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Rule following
doing what’s appropriate
socialization into norms/rules- especially with white collar jobs- learn behavior appropriate to profession
simplifies implementation
can lead to using less-educated employees
often with programmed decisions
programmed decisions
rule-based, company procedures, prototypes
takes decisions away from subordinates
employees don’t have to learn a lot
benefits organizations, not so much employees
ex. McDonalds
non-programmed decisions
mental simulation, non-routine
need more expertise, training
ex. 5 star chef hired by restaurant
problems with rule-following
may be too rigid— may miss opportunities of things outside the rules
learning is often superstitious
may keep using rule even though it’s not really effective
history is obscure and subject to memory bias
collective conservatism
Collective conservatism
just doing whatever’s been done in the past, even if you don’t know why it started being done in the past
analytics
looking at what criteria of some object/person predicts a certain behavior
rational decision making
subjective linear model (subjective expected utility)
objective linear model
multi-attribute analysis
steps of subjective linear model
list factors to use
assign weights to these factors— most important step (ex. what % importance)
rank performance on factors (make sure to standardize scales)
where to get probabilites for subjective linear model
use intuition to develop decision weights
but problems— may be biased toward certain criteria, etc.
bootstrapping: regression
need options you’re trying to decide between, experts’ ratings of current or past candidates- ratings of whole candidate
break down criteria of candidates rated by experts to determine what the experts were using to make decisions
then determine if there’s a linear relationship between experts’ ratings and certain criterion, and weight criteria with more of a linear relationship higher
uses experts’ intuitive judgements
objective linear model
if one can receive repeated feedback about performance of decisions, they can then forecast/predict outcome using probability (assuming future won’t change a lot)
use of big data and large databases
used a lot in retail- types of purchases often made together
often used for admissions decisions
same as subjective except using past data
ex. what AI uses for criteria for job applications- succeed more if male qualities cause past men got job
bad, potential for bias
have done by having employees play games
but biased if idea of “high performers” in job is biased
should use this over subjective if you have it— data is better than expert intuition
multi-attribute analysis/value analysis
look at what values are important to you, take every option you’re considering and rate them on each of your values, score each option and find best fit
detailed analysis of your weights and values
can hire a consultant
why multi-attribute analysis isn’t used more
methods are not well-known or understood
clinicians feel like they must provide a narrative account of their decisions to patients, so sounds cold if done by algorithm
trust- people worried to trust a computer
expertise on computers needed
group decision-making
3+ people making a decision or participating in decision process, have shared common goal
why to use a group to make an organizational decision
find out where everyone stands on issue and how strongly they feel about it
implement diversity— diverse viewpoints, shared expertise
represent all interests
greater acceptance of decision bc inclusion, greater perception of procedural justice (that the decisions are fair)
policy to use a group- juries, boards
lets people gain experience in group from older members
socialization of members through observation
fun- social function
raises morale if people have team spirit
better decision maybe (depends on characteristics of group and how group is facilitated)
generally do better than average person, but not better than the best person
cross-functional team
team where each member has specific area of expertise and have to work together
conditions under which groups work and are intelligent- gives more random error than systematic error
decentralization: group members are each specialized, get information from different sources- not top-down
lets you get different perspectives, increase diversity
independence- group members say their thoughts regardless of what others think
diversity of opinions
increased breadth of perspectives, increased probability someone will have right answer
systematic error
problem with groups
everyone wrong/biased in same direction
because of centralization of lack independence
polarize
why don’t groups perform?
process loss: having to coordinate with people requires energy, coordination, planning- sucks energy
conformity- no independence
schisms- diversity → affective conflict- instead need task oriented, cognitive conflict
people get defensive
specific people dominate
information processing problems- bad at integrating information only one person knows
information filtering problems- trouble filtering bad news up chain of command
lack of independence
imitation, herding, information cascades, conformity
independence
you’re not influenced much by others, have unique info, have own opinions
keeps errors uncorrelated, random
external conformity/normative influence
being influenced by social pressure (not by information)
stifle your opinion because you think people will disagree
Ex. Asch line study
when is there less external conformity/normative influence?
decision is important
there are other dissenters
social proof/informational influence
think group has good information so go along with norms of group because you think group is correct
norms continue through generations
collective conservatism is specific type of it
ex. Sherif how far point of light moved study
herding
type of lack of independence from safety in numbers- if you do what everyone else is doing and fail, you’re not likely to be blamed much, but if you do something on your own you’re more likely to get judged/punished more harshly
so even in best interest sometimes when you don’t trust herd’s judgement
group polarization
tendency for group decisions to be more extreme on some favored dimension than individual decisions
group decisions exaggerate pre-discussion tendency among individuals
in positive or negative direction
prevented by balance of opinions
why group polarization happens
majority rules and exclusion of deviates
persuasive arguments— majority of people bring new arguments for certain position, you hear these arguments and they may persuade you to become more extreme in that position
to work, group has to be leaning in certain direction
social comparison- compare to people with even stronger opinions
increases in confidence
other processes affecting group polarization
discounting conflicting evidence instead of learning from it- majority not likely to change view after hearing evidence for new opinion
rationalization- explain why piece of information from other side isn’t as valuable
directive leader
conformity
what increases group polarization
isolation- how much group is isolated
Ex. Jonestown massacre
stroup ingroup identity
and calling attention to it
easy exit/ease of expulsion
less dissent among remaining people
so should instead keep dissenters to reduce polarization
dependence on group
rhetorical advantage- arguments are supported by societal norms
groupthink
group comes to consensus too quickly without fully exploring alternatives and objectives
lack of independent, critical thinking in group with high amiability
emphasis on consensus and standing together without open discussion
different from polarization because in polarization people still openly express what they think, just all agree anyway
only groupthink requires conformity
conditions leading to groupthink
high stress- outside threat or deadline
cohesiveness- if members like each other, may feel uncomfortable bringing up dissent
homogeneity- people are all the same- same perspectives, less likely to notice dissent
lack of decision-making procedure
don’t have process leader (helps group follow strong structure)
insulation/isolation of group- decreases exposure to dissenting opinions
directive leadership (directive leader states opinion up front and guides group by telling them what they think)
especially if strong status difference
two types of information you have in decision making
private information (information only you know)
social proof (information from others)
have to decide how much to use each
information cascades
When individual preferences are publicly and sequentially asked for, first and second people can start a cascade
people stop relying on private knowledge and use social proof as basis of decision, but don’t realize everyone is doing same thing
makes individual sense, but not group sense
opposing and needed information remains hidden, blind leading blind
tech decisions are often this
can also be reputational cascades
in sequential voting (ex. straw polls)/decision making
often started by fashion leaders
snowball effect
pluralistic ignorance
stopped by dissenters
applies to organizational group Culture of Yes
3 types of polls
straw polls- sequential, subject to cascades
ex. study where table split by opinion, went down table saying opinion, 2nd half of table said 1st half’s opinion
show of hands- could have some sequential effects
secret ballot- best- avoid cascade by using
fashion leaders
people who tend to start information cascades because they’re more visible to others
snowball effect
social proof becomes so large that it snowballs, large amount of people join- this is tipping point of cascades
2 kinds of dissenters
disclosers: say their private information, tend to talk about their reasons for doing stuff
contrarians: just like to go against social trends
how to reduce information cascades
overconfidence- rejection of social proof
importance of topic- if increased, less reliance of social proof
discussion
eliminate sequential decision making
reward for correct group answer, not individual
reward dissent
free speech
use subgroups to reduce likelihood of bad cascades
keep people informed
discourage leaders with coercive authority
secret ballot
Culture of Yes
people stay silent when they disagree, then later they act different
false consensus
silence isn’t assent, silence is trouble
starts cycle of inaction → deliberation → eventually disruption of implementation
devil’s advocate
can get people to give independent assessment of decision, reduce cascades
encourages debate and new lines of inquiry
dissenters have ability to affect process but not dictate outcome
unbiased perspectives- devil’s advocate criticizes equally, opposes everyone
share information
generate alternative perspectives
focus on underlying assumptions
Culture of No
downside to disagreement
block proposals that conflict with own interests
use veto power
leverage own power and status
hoard information, people are suspicious of each other
tearing other people down
focus on downside of others’ proposals
different from devil’s advocate because that just tries to affect decision-making process
personally/affectively motivated dissent
aim of brainstorming
cognitive stimulation: idea that group is larger than sum of its individuals- group makes individual consider new ideas
can work if they try to overcome brainstorming barriers
central rules of brainstorming
you’re initially supposed to withhold judgement, allow any idea
uncontrolled- people speak out when they have an idea
wild ideas are encouraged
no one owns any idea
separate generation of ideas from evaluation of ideas
quantity is important
someone writes down ideas
why brainstorming isn’t effective
blocking
evaluation apprehension, norm of how much you should or shouldn’t contribute- social comparison- everyone talks about same amount, lowers performance
social loafers set low standard
general inhibitory factors (free riding, social interaction anxiety, task/group novelty) → low initial performance → interactive processes (blocking, social comparison) → outcomes (low performance, low persistence, illusions, low creativity)
how to overcome barriers in brainstorming
have facilitation
make sure people are participating a lot initially, tone down dominant members, encourage quiet members to contribute, make sure people follow rules of brainstorming
breaks in groups- helps with blocking, helps people think about topic while not in group
reduce useless chatter
have prior individual solutions and bring to group
mix individual and group sessions
set high standards- to avoid low social comparison
use ringer to set high standard
remind them of rules to reduce apprehension and remind them to pay attention to others’ ideas
try to use people who are more comfortable talking in groups
brainwriting: write ideas then grab someone else’s when dry- done in online group
computer software
blocking
have to wait to talk to not cut people off
busy rehearsing in head to not lose idea, but then you’re not listening to other people (can’t build off their ideas), and not thinking of other ideas
IDEO’s process to maximize creativity and innovation in groups
individual group members gather information individually as ethnographers before group discussion- decentralization
members have variety of backgrounds- diversity
wide open session- many ideas, wild ideas, deferred judgement- atmosphere for brainstorming
filter down those ideas by individual voting through post-its- allows independence, prevents conformity
leaders intervene to move process along- process leader
use subgroups
go to field with prototypes
7 rules to IDEO’s brainstorming
sharpen the focus- start with a well-defined goal- launching pad to focus creative energy
playful rules- written around room, critical towards structuring dialogue
write down ideas on something everyone can see- helps to build on others’ ideas
don’t have everyone taking notes- free them up
facilitators- help decide when to build on idea and when groups need to switch gears, ensures rules are being followed
warm up individually or in small subgroups to ensure they’re thinking
vote individually- keep independence
lessons from IDEO about creativity
challenge experts and expertise, experts can be wrong- rather work for a group product
unlearn old assumptions, test conventional wisdom
does it have to be the way it is? combat collective conservatism
it’s acceptable to fail
pilot tests
seen with pixar shorts
when is failure not okay?
when good decision making process wasn’t followed
when people do not react and adapt when plan starts to go bad- they just escalate instead
when people fail to take responsibility
when people make the same mistake twice
common information effect
information held by more members before team discussion has more influence on team judgements than information held by fewer members, independent of the validity of the information
groups spend too little time discussing unshared information
discussion bias
leads some groups to miss optimal solutions, harm group decision quality
if 1 person has A, D, 2nd has C, F, 3rd has B, E— most potential to innovate because all have new unshared information to give, so this effect doesn’t happen
if whole group has same information, no creativity/innovation
if group has mostly shared information but everyone has some unshared information, there’s potential for innovation but unshared information will be ignored
why common information effect happens
probability- if more people have certain information, it’s more likely to be mentioned
mutual enhancement- positive reinforcement
discussing shared information feels good
members are judged as more task competent and credible after discussing shared instead of unshared information
shared information is judged as more important, accurate, and decision-relevant than unshared information
bias for preference-consistent information
shows confirmation bias
what does not work to try to fix common information effect
separate review and decision
bigger teams— increases discussion of shared information
more information (but same distribution)
accountability for decision
pre-discussion polling
gears group toward talking about preferences instead of shared information
what does help overcome common information effect
team leader is information manager- in charge of integrating and pulling in information
increased focus on unique information
suspend initial judgement- don’t have members make decision before discussion
frame as information-sharing problem, rather than a judgement to be made
minimize status differences
make members aware of each others’ expertise
components of process leader
listening
inquiring- seeking information
playing back information others mentioned
psychological safety- people comfortable asking questions, sharing information
procedural fairness
benefits of diversity
finding a suitable alternative increases with diversity of alternatives presented
deeper processing of information and more complex thinking
challenges people with different viewpoints, so they process information more deeply
especially helps with cognitively complex tasks
people have broader range of knowledge
markets tend to be diverse but small groups often aren’t
especially with innovation and creativity tasks, diversity leads to more task conflict and deeper understanding of problem and more novel solutions
different sets of contacts and information
diversity in functional differences (skills, information, expertise) leads to vigorous debate and more analysis
why diversity is important to study
workplace is increasingly diverse
globalization, more diverse workforce, more use of teams, increased specialization
helps to have cross-functional team
cross-functional team
people with specialized knowledge put together with people with different specialized knowledge to work on problem
what’s the lay belief about diversity?
diverse teams will lead to a direct increase in number of perspectives and improve performance, leading to greater creativity and performance
instead it’s really more complicated
interacting with people from different backgrounds can be source of discomfort, mistrust, conflict, so benefits of diversity are not fully realized
can have negative results too
depends on how well you structure organization to take advantage of diversity
diversity
any attribute people will use to tell themselves another person is different
can also be applied to having individuals seek out diverse personal experiences
ex. living abroad or being bicultural associated with greater creativity
2 categories of group level diversity
surface level/demographic diversity: what you see
more disruptive initially, leads to more affective conflict- but negative effects go away after people have interacted for some time
deep level diversity: having different information, opinions, attitudes
has longer-term impacts and more positive effects on groups, leads to more task conflict (which is better related to high performance)
problems diversity creates
social divisions
negative effects on social integration
reduced cohesion (people don’t like each other as much) and communication
lower satisfaction
turnover- people more likely to quit
lower performance
conflict- esp. affective conflict
why do problems from diversity happen?
similarity-attraction theory: similarity facilitates interpersonal attraction and liking, people strain towards symmetry, we rate people more similar to us as more intelligent, knowledgeable, and well-adjusted
tend to select members like ourselves, and dissimilar members get weeded out, organizations evolve to state of homogeneity
ex. patterns of friendship predictable by similarity
self-categorization and social identity— people define self-concepts in terms of memberships in social groups, then derive part of their identity from group membership and social categories
bolster and maintain self-esteem by membership in successful groups
so ingroup bias, us vs. them, and tendency for outgroup homogeneity and more stereotypes of outgroup
ingroup favoritism and preference
2014 study of diversity
in competitive trading markets, diversity promoted careful unbiased judgements
and market level accuracy in pricing assets increased in ethnically diverse markets, decreased in homogenous markets
information exchange perspective
with diversity, people arrive with greater variety of perspectives, leads to consideration of greater amount of information by both minority and majority group members
and diversity encourages minority opinion
and overall leads to deeper processing of information
exemplifies benefits of diversity
why research is mixed for diverse groups
diverse groups need to actively utilize diversity for it to have positive effects
ability and willingness to engage in constructive, task-focused conflict to integrate divergent perspectives is needed
have to work at it, it doesn’t happen passively
2 types of tasks
exploitation tasks: include production, efficiency, convergent thinking, and execution of plans and decisions
variance minimizing- have decided what to do, have to focus on doing it
exploration tasks: experimenting, innovating, divergent thinking and problem-solving
variance maximizing
what should organizations do to capitalize on diversity?
homogenous teams for exploitation tasks
diverse teams for exploration tasks
provide bridge across diversity- connect members in some way meaningful to the team, connect by values
connects similarities, reduces affective conflict
AKA superordinate identity: being different, yet feeling similar in values
use organizational culture as bridge
leader must take steps to highly shared goal
for racial/ethnic diversity, better to take multicultural perspective than colorblind approach
talk about differences instead of ignoring them
multicultural perspective- more accurate perceptions of others, less racial bias, smoother interracial interactions
perspective taking is important- trying to see world through eyes of someone different from you
moderates effects of diversity on creativity, so diverse groups are more creative
reduces stereotyping, racial bias, increases recognition of discrimination, promotes interracial interactions
change frame- view diversity as opportunity for people to contribute and learn from one another
leadership must encourage organizational culture that values these perspectives and variety of opinions and recognizes challenges of diverse perspectives
rule of halves
getting information from team members halfway between meetings- for touching base with members before meeting
prepare members for new business, so they can react properly during meeting
never introduce new business during meeting as discussion item
see where people stand on issues
lets people rehearse positions on issues- affectual rehearsal
see if information from people is more one-on-one or should be discussed during meeting, break issues people give you into parts, see if certain topics are more discussion or decision topics
what to include in meetings/three character principle
three categories to slot items into:
announcements
decisions
discussions: things coming up you don’t have to decide upon yet, want to discuss it so it’s on people’s radar
rule of 1/6
how to write agenda
start with easy items to warm up- first 1/6 of meeting
approval of minutes, announcements
4/6 present items for decision
things to vote on right now in meeting
goal is want most things to be voted on, don’t want to carry over business to next meeting
start with things easy to vote on- not too controversial, low relevance, quick
put hard items near middle, not end of meeting- just before halfway point, 40-45% through
estimate time- put expected minutes next to item
agenda bell
minutes
announcements
items for decision- easy, then moderate, then hardest
last 1/6 to 1/3 is decompression and future business as people start to mentally disengage- introduce especially controversial items to be decided on in next meeting, blue sky items
when you write agenda, provide detail and what kind of item it is
end with easiest item- helps group cohesion, morale
two-meeting rule
two-meeting rule
if you have a controversial item that should be voted on, it should be discussed at two meetings- first meeting as discussion, second as decision- lets people mull it over and not have to think it through in one meeting
rule of 3/4
¾ of way to next meeting, send out materials needed for meeting
agenda, reports, etc.
how to send out good reports
don’t send whole report, because big reports are often unread
instead use executive summary
use options memo technique: state problem, available options, and which option was selected and why
provides information to group about what was considered
separates options (facts) from recommendations
lets group compare recommendations to options and see what’s been left out
tips during meeting
don’t marry people to their positions- they’ll be wary of committing to anything in the future
rule of temporal integrity: start on time, end on time, keep rough order to agenda items
agenda integrity- people prepare for items on agenda, so only deal with items on agenda
larger groups need more structure during meeting
two-meeting rule
tips for minutes
head of meeting should be recorder of minutes
people will check minutes to see how they're personally represented, so don’t make anyone look negative
should have section to reflect each part of agenda
provide summary of discussion- main points
always put in decisions that were made, make sure decision is distinct
name names, who needs to do what
summarize what follow-up actions are needed
avoid identifying people with a position- don’t name names of who supported what
use names as little as possible except when people have to do something
minutes taker should summarize what they’ll write- for the record
don’t get too detailed
want minutes to be passed quickly
minutes taker should vocalize any decision they’re going to record- reflective summary everyone can agree on