Organizational Practical Wisdom

Abstract: This chapter delves into organizational practical wisdom, which draws from Aristotle׳s phronesis. We conceptualize organizational practical wisdom as the organizational proficiency of acting efficiently and effectively toward its purpose and values, leading to high performance and the common good, doing the least harm, and envisioning the long turn. In the organizational context, practical wisdom manifests in individual and institutional dimensions. Individual practical wisdom reflects the leaders’ and members’ capability of acting wisely, i.e., doing the right thing at the right time for the right reasons, supporting and integrating it into the organizational framework to the benefit of the entire organization. At the institutional level, the practical wisdom of organizations is rooted in its processes, structures, and culture, and manifests in strategic decision-making, considering stakeholder relationships, social implications, and long-term perspectives. Accordingly, organizational practical wisdom drives problem-solving, efficiency, efficacy, innovativeness, and organizational learning, propelling organizations toward responsibility and sustainability. It inspires a collective purpose and interconnectedness, fostering a legacy of harmonious congruence.

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Geaquinto Rocha, R., & Gonçalves Pinheiro, P., & Kragulj, F. (2024). Organizational practical wisdom. Social Sciences. DOI: https://doi.org/10.1016/B978-0-443-13701-3.00172-9