Abstract
Action Regulation Theory is not only a description tool but also a normative guide to efficient and humanized work; it became a foundation of international standards in work design. The regular mode of action regulation is knowledge-based regulation. Innovation in mental work, e.g., product development, follows a hydrid model of action regulation combining knowledge-driven opportunistic sequences with systematically planned episodes of work. Innovative work can be improved by facilitating an interaction of mental and psychomotor operations in action: Thinking in and by action is a general principle of innovative mental work. Action Regulation Theory might explain why, in product development, a hybrid type of cooperative work is more effective than both, group work or individual work.