ABSTRACT
This chapter explores potential connections between the distributed cognition approach (DCA) and orga-nizational studies. The DCA is based on the idea that external resources shape the individual's cognitive system. It provides a detailed understanding of individual and social cognitive processes. The DCA offers a significant framework through which managers could understand how to develop each employee’s cognitive potentials. The chapter discusses the bounded rationality (BR) model and uses that as a general framework. D. Kahneman and A. Tversky focus their attention on the mechanisms that affect decision-making and behavior under risk, with the intention of building up/creating maps of BR. They state that "people rely on a limited number of heuristic principles which reduce the complex tasks of assessing probabilities and predicting values to simpler judgmental operations. In general, these heuristics are quite useful, but sometimes they lead to severe and systematic errors".
