Managerial Cognitive Capabilities and Microfoundations

Question: Discuss about the Managerial Cognitive Capabilities and Microfoundations. Answer: Introduction: The article in the Harvard Business Review portrays the fact that most of the companies fail to appoint right talent in the right designation. It is the reason of lower productivity of the different teams working in different organizations across the world. Most of the companies do not have good managers so that they cannot make higher profit in the market. The reason behind this is faults in the process of recruitment and selection. It is seen that most of the companies fails to recruit right people as they are unable to find the right talent most of the times in the vacancies available for it. Research report has illustrated the fact that companies do not recruit people 82% of the times (Epstein Buhovac, 2014). The main argument of the article states the fact that good managers are responsible for increased profitability whether bad managers can cause losses in huge amount for many companies. Each year, due to bad managers companies spend billions of dollars but they did not get any return out of it. The article states that only 30% of the managers are really engaged in their proper work. Surprisingly when the percentage counts to worldwide, then it reduces to 13%. The main motive of the article lies in the fact that good managers across the world are hard to find whereas bad managers are prevalent everywhere scattered in different parts of the world in different multinational and small medium enterprises. It can be also pointed out as the line of reasoning (Brown, Colville Pye, 2015). Assumptions and limitations While reading the article, the reader must have to understand what message the article is conveying about and what are the assumptions and limitations behind it. By reading the article, it can be clearly understood that it the article is all about research and the researcher has focused on the abilities of a good manager in the organization. However, the article is informative as it gives data regarding various attributes of good and bad managers. But it is based on some assumptions and limitations. The data is collected by conducting research on different organizations that contains few assumptions and limitations (Jansen et al., 2013). The researcher i.e. Gallup in the article has conducted primary researches. The data are provided are based on the views of the respondents i.e. the managers of different multinational companies. The reader has to believe that their views and the data interpretation of Gallup are correct and they provide real life scenarios about the working cultures of the organizations. The limitation of the research in the article is the security of the respondents while conducting the research. Apart from that, the limitation can also be applied to the data sets. It is a possibility that if Gallup has been conducted the research to different organizations, then the results may be different (Hill, Jones Schilling, 2014). Research methodology and research methods The research methodology that is used in the article while collecting the data from the managers is primary research methodology. Primary research methodology is used because it will provide the real life scenarios regarding the duties and responsibilities of managers. It is also helpful in collecting the data regarding the percentage of good managers and bad managers in the organizations. Instead of secondary data, the researcher in the article has chosen to conduct the methodology of primary research in terms of using the methods of interviews and surveys (Too Weaver, 2014). The process of interviews and surveys are though time consuming and cost incurring, but this method has been chosen in order to collect the real time data from the managers whether they are successful in their duties and responsibilities in the organization. Apart from that, it can be said that the quantitative methods of data methodology are used while calculating the data collected from using primary research methodologies. It is mentioned in the article that while conducting the research regarding the managers roles and responsibilities, it can be said that more than 27 million employees over twelve years in more than 2.5 million working units (Mishra, Boynton Mishra, 2014). The article illustrates the fact that the good managers are responsible for generating more revenues from the market as well as the reputation of the company in the market. The report has highlighted the fact that the most of the organizations have failed to recruit people with proper talents in the managerial designation. It is the result of the lower productivity of the team as well as to the organizations across different parts of the world. The percentages of profit collected by the companies having more good managers are much higher than the companies having less good managers (Schnackenberg Tomlinson, 2016). However, it can be said that there is a strong link between the vital performance indicators and employee engagement at the strategic business units of the organizations. The vital performance indicators of the companies include less shrinkage, less absenteeism, lower turnover, higher quality, higher productivity, and higher profitability. It can be pointed that the companies which have higher employee engagement levels are found to be get results better in terms of employee relations, productivity and team performances and overall profitability of the company in the market. These things are happened in a company that has more good managers in it (Bromiley et al., 2015). Relevancy of the findings with the theoretical concepts It can be said that the relating to the capabilities of the managers there are many traits and attributes related to the managers. An ideal manager must have the attitude of leading a team with proper leadership and decision making where the team members must follow the decision taken by the team leader. Apart from that, the team members must have clarity with the team leaders in order to share various issues. The theoretical frameworks used by the managers in this context are normative decision making theory and participative leadership in their fields of practice (Helfat Peteraf, 2015). Normative theory of decision making is known as the theory of choice which represents that advices are provided to the managers while taking best decisions in their workplaces. Normative theory is also known as prescriptive decision making theory that is concerned with the identifying the best decision. It usually portrays the role model of the team who is known for the ideal decision maker due to his fully rationality and perfect accuracy. These people will seek technologies and person who will help them in making a rational and fair decision making process (Hill, Jones Schilling, 2014). Participative leadership on the other hand is a popular leadership theory that can be used by the managers to lead a team which requires involvement of the team members in order to make a proper decision of the team. Involvement of different executives is responsible for the effective decision making process of the company with better new ideas (Jansen et al., 2013). Practical applications of the ideas to real life managers Real life managers must have the behavior and traits that a leader must possess. They have the knowledge of implementation of various theoretical models and frameworks that are related with leadership, decision making and team management. Proper customization of the models is necessary while pointing out the flaws and weaknesses of the team members. Apart from that, they have the knowledge of sense making regarding implementation of various models of leadership to influence the team members in their respective field of work (Collier, 2015). The theoretical frameworks that are identified earlier in the study are not only responsible for the improved decision making of the managers but also these frameworks will help in the identification of problem in the management of the organization as well as problems in the team. The two aspects i.e. normative decision making theory and participative leadership are interrelated with each other. Both these aspects are related with the decision making process of the organization with the involvement of team members of the organization (Brown Trevio, 2014). The team members will also feel a sense of commitment towards their field of work while giving improved productivity of the company. If the team members have a clear communication between the team leaders then the problems of the team regarding lesser productivity of the team along with individual productivity are to be identified. The identification of the problem will help in the formulation of the developmental training in the m ultinational organizations (Yinan, Tang Zhang, 2014). Recommendations to managers The article regarding the competency level of managers suggests many things that managers of organizations can focus in order to maintain their team performance. According to Gallup the managers must have the following talents such as: The managers must motivate each and every employee of the organization while taking action and engaging themselves in the organizational objectives that compels the vision and mission. The managers of the organization must possess assertiveness that will drive the outcomes of the project while having the ability in overcoming resistance and adversity (Brown, Colville Pye, 2015). The managers of the organization must create a culture that will helps in maintaining accountability. The managers are responsible in building relationships that are responsible for creating open dialogue, trust and full transparency. Managers are responsible for making rational decision that are based on the productivity and not on the politics. There are many traits and behavior that a manager must possess to manage the team while improving the individual productivity of the team members (Epstein Buhovac, 2014). Quotations from peer reviewed journals In this section, two quotations are to be cited from two peer reviewed journals that will encompass the role of managers in the decision making process of the organization. The two quotations will be the paraphrased version of the two lines mentioned in the journals. Exploring on the organizational effectiveness introduces in the development of innovation while achieving a long term sustainable processes that will exploit the operational efficiencies for a short term performance in the existing products. However, it can be said that, the study of ambidexterity helps in investigation of the ways that organizations are adopting in order to exploit and explore them simultaneously (Smith, 2014). If the managers adapt changing and complex environments in the modern business world, then it will help them in exploring novel knowledge in various domains that will simultaneously exploit the existing knowledge (Laureiro?Martnez et al., 2015). 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