The expertise of managers, as with other professionals, consists in what they know and their particular knowledge base is knowledge that is embedded in practice. In spite of what some practice assumes, management expertise is situated, experiential and cannot be codified. We lack, however, a clear philosophical model of what it means to say of knowledge that it is embedded in practice. This paper seeks to address this need, presents a theory of expertise and explores a key element of the (...) theory concerning the role of judgement in perception. The theory articulates a number of key concepts and gives explanatory power to talk of situated knowledge. It also provides sufficient theoretical structure to bear upon practical policy issues such as how to teach, develop and assess expertise and how to deploy knowledge in setting management goals. (shrink)