Organizational wisdom

Abstract

In recent years, much theoretical and empirical attention has focused on wisdom as a psychological construct. The development of wisdom is viewed as a positive aspect of aging, but also has a complement to more traditionally-studied domains of intelligence. Two studies, involving a total of 327 adults, examined how our understanding of the construct might be furthered by its application into specific, problematic contexts, and by having its utility assessed. This involved: 1) development of an instrument that related the elements of wisdom to the context of work organizations; 2) identification of the primary ways in which wisdom contributes to well-being in work organizations; and 3) identification of types of organizations (organizational cultures) most likely to need and value wise persons of influence in their midst. Results suggest that wisdom is of greatest consequence when it fills an important gap in what is offered by the organization's (or society's) formal structure. Where the culture has developed more formal institutions, structure, and principles to guide its activities and ensure fairness in how people are treated, there may be less need for informal sources of organizational wisdom.