Practical intelligence at work: relationship between aging and cognitive efficiency among managers in a bank...

Area of Science:

• Management Science
• Cognitive Psychology
• Organizational Behavior

Background:

• Assessing managerial effectiveness is crucial for organizational success.
• Traditional psychometric tests may not fully capture practical skills needed for management.
• The role of tacit knowledge in predicting job performance requires further investigation.

Purpose of the Study:

• To compare the predictive validity of tacit practical knowledge versus psychometric reasoning for bank manager performance.
• To investigate the relationship between age, cognitive abilities, and managerial skill.

Main Methods:

• A study involving 200 bank managers (43 experts, 157 nonexperts) aged 24-59.
• Assessment using the Tacit Knowledge Inventory for Managers (TKIM), Raven's Advanced Progressive Matrices (Raven's), and Differential Aptitude Test (DAT) Verbal Reasoning subtest.
• Correlation and regression analyses to determine predictive power for performance.

Main Results:

• The TKIM significantly predicted managerial skill.
• Raven's and DAT scores were negatively correlated with age, while TKIM showed less association.
• Older managers with high tacit knowledge performed better, despite lower scores on psychometric tests.

Conclusions:

• Tacit practical knowledge is a stronger predictor of bank managerial performance than psychometric reasoning.
• Findings suggest potential cognitive stabilization or compensatory mechanisms in older managers.
• Implications for understanding practical intelligence, expertise development, and age-related cognitive changes in leadership roles.