Understanding organizations

-Understanding organization

No . Of words : 1340

How do people craft entrepreneurial self-identity

Understanding organization

In a society , we often come across some people who are just excellent in building an organization they just lead the organization to a great height , whereas some are reluctant to start a business . These qualities of starting an organization or leading it to a new height attributes to individual 's personality traits or anything else ? The process of identifying the individuals characteristics or its social and environmental setup which plays an important role in setting

and moving an organization , is one of the most challenging job for organizational or entrepreneurship or psychological researchers

The field of entrepreneurship seeks to understand how opportunities discovered , created and exploited (Markan , Balkin and Baron , 2004 149 The cognitive perspective on the other hand , emphasizes the fact that mental processes include everything we think , say or do during the startup process of any organization . These mental processes also include the cognitive mechanisms (style ) through which we acquire , store transform and use information (Baron 2004 : 221 . The cognitive perspective provides us with useful lenses (patterns ) with which to explore entrepreneur related phenomenon and to address some meaningful issues that we have not been able to probe effectively upto now (Mitchell et . al , 2002 :93 . Shepherd Krueger (2002 197 ) agree that social cognition research helps to give direction to the study of entrepreneurial thinking . Pretorius , Le Roux and Millard (2004 ) also quote the remark of Gatewood , Shaver , Powers and Gartner (2002 :187 ) that recent researches have demonstrated the impact that cognitive and social processes have on entrepreneurial behaviour

Basically entrepreneurship is a quality possessed by individual who create opportunities where others do not and who attempt to exploit those opportunities through various modes of organizing , without regard to resources currently controlled (Mitchell et .al . 2002 :96 . Similarly entrepreneurial cognition could be defined as the knowledge , structures that entrepreneurs use to make assessments , judgment or decision involving opportunity evaluation , venture creation and growth . Therefore entrepreneurial cognition is about understanding how entrepreneurs use simplifying mental models to piece together previously unconnected information that helps to identify and invent new products or services and assemble the necessary resources to start and grow a business Wright , Hoskisson , Busenitz and Dial (2000 ) defined entrepreneurial cognition as extensive use of individual Heuristic (shortcuts ) and beliefs that impact on decision-making process . Baron (1998 :290 ) argues that the role of studying cognitive mechanisms in entrepreneurship is primarily that of formulating means for holding checks errors stemming from these cognitive mechanisms . The decision reached by the entrepreneurs and the strategies they adopt then have increased chance of success . Entrepreneurial cognition plays important role in identifying the role of the individual in the entrepreneurial process It aids us in individual in the entrepreneurial do the things that they do . Cognitive biases help entrepreneurs to perceived less risk , causing them to be more willing to start a new venture . The misfit between the entrepreneurs ' cognitive make up and the varying demands of the...