Erik Dane, Michael G. Pratt. University of Illinois at Urbana-Champaign
This paper, as the title states, tackles how intuition plays a role in the decision-making process for managers and how the ability to use intuition can impact managers at different levels.
The authors make note of prior research within the introduction that indicates how intuition has played a critical role in differentiating successful top executives and board members from lower-level managers and dysfunctional boards (Dane & Pratt, 2007). Dane and Pratt identify the different types of thinking regarding intuition and how some researchers suggest intuition is about outcomes, or that intuition is a process, while others combine the two without differentiation (Dane & Pratt, 2007).
The paper identifies over 15 different definitions for intuition and ultimately decide on the following definition to be used within the context of the paper: “affectively charged judgments that arise through rapid, nonconscious, and holistic associations” (Dane & Pratt, 2007 p.40). The authors discuss factors that can influence intuition decision making such as types of learning, environmental uncertainty, practice, and domain knowledge. The authors indicate that implicit learning potentially results in increased effectiveness of intuitive decision making for managers.
The implications, the authors suggest, note that intuitive thinking can be effective for managers within their industries. Managers should foster environments that can enhance implicit learning due to the suggested research ties between implicit learning and enhanced intuition through developing nonconscious processes. Some downfalls noted by the authors occur when managers move positions. Particularly when managers switch industries and their environment changes and expert knowledge decreases, potentially resulting in less effective intuitive decision making. The question arises of how different does context have to be in order to negate the relevance of cognitive schemas (Dane & Pratt, 2007)? Therefore, organizations should be wary of new managers using intuition for decision making if they do not have experience in the industry/occupation (Dane & Pratt, 2007).
Critique:
I feel the paper was interesting in exploring the different types of research around intuition, to include the abundance of differing definitions. However, the paper was just a literature review and seemingly not offering much in terms of their own research. I think it could have benefited greatly from some type of empirical study of mid and potentially top-level managers utilizing intuition-based decision making.
Dane, E., Pratt, M. (2007). Exploring Intuition And Its Role in Managerial Decision Making. Academy of Management Review. Vol. 32, No. 1; 33-54. Retrieved from http://homepages.se.edu/cvonbergen/files/2012/12/EXPLORING-INTUITION-AND-ITS-ROLE-IN-MANAGERIAL-DECISION-MAKING1.pdf
Posts
I'm interested in the idea that intuition can be about outcomes, a process, or a combination of the two. I would've been inclined to say intuition is another word for a hunch, or a feeling that you know, just because you know it. I think it's influenced by your lifetime of experiences and expertise. Maybe that gathering of experience and expertise is the process, and the decision you ultimately make based on the intuition is the outcome. And maybe when you're talking about that in an end-to-end clump, then it's a mix of the two. I can reconcile all of that. But I'm stuck on how intuition itself can be considered a process or an outcome, or both at the same time. Even the definition the used, “affectively charged judgments that arise through rapid, nonconscious, and holistic associations” doesn't really work for me because I think intuition is a feeling that influences those judgments rather than those judgments themselves. I realize that's splitting hairs, but was there any one definition the authors presented that you really agreed with beside the one they used as the basis for their paper?
ReplyDeleteI think this study highlights an issue regarding an accepted definition of intuition among researchers.
ReplyDeleteBurke & Miller (1999:92) "A cognitive conclusion based on a decision maker’s previous experiences and emotional inputs" I think this is a solid definition.
I find there is a point here that you have that is quite telling about how intuition was created a decision advantage for the manager within their industry, suggesting that experience and knowledge of the industry plays into intuitive judgements. While I can't prove this definitively, I think there is some analytical processes that become ingrained and no longer require significant effort and processing. While we regard this is intuition, I do believe there are some analysis that couches intuitive judgements. I do think that this belief is coherent with the independence model of cognitive processing. Thoughts?
ReplyDeletePlease elaborate on the independence model of cognitive processing. I'm really not all that familiar with it.
DeleteBilly - its apparent that past experience and implicit learning impact one's ability to effectively use intuition. In the argument of "nature vs nurture" experience and implicit learning are grown from our environment. Because of this, would you agree that the fundamental differences in how global leaders make decisions can be attributed to the foundational and contextual differences in environment that directly impact intuition?
ReplyDeleteI would absolutely agree with that!
DeleteBilly, the authors in this article suggest that managers should "foster environments that enhance implicit learning". Did they elaborate at all regarding what actions can be taken to foster such an environment?
ReplyDeleteTodd, I don't recall them discussing in detail how to foster implicit learning environments within the work place
DeleteI looked into other definitions of intuition and don't disagree nor like their definition the authors settled with. However, I find the argument that managers are more effective in decision making when they have more experience in their work environment, to be true. I believe not only does knowledge about the work place benefit outcomes, but an increase in confidence in managerial responses enhances the outcomes of their intuition.
ReplyDeleteThere were two things that really stuck out to me. The first was intuition as a process or as just the outcome. I have always thought of it as a quick decision. However, as we set up our exercise for class, there is a little bit of a process that goes into each decision, even if we were not aware of it at the time. The second thing that I thought was interesting was when you mention the effects of managers moving positions often. Do you think intuition comes with age and experience or do you think its a natural ability?
ReplyDelete