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Humanistic Psychology01:24

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Humanistic psychology emerged in the mid-20th century as a response to the deterministic and pessimistic nature of behaviorism and psychoanalysis. While behaviorism focused on observable behaviors influenced by the environment and psychoanalysis delved into unconscious motivations, both theories suggested that human actions lacked free will. In contrast, humanistic psychology offers a perspective that emphasizes the innate potential for goodness and growth within every individual.
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Updated: Aug 16, 2025

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Humanizing strategy.

Ikujiro Nonaka1, Hirotaka Takeuchi2

  • 1Professor Emeritus, Hitotsubashi University, Japan.

Long Range Planning
|December 20, 2022
PubMed
Summary
This summary is machine-generated.

Business leaders need practical wisdom (phronesis) to create future-focused, human-centric strategies for a volatile, uncertain, complex, and ambiguous (VUCA) world. This approach fosters resilience, longevity, and sustainability by prioritizing purpose, value, and societal contribution.

Keywords:
Future-makingInside-out approach to strategyNeurosciencePractical wisdomSustainability

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Area of Science:

  • Business Strategy
  • Organizational Behavior
  • Knowledge Management

Background:

  • The contemporary business environment is characterized by volatility, uncertainty, complexity, and ambiguity (VUCA), exacerbated by events like COVID-19.
  • Traditional strategic approaches often fall short in addressing the dynamic nature of modern markets.
  • There is a growing need for strategy to be more adaptive, ethical, and human-centered.

Purpose of the Study:

  • To reconceptualize business strategy for navigating a VUCA world.
  • To explore the role of practical wisdom (phronesis) in strategic decision-making.
  • To identify actionable practices for creating sustainable and future-oriented business models.

Main Methods:

  • Application of advanced knowledge management principles.
  • In-depth case studies of various companies.
  • Integration of insights from neuroscience regarding human-centric approaches.

Main Results:

  • Companies demonstrating a moral purpose and delivering value to customers, society, and nature exhibit long-term survival.
  • Six key practices identified enable leaders to foster innovation and create better futures.
  • Neuroscience evidence supports the efficacy of human-centric strategic elements.

Conclusions:

  • Strategy must be reconceptualized with a human-centric, 'inside-out' approach.
  • Practical wisdom (phronesis) is crucial for developing future-oriented and dynamic strategies.
  • Adopting this approach leads to enhanced corporate resilience, longevity, and sustainability.