Wisdom in Organizations: Whence and Whither

Abstract

We trace the genealogy of wisdom to show that its status in epistemological and management discourse has gradually declined since the Scientific Revolution. As the status of wisdom has declined, so the status of rational science has grown. We argue that the effects on the practice of management of the decline of wisdom may impede management practice by clouding judgment, degrading decision making and compromising ethical standards. We show that wisdom combines transcendent intellection and rational process with ethics to provide a balanced and integrated way of knowing, deciding and acting for managers in a complex and uncertain business environment. Finally, we discuss the role and value of wisdom across a range of business functions including knowledge management, strategic management, leadership and international business.

Keywords:

• Epistemology
• Ethics
• Genealogy
• Knowledge
• Management
• Practical Wisdom

Notes

[1] For a good review of positivist psychology, see Green (1992) and other articles in that issue of Theory and Psychology.

[2] Of course, it is silly to assume that eras neatly separate at particular times. Furthermore, the characterization of an era always understates the complex diversity of such times. Consequently, we are indebted to Matt Statler for drawing attention to the diversity of pre‐Calvinist Europe, in particular the work of Marcel Henaff, whose 2002 work, Le Prix de la vérité: Le Don, l’argent, la philosophie, distinguishes between Weber’s Protestant capitalism and Catholic capitalism in the Mediterranean.

[3] For a full coverage of the emergence of business and accounting systems, see de Roover (Kirshner 1974).

[4] http://www.hm‐treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/stern_review_report.cfm

Additional information

Notes on contributors

David Rooney

David Rooney is Senior Lecturer in Knowledge Management in the UQ Business School, University of Queensland, Brisbane, Australia. His recent books are The Handbook on the Knowledge Economy (Cheltenham: Edward Elgar, 2005) and Public Policy in Knowledge‐Based Economies: Foundations and Frameworks (Cheltenham: Edward Elgar, 2003).

Bernard McKenna

Bernard McKenna is Senior Lecturer in Business Communication at the UQ Business School, University of Queensland, Brisbane, Australia. His diverse research publications deal with critical discourse theory and analysis, communication theory and practice, as well as wisdom.