This Document Contains Chapters 10 to 11 CHAPTER 10 COMMUNICATION SAMPLE ANSWERS TO DISCUSSION QUESTIONS 1. Using Exhibit 10-1 as a guide, describe a communication episode that you have observed in an organization. Who were the sender and receiver? Was the episode effective? Why or why not? Answer: A supervisor on the afternoon shift in a manufacturing plant detected low lubrication pressure on one of the mill’s units and shut it down. He encoded in writing the following message for the night supervisor: “Low pressure on unit 3.” He transmitted the message by leaving the note on the night supervisor’s desk. The night supervisor read the note and decoded “low pressure” to mean “low water pressure.” A mechanic was assigned to look for a water leak. An hour later, he reported that water pressure was normal. Then, the supervisor assumed that “low pressure” meant “low gas pressure.” Again, the mechanic proceeded to look for a gas leak to no avail. Finally, unit 3 was started up and its low lubrication pressure was discovered. Half the shift had been wasted on the problem. The sender was the afternoon supervisor and the receiver was the night supervisor. The episode was ineffective because the night supervisor received the wrong information. “Low pressure” was inadequately encoded, this led to decoding errors, and the right information was not received in a timely manner. 2. Debate: Since more and more global business is being conducted in English, North Americans will not have cross-cultural communication problems in the future. Answer: The statement assumes that language is the only source of communication problems across cultures. As noted in the text, a common language can facilitate communication, but it can also lull one party into thinking that it truly understands the other when, in fact, cultural differences remain. Cultures will still differ in matters of non-verbal style, social conventions, and accepted etiquette. Knowing the language does not guarantee that one will be sensitive to these matters. 3. Why is computer-mediated communication attractive? What are its problems? Answer: Computer-mediated communication is attractive as information can be shared by parties in different locations, thus saving time, money and travel needs. Computer-mediated communication also increases the capability of partners to generate ideas, as options can be communicated simultaneously. Furthermore, the facelessness of such methods can reduce inhibitions and stereotypes based on race, gender, or status. Finally, computer-mediated communication usually provides a means of storing exchanges for future consultation in the event of disagreement. Still, this type of communication is not without problems. First, computer-mediated communication is always lower in information richness than face-to-face communication, especially in the case of e-mail and chat. Using these methods, body language, tone, and other non-verbal cues are not available. The danger of misunderstanding becomes high when humour is attempted or metaphors are used. Furthermore, while distance and anonymity can reduce inhibitions, this can also lead to a deterioration of social conventions and politeness. In all, it is difficult to build trust through computer-mediated communication and face-to-face contact is preferable when sharing important news. 4. List six reasons why employees might respond with silence rather than voice to an organizational problem. Then, for each reason, explain how the organization could act to encourage voice. Answer: Following are reasons why employees might respond with silence and how the organization might encourage voice: Fear of retaliation: Install an ombudsperson; put in an ethics hotline Unsure I am correct, lack full knowledge: Create a culture in which failure and honest mistakes are not punished Assume someone else will speak up: Emphasize a culture of personal responsibility in which people feel comfortable “standing out in a crowd.” Status differences (e.g., nurse won’t contradict doctor): Stress a team approach to decision making and problem solving that encourages all parties to contribute 5. Discuss the pros and cons of the existence of the grapevine in organizations. Suppose an organization wanted to “kill” the grapevine. How easy do you think this would be? Answer: Pros: The grapevine can serve as a satisfying social diversion for workers and an informal means for managers to try out ideas for change without making formal commitments. In addition, the grapevine can carry non-controversial information accurately and thus serve as a means of keeping employees informed. Cons: The accuracy of the grapevine deteriorates rapidly when it carries controversial information, and grapevines frequently become pipelines for inaccurate rumors. Participation in the grapevine may distract employee effort and cause undue distress when grapevine information is threatening but inaccurate. It is difficult to “kill” the grapevine because of the human need for interaction and communication. However, good formal systems of communication may defuse the grapevine’s tendency to carry critical but inaccurate information. 6. Discuss a case in which you heard one message communicated verbally and “saw” another transmitted non-verbally. What was the content of each message? Which one did you believe? Answer: A manager proclaimed that he had an open door policy and that employees could see him “anytime about anything.” When an employee came to the office to discuss a sales problem, the manager stated he would be happy to talk about it. However, the manager seldom looked directly at the employee; rather, he stared out the window or stole glances at the papers on his desk during the discussion. In addition, he repeatedly drummed his fingers on the arm of his chair. The verbal message was “I’m glad to talk to you.” The non-verbal message was “You’re wasting my time” or “I’m not interested.” When verbal and non-verbal messages are contradictory, we tend to place more faith in the non-verbal message. 7. Under what conditions might body language or clothing have a strong communicative effect? When might the effect be weaker? Answer: Body language and clothing have the strongest impact when other cues to the target are weak, or nonexistent, or when a receiver expects that verbal cues or credentials are suspect. Meeting a new acquaintance, interviewing a job applicant, and similar circumstances meet these criteria. As a receiver has an opportunity to gain additional knowledge about the qualities of a target, body language and especially clothing style may have less impact. 8. Debate: As more women move into management positions in organizations, the gender differences in communication between men and women will eventually disappear and so will communication problems. Answer: This statement assumes that gender differences between men and women will eventually disappear just by virtue of the fact that there are more women in management positions. This is probably not likely for a number of reasons. First, the gender differences in communication have their origin childhood. Thus, men and women’s communication styles and rituals are not likely to easily change, at least not without considerable time and effort. Second, many people are not even aware of gender differences in communication. As a result, they are not likely to change the way they communicate. Third, gender differences in communication seem to persist and continue in the workplace. One interesting take on this issue is that women who are hired or promoted into management positions might be successful in part because they have learned some of the typical styles and rituals of male communication. This is interesting because on the one hand, it does suggest that the differences might diminish, but on the other hand, it also means that the style and rituals of male communication are perpetuated at the managerial level. At the same time, men are not learning the typical style and rituals of female communication. Ultimately, one would expect that men and women will learn something about each other’s style of communication and will adopt whatever is required to be effective. However, this is probably not going to happen quickly and communication problems that stem from gender differences in communication are likely to continue. SAMPLE ANSWERS TO INTEGRATIVE DISCUSSION QUESTIONS 1. What role do perceptions play in gender differences in communication? Refer to the perceptual system in Chapter 3 and use its components to explain how differences in communication styles between men and women can result in misunderstandings and inaccurate perceptions. What effect might these misunderstandings and inaccurate perceptions have on gender stereotypes? Answer: Perceptions play an important role in gender differences in communication. In terms of the components of the perceptual system, one’s perception is based in part on the perceiver’s experience as well as the ambiguity of the target. With this in mind, consider what happens when males and females in the workplace first encounter each other. Based on their experiences in communication styles and rituals, they are likely to perceive each other differently. For example, consider the perception that a female will have when she encounters a male who is boastful, not apologetic, highly critical, not very complimentary, challenges others in public and is combative and argumentative, and is very direct. While these are typical styles of male communication, a female is likely to develop a negative perception of such a person, one that is probably consistent with a male stereotype. Now consider the perception that a male might have of a female who is indirect, downplays her achievements, asks many questions, and apologizes very often. He is likely to perceive her as not very confident and unsure of herself. Again, a negative perception. Furthermore, given the nature of gender stereotypes, this perception is likely to confirm to the stereotype of women which tends not to correspond with the stereotype of successful managers. Thus, differences in communication styles between men and women are likely to result in misunderstandings and inaccurate perceptions which might perpetuate gender stereotypes. 2. How does a manager’s leadership style affect manager-employee communication? Refer to the theories of leadership described in Chapter 9 (e.g., ethical and authentic leadership, leadership traits, behaviours, situational theories, participative leadership, and LMX theory) and explain their implications for effective manager-employee communication. Answer: Manager-employee communication involves the one-to-one exchange of information between a boss and an employee. It represents a key element of upward and downward communication. Such exchanges enable managers to instruct employees in task performance, clarify reward contingencies, and provide social-emotional support. It should also permit the employee to ask questions about his or her work role and to make suggestions that might further the goals of the organization. However, the nature of manager-employee communication is likely to be affected by leadership style and behaviour. For example, directive leaders are likely to use more downward communication and to instruct employees in task performance and clarify reward contingencies. This is what Path-Goal theory would predict a good directive leader should do and is also consistent with transactional leadership. The communication of supportive and participative leaders might be more effective because they are likely to use both upward and downward communication. Upward communication is particularly relevant for a participative leader, and communication that provides social-emotional support is most relevant for a supportive or considerate leader. LMX leaders would also be expected to use upward and downward communication and to provide social-emotional support. Ethical leadership involves the demonstration of normatively appropriate conduct (e.g., openness and honesty) through personal actions and interpersonal relationships, and the promotion of such conduct to followers through two-way communication, reinforcement, and decision making. Thus, ethical leaders would use upward and downward communication and focus on task performance as it pertains to ethical behaviour. Authentic leadership is a positive form of leadership that involves being true to oneself. Authentic leaders know and act upon their true values, beliefs, and strengths and they help others do the same. Their conduct and behaviour is guided by their internal values. Authentic leaders would probably use both downward and upward communication and provide social-emotional support. It is also likely that the traits and personality of the leader will also influence the nature of manager-employee communication. For example, leaders who are high on dominance might rely more on downward than upward communication. Thus, the nature and effectiveness of manager-employee communication is likely to be partly a function of the leader’s traits, style, and behaviour. SAMPLE ANSWER TO ON-THE-JOB CHALLENGE QUESTION: CAROL BARTZ AND YAHOO! Was it appropriate to fire Carol Bartz via a telephone call? Why or why not? Would a profane communication style be more likely to damage the reputation of a male or female CEO, and why? Do expectations play a role? Answer: Such “telephone firing” is not unheard of in the business world, but this is surely a non-routine event that would suggest the richer face-to-face communication medium. Students might differ in their assessment of this, and you might steer the discussion to their general views about the use of various media (texting, Facebook, etc.) to convey information of varying sensitivity. Bartz’s profane and confrontational communication style violates a gender stereotype that swearing is for men, and women are supposed to express themselves in a more measured manner. Women routinely pay a price for violating such gender stereotypes. Thus, gendered expectations are critical here. EXTRA ESSAY QUESTIONS 1. What is the communication process? Answer: The communication process involves a sequence of steps that enable the exchange of information between individuals or groups. It typically includes: 1. Sender: The person who initiates the message. 2. Encoding: The process of converting thoughts into a communicable form (e.g., words, symbols). 3. Message: The content of the communication. 4. Channel: The medium through which the message is transmitted (e.g., email, face-to-face). 5. Receiver: The person who receives the message. 6. Decoding: The process of interpreting and understanding the message. 7. Feedback: The receiver’s response to the message, which helps the sender gauge the effectiveness of the communication. 8. Noise: Any external factors that may distort or interfere with the message (e.g., distractions, misunderstandings). 2. Compare all-channel communication to the chain of command. Why are they extreme forms of organizational communication? Answer:• All-Channel Communication: In this model, every member of the group can communicate directly with every other member. It fosters high levels of interaction and information flow, leading to rapid feedback and collaborative problem-solving. This approach is typically used in teams or groups where collaboration and brainstorming are essential. • Chain of Command: This model follows a hierarchical structure where communication flows from the top down or bottom up through a defined hierarchy. It ensures that communication is controlled and directed, which can be beneficial for maintaining order and clarity but may slow down information flow and feedback. Extreme Forms: These are considered extreme because they represent two opposite ends of the communication spectrum. All-channel communication is highly decentralized and informal, promoting openness and rapid exchange of ideas. In contrast, the chain of command is highly centralized and formal, emphasizing structure and control over communication flow. 3. What is voice and why should organizations encourage it? Answer: • Voice: Voice refers to employees' ability to express their opinions, concerns, and ideas regarding their work and the organization. It involves actively participating in decision-making processes and providing feedback. • Importance: Organizations should encourage voice because it can lead to increased employee engagement, improved job satisfaction, and better organizational performance. When employees feel heard, they are more likely to contribute innovative ideas, address issues proactively, and remain committed to their roles. 4. Who is inclined to exercise voice and when? Answer: • Inclined Individuals: Employees who feel safe, valued, and confident in their environment are more likely to exercise voice. This includes those with a high level of job satisfaction, a sense of belonging, and trust in the leadership. • Timing: Individuals are more likely to exercise voice when they perceive that their feedback will be considered and acted upon, when there are clear channels for communication, and when they are motivated to address specific issues or contribute to improvements. 5. What is the grapevine? Of what value is it to the organization? What are the pros and cons? Answer: • Grapevine: The grapevine refers to the informal and unofficial communication network within an organization. It includes rumors, gossip, and casual conversations among employees. • Value: • Pros: It can facilitate the rapid dissemination of information, foster social bonds, and provide insights into employee morale and perceptions. • Cons: It can lead to misinformation, spread rumors, and create confusion or anxiety if not managed properly. 6. Discuss the following statement: Non-verbal communication is more effective than verbal communication. Answer:• Non-Verbal Communication: Non-verbal communication includes body language, facial expressions, gestures, and tone of voice. It often conveys more emotional and contextual information than verbal communication alone. • Effectiveness: Non-verbal communication can enhance or contradict verbal messages, making it a powerful tool in conveying emotions and intentions. However, its effectiveness depends on context and clarity. In some cases, verbal communication is essential for providing precise information and instructions. Thus, both verbal and non-verbal communication are important and complementary in effective communication. 7. What are the factors that contribute to communication problems between males and females? Answer: • Differences in Communication Styles: Males and females may use different communication styles—males might focus more on assertiveness and status, while females might emphasize connection and empathy. • Perceptions and Expectations: Stereotypes and societal expectations can influence how messages are perceived and interpreted. • Context and Content: Differences in how topics are approached and discussed can lead to misunderstandings. 8. How can organizations improve communication? Answer: • Training: Provide communication skills training for employees at all levels. • Clear Channels: Establish clear communication channels and protocols. • Feedback Mechanisms: Implement regular feedback systems to ensure messages are understood and issues are addressed. • Open Culture: Foster a culture of openness where employees feel comfortable sharing ideas and concerns. 9. How can individuals improve communication? Answer: • Active Listening: Focus on listening and understanding others before responding. • Clarity: Be clear and concise in conveying messages. • Feedback: Seek and provide constructive feedback to improve communication effectiveness. • Adaptability: Adjust communication styles based on the audience and context. 10. What are the dimensions of cross-cultural communication and how does it influence the effectiveness of cross-cultural communication? Answer: • Dimensions: • Cultural Values: Differences in values such as individualism vs. collectivism, power distance, and uncertainty avoidance. • Communication Styles: High-context vs. low-context communication and varying approaches to directness and formality. • Non-Verbal Cues: Variations in body language, facial expressions, and gestures. • Influence: Understanding these dimensions helps in adapting communication strategies to respect cultural differences, reduce misunderstandings, and improve the effectiveness of interactions across cultures. 11. What is computer-mediated communication and how does it compare to other forms of communication media? Answer: • Computer-Mediated Communication (CMC): CMC refers to any human communication that occurs through the use of computers or digital devices. This includes emails, instant messaging, and video conferencing. • Comparison: • Advantages: CMC allows for asynchronous communication, broad reach, and convenience. It can also provide a record of communication. • Disadvantages: It may lack non-verbal cues, leading to potential misunderstandings, and can sometimes be less personal compared to face-to-face interactions. 12. How can an organization create a positive climate for voice and what impact does it have on employees? Answer: • Creating a Positive Climate: • Encourage Open Dialogue: Promote an environment where employees feel safe to share their ideas and concerns. • Provide Channels: Establish formal and informal channels for feedback and communication. • Recognize and Act: Act on employee feedback and recognize contributions to show that their voice matters. • Impact: A positive climate for voice leads to higher employee engagement, increased trust in management, and more innovative solutions, as employees feel valued and empowered to contribute. TEACHING NOTES FOR COMMUNICATION TECHNOLOGY AND MEDIA DILEMMAS EXPERIENTIAL EXERCISE The exercise can be conducted in several ways. Students can independently prepare their reflections on the scenarios for class discussion. Alternatively, learning teams can discuss one or more scenarios and report their reflections to the class. Finally, the instructor might organize a debate around each scenario. When discussing the scenarios, be sure to have students describe how they would feel if they were the employee in each scenario and and how they would feel if they were the manager. The scenarios demonstrate some of the problems and conflicts that result from the various forms of advanced communication technology and associated media today. Make sure students identify these problems such as blurring the distinction between the work and non-work domains; communication contradictions—Facebook postings could be grounds for firing, but the medium can also facilitate work-related communication; and much contemporary communication occurs in a context in which one is not sure just who the receiver might be. TEACHING NOTES FOR EMAIL MADNESS CASE INCIDENT 1. Communication problems can occur in any medium, but what particular problems with email are apparent in this incident? Answer: Email does not allow for body language and it does not accommodate synchronous exchange. Face-to-face, Carol would have immediately exhibited a negative reaction, Anastasia would have burst out laughing, and the whole incident would have been over immediately. With email, additional cues that this was humour are missing, and the delay factor only gives Carol time to ruminate and compose a “flaming” response. As noted below, email is not the best medium for humour. 2. What are some informal “rules” about using email that might avoid the problems illustrated in incidents of this nature? Answer: a) Avoid email humour except with close friends; humour does not translate well electronically, and people differ in their overall sense of humour and what they deem funny; b) don’t be so hasty to respond to emails that you fail to reflect on the message the sender intended; c) explain yourself fully in email; missing information is easily supplied face-to-face but it can be critical in the misinterpretation of email; d) guard against the tendency to “flame” and make extreme statements when using email; e) use a richer communication medium for more important messages. TEACHING NOTES FOR THE FACEBOOK CASE STUDY This case is likely to resonate with students given that most of them will be using social network sites and an increasing number of organizations are finding information on the web about job applicants and employees. In addition to the issues that pertain to communication, this case has implications for privacy and ethics. At some point it might be interesting to ask students to take the perspective of the job applicant versus the organization. Some students might see the use of information from social network sites such as Facebook by organizations as an invasion of privacy. Organizations might just see it as a background check of a job applicant that is part of the hiring process. While this is likely to spark some interesting discussion, don’t lose sight of the fact that the focus of the chapter is communication and in particular, effective communication. 1. Discuss how the web and new media such as Facebook have (a) aided, and (b) complicated organizational communication. Be sure to consider the implications of sending a message when you do not know who the receiver might be. Answer: Effective communication occurs when the right people receive the right information in a timely manner. Violating any of these three conditions results in a communication episode that is ineffective. One of the real advantages of the web and new media such as Facebook is the speed with which communications can occur. In fact, with the web communications can reach unlimited numbers of receivers instantly. Thus, the timely condition is greatly enhanced. However, the other two conditions can make communications more complicated because the right people might not be receiving the communication and/or they might not be receiving the right information. Thus, the web and new media such as Facebook can result in more effective or ineffective communication. Such communication is also more complicated because one communicator might be sending a message to hundreds or thousands of people rather than a simple one-on-one exchange between two individuals. As a result, each receiver might perceive the message differently which might result in different understandings (and misunderstanding) of the message which will vary in accuracy. Further, not all senders will provide the sender with feedback. Such communication episodes can be much more complicated as the unlimited number of receivers of a message might differ in how they decode a message. This is especially likely to be a problem when the message is ambiguous or emotional. Finally, if you do not know who the receiver will be then you cannot be sure how the message will be perceived, decoded, and understood which means that there is a greater chance for inaccuracy and misunderstanding not to mention the greater likelihood that the right people do not receive the right information. 2. Suppose that Miranda had just heard a rumour about Rick’s activities as opposed to seeing them on Facebook. Would her reaction have been the same? Incorporate the concept of media richness in framing your answer. Answer: A rumour is an unverified belief that is in general circulation. Although it is possible for a rumour to be true, it is not likely to remain true as it runs through the grapevine. Further, because people can’t verify the information as accurate, rumours are susceptible to severe distortion as they are passed from person to person. Thus, if Miranda had heard a rumour about Rick’s activities, she might have reacted differently perhaps with some doubt regarding the accuracy or truthfulness of the events. Information richness refers to the potential carrying capacity of a communication medium and involves the degree to which information is synchronous between senders and receivers, and the extent to which both parties can receive non-verbal and paraverbal cues. Highly synchronous communication such as face-to-face speech is two-way in real time. Face-to-face interaction is also high in non-verbal and paraverbal cues. Thus, the Facebook communication would rate very low in media richness. A rumour would be much higher in richness to the extent that it is communicated face-to-face in which case it would be high on nonverbal and paraverbal cues and high on synchronization. Facebook is also an example of computer-mediated communication because it uses computer technology for information exchange. Miranda probably would have reacted differently if the information about Rick’s activities had come from richer media. As it is, the Facebook information is low on richness and it is one-way which means that it is completely open to interpretation and Miranda has obviously interpreted the photos in a very negative way having described them as “disturbing.” 3. Do the prominence of Rick on the web and relative absence of Deborah reflect gender differences in communication? Answer: Miranda’s search for information on the web about Rick and Deborah revealed plenty of information about Rick but very little about Deborah. Further, the information about Rick is both positive and work-related (e.g., involved in non-profit work, won a number of community service awards) and more personal and less flattering (pictures with fraternity brothers drinking and smoking). These differences can be due to gender differences in communication as men are more likely to blow their horn about things they have done (getting credit) and to be more boastful about themselves and their capabilities (confidence and boasting). Thus, the greater prominence of Rick on the web and the relative absence of Deborah might very well reflect gender differences in communication. 4. What should Miranda do? Answer: Students are likely to have different opinions about this and it is likely to result in some lively discussion. Some will probably see the photos in a negative way and suggest that Miranda not hire Rick. Others will note that the lack of context means that one can’t really properly interpret the photos. For example, perhaps it was an end of the school year party and shows a rare celebration in which Rick attends a party with his frat buddies and has a few drinks. Further, some may note that photos of a student having a few drinks at a party does not indicate anything particularly bad about a person or that they will not be fit for a job, especially when there is so much positive information about Rick’s qualifications for the job. It might a good idea to list the various options regarding what Miranda can or should do at this point which is essentially to hire Rick, hire Deborah, or try to find out more about Rick. Ask students to indicate which of these courses of action they recommend and why. You might also consider what other information Miranda might try to obtain about Rick and from where. The issue at this point is what should Miranda do with this information about Rick and the fact that some of this information is completely open to interpretation and could result in misunderstanding. You might ask students if they think that Miranda should meet with Rick to discuss the information that she has obtained from the web and give him a chance to explain it to her. This of course is another option for her and it would certainly improve the richness of this communication. Ask students what they think of this and why she should or should meet with Rick to discuss all of the web information including the photos. Miranda should: 1. Review Privacy Settings: Adjust her social media privacy settings to control what information is visible to the public and potential employers. 2. Audit Content: Regularly review and curate her social media profiles to ensure they reflect her professional image and values. 3. Be Transparent: If concerned about her online presence, consider addressing it proactively in job interviews or applications. 4. Seek Professional Advice: Consult with career advisors or legal experts to understand her rights and best practices. 5. Communicate Clearly: Ensure that her online persona aligns with her professional goals and the impression she wants to convey. 5. Was it ethical for Miranda to avail herself of these indirect, web-based sources of communication to find out about the job applicants? Answer: Students are likely to differ on their answer to this question with some saying that it was wrong of Miranda to search for this information while others will say that if the information is out there and available then it is there for anybody to find it. Others might take an even harder line and argue that Miranda has an obligation to do as much research as possible about job applicants and to obtain the information needed to make a good hiring decision. In answering this question, you might want to refer students to the definition of ethics in Chapter 12 (page 437) where it states: Systematic thinking about the moral consequences of decisions - moral consequences can be framed in terms of the potential for harm to any stakeholders in the decision. Students might first see the potential for harm to job applicants. However, if Miranda only found the information about Rick’s non-profit work and community service awards then her reaction would have been very different and Rick might have been hired. It might be interesting to ask students who view Miranda’s actions as unethical if they would still find it unethical if in fact she only obtained the positive information about his non-profit work and awards. Do the photos on his Facebook page make it unethical? In other words, do students only see her actions as unethical because of the nature of the information she obtained from the Facebook photos? Others might see the potential for harm if she had not availed herself to the information. If Rick is unfit for the job and Miranda did recommend him for the job then there is the potential for harm to the organization and its clients. However, the other issue here is that the information that Miranda obtained is available in the public domain and she obtained it through appropriate means even though she does not feel comfortable about it and it was not given to her by Rick. Nonetheless, Miranda did not obtain information that was private or confidential nor did she obtain it through illegal or inappropriate means. Thus, by simply availing herself to information about job applicants that is in the public domain and available for anybody to see is itself not wrong. What might be questionable is the use of this information to make a hiring decision especially since such communication was not available for Deborah Jones and because Miranda has interpreted the pictures in a manner that might be inaccurate thereby unfairly painting a negative picture of Rick. It is important to point out that Miranda did also obtain positive communications about Rick on the web. So the question of ethics comes into play with regard to her interpretation and use of the information in a way that might be unfair to Rick. So the question can be reworded as, Was it ethical for Miranda to use these indirect, web-based sources of communication for making a hiring decision about job applicants? or Was it ethical for Miranda to use these indirect, web-based sources of communication to make a decision to not hire Rick Parsons? The ethics of Miranda using web-based sources to learn about job applicants depend on context. It’s generally considered ethical if: 1. Transparency: Miranda uses publicly available information and does not invade privacy or use deceptive means. 2. Relevance: The information gathered is relevant to the job and hiring process. 3. Consistency: The same approach is applied to all applicants to ensure fairness. However, if Miranda's methods breach privacy expectations or are inconsistent with organizational policies, it may be viewed as unethical. 6. If Miranda hires Deborah, should she explain to Rick the issue that damaged his chances? Why or why not? Answer: Students are also likely to differ on this issue. Some will argue that Rick should be told about this as it is only fair that he understand why he was not hired and that he should have a chance to explain himself – this would certainly improve the communication with respect to the web photos of him on Facebook. On the other hand, some might be concerned that Rick will get upset upon hearing about this and argue that he has been unfairly treated because the pictures do not speak to his ability to do the job. He might also complain that Miranda has invaded his privacy by viewing photos on his Facebook page, something that she is clearly uncomfortable and uneasy about. Clearly, in terms of improving the communication episode with regard to the web photos, a face-to-face discussion would improve the information richness of this communication and would make the communication more effective. Some might even argue that Miranda should have done this before making a decision. That is, she should have told Rick that she has searched the Web for information about the applicants and then inform him of all the information found about him. She could then ask him about the photos and give him a chance to explain himself. This would certainly improve the communication and Miranda might have a better interpretation and understanding of the photos. At any rate, students should be asked to explain why Miranda should or should not tell Rick about the issue that damaged his chances and they should also consider the relevance of information richness and effective communication. Miranda should not necessarily explain to Rick the specific issue that damaged his chances, as it may lead to potential legal and ethical concerns. The reasons include: 1. Privacy: Providing detailed feedback could breach Rick's privacy and lead to discomfort or legal issues. 2. Legal Risk: Disclosing specific reasons may expose Miranda or the organization to legal challenges or claims of discrimination. 3. Professionalism: Constructive feedback should be handled sensitively and professionally, ideally in a more general context rather than focusing on individual shortcomings. It’s often better to provide general feedback or areas for improvement if feedback is part of organizational policy and handled in a formal, supportive manner. 7. If Miranda does tell Rick, how should she do so? In answering, consider the chapter sections Basic Principles of Effective Communication and Provision of Explanations. If Miranda does tell Rick, then she should follow all of the basic principles of effective face-to-face communication: Answer: Take the Time. Good communication takes time and Miranda should devote extra effort to explain the issue to Rick and she should do so face-to-face rather than an impersonal email. Be Accepting of the Other Person. This means that Miranda should be accepting of Rick as an individual who has the right to have feelings and perceptions that may differ from Miranda’s. Miranda should give Rick a chance to express his feelings and perceptions. Don’t Confuse the Person with the Problem. Miranda should focus on the photos/behaviours at tissue rather than attributing motives to Rick. She should be descriptive rather than evaluative. Say What You Feel. Miranda should ensure that her words, thoughts, feelings, and actions exhibit congruence so that they all contain the same message. Listen Actively. Miranda should listen to what Rick has to say about the issue by employing active listening techniques. In particular, Miranda should: • Watch her body language • Paraphrase what Rick means • Show empathy • Ask questions • Wait out pauses Give Timely and Specific Feedback. Miranda should provide Rick with feedback as soon as possible and she should be explicit about the reasons why he is not being hired. Finally, as indicated in the section on provision of explanations, Miranda should also focus on the adequacy of her explanation and the style with which she delivers it. To provide an adequate explanation about why Rick was not hired, she should be specific and detailed with regard to the information she obtained from his Facebook page and her conclusion that Rick would not fit in with the professional work environment at the company and of the team in particular. In delivering the message, she should be truthful, sincere, respectful, and sensitive. These two factors are critical to the perceived fairness of the decision and Rick’s perception of fairness is clearly an issue in the decision not to him. CHAPTER 11 DECISION MAKING SAMPLE ANSWERS TO DISCUSSION QUESTIONS 1. The director of an urban hospital feels that there is a turnover problem among the hospital’s nurses. About 25 percent of the staff resigns each year, leading to high replacement costs and disruption of services. Use the decision model in Exhibit 11.1 to explore how the director might proceed to solve this problem. Discuss probable bounds to the rationality of the director’s decision. Answer: The director has already identified a problem, which is the first step in the model. A gap exists between the actual turnover rate and the desired turnover rate. The search for relevant information involves a search both for the causes of the turnover and the potential range of solutions. At this phase, the director might contact an expert on turnover at a local university, interview nursing supervisors, try to obtain comparable data from other hospitals, and so on. He or she might conduct an attitude survey of nurses in order to determine if particular areas of dissatisfaction are a probable cause of turnover. Alternative solutions must be relevant to these causes and might involve job redesign, supervisor training, or a pay increase. The evaluation and choice of a solution to implement will factor in both costs and probability of success. After the solution is implemented, turnover would be monitored in order to see if the intervention solved the problem. Bounds to the rationality of the director’s decision may include time pressures, political pressures, the tendency to adopt a “solution” with inadequate analysis, the tendency to blame others if the solution does not work, and so forth. 2. Describe a decision-making episode (in school, work, or personal life) in which you experienced information overload. How did you respond to this overload? Did it affect the quality of your decision? Answer: Jack Carson was assigned by his boss, the corporate human resource director, to develop a supervisor training manual for the firm’s incoming supervisors. Although Carson was an experienced trainer, he had never before prepared such a manual. He took to the job with relish. First, he collected every existing training manual he could get his hands on. Although many of them were for purposes other than supervisor training, he felt he might get some valuable ideas from them. Then he visited a local university library where he collected as many books and journal articles about training as he could find. “No sense in not making this a state-of-the-art job,” he thought. Then Carson interviewed all of the firm’s trainers and a number of supervisors who had recently undergone the current training program. Finally, Carson interviewed two professors at the university who were experts in training. When it was time to decide what to include in the manual, Carson experienced overload. He responded by trying to incorporate everything he had learned into the manual. The result was a bulky, confusing document that supervisors found very difficult to master. Information overload had damaged his decision-making capability. 3. Many universities must register thousands of students for courses each semester. Is this a well-structured problem or an ill-structured problem? Does it require programmed decisions or non-programmed decisions? Elaborate. Answer: This is a well-structured problem because the existing state, the desired state, and how to get from one state to the other are fairly clear. The desired state is to get X students into Y courses with minimum hassle and confusion. This can be accomplished with programmed decision making. For example, experience and trends over the years provide departments with rules of thumb (programs) about how many courses of what sort will be required in a given semester. In turn, registration personnel adopt routine programs to tell them how big a given class should be and what to do when the class is filled to capacity. Programs are used quite literally, as many course registration systems are highly computerized nowadays. Of course, unanticipated enrollment levels for some courses may require creative, non-programmed decision making. 4. An auditing team fails to detect a case of embezzlement that has gone on for several months at a bank. How might team members use hindsight to justify their faulty decisions? Answer: Team members might tell themselves that they “knew all along” (the knew-it-all-along effect) that something was wrong, but they just weren’t able to isolate the problem. Also, they might reject responsibility for the oversight, claiming that the bank manager was at fault or that the embezzler was especially clever and devious. These hindsight responses do not totally justify faulty decisions, but they do make the team feel less culpable. 5. A very cohesive planning group for a major oil company is about to develop a long-range strategic plan. The head of the unit is aware of the groupthink problem and wishes to prevent it. What steps should she take? Answer: Because of her high status in the group, the head should avoid making her own ideas and positions clear early in the series of planning meetings. This will prevent the group from rallying around them to the exclusion of other ideas. Also, during discussion, the head of the group should occasionally leave the meeting room so that members feel free to bring up contrary views. Care should be taken to ensure that all group members get their say, and devil’s advocates should be appointed to critique the group’s current position. Outside sources of information with contrary views should be given an impartial hearing, since the group will have an automatic tendency to discount these views. 6. Discuss the implications of diffusion of responsibility, risky shift, and conservative shift for the members of a parole board. Also, consider the role of emotion and mood. Answer: Diffusion of responsibility means that group members feel less personally responsible for the consequences of a decision than they would if they had made the decision individually. This may be good or bad for a parole board. Diffusion is beneficial if it gives the board the courage to stick to its guns and act the way it truly believes is right. However, it may also cause the board to work less conscientiously, since the blame for incorrect decisions can be shared by others. A risky shift means that the board would make riskier decisions than its individual members, perhaps granting parole to dangerous prisoners. A conservative shift means that the board would make more conservative decisions than its individual members, perhaps failing to grant parole to a very eligible inmate. Research indicates that risky individual positions lead to risky shifts after discussion. Conservative individual positions lead to conservative shifts. Both kinds of shifts may or may not result in poor quality decisions. If they represent a sensible sharing of information, such shifts may improve decision quality. Emotions and mood would also surely play into a parole board’s ruling. If a potential parolee’s crime was particularly gruesome, emotional reactions would certainly colour the board’s decisions. Pleas from the potential parolee or from victims would also represent factors in a board’s decision that are more emotional than rational. Keep in mind that these emotional aspects may lead to sounder decisions and should not necessarily be viewed as dysfunctional. On the other hand, the mood of board members could lead to poor decisions. To the extent that mood on the parole board could become contagious among members, positive mood could lead to unwarranted leniency while negative mood could lead to unfair harshness. 7. Discuss how the concepts of groupthink and escalation of commitment might be related to some cases of unethical decision making (and its cover-up) in business. Answer: By definition, one component of the groupthink syndrome can be lax moral judgment. This laxity occurs when the groupthink process inhibits the group from systematically discussing (if not thinking about) the moral consequences of its decisions --who are the stakeholders here, and how will they be affected? Paradoxically, the group can come to believe that it is acting morally (“illusion of morality”). Self-censorship and mindguards will contribute to the illusion that these views are unanimously held. Escalation of commitment involves the over-expenditure of resources in a failing course of action. Some examples of unethical behaviour involve foolish attempts to recoup sunk costs (e.g., to “earn back” money “borrowed” from an account). Others might involve foolish attempts to protect one’s own ego by trying to show at any cost that past decisions were correct. “Any cost” implies that others might be hurt by this decision strategy. 8. What are the similarities and differences of the nominal group technique and the Delphi technique? What are their comparative advantages and disadvantages? Answer: Similarities: Both divide the decision making process into two or more stages; both gather some information from individuals who do not interact with each other; both become more structured as they progress; both rely on members’ writing skills; both attempt to prevent conformity. Differences: Delphi members never interact face-to-face, while NGT members do; Delphi uses waves of questionnaires, while NGT does not. Comparative advantages: NGT seems to make the best compromise between reducing conformity (in the nominal idea generation stage) and invoking the synergy of group interaction (in the face-to-face idea evaluation stage). However, it does require that members be assembled in one location. Delphi allows ideas to be gathered from a larger number of experts who need not be assembled in one location, and it is essentially conformity-proof. However, the questionnaire stages take a long time to complete. SAMPLE ANSWERS TO INTEGRATIVE DISCUSSION QUESTIONS 1. Consider the role of communication in decision making. Explain how various communication problems can affect decision making in organizations. How can personal and organizational approaches for improving communication improve decision making? Answer: Communication is important for decision making. Effective communication requires that the right people receive the right information in a timely manner. Decision making requires information at every stage: problem identification, information search, development of alternatives, evaluation of alternatives, solution choice, solution implementation, and solution evaluation. If decision makers do not receive the information required at each stage, decision making will suffer. Thus, communication problems can lead to low quality decision making. Some of the communication problems that can limit or restrict information needed for decision making are filtering, silence, and the mum effect. With filtering, a message is watered down or stopped during transmission. Filtering can preclude the right people getting the right information, and so the decision making process will suffer. Silence means that relevant information is being withheld and if this is information is important for a decision then the decision making process will suffer. Information required to make a decision might be withheld as a result of the mum effect. Because of status differences or time constraints, decision makers might not obtain important information from employees or other members of the organization. These communication problems could result in problems at each stage of decision making. For example, some alternatives might not be considered; the evaluation of some alternatives might be flawed; and solution choice and evaluation might be based on limited or inaccurate information. Therefore, effective decision making depends on effective communication. Personal approaches to improve communication (take the time; be accepting of others; do not confuse the person with the problem; say what you feel; listen actively; and give timely and specific feedback) and organizational approaches (360-degree feedback, employee surveys and feedback, suggestion and query systems, telephone hotlines, intranets, and webcasts, and management training) can be used to ensure that decision makers receive the information they need to make better and more informed decisions. 2. Does group structure influence group decision making? Explain how each of the following structural characteristics might influence group decision quality, acceptance and commitment, and diffusion of responsibility: group size, diversity, norms, roles, status, and cohesiveness. Answer: Although group decision making is discussed in this chapter, the effect of group characteristics on decision outcomes was not discussed. Thus, it is interesting to consider how the group structural characteristics discussed in Chapter 7 might be related to decision outcomes. Following is a consideration of these relationships: Group size. As group size increases, groups tend to be less cohesive and less effective. There are also likely to be problems of communication and coordination along with process losses. As a result, smaller groups might make better decisions in terms of decision quality. An exception to this would be when larger groups produce better alternatives. However, decision acceptance and commitment will probably be greater in smaller groups while diffusion of responsibility would be more likely in large groups. Group diversity. To the extent that diverse groups get along and contain a variety of expertise and views, more diverse groups should make higher quality decisions. However, to the extent that diverse groups have trouble developing and becoming cohesive, there might be problems in terms of acceptance and commitment to a decision. As well, members of diverse groups might be more likely to distance themselves from others which can result in more diffusion of responsibility. Group norms. Group norms might also influence decision outcomes. For example, groups with strong performance norms might be more likely to make high quality decisions. Strong norms in general are likely to result in acceptance and commitment of group decisions. Groups with weak norms that are not strongly enforced might be more susceptible to diffusion of responsibility. Roles. Roles can improve decision outcomes to the extent that group members perform a variety of roles that aid the decision making process. For example, if one group member has the role of devil’s advocate, the quality of decisions is likely to be high. If another group member has the role of meeting the social-emotional needs of group members, decision acceptance and commitment might be more likely. The lack of clearly defined roles might result in more diffusion of responsibility. Status. Large status differences could have a negative effect on decision outcomes. This is because high status people prefer to communicate with others of similar status. As a result, some group members might be inhibited from communicating upward. Furthermore, higher-status members do more talking and have more influence but are not necessarily the most knowledgeable about the problem at hand. As a result, the quality of decisions might suffer. In addition, group members with lower status might not accept or be committed to decisions. Large status differences might also lead to more diffusion of responsibility. Cohesiveness. Cohesiveness is likely to lead to better decision outcomes. This is because group members are more likely to participate in group activities, and cohesive groups tend to be successful at accomplishing their goals. Thus, the quality of decisions should be high. Member acceptance and commitment is also likely to be high because of strong conformity in cohesive groups. This should also curtail diffusion of responsibility. However, it is also possible that excessive conformity could result in groupthink and the acceptance of low quality decisions. SAMPLE ANSWER TO ON-THE-JOB CHALLENGE QUESTION: TORONTO RITZ-CARLTON NIXES POPPIES Imagine the decision process that underpins the Ritz-Carlton policy against wearing ribbons, pins, or badges on one’s uniform. What are some pros and some cons of such a policy? What does this story say about the role of rationality versus emotion in decision making? How do you account for the regularity with which managers reverse themselves on decisions like this? Answer: Virtually all organizations in the service industry have rules and policies about employee appearance. Thus, the Ritz’s policy is not unusual. Advantages of such a policy concerning ribbons, pins, badges, and the like include: presenting a consistent brand image; putting the focus on the customer, not the service provider; avoiding offending customers with what could be controversial statements or causes; not having to adjudicate what are acceptable versus unacceptable statements or causes, etc. Disadvantages include stifling self-expression; appearing petty; being misunderstood by the general public; etc. Managers apply a rational model when forming such policies. The recipients and external observers of such policies often apply emotional criteria when evaluating them. Managers seem to have a difficult time imagining how policy decisions that they view as being strictly internal to their organizations (and thus under their control) will be viewed by outsiders. These outsiders see a negative consequence but not the context (e.g., having to adjudicate among statements and causes) in which a rule was developed. EXTRA ESSAY QUESTIONS 1. Explain how the rational decision-making process works. Answer: The rational decision-making process involves a series of systematic steps to make optimal decisions. It typically includes: 1. Identifying the Problem: Clearly define the issue that requires a decision. 2. Gathering Information: Collect relevant data and information to understand the problem better. 3. Generating Alternatives: Develop a range of possible solutions or courses of action. 4. Evaluating Alternatives: Assess each alternative based on criteria such as feasibility, risks, and benefits. 5. Choosing the Best Alternative: Select the option that best addresses the problem and achieves desired outcomes. 6. Implementing the Decision: Execute the chosen alternative. 7. Monitoring and Reviewing: Evaluate the results of the decision and make adjustments as necessary. 2. Compare and contrast perfect rationality and bounded rationality. Answer: • Perfect Rationality: Assumes that decision-makers have complete information, unlimited cognitive capabilities, and can evaluate all possible alternatives to make the optimal decision. This is an idealized concept that is rarely achievable in practice. • Bounded Rationality: Recognizes the limitations of decision-makers in terms of information, cognitive capacity, and time. Decision-makers use heuristics and simplifying strategies to make satisfactory decisions rather than optimal ones. Bounded rationality reflects real-world decision-making more accurately. 3. What are sunk costs? How do they affect solution evaluation? Answer:• Sunk Costs: Costs that have already been incurred and cannot be recovered. Examples include investments made in a project or expenses already paid. • Effect on Evaluation: Sunk costs can lead to irrational decision-making, where decision-makers continue investing in a failing project due to the amount already invested, rather than focusing on future costs and benefits. This phenomenon is known as the "sunk cost fallacy." 4. What is hindsight? Cite two specific cases of hindsight. Answer: • Hindsight: The tendency to perceive events as having been predictable after they have occurred, leading to the belief that the outcome was obvious all along. • Cases: 1. Financial Crises: After a market crash, observers might claim that the warning signs were clear, despite the uncertainty before the event. 2. Product Failures: When a new product fails, people might argue that the failure was predictable due to known risks or flaws, even though these were not apparent at the time of the decision. 5. Compare and contrast programmed and non-programmed decision making. Answer: • Programmed Decision Making: Involves routine, repetitive decisions that can be handled by established procedures or rules. These decisions are often straightforward and involve less uncertainty. Examples include reordering supplies or handling routine customer service issues. • Non-Programmed Decision Making: Deals with unique, complex, or non-recurring problems that require custom solutions and creativity. These decisions are less structured and involve higher uncertainty. Examples include strategic planning or crisis management. 6. What are the advantages and disadvantages of group decision making? Answer: • Advantages: • Diverse Perspectives: Brings together various viewpoints and expertise. • Increased Creativity: Generates more ideas and solutions. • Shared Responsibility: Distributes the burden of decision-making among group members. • Disadvantages: • Potential for Conflict: Different opinions may lead to disagreements. • Time-Consuming: Decision-making can be slower due to the need for discussion and consensus. • Groupthink: Risk of conforming to group norms at the expense of critical thinking. 7. What can organizations do to improve the decision making of their members? Answer: • Provide Training: Offer decision-making and problem-solving skills training. • Foster Open Communication: Encourage open dialogue and information sharing. • Implement Decision-Making Frameworks: Use structured decision-making models and tools. • Encourage Diverse Perspectives: Include a range of viewpoints and expertise in the decision-making process. • Use Data and Analytics: Leverage data-driven insights to inform decisions. 8. How can emotion and mood affect decision making? Answer: • Emotion: Strong emotions can lead to biased decision-making, where decisions are influenced by feelings rather than objective criteria. For example, fear might lead to overly conservative choices, while excitement might result in riskier decisions. • Mood: General mood can affect decision-making by influencing overall outlook and judgment. Positive moods may lead to more optimistic decisions, while negative moods may result in more cautious or pessimistic choices. 9. What is groupthink and what can organizations do to prevent it? Answer: • Groupthink: A phenomenon where the desire for harmony and conformity in a group leads to poor decision-making, as dissenting opinions are suppressed and critical thinking is discouraged. • Prevention: • Encourage Open Discussion: Promote an environment where all opinions are valued and considered. • Assign a Devil’s Advocate: Designate someone to challenge ideas and assumptions. • Seek External Input: Consult outside experts or stakeholders for alternative perspectives. • Foster a Culture of Constructive Criticism: Encourage healthy debate and critical analysis. 10. How do groups handle risk? What is a risky shift? What is a conservative shift? Answer: • Group Risk Handling: Groups often handle risk differently than individuals, with collective decision-making processes leading to variations in risk tolerance. • Risky Shift: A tendency for groups to make riskier decisions than individuals would make alone. This occurs because individuals in a group may feel less personally responsible and more influenced by group dynamics. • Conservative Shift: Conversely, groups may sometimes make more cautious decisions than individuals, as the desire for consensus and fear of blame can lead to more conservative choices. TEACHING NOTES FOR THE NEW TRUCK DILEMMA EXPERIENTIAL EXERCISE This exercise is a revision of one of the late N R. F. Maier’s excellent research based role play exercises. The key revision is the conversion of an all male repair crew to a mixed-sex crew. These teaching notes also rely heavily upon Professor Maier’s work with the role play, originally published as The Case of The New Truck. The basic mechanics of the role play and the debriefing are provided in the text. You may wish to take some index cards to class that can be folded into triangular cross sectional name plates for student role names. Allow 25 to 30 minutes for interaction and 15 minutes for debriefing. Professor Maier noted that the essential problem in this exercise is one of fairness, since the worst truck (Charlie’s) is usually discarded. While the students are interacting, Maier recommends putting the following matrix on the board to summarize the results for each group. Use arrows to show whose truck went where. At the bottom of the matrix, note how many people get a different truck, who was dissatisfied, and whether or not the supervisor Chris Marshall was satisfied. Also note coin flips, promised repairs, and promises of future new trucks: Group Number 1 2 3 4 5 2 3 4 5 6 Terry T T T T T Sal S S S S S Jan J J J J J Sam S S S S S Charlie C C C C C Number of different trucks? Who was dissatisfied? Who was satisfied? Professor Maier found that an average of about three people got a different truck as a result of the interaction and that most of the crew and the supervisor were usually satisfied. As long as Charlie’s truck is junked, the resulting decision has high quality. Then the criterion for a good decision revolves around the satisfaction of the crew with the decision. Point out to students that this may be a difficult decision to program if new trucks don’t come up very often. A typical program might be to give the highest seniority person the new truck. If this is applied, Terry will get the new truck every time, a result that will probably provoke inequity. Proof of the difficulty of programming this decision is seen in the variety of different solutions that the groups provide. Also, note that Chris, in his or her “wisdom”, will never be able to satisfy the group with an autocratic decision. Chris literally lacks the information the group as a unit has. For example, he or she doesn’t know which truck is the worst. The satisfaction of the group is highly dependent on the process the group goes through in making its decision. If Chris draws out everyone and protects reticent members so that everyone gets his or her say, things usually go well. High levels of group dissatisfaction or failure to junk Charlie’s truck can usually be traced back to faulty group processes. It is highly instructive to take this problem through the Vroom and Jago leadership decision tree (Chapter 9) if you have covered this chapter earlier. It clearly prescribes a group or at least a highly consultative decision. Professor Maier notes that the following problems may be similar to the New truck Dilemma in terms of the fairness dimension: Parking allocation, overtime allocation, space assignments, vacation schedules, holiday coverage, location in new premises. These teaching notes draw in part on Maier, N. R. F., & McKay, E. P. (1973). Instructor’s Manual for Psychology in Industrial Organizations. Boston: Houghton Mifflin, pp. 16-17. TEACHING NOTES FOR THE RESTAURANT REVIEW CASE INCIDENT 1. What are some of the factors that might lead Christophe to make a poor decision about the review? Answer: Some of the cognitive biases associated with bounded rationality are factors that might lead Christophe to make a poor decision about the review. First, consider some of the difficulties in problem identification: Perceptual defence: The perceptual system often defends against unpleasant perceptions. Thus, Christopher might choose to downplay or ignore the negative things mentioned in the review and simply focus on the positive comments. This might result in posting only the positive things mentioned in the review. Problem defined in terms of functional specialty: Selective perception causes decision makers to view a problem as being in the domain of their own specialty, even when some other perspective might be warranted. Applying this to the case suggests that the focus of the problem might be the staff, the food, management, or perhaps something else not even mentioned in the review. How the problem is defined might impact the decision. Problem defined in terms of solution: This involves jumping to conclusions and short-circuiting the rational model. This might result in the writing of an angry letter to the paper’s editor without considering the other alternatives more carefully. Problem diagnosed in terms of symptoms: This might involve blaming the food critic and the newspaper rather than focusing on some of the problems mentioned in the review. For example, Christophe might conclude that the food critic is inexperienced, not familiar with Canjun food, or just wrong and unfair. In other words, the problem is the food critic not the restaurant. This might also result in the decision to write an angry letter to the editor. Finally, one of the most important factors to consider is the role of emotions. In this case, the review has invoked strong negative emotions which can be a hindrance to decision making as people experiencing strong emotions are often self-focused and distracted from the actual demands of the problem at hand. Excessive negatively can cause an immediate response and in this case, probably an angry letter to the editor. However, a negative mood can actually help people process information more carefully and effectively if the excesses of pessimism can be controlled. Thus, a negative mood can result in a more carefully thought out decision. 2. What would you do in this situation, and why? Answer: Students are likely to disagree on this. Some are likely to recommend not posting the review at all; others will say to post it and focus on the favourable things in the review; and some might say to write an angry letter to the editor. Have students consider the consequences of each alternative and to then evaluate them as per the rational decision making model. Writing an angry letter is not likely to result in a positive consequence and will not help the restaurant. Not posing the review might cause some people to wonder why it has not been posted given that the local custom is to post restaurant reviews prominently at the restaurant. And only posting the favourable excerpts from the review might be seen by some people as dishonest and misleading. Posting the entire review is probably the best thing to do and there is nothing wrong with highlighting the favourable excerpts so they stand out. Given that the negative things in the review are not horrible and there are positive things mentioned, posting the review might still lead to more customers. At the same time, Christopher might address the concerns in the review which are easy to correct. The staff who are described as “charming” are likely to become more professional as they acquire more experience. The menu can be revised and some less expensive wines from the “well chosen” wine list can be added. Finally, Christophe might also write a letter to the critic thanking him/her for the review, informing him/her of the changes being made, and then invite him/her for a free meal to witness the changes first-hand. In the Restaurant Review case incident, here’s a structured approach to handling the situation: 1. Assess the Situation: • Gather Information: Collect all relevant details about the incident, including customer complaints, the context of the review, and any other pertinent facts. • Understand Perspectives: Consider the viewpoints of all parties involved: the customer, the restaurant staff, and the management. 2. Analyze the Issue: • Evaluate the Review: Determine if the review was fair and accurate, and whether it reflects genuine issues with the restaurant’s service or food. • Identify Impact: Assess how the review has affected the restaurant’s reputation and customer perceptions. 3. Respond Appropriately: • If the Review is Justified: • Acknowledge Issues: Publicly acknowledge the problems mentioned in the review, apologize for any shortcomings, and outline steps being taken to address them. • Implement Improvements: Make necessary changes to improve the quality of service or food, and communicate these changes to customers. • If the Review is Unfair or Misleading: • Provide a Response: Politely and professionally address any inaccuracies in the review without being defensive. Offer to resolve any issues offline if possible. • Encourage Positive Reviews: Ask satisfied customers to leave positive reviews to balance the negative feedback. 4. Prevent Future Issues: • Enhance Training: Train staff to handle complaints and feedback constructively and to provide excellent service. • Monitor Feedback: Regularly monitor online reviews and customer feedback to quickly address potential issues. 5. Communicate Transparently: • Engage with Customers: Use social media and other channels to communicate openly with customers about changes and improvements. • Build Relationships: Foster positive relationships with customers to enhance their overall experience and loyalty. Rationale: • Maintaining Reputation: Addressing the review professionally helps maintain the restaurant’s reputation and demonstrates commitment to customer satisfaction. • Improving Operations: Implementing improvements based on feedback can lead to better service and prevent similar issues in the future. • Balancing Feedback: Responding to unfair reviews tactfully while encouraging positive feedback helps present a balanced view of the restaurant’s performance. This approach helps manage the immediate impact of the review while fostering long-term improvements and positive customer relationships. TEACHING NOTES FOR THE STANDARD MEDIA PLAN CASE STUDY 1. Given the formal definition of the word “problem” presented in the chapter, what is the problem faced by Bob Smith? Is the problem well-structured or ill-structured? Answer: Bob, a research analyst for a market research firm, is faced with the problem of compiling a media plan for an important client's potential new product. He is charged with creating the report and presenting the recommendations. The problem facing Bob is quite ill-structured. The solution to this problem will need to take into account specific and unique information about the product and the potential clientele. Furthermore, there are several potential methods of compiling relevant information including surveys and focus groups. The debate between Bob, Barry and Charles surrounding the potential sample for the survey clearly indicates that Bob could not rely on a programmed solution to this problem. In terms of what to actually recommend, there are a number of decision rules available to Bob. He favours the difference between the survey sample and the national sample for reasons that are somewhat unclear. He could have just as easily relied on the similarity of results between the two samples, selected the sample he deemed to be the most representative, or utilized some other criteria such as cost. In terms of his presentation, Bob clearly has a free reign in terms of what to include or not. Overall, the ill-structured nature of the problem facing Bob is a strong contributor to his high level of stress and doubt. 2. What are some of the bounds or limits on rationality that affect attempts to solve the problem Bob faces? What would a sastisficing solution be? Answer: In a perfect world, Bob would have all the information required to come up with the ideal media plan for Standard’s new product. Unfortunately, Bob is facing a number of constraints and cognitive biases that will all but negate the chance of coming to an “ideal” solution. First, he is working under a tight deadline and a limited budget. As such, his choice of information sources and data collecting processes are limited. Furthermore, he is constrained by the initial recommendation made by L&H to Standard (anchoring effect) and has framed the problem in a negative way by choosing to focus on the negative consequences of the different potential outcomes. He is also making a number of statistical fallacies (including misunderstandings about sample size representativeness) and basing his decisions on potentially invalid data. Due to justification biases, he is placing too much emphasis on the data he paid for consisting of full data for only three cities. In perceiving that the three-city data is representative and sufficient, Bob is clearly satisficing rather than maximizing. In this case, maximizing would have required insisting on a much bigger sample. In terms of the final decision, Bob is also clearly satisficing. Rather than presenting the best plan possible, Bob appears content to present a plan that will not be rejected by Standard and that will be consistent with Barry Michael's wishes. Overall, the criteria seem to be more focused on protecting Bob's job than arriving at an optimal plan. 3. Is Bob suffering from too little information or too much? Defend your answer. Answer: In this case, Bob seems to be suffering from too little information, or at least considering too little information. His primary information comes from survey questions that suffered from data collection problems and a very small sample of full responses. In fact, Bob is basing his entire decision on data from three cities. This is highly suspect as the comment by Charles Chastain clearly suggests that this product will be widely available, including in rural areas. In fact, Bob does not seem to take full advantage of the national data, although this valuable information was available. The general lack of information is leading Bob to put too much weight into L&H's initial recommendation to Standard (confirmation bias) and his informal conversation with Marjorie Glass. 4. How has Bob framed his problem? What would be an alternative frame? Answer: Bob is framing this problem as a potential loss. He seems to be primarily concerned with the possibility of losing the account, upsetting his bosses, and potentially losing his job. Overall, he is worrying more about what could potentially go wrong instead of what could go right. Even a positive outcome was framed quite negatively, as it would entail more work and more time away from his family. Alternatively, Bob could have framed this problem in a positive way. Had he done so, he may have focused on doing a good job in view of the glory and rewards that success would bring him. He might see the problem as a pathway to a promotion, rather than a potential cause of his firing. 5. Does the case contain any elements of groupthink or escalation of commitment? Please explain. Answer: Bob's phone conversation with Marjorie Glass contains elements of groupthink. By wholeheartedly agreeing with Bob's idea and vowing to support it at the meeting, an illusion of unanimity was created that, if nothing else, certainly made Bob feel better and made him more confident about a decision for which he felt uncertain. Escalation of commitment was certainly displayed in the strong focus on the questionnaire data, even though it was incomplete and only contained the full information for three cities. The fact that the sunk costs of $18 per interview were high would certainly have led to the strong desire to use the information that was paid for, even if it was of questionable reliability, with only three cities. As such, escalation occurred when, despite continuous problems, Bob and the team continued to focus on survey data rather than switch their strategy to focus groups or some other decision-making method, and when he failed to consider whether or not the national averages were more representative than his three-city sample. 6. Discuss how confirmation bias and the anchoring effect (Exhibit 11.3) pertain to Bob’s concern about Barry Michael’s interest that the marketing proposal fit the initial recommendation to the client. Answer: Confirmation bias refers to an individual's tendency to seek out only information that conforms to an initial solution to a problem while anchoring is a similar bias which an individual will process information based on an initial position rather than on the pure merits of the information. Under these biases, contrary information or new solutions will be discredited and not accepted in order to remain consistent and save face. As such, as Barry had evidently provided Standard with an initial recommendation, Bob is worried that his findings will be rejected, no matter how valid, if they deviate too much from L&H's initial position. 7. Are there ethical issues in this case? Answer: Three ethical issues stand out. First, Bob is faced with presenting data that are based on a research process of questionable integrity. Should he highlight all the errors and omissions and the fact that the sample may not be adequate, or should he simply present the results? Secondly, Bob withheld information from Barry and Charles as to the origin of the questionnaire foul-up in order to protect a personal relationship. In the process, however, he sullied the reputation of the vendor who had acted in good faith. Finally, Marjorie Glass engaged in questionable ethical behaviour when she divulged information relating to one of Standard's competitors. 8. What should Bob do? Answer: Ideally, Bob should try to acknowledge the biases he has been operating under and focus on the problem at hand, coming up with the best media plan possible in order to serve the client. If he does this, he would stop worrying about initial recommendations (anchoring effects, confirmation biases), would not overemphasize Marjorie's comments, would not only look at data he paid for (escalation), and would not focus on all that has and might go wrong with this project. Overall, he should exploit the data he has to the fullest extent possible, including the national data. If he did this, he would note that for both the national data and his data, pop/rock and country radio, prime time television programs, and news and sports magazines consistently reach Standard's target clientele. He would also consider if his three-city sample is truly representative (regardless of the dollars spent on it) or if the national data are more valid. This question would have a big impact on whether or not to advertise in newspapers. As Standard represents an important client and the goal is to build a long-term relationship, a decision based not on information but on biases is a very risky proposition. Solution Manual for Organizational Behaviour: Understanding and Managing Life at Work Gary Johns, Alan M. Saks 9780133347500, 9780133951622
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