Title: Grades
1Grades
- Exam 40
- Exam 1 Motivation Indv. Differences Managing
boss - Exam 2 Social Networks Decision Making Culture
- Multiple choice and/or short-essay questions
- Articles Cases Synopses.
- Quizzes20
- Three quizzes
- Book 20
- Managementor Exercises 20
- Speakers 23,28,30
2Simple but Powerful Advice
- Give views in advance, in private.
- Pick who will speak first at random (US Supreme
Court Justices start with junior-most member) - Encourage and reward disagreement.
3Delusional Optimism
- Due to both cognitive biases and organizational
pressures - - exaggerate own talents downplay luck
- - self-serving attributions in annual reports
- - scenario planning tends to reward most
optimistic appraisals. - - anchoring
- - competitor neglect.
- - pessimism often interpreted as disloyalty
4How to Take The Outside View
- Select a reference class
- choose a class that is broad enough to be
statistically meaningful but narrow enough to be
truly comparable to project at hand-- movies in
same genres, similar actors - Assess the distribution of outcomes
- Identify the average and extremes in the refer-
ence-class projects outcomes--the studio
executives reference-class movies sold 40
million in tickets on average. But 10 sold less
than 2 mil- lion and 5 sold more than 120
million. - Predict, intuitively
- where you fall in the distribution executive
predicted 95 million - Estimate reliability of your prediction
- correlation between forecast and actual outcome
expressed as a coefficient ranging from 0 to 1. - Correct the intuitive estimate for unreliability
- less reliable the prediction, more needs to be
adjusted towards the mean.
5Culture Slides
- Given the power of social influence
- (e.g., 70 of seminary students failed to help
man in need when told to hurry to a waiting
class when another person in a restroom, 90
percent washed their hands otherwise, less than
20 percent did so) - I dont know what a cult is and what those
bleary-eyed kids selling poppy really do, but Im
probably that deeply committed to the IBM
company - 20-year veteran IBM employee quoted in WSJ
- Pepsis culture of competition 3Ms culture of
innovation IBMs culture of service
6Steven Hsieh on Zappos/Culture
- https//www.youtube.com/watch?vbQJIJSoA96A
7(No Transcript)
8Cultures Consequences
- Influences efficacy of strategy through alignment
- Enhances control
- Increased commitment from employees
- A sense of distinctive identity and a hard to
replicate basis of distinctive competence
9(No Transcript)
10"RESULTSthat's all that counts, period. Support
groups are akin to victims groups, which the
best women avoid
11Binders full of women
- Gender remains an issue
- France approved a new law in 2010 that would
force companies to increase the number of women
serving on boards of directors by 40 by 2016 - Norway forced companies to increase female board
representation to 40 businesses howled. - Potential cost lost experienced people (but all
male boards perform very well (LVMH, French
luxury goods company, mostly female customers
but almost entirely male board) - Potential gain social justice more creative?
less groupthink? - Where to find qualified women with experience in
core business?
12Why Are Women Underrepresented at Top?
- Biology?
- Stereotypes and stereotype threats?
- Lack of qualified women?
- Barriers to opportunities, especially of the
informal kind? - Lack of institutional support?
- Organizational Culture?
-
13What is Organizational Culture?
- A social control system? A shared pattern of
belief and expectations the power of peers
control without the sense of external, binding
constraint - A normative order? The culture of constructive
confrontation at Intel. The central, cherished
values, enshrined in prototypic people, stories,
symbols (Pepsis culture of competition 3Ms
culture of innovation IBMs culture of service) - The intended culture vs. the emergent culture
14How is culture shaped?
- Participation when choice is volitional,
explicit and public, it enhances commitment
(systems to involve people advisory boards
etc.) - Symbolic action Repeat put money where mouth
is symbols and ceremonies (Jerry Sanders pushing
innovation at AMD revenues measured as
Asparagus) - Listen
- Reward systems and policies
15The Art of Virtual Persusaion
16The Legal Perspective on Diversity and
Discrimination
- Discrimination law
- Seeks to determine whether an individual has been
inequitably treated because of the demographic
category to which s/he belongs - Diversity law
- Broader concept dealing with the overall climate
of an organization and its degree of
heterogeneity. - An evaluation of diversity is therefore
likely to be more subjective than assessments of
discrimination
17The Business Rationale for Diversity
- It makes legal and economic sense
Nondiscrimination is the law - Coca Cola (race discrimination)
- Home Depot (gender discrimination)
- Texaco (race discrimination)
- US Govt. (in 2000, 508 million case women who
were refused employment with US Information
Agency) - Walmart (gender discrimination class action
lawsuit on behalf of 1.6 million employees
statistical analysis showed Walmart paid less to
women and gave them fewer promotions 70
employees female only 30 are managers) - Little choice Changing demographics (Blacks
10 Hispanics 18 Asian 20) - Customers diverse, then employees should be
diverse - Enhanced group and organizational performance?
Diversity richer ideas and learning employee
attraction and retention
18Diversity Paradigms
- Discrimination and fairness US Army
- Access and Legitimacy U.S. investment bank
expanding to India hires Indians - Learning and effectiveness Law firm where
minority attorneys brought in minority business
but also expanded the kind of work that the
company as a whole took on (i.e., changed
business strategy)
19Women and Glass Ceiling
- Are people less worried about appearing sexist
than racist? - Catalyst (2006) At nations largest 500
companies - women are 50 of managers, but only hold 15.4 of
senior exec. jobs, down from 16.4 in 2005 - women received 48 of law degrees, but account
for only 17.9 of partners - in 2007, the median pay for women was .82 percent
of that for men. -
- Outperform go beyond expectations
- Develop style with which men are comfortable
(Marlyn Monroe or Iron Maiden) - Seek out challenging assignments
- Find mentors
20The Psychology of Tokenism
- Visibility (tokens capture disproportionate share
of attention) - Polarization (exaggeration of differences)
- Assimilation (Tokens attributes are distorted to
fit preexisting generalizations)
21The Significance of Numbers for Social Life
- Simmel (1950)
- Kanter (1977) relative proportions not a matter
of innate biological differences, or even of
culture its a structural issue of relative
proportions. - Tokens Treated as representatives of a
category, as symbols rather than as individuals.
22Friendship Network at an Ivy League University in
1988
23Skewed, Tilted, and Balanced Groups
- Skewed groups (1000 to 8515) difficult for
tokens to generate alliances or gain power. - Tilted (6535)minority members can become
potential allies can affect group culture
become individuals differentiated from each other
and from the majority. - Balanced (6040 to 5050) culture and
interaction reflect balance majority and
minority turn into potential subgroups outcomes
depend upon other structural factors than mere
group membership.
24(No Transcript)
25Spencer OwensDiscrimination and Fairness
Perspective (We are all the same differences do
not matter)
- SOs Discrimination and Fairness perspective
- Approach
- Diversity as moral imperative
- Eliminate discrimination treat everyone the same
- Progress assessed by examining recruitment and
retention goals. - Results
- Pressures to assimilate
- Differences undiscussable conflict suppressed
- People feel alienated and devalued
- Performance undermine
- Access and Legitimacy perspective
- Approach
- Use diversity to connect with market segments
- Progress measured by achieving recruitment and
retention goals in boundary or visible positions - Results
- Experience regarded as limited or specialized
- Career paths limited people feel exploited
- Differences neither analyzed nor leveraged
26Integration and Learning Approach
- Approach
- Cultural differences as resource for learning
(different perspectives and experiences) - Use differences to enhance work processes and
core work - Progress measured by power traditionally
underrepresented groups have to change the
organization and its work. - Result
- Differences embraced, discussed, disputed,
evaluated - People feel valued and respected
- Cultural competencies learned and shared
- Work enhanced by insights, knowledge, skills
grounded in peoples experiences.
27Eight Preconditions for Making Shift to
Integration-and-Learning
- Leadership must understand that diverse workforce
will embody different perspectives and approaches
to work, and must value variety of opinion and
insight. - Leadership must recognize both learning
opportunities and the challenges that the
expression of different perspectives presents. - The organizational culture must create
expectation of high standards of performance for
everyone. - Organizational culture must stimulate personal
development. - Organizational culture must encourage openness.
- Organizational culture must make workers feel
valued. - Organization must have a well articulated and
widely understood mission. - Organization must have a relatively egalitarian,
non bureaucratic structure
28Deloitte and Touche
- 1991 Heavily recruiting women since 1980 50 of
new hires women but only 8 of candidates for
partner were women - We prided ourselves on our open, collegial work
environment - 1992 Deloittes Initiative for Retention and
Advancement of Women - Launched by CEO Tim Cook Product is our talent
- Worried about it seeming like Affirmative Action
- Six Steps
- Made Senior Management Front and Center (not an
HR thing) - Make an airtight business case (Where will new
partners come from?) - Let the world watch you (press conference
external advisory council article in WSJ) - Begin with dialogue (dont assume you know views)
- Flexible but quantitative accounting (asked for
numbers are top women receiving proportionate
share of plum assignments? - Promote work-life balance
29END DISCUSSION OF CULTURE HERE
30How to Avoid Dysfunctional Group Decision-Making?
- Groups Bigger and more diverse better?
- Problems in groups
- Individual effects Anchoring Availability
Confirmation Sunk-cost - Social Effects Dont want to disturb cohesion
assumption that group is smarter desire to seem
fair and reasonable give in to high-status
people - How overcome?
31Shoreham Nuclear Power Plant
- GE plant in NY, 60 miles from Manhattan
- Designed to produce 540-820 megawatts
- Initial estimated cost 65 million
- Final cost 6billion
- After 11 years (73-84), never opened!
- Construction flaws
- Labor unions
- Public concerns over safety
- Escalation of commitment, or failed persistence?
32Blowing Up
33Shoreham Nuclear Power Plant
- GE plant in NY, 60 miles from Manhattan
- Designed to produce 540-820 megawatts
- Initial estimated cost 65 million
- Final cost 6billion
- After 11 years (73-84), never opened!
- Construction flaws
- Labor unions
- Public concerns over safety
- Escalation of commitment, or failed persistence?
34Escalation of Commitment The Flip Side of
Persistence
35Reducing Escalation of Commitment
- Set minimum targets for performance, and force
decision makers to compare against these targets - Stimulate opposition using devils advocacy
- Rotate managers through roles
- Reduce ego-involvement
- Provide and study more frequent feedback about
project completion and costs - Reduce risk and penalties for failure
- Make explicit the costs of persistence
36The Asch Effect
Comparison Lines Card
Standard Line Card
1 2 3
37Asch Effect What are the implications of the
Asch effect for managers?
- Strong social effects on what we see and do.
- How to organize meeting and debates
- Find ways of getting people to express their
views and opinions in ways that prevent those
views being swayed by perceived group opinions. - Emphasize that you are not interested in yes
men. - The importance of people who dont get along with
others Socrates was turned into an outcast but
should not have been. - Crucially Once one person dissents, the
likelihood of others speaking up goes up
dramatically.
38Milgram Obedience to authority (1974)
- Ordinary people, simply doing their jobs, and
without any particular hostility on their part,
can become agents in a terrible destructive
process. Moreover, even when the destructive
effects of their work become patently clear, and
they are asked to carry out actions incompatible
with fundamental standards of morality,
relatively few people have the resources needed
to resist authority - http//www.bing.com/videos/search?qMilgramShock
ExperimentFormVQFRVPviewdetailmidE49E9EE093C
EC55FE564E49E9EE093CEC55FE564
- What percentage of ordinary, law-abiding, Yale
students would deliver the maximum 450 volt
shock? - lt 10 lt 50 gt 50 gt 60
39- "the essence of obedience consists in the fact
that a person comes to view themselves as the
instrument for carrying out another person's
wishes, and they therefore no longer see
themselves as responsible for their actions. Once
this critical shift of viewpoint has occurred in
the person, all of the essential features of
obedience follow"
40Groupthink
- Groupthink When you feel a high pressure to
conform and agree and are unwilling to
realistically view alternatives - What are some of the reasons or factors that
promote groupthink? - What can be done to prevent groupthink?
41Symptoms of Groupthink and Decision Making
Figure 10-6
- Decision-making Defects
- Few alternatives
- No reexamination of preferred alternatives
- No reexamination of rejected alternatives
- Rejection of expert opinions
- Selective bias of new information
- No contingency plans
- Symptoms of Groupthink
- Invulnerability
- Inherent morality
- Rationalization
- Stereotyped views of opposition
- Self-censorship
- Illusion of unanimity
- Peer pressure
- Mindguards
42Groupthink Implications for Managers
- Assign to each member the role of critical
evaluator this role involves playing Devils
Advocate by actively voicing doubt and
objections. - Use subgroups and bring in outside experts for
exploring the same policy decisions. - Use different groups with different leaders to
explore the same question.
43Groupthink Implications for Managers
- Assign to each member the role of critical
evaluator this role involves playing Devils
Advocate by actively voicing doubt and
objections. - Use subgroups and bring in outside experts for
exploring the same policy decisions. - Use different groups with different leaders to
explore the same question.
44Groupthink Implications for Managers
- Assign to each member the role of critical
evaluator this role involves playing Devils
Advocate by actively voicing doubt and
objections. - Use subgroups and bring in outside experts for
exploring the same policy decisions. - Use different groups with different leaders to
explore the same question.
45Reducing Escalation of Commitment
- Set minimum targets for performance, and force
decision makers to compare against these targets - Stimulate opposition using devils advocacy
- Rotate managers through roles
- Reduce ego-involvement
- Provide and study more frequent feedback about
project completion and costs - Reduce risk and penalties for failure
- Make explicit the costs of persistence