MAN 6245: Week 3

1
MAN 6245 Week 3

• Tonight...
• Individual Differences, Values Personality
• Exercise Alligator River
• Personality Locus of Control
• Exercise Locus of Control
• Diversity (Global Cultural Implications)
• Decision Making
• Exercise Global Decision Making

2
WEEK 3Last time...

• Group Behavior
• Understanding Work Teams
• Team Interaction Exercise

3
Values

• Global beliefs that guide actions and judgments
  across a variety of situations
• Terminal values
• desired end states
• Instrumental values
• means to the ends

4
Work Values

• Achievement
• Helping and concern for others
• Honesty
• Fairness

5
Attitudes

• Predisposition to respond in positive or negative
  way to someone or something in the environment.
• 3 components
• beliefs (cognitive)
• feelings (affective)
• intention (behavioral)

6
Values

• Global beliefs broad preferences
• Two types of values (Rokeach)
• 1) Terminal
• ends/goals
• 2) Instrumental
• means to achieve ends

7
Exercise Alligator River
8
The Big 5 personality traits and performance

• Extraversion (Predicts performance in sales
  management.)
• Agreeableness
• Conscientiousness (Best predictor of performance
  r.20)
• Emotional stability
• Openness to experience (predicts training
  proficiency)

9
(No Transcript)
10
Other Common Personality Attributes

• Locus of control
• Internalown destiny
• Externalsfate
• Machiavellianism
• Self monitoring
• Risk Propensity
• Type A/Type B

11
Other Common Personality Attributes

• Locus of control
• Internals
• More satisfied
• Less risk seeking
• More self control
• More effort (when linked to performance/rewards)
• Better on learning and problem solving tasks
  (when linked to performance/rewards)

12
Other Common Personality Attributes

• Machiavellianism
• Manipulate more, win more, are persuaded less,
  persuade more
• Flourish when
• Face-to-face
• Minimal rules
• Other is emotionally involved

13
Exercise Locus of Control
14
Certainly Generally Somewhat
Somewhat Generally Certainly,always true
true true, but false, but
false always false
w/exceptions w/exceptions 5
4 3 2 1
0

• 1. In social situations, I have the ability to
  alter my behavior if I feel that something else
  is called for.
• 2. I am often able to read peoples true emotions
  correctly through their eyes.
• 3. I have the ability to control the way I come
  across to people, depending on the impression I
  wish to give them.
• 4. In conversations, I am sensitive to even the
  slightest change in the facial expression of the
  person Im conversing with.
• 5. My powers of intuition are quite good when it
  comes to understanding others emotions and
  motives.
• 6. I can usually tell when others consider a joke
  in bad taste, even though they may laugh
  convincingly.
• 7. When I feel that the image I am portraying
  isnt working, I can readily change it to
  something that does.

15
Certainly Generally Somewhat
Somewhat Generally Certainly,always true
true true, but false, but
false always false
w/exceptions w/exceptions 5
4 3 2 1
0

• 8. I can usually tell when Ive said something
  inappropriate by reading the listeners eyes.
• 9. I have trouble changing my behavior to suit
  different people and situations.
• 10. I have found that I can adjust my behavior to
  meet the requirements of any situation I find
  myself in.
• 11. If someone is lying to me, I usually know if
  at once from the persons manner of expression.
• 12. Even when it might be to my advantage, I
  have difficulty putting up a good front.
• 13. Once I know what the situation calls for,
  its easy for me to regulate my actions
  accordingly.

16
Self-monitoring

• High self-monitors
• More sensitive to others
• Alter their responses to cues of others
• More flexible and responsive to the environment
• Self-monitoring is associated with Emotional
  Intelligence

17
Seven Major Mental Abilities

• Verbal comprehension Meaning of words and
  reading comprehension
• Word fluency Ability to produce isolated words
  to meet specific requirements
• Numerical Arithmetic computation
• Spatial Perceive spatial patterns and visualize
  geometric shapes
• Memory Good rote memory of words, symbols, and
  lists
• Perceptual speed Perception of similarities and
  differences in figures
• Inductive reasoning Reasoning from specifics to
  general conclusion

18
A better view of intelligence

• Its G (Spearmans General Intelligence)
• It can be reliably validly measured (The
  Wonderlic Personnel Basic Skills Tests (WPT
  WBST)
• Its going up (you vs. your bosses and/or
  professors?)
• (The sociology of all of thishigh and low G in
  the workplacelikely outcomes)
• It matters Best predictor of job performance

19
Sample questions

• 1. What number should come next?
• 8 4 2 1 1/2 1/4 ?
• 2. Which one of these figures is most different?

1
2
3
5
4
7
6
20
Emotional Intelligence

• EI is defined as
• Self awareness
• Self-management
• Self-motivation
• Empathy
• Social skills (emotion management)
• Some suggest that EI is the best predictor of
  work success
• Its learnable
• Its related to communication, motivation (self
  and others)
• (Hendrie Weisinger, Emotional Intelligence at
  Work (Jossey-Bass, 1998).

21
Diversity is goodsometimes

• Whether it is or not, depends
• On the job youre trying to do
• Solving a recurring process problem on the shop
  floor? People from engineering, manufacturing,
  different levels, tenures, etc.
• Assembling a Superbowl-capable offensive line?
  Really big, strong, fast, mean guys.

22
Diversity is goodsometimes

• Some studies show a
• positive relationship between diversity
  performance (Watson et al. 1993 AMJ Wright, et
  al., 1995 AMR)
• others show mixed (Chatman et al. 1998 ASQ Ely
  Thomas 2001 ASQ Richard, 2000 AMJ Simons et al.
  1999 AMJ)
• others show negative relationship (Chatman et al.
  1998 ASQ Tsui et al. 1992 ASQ)

23
Diversity comes in many forms...

• Race
• Gender
• Age
• Socio-economic status (SES)
• Education
• Religion
• Political persuasion
• Cant afford to focus on just 1 or 2
• (Look aroundyoure probably quite similar)

24
Its a big issue...

• White males comprise only 32.2 entrants into the
  US workforce, 1990-2005
• White males comprise 47.6 of leavers (see next
  slide)
• Thus, most of the action is elsewhere
• Missing that means missing opportunities for
  competitive advantage
• Again, look around you...

25
Workforce Demographics
Percent Entrants Percent Leavers
1990-2005 1990-2005 Total 100
100 Men 50.5 57.3
Women 49.5 42.7 White
Non-Hispanic 65.3 81.8 African
American 13.0 10.5 Hispanic
15.7 5.2 Asian and Other Races
6.0 2.4
26
Complexity of Diversity Gender as an example
27
Some things we do know...

• Sex differences in verbal skills (w gt m) seem to
  be declining or gone
• Differences in math skills (m gt w) seem to be
  declining or gone
• Men are more aggressive
• Men are less conforming
• When its about social approval
• More conforming for task completion
• Women and men communicate differently
• Venting/sharing vs. problem solving (Deborah
  Tanner You Just Dont Understand)
• Communication/linguistic styles (see next slides)

28
Sex differences in linguistic styles

• LinguisticCharacteristic Men Women
• Taking credit Greater use of I
  Greater use of We statements
  statements more likely to boast less
  likely to boast about their about
  their achievements achievements
• Displaying confidence Less likely to
  More likely to indicate that they
  indicate that they are uncertain about
  are uncertain about an issue an
  issue
• Asking questions Less likely to ask More
  likely to ask questions questions

29
Sex differences in linguistic styles

• Men Women
• Conversation rituals Avoid making
  More frequently apologies because it
  say Im sorry puts them in a
  one-down position
• Giving feedback More direct and blunt More
  tactful tend to temper criticism
  with praise
• Giving compliments Stingy with praise
  Pay more compliments than
  men
• Indirectness Indirect when it comes Indirect
  when telling to admitting fault or
  others what to do when they dont
  know something

30
Some things we do know...

• Women are better at nonverbal communication
  (sending receiving)
• Men are better at lying
• Women are better at detecting lying
• All-male groups tend to perform at higher levels
  than all-female groups (but most groups arent
  single-sex)
• Men anchor the ends of the scales (Nobel prizes,
  social pathologies)

31
Some things we do know...

• Women perform better at social behavior
  (consensus-reaching)
• Men perform better at task-oriented behavior
  (brainstorming, etc.)
• Women do not reason differently in ethics
• Finally, men and women believe there are
  differences, irrespective of whether they really
  exist or not

32
Topic International issues and culture
33
Cultural Dimensions in the Hofstede-Bond Research

• Power Distance
• Individualism-Collectivism
• Masculinity-Femininity
• (aka quantity of life vs. quality of life)
• Uncertainty Avoidance
• Long-Term Versus Short-Term Orientation

34
Cultural Dimensions in the Hofstede-Bond Research

• Power Distance Expectations of social
  inequality, status differences.
• Individualism-Collectivism focus on individual
  vs. group (how tight are the social bonds?)
• Masculinity-Femininity Expression of competitive
  or nurturing traits. Material goods vs. social
  good.
• Uncertainty Avoidance Preference for structured
  or unstructured situations. Risk preference.
• Long-Term Versus Short-Term Orientation
  (Confucian values) Save for the future and be
  persistent or live for today. Historical and
  future perspective.

35
Cultural Dimensions High/low

• Power Distance High Philippines, India,
  Venezuela, Mexico. Low Denmark, Australia
• Individualism-Collectivism High U.S. , Great
  Britain, Netherlands. Low Japan, Columbia.
  w/in region Egypt gt UAE, S.A.
• Masculinity-Femininity High Japan, Austria,
  Venezuela. Low Norway, Sweden, Denmark
• Uncertainty Avoidance High Japan, Italy. Low
  Norway, Australia
• Long-Term Versus Short-Term Orientation High
  Hong Kong, China. Low Russia)

36
Americans likely to have tough time

• Power Distance Dominican Republic, Hong Kong,
  Greece, France, Mexico, India (Not used to
  casual style, employee input.)
• Individualism-Collectivism Pakistan, Mexico,
  Japan, China, Columbia, Turkey (We are not as
  likely to see work as group-oriented.)
• Masculinity-Femininity Netherlands, Denmark,
  Sweden, Chile, Spain (We see work as economic
  exchange.)
• Uncertainty Avoidance Portugal, Peru, Belgium,
  France, Greece, Japan (We focus less on rules
  and tradition.)

37
Some other cultural issues

• Nonverbal communication (nodding in Korea)
• Ethics and CSR (bribery or tips?)
• Role of women

38
Cultural Differences and Multi-national companies

• Cultural differences magnified in multi-national
  companies

39
(No Transcript)
40
35
69
18
42
20
26
20
39
41

• Examples of Cultural Dimensions
• Power Individ- Quality Uncertainty
  Long-term
• Country Distance ualism of Life
  Avoidance Orientation
• China High Low Moderate Moderate High
• France High High Moderate High Low
• Germany Low High High Moderate Moderate
• Hong Kong High Low High Low High
• Indonesia High Low Moderate Low Low
• Japan Moderate Low High High Moderate
• Netherlands Low High Low
  Moderate Moderate
• Russia High Moderate Low High Low
• United States Low High High Low Low
• West Africa High Low Moderate
  Moderate Low
• A low score is synonymous with
  collectivism.
• A low score is synonymous with high quality
  of life.
• A low score is synonymous with a short-term
  orientation.
• Source Adapted from G. Hofstede, Cultural
  Constraints in Management Theories,
  Academy of Management Executive, February 1993,
  p. 91.

42
(No Transcript)
43
(No Transcript)
44
(No Transcript)
45
(No Transcript)
46
Kiss, Bow, or Shake Hands How to Do Business in
60 Countries

• Cultural orientation Cognitive styles (open?
  situational?), negotiation strategies (what
  counts as evidence?), value systems (decision
  making, anxiety reduction, equality)
• Business practices Appointments, negotiation,
  entertaining, time
• Protocol Greetings, titles, gestures, dress,
  gifts
• by Morrison et. al.

47
Decision Making

• 2 Primary Approaches
• Classical Decision Theory (CDT)
• The Rational model
• Behavioral Decision Theory (BDT)

48
Classical Decision Theory (Optimizing Model)

• 6 steps
• Recognize need for decision
• Identify decision criteria
• Weight decision criteria
• Develop alternatives
• Evaluate alternatives
• Choose optimal decision

49
CDT Assumptions

• Problem clear
• Single well-defined goal no conflict/trade- offs
• All options are known
• Preferences are clear
• Preferences are constant
• Final choice will maximize outcome
• (no regrets)

50
Rational decision making? (M. Schrage, Fortune,
Jan 21 2002, pp. 127-128)

• Managers preach cognition but practice emotion.
  Ive never been in a workplace in which a
  majority of people believed that important
  decisions were made primarily for rational
  reasons.

51
Behavioral Decision Theory (Satisficing Model)

• 2 Attributes
• Bounded Rationality
• Use obvious choices
• Sequential order of comparisons
• Satisficechoose one that fits
• Incrementalism
• Confine search to similar solutions
• Incremental changes

52
BDT Assumptions

• Individuals have limited cognitive capacity
• Ability to make rational decisions bounded by
  cognitive limitations

53
CDT/BDT Differences

• of requirements to be met
• BDT one (or a few) requirement
• of alternatives generated
• BDT sequential (one at a time)
• Ordering and retesting of alternatives
• BDT random order, not retested
• Type of testing model
• BDT minimal cutoff, equal weighting

54
Which is accurate (in describing what we do)?

• BDT more than CDT, but . . .

55
Type of Decision

• Programmed (Routine)
• About 90 of all decisions
• Non-programmed (Unique)
• About 10
• With Non-programmed QUASI-optimizing
• Cognitive limitations, but more systematic
  approach, search, and evaluation

56
Decision Making Biases and Heuristics

• Theres more going on than just rational vs.
  nonrational...

57
Q1 Which of the following causes more deaths in
the US each year?

• A) pneumonia
• B) motor vehicle accidents

58
Decision Making Biases and Heuristics

• Availability Basing judgments on easily
  available information (things that are easy to
  retrieve from memoryvivid, salient, recent)

59
Decision Making Biases and Heuristics

• Representativeness Choosing answers that appear
  to be consistent with the micro-evidence, but
  ignoring macro base rates

60
Decision Making Biases and Heuristics

• Anchoring and adjustment paying attention to
  (meaningless) numbers
• Overestimate conjunctive events
• Underestimate disjunctive events
• Probability of one event serves as anchor
  judgment of total probability

61
To reiterate Biases and Heuristics

• Availability (retrieving things from memory)
• Representativeness (ignoring base rates)
• Anchoring and adjustment (paying attention to
  meaningless numbers)
• The confirmation trap
• Hindsight bias

62
What to do about heuristics and biases?

• Overall, heuristics are useful!
• But . . . Not always.
• The key is to recognize
• That they exist (and they are our default!)
• That they affect our decision process
• When its appropriate and inappropriate to use
  them
• How to overcome theme.g., actively seek more
  complete information

63
How can you improve decision making?

• Acquire experience and expertise
• De-bias judgments
• Warn about possibility of bias
• Describe the direction of the bias
• Provide feedback
• Training in decision making
• Learn to adjust intuitive estimates
• Expert systems

64
Attributes of a quality decision process

• Consideration of multiple alternatives
• Identification and discussion of merits and
  underlying assumptions (watch out for biases)
• Specifying desired outcomes prior to considering
  alternatives
• Debate and substantive conflict
• Perceptions of fairness participation

65
Exercise Global Decision-Making