997B), systems theory (SILVERMAN, 1970), socio-
technical systems (TRIST, 1981), contingency theory (GALBRAITH, 1973, 1977), organization design (GALBRAITH, 2002), economic organizations (MILGROM; ROBERTS, 1992), computational
organizational theory (CARLEY; GASSER, 1999), organizational learning (DIERKES et al., 2003), organizational cognition (NOBRE et al., 2008), among other schools.
ORGANIZATIONAL COGNITION
Human vs. Organizational Cognition
The Discipline of Organization
Cognition
ORGANIZATIONAL
INTELLIGENCE, AUTONOMY
AND COMPLEXITY
HIERARCHIC LEVELS OF
COGNITION IN
ORGANIZATIONAL SYSTEMS
COGNITIVE DEFINITIONS OF
THE ORGANIZATION
Organizations as Distributed Cognitive Agents
Organizations as Hierarchic Cognitive Systems
Organizations with higher degrees of
cognition have higher levels of complexity
along with higher degrees of intelligence
and autonomy.
Organizational cognition is concerned with
the processes which provide agents and
organizations with the ability to learn, to
make decisions and to solve problems. The
main agents of organizational cognition are
the participants within the organization and
the social networks which they form. In
organizations, cognitive processes are
supported by their goals, technology and
social structure. Moreover, organizational
cognition is also influenced by inter-
organizational processes and thus by the
environment. Therefore, the choice of the
organization elements, and thus
organizational design (GALBRAITH, 2002),
plays a fundamental task in organizational
cognition.

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Cognitive technologies are ones that mimic human
brain functions, such as learning, reasoning,
recognition, language processing, and other
cognitive functions. Technologies that are currently
making waves include:
• Natural language processing - allows computers
to actually understand and analyze human
language in a way that goes beyond treating
language as a series of symbols
• Artificial intelligence - currently being used to
power things like chatbots and facial recognition
software
• Neural networks - computing systems made up
of connected nodes that are arranged in a way
that’s similar to the human brain
• Deep learning - a specific way of training neural
nets that use algorithms to recognize patterns
The engineering and informatics perspective of AI for building KGS.
ARTIFICIAL INTELLIGENCE AND HUMANS COGNITIVE COMPETENCES

Artificial Intelligence (AI) is a science and a set of computational technologies that are inspired by—but typically
operate quite differently from—the ways people use their nervous systems and bodies to sense, learn, reason, and
act.
Artificial Intelligence (AI) defined as a machine mimics "cognitive" functions
that humans associate with other human minds, such as "learning" and
"problem solving" is brought to use in CR networks, named AI-enabled Radio
and Networks
ARTIFICIAL INTELLIGENCE

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Cognitive systems: an innovation accelerator
As a reminder: the high interconnectivity of technologies and
processes in real-life applications is a core trait of what we’ve come
to known as the digital transformation or DX economy.

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How We Feel About Robots That Feel
As robots become smart enough to detect our feelings and respond appropriately, they could have something
like emotions of their own. But that won’t necessarily make them more like humans.
by October 24, 2017

19. The Experience of Theorizing:
Sensemaking as Topic and Resource
Karl E. Weick

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Sensemaking and Innovation
The way we think shapes what worldly problems we see and how we solve them. If we improve on the way we think, we have a better chance to understand
the world and seize emerging opportunities.
TYPE I problems are the classic domain of business
strategy consultants. The predominant mindset values
objective truth, deductive logic, stringency of analysis and
reasoning on the basis of available data. Analysts of all
stripes use tools like “driver trees”, “segmentations”, and
believe there is something such as a “best practice”. This
group prays to the god of Aristotle.
TYPE II problems are the domain of software engineers
and product managers. The mindset values making over
analysis. Typical tools are “prototyping” and “user-
testing”, its preferred method of experimentation relies on
iterative induction. This group prays to the gods of
“Silicon Valley”.
Type III problems are the classic domain of social
scientists such as anthropologists, but also of some
designers. They value immersive studies of people’s
worlds and draw upon ethnographic methods to discover
sources of meaning that form the basis for social and
economic value in society. These people pray to the god
of Heidegger.
•

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The four major sensemaking theorists focus on
different units of analysis of sensemaking in their
studies.
The 2x2 is an attempt to locate the different units of
analysis across individual or collective locations of
sensemaking, and across internalized or external
applications or focus.
Weick’s focus has been organizational activity
(collective), and the location of sensemaking is
internalized as representation of collective meaning.
Dervin has a clear individual and hermeneutic
approach, on the individual’s situation and their
internalized subjective experience of it.
Klein’s focus is the individual mental model (frame)
applied to an external context or activity (how external
data is represented).
Russell’s information theoretic view establishes
sensemaking as a collective location (an information
world) largely in the service of interpreting external
data.
Snowden’s more evolutionary model considers
sensemaking a knowledge production activity, using
data toward a shared understanding of problem areas
(which I call “understanding about” as a unit of
analysis).
Sensemaking Methodology

Karl E. Weick65

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“In such a world, the last thing a teacher needs to give her
pupils is more information. They already have too much of it.
Instead, people need the ability to make sense of information,
to tell the difference between what is important and what is
unimportant, and above all to combine many bits of
information into a broad picture of the world”[9].
In the 1970s Karl Weick an American organisational theorist introduced the
concept of “sensemaking” into organisational studies.
we will leave you with a quote from the Greek Philosopher Socrates:
“The more I know, the more I realise I know nothing”…..
More than ever we require the empathy, cognitive ﬂexibility and curiosity to embrace seeing the world from a range of alternative
perspectives and the humility to recognise that the more we learn the more we begin to realise how little we really know of the complex
systems we all inhabit[13]….

Mintzberg & Westley (2001) claim that "[h]ealthy organizations, like healthy people, have the
capacity for...three" (p. 89) decision making approaches: "think-first," "see-first" and "do-first." The
authors claim that "[w]hen practicing managers use all three models, they can improve the quality of
their decisions" (Mintzberg & Westley, 2001, p. 89). Each approach can be understood through a
concept defined in management research literature: "think-first" through procedural rationality; "see-
first" through insight and intuition; and "do-first" through sensemaking.
How Managers Approach Strategic Decisions: Think, See or Do?

‹#›
Managers used a combination of "think-first," "see-first," and "do-first" approaches in making strategic decisions.
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Defining Sensemaking

Wikipedia defines sensemaking as the process by which people give meaning to experience. In our 1993 paper Dan Russell, Peter Pirolli, Stu Card, and I define sensemaking as the process of
searching for a representation and encoding data in that representation to answer task-specific questions.

Today the term “sensemaking” is a well-known term of art in technologies and systems for analytics, big data, government funded research programs in intelligence analysis, and four related
research areas characterized in a Wikipedia article as follows:

Sensemaking is the process by which people give meaning to experience. While this process has been studied by other disciplines under other names for centuries, the term “sensemaking” has
primarily marked four distinct and somewhat related research areas since the 1970s: Sensemaking was introduced to Human–computer interaction by PARC researchers Russell, Stefik, Pirolli
and Card in 1993, to information science by Brenda Dervin, organizational studies by Karl Weick and (narrative-based) decision support or Participative Narrative Inquiry by Darwent, Kurtz, Snowden
and many others in 2004.
2002 – 2008 Sensemaking with Intelligence Organizations (NIMD)2000-2002 — Sensemaking White PaperEarly 1990s — Beginnings
Sensemaking

Sensemaking

72
Sensemaking Processes
The Sensemaking Framework
The Dynamics of Visualization
it also involves the proactive use of:
◦ shaping actions to reduce risk and uncertainty,
◦ probing actions to discover system effect opportunities that
can then be exploited,
◦ and modeling actions to test and/or transform the
environment.

When I am searching for information I use the berrypicking method, I have a need to understand a concept or a question to be answered and I ﬁnd the best (and
sometime unexpected results) by methodically picking my way through patches of information coming in from all different angles. When I have a need for information I
don’t necessarily want it from one source or viewpoint, so I hunt for a variety of explorations and explanations. I feel that this model best represents how most people
search in the digital information age. No longer are we bound by one or two sources, but an inﬁnite number of opinions, facts, theories, and other resources that are no
more than a click or two from being discovered. I think that this is really a natural behavior for us as humans, because we are predisposed to be hunter/gatherers for
means of survival. This is merely survival of another kind.
Sensemaking Processes
73

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75

76
Visual analytics systems combine machine learning or other analytic techniques with interactive data
visualization to promote sensemaking and analytical reasoning.

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Sensemaking and the reframing process

80
Futures Research Methodology

81
Weick, Sutcliffe and Obstfeld, assigned the following
characteristics to sensemaking in organizations:
            “Sensemaking Organizes Flux-organizes chaos
            Sensemaking Starts with Noticing and Bracketing-
classifies
            Sensemaking Is About Labeling-defines
            Sensemaking Is Retrospective-compares to
experience
            Sensemaking Is About Presumption-tests intuition
            Sensemaking Is Social and Systemic-beyond the
individual
            Sensemaking Is About Action-evolves through
action
            Sensemaking Is About Organizing Through
Communication-tacit knowledge is made explicit through
dialogue” (pp. 411-413).
In organizations, sensemaking evolves through
action. As members take actions, they learn and
make meaning. The number of plausible options
often gets reduced. Because sensemaking is an
evolutionary process, it is less about accuracy than
it is plausibility (Weick, Sutcliffe & Obstfeld, p. 415)
            It is generally agreed among the leading
theorists that organizational sensemaking follows a
connected sequence of stages. Choo (1996,
pp.333-334) indentified these stages as:
            Enactment-bracketing, labeling and
rearranging, generate data
            Selection-choose meanings, create schema
            Retention-store successful sensemaking for
the future
Some sensemaking is belief-driven. That
is, members start with beliefs then seek
out information to support those beliefs.
Other sensemaking is action-driven. Here,
members start with actions and grow
structures around them thereby creating
meaning to justify or explain their actions.
Once the environment has been enacted,
selections made and retained the
organization is now faced with the “what
now?” question or what Weick called, a
consequential moment (Choo, 1996, p.
337).
HOW DO PEOPLE “MAKE SENSE” OF THINGS IN ORGANIZATIONS?

‘edge-of-uncertainty’:
• OODA Observe: structured Believer versus Artist unstructured/open observation
• OODA Orient phase: Scientist for the more-predictable side, Technologist for the less-predictable or more-unique
• OODA Decide: tame-problem algorithms versus wild-problem guidelines
• OODA Act: tame-problem rules versus wild-problem principles (as the respective drivers passed to ‘Act’ for guidance
within real-time action)
John Boyd's OODA Loop/Cycle
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John Boyd's OODA Loop/Cycle

84
Dave Snowden’s Naturalizing Sense-Making matrix (below) and to see how we can map OODA to Cynefin, a sense-making framework.

85
So if we take that set of disciplines for sensemaking and decision-making from
the ‘swamp-metaphor‘ – the set that we’d used throughout the ‘Seven sins’ series:

86
‘Sense / Make-sense / Decide / Act’ [SMDA] loop
(This graphic above is also crossmapped to the ‘swamp-metaphor’ roles:
Artist, Technologist, Scientist, Believer. For more on that, see the posts
‘Sensemaking and the swamp-metaphor‘ and ‘Sensemaking – modes
and disciplines‘.)

87
Sensemaking for Strategie Management Control

88
Stafford Beer’s Viable System Model [VSM]:
sensorimotor tasks - the action / sense / feedback loop
action-shaping tasks – the tasks to coordinate the action across the system as a whole.
Sensorimotor tasks and action-shaping tasks

89
Organizational Sensemaking
sensemaking is especially evident when equivocal events cause breakdowns in meaning.
Such breakdowns render organizations incapable of answering two key questions: “What’s
going on here?” and “What should we do about it?”

90
Cynefin Framework for Analyzing and Managing Uncertainty

Historic management practices are based on Taylorism, stability, calculable risk, and a simple- best practices- environment. But, as Harvard Business
School’s Dean Nohria stated, “a stable equilibrium is unnatural” and “uncertainty is incalculable.” The Cynefin framework defines domains and provides
approaches to support leadership and management under all levels of uncertainty.

91
The Cynefin Framework

92
AN APPROACH TO COLLABORATIVE SENSEMAKING PROCESS

93
The Agile Sensemaking Model (2018)
“Research shows that teams will organize themselves in different ways in response to how different types of complexity
strains their sensemaking capacities. In order to increase their sensemaking potential, teams will reorganize their
relationships in recognizable ways. We can think of these as emergent patterns of collective sensemaking.” —Bonnitta Roy

94
Sensemaking in a networked world
We need to organize our workplaces better

95
Chapter Two of Sensemaking in Organizations contains what is perhaps Weick’s most cited sentence, the recipe for sensemaking: “How can I know
what I think until I see what I say?” This rubric captures the seven constituent ideas of sensemaking as emergent interpretation, which I’ve put into my
own words below. I’ve italicized the key terms that Weick uses to represent his heuristics:
• Sensemaking is matter of identity: it is who we understand ourselves to be in relation to the world around us.
• Sensemaking is retrospective: we shape experience into meaningful patterns according to our memory of experience.
• How and what becomes sensible depends on our socialization: where we grew up in the world, how we were taught to be in the world, where we are
located now in the world, the people with whom we are currently interacting.
• Sensemaking is a continuous flow; it is ongoing, because the world, our interactions with the world, and our understandings of the world are constantly
changing. You might also think of sensemaking as perpetually emergent meaning and awareness.
• Sensemaking builds on extracted cues that we apprehend from sense and perception. Cognition is the meaningful internal embellishment of these cues.
We articulate these embellishments through speaking and writing – the “what I say” part of Weick’s recipe. In doing so, we reify and reinforce cues and their
meaning, and add to our repertoire of retrospective experience.
• Sensemaking is less a matter of accuracy and completeness than plausibility and sufficiency. We simply have neither the perceptual nor cognitive
resources to know everything exhaustively, so we have to move forward as best as we can. Plausibility and sufficiency enable action-in-context.
by LAURA A. MCNAMARA, Sandia National Laboratories
Sensemaking in Organizations: Reflections on Karl Weick and Social Theory

96
Madsbjerg sees these pendulum shifts, and the abstractions on which they are built
as “eroding our sense of the human world.” He offers five “principles of
sensemaking” to help you contribute to the rebuilding of that world. Briefly they are:
1. Focus on cultures, not individuals: You need to receive messages through their
social context, and to see a room of people as a cultural happening rather than
a collection of individuals.
2. Use thick data not thin data: Anthropologists use the term “thick data” to reflect
the depth to which individual data can be understood in its wider cultural
context, rather than being simply observed.
3. See the savannah, not the zoo: The metaphor is largely self-explanatory. You
need to ask not only who’s here, but where have they come from, and how do
they sustain themselves.
4. Engage with creativity not manufacturing. This one invites you to leave behind
the primary assumptions of the industrial age. Look beyond what’s familiar, take
on what’s messy, and let creativity happen.
5. Finally, be guided by The North Star rather than GPS. People in the present
time are persistently looking for detail, and developing new algorithms to
provide it. In previous times, a single reference point worked remarkably well,
and to everyone’s advantage.
Christian Madsbjerg SØREN HASSEL
Sensemaking, written by philosopher/political-scientist Christian Madsbjerg. He doesn’t directly
reference Weick. Instead, he describes sensemaking as “an ancient practice of cultural inquiry,
a process based on a set of values we are in great danger of forgetting.” It is a practice that is
sensitive toward “meaningful differences” in what matters to yourself and other people.

97

20. The Development of Stakeholder
Theory: An Idiosyncratic Approach
R. Edward Freeman

99
A comparison of theories of the firm (Kraaijenbrink & Spender, 2011).

100
Prof.Friedman VS. Prof.Freeman

R. Edward Freeman
101

102
Three Aspects of Stakeholder Theory

103
A review of ‘theories of the firm’ and their contributions to Corporate Sustainability
Rodrigo Lozano a, b, *, Angela Carpenter b
, Donald Huisingh c

104
Positioning Stakeholder Theory within the Debate on Corporate Social Responsibility

105
Positioning Stakeholder Theory within the Debate on Corporate Social Responsibility

106
CSR motivation
stakeholder salience
Achieving Corporate Sustainability:
Toward a Practical Theory
Sooksan Kantabutra

107
Achieving Corporate Sustainability:
Toward a Practical Theory
Sooksan Kantabutra

108
Corporate Governance in the Context of Crises: Towards a Stakeholder Theory of Crisis Management
Can M. Alpaslan*, Sandy E. Green** and Ian I. Mitroff***

109
Network Approach and Stakeholder Management

110
Developing Stakeholder Theory

111
Stakerholder Intellegence

112
Prioritizing Stakeholders for Public Relations
Brad L. Rawlins

113
Brad L. Rawlins

114
Brad L. Rawlins

115
Achieving Corporate Sustainability: Toward a Practical Theory
Sooksan Kantabutra

116
Achieving Corporate Sustainability: Toward a Practical Theory
Sooksan Kantabutra

117
A Leap from Negative to Positive Bond. A Step towards Project Sustainability
Francesco Di Maddaloni; Derakhshan, Roya.

119
Identification and mapping of project stakeholders: criteria and methods

Stakeholder Theory:
The Current Landscape And Future Directions
A Stakeholder Approach to Normative
Theories of Business
A Stakeholder Approach to Corporate
Governance and Organizational Theory
A Stakeholder Approach to Social
Responsibility and Social Performance
A Stakeholder Approach to Strategic
Management
120

21. Developing Resouce Dependence Theory:
How Theory is Affected by its Environment
Jeffrey Pfeffer

Jeffrey Pfeffer
122

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124

Impact of Resource Based View and Resource Dependence Theory on Strategic Decision Making
Ali Raza Nemati 

RESOURCE DEPENDENCE THEORY
126

22. Institutional Theroy: Contributing
to a Theoretical Research Program
W. Richard Scott

W. Richard Scott

131

133

134

135

136

Institutional Theory

138

139

141

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