doctoral seminar in contemporary management

Doctoral Seminar in Contemporary Management Wai Chamornmarn

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Textbook

Seminar in contemporary management 2015

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Ontology, Epistemology, and Methodology - Research Methodology Course

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Behaviorism refers to the school of psychology founded by John B. Watson based on the belief that behaviors can be measured, trained, and changed.

•  "Give me a dozen healthy infants, well-formed, and my own specified world to bring them up in and I'll guarantee to take any one at random and train him to become any type of specialist I might select -- doctor, lawyer, artist, merchant-chief and, yes, even beggar-man and thief, regardless of his talents, penchants, tendencies, abilities, vocations, and race of his ancestors." --John Watson, Behaviorism, 1930

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Types of Behavioral Conditioning

•  There are two major types of conditioning: 1.  Classical conditioning is a technique used in behavioral training in which a

naturally occurring stimulus is paired with a response. Next, a previously neutral stimulus is paired with the naturally occurring stimulus. Eventually, the previously neutral stimulus comes to evoke the response without the presence of the naturally occurring stimulus. The two elements are then known as the conditioned stimulus and the conditioned response.

2.  Operant conditioning (sometimes referred to as instrumental conditioning) is a method of learning that occurs through reinforcements andpunishments for behavior. Through operant conditioning, an association is made between a behavior and a consequence for that behavior. When a desirable result follows an action, the behavior becomes more likely to occur again in the future. Responses followed by adverse outcomes, on the other hand, become less likely to happen again in the future.


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Behaviorism versus Other Schools of Thought

•  One of the major benefits of behaviorism is that it allowed researchers to investigate observable behavior in a scientific and systematic manner. However, it many thinkers believed that it fell short by neglecting some important influences on behavior. Freud, for example, felt that behaviorism failed by not accounting for the unconscious mind's thoughts, feelings, and desires that exert an influence on people's actions. Other thinkers like Carl Rogers and the otherhumanistic psychologists believed that behaviorism was too rigid and limited, failing to take into consideration things like free will.

•  More recently, biological psychology has emphasized the power that the brain and genetics play in determining and influencing human actions. The cognitive school of psychology focuses on mental processes such as thinking, decision-making, language, and problem-solving. In both cases, behaviorism neglects these process and influences in favor of studying just observable behaviors.


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Major Schools of Thought in Psychology

1. Structuralism 2.  and Functionalism 3. Gestalt Psychology 4. Behaviorism 5. Psychoanalysis 6. Humanistic Psychology 7. Cognitive Psychology


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Doctoral Seminar in Contemporary Management Wai Chamornmarn 2015

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Part I: Individuals and Their Environment 1. Image Theory, Lee R. Beach and Terrence R. Mitchell 2. Upper Echelons Theory: Origins, Twists and Turns, and Lessons Learned, Donald C. Hambrick 3. Goal Setting Theory: Theory Building by Induction, Edwin A. Locked and Gary P. Latham 4. How Job Characteristics Theory Happened, Greg R. Oldham and J. Richard Hackman


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Behavioural Research •  Social learning theory proposes that learning takes place vicariously and

through imitation (Bandura, 1965, 1976).

•  Vicarious learning is learning by observation resulting in behaviour patterns that are learned by watching others and observing the consequences (Atkinson et al, 1987).

•  Reinforcement theory is concerned with the consequences or outcomes that influence behaviour (Skinner, 1969).

•  The underlying assumption of social learning theories is that what an individual learns from experience is likely to influence their perception of a task and the subsequent choice they make.


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Cognitive theories, by comparison, employ information processing models to explain how individuals organise information in order to make a decision (Cronbach, 1960).

•  The three key cognitive approaches are heuristic/analytic reasoning, Image theory and Prospect theory.

•  Heuristic reasoning involves searching for familiar solved problems and reducing the task to a core set of causal relationships to make a decision (Huysman, 1968).

•  Image theory posits that individuals apply existing knowledge (images) to establish standards that guide their decision making (Beach, 1990).

•  Prospect theory is a descriptive model that modifies expected utility theory to accommodate decision behaviour that violates the rational choice model (Tversky & Kahneman, 1981).


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1.IMAGE THEORY.

Lee R. Beach and Terrence R. Mitchell

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Image Theory, Lee R. Beach and Terrence R. Mitchell

•  “Cognitive errors.” •  “The sunk cost effect “ •  “ Intuitive scientists” who learn about the physical world as a result of having

to cope with its demands and constraints •  “Man as an intuitive statistician” •  Attributing cognitive errors to the difference between aleatory and epistemic

thinking was provocative but ultimately not very productive.


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Normative process or prescription

•  Reluctantly, behavioral researchers have recognized that decision makers’ behavior seldom resembles normative process or

prescription (Hershey & Shoemaker, 1980).

“The story of behavioral decision theory has been the growing realization that SEU often does not describe the decision making process. … The dramatic tension has been provided by SEU’s remarkable ability to hang on despite mounting doubts about its

descriptive competence”

•  (Fischhoff, Goitein, & Shapira, 1983, p. 185).


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From observations of real-life decision making

•  Observations of professional decision makers making on-the-job decisions. (Beach, 1996, 1997)

•  Most of their decisions involved only one option rather than multiple options,and the decision was whether to go with that option rather than a choice among competing options.( Mintzberg ,1975)

•  Donaldson and Lorsch’s (1983) ambitious study of 12 major corporations found that corporate managers do not strive to increase shareholder wealth; their first priority is the survival of the corporation itself.

•  A more recent response has been to approach decision making as a branch of cognitive or social psychology (see Abelson & Levi, 1985), evolving descriptive theory from observations of real-life decision making. Image theory is part of this third response (Beach & Mitchell, 1987, 1990).


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Image theory

•  is the most comprehensively and thoroughly developed naturalistic decision theory (Klein et al. 1993).

•  Image theory proposes that decision makers have limited cognitive capacity (Simon 1955) and decisions are made within a decision frame (Beach 1993).

•  Decision makers will limit their decision deliberations to that portion of knowledge that is stored and considered relevant to the current decision.

•  According to image theory, this knowledge structure consists of three images: value image, trajectory image, and strategic image.


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Image theory

•  is an alternative to classical decision theories that are based on subjective expected utility, propounded by Lee Roy Beech (Beach, 1990[1]).

•  Expected utility models of decision making do not match real-world processes, according to Beach. Studies of actual managerial decisions show that decisions are rarely based on explicit cost/benefit calculations. They are also rarely treated as gambles or wagers, as probability-based models suggest.

•  Many decisions do not even involve choices between two commensurate options. They revolve instead around sticking with the status quo vs. introducing a change.

•  Maintaining the status quo is a low-risk default option requiring little justification. Introducing a change is a potentially hazardous choice that one will be held accountable for.


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1. Image Theory, Lee R. Beach and Terrence R. Mitchell

•  SCHEMA/IMAGE THEORY •  Beach & Mitchell (1990); Mitchell & Beach (1990) developed a theory in

which a larger framework is considered than in simple decision models--it builds on schema theory.

•  A.) Images •  Images of one's goals and one's self are considered: these are the schemata:

organized knowledge structures of each individual person’s LTM. They are made up of several types of images:

–  1.) Value Image: Beliefs and values which influence goal selection. –  2.) Trajectory Image: Future agenda--where one is going to –  3.) Strategic Image: Plans and actions to achieve these--sequences of

activities for achieving a goal.


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In PAE order, the images are:

•  P – The Strategic Image (bottom): Plans and tactics for pursuing adopted goals to successful outcomes. Involves anticipation and short-term forecasting.

•  A – The Value Image (top): Standards, ideals, beliefs, morals, ethics and other principles serve as imperatives or rigid guides that establish decisions as right or wrong. Principles generate goals and also govern the adoption or rejection of candidate goals and plans or tactics that violate the value image.

•  E – The Trajectory Image (middle): This is an image of direction or directedness, created by establishing both specific goals and abstract goals, as well as by defining markers of progress towards goals. Timely progression towards desired outcomes is itself a goal within the trajectory image.


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B.) Images as they Influence two Types of Decisions:

•  1.) Adoption Decision: refers to which decision is selected--affected by: –  a.) compatibility - degree of consistency between a course of action and

one’s personal values and beliefs. –  b.) profitability - comes into play when several alternatives are equally

good--can be achieved by other decision making strategies (i.e., additive models).

•  2.) Progress Decision: reevaluation of an initial decision to monitor its progress. This is much like an assessment of subgoals in means/ends analysis.

•  Schematic models predict that one would use a simpler strategy early on, when many decisions are possible; but once the number of alternatives is narrowed down than a more complex strategy can be instituted. This agrees with the work by Payne (1972).


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Naturalistic decision making


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Memory


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Intuition in decision making


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Normative decision making model


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Normative decision making model


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Behavioral decision making model


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Naturalistic decision making model


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Decision making model


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Stanford model


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2.UPPER ECHELONS THEORY: ORIGINS, TWISTS AND TURNS, AND LESSONS LEARNED.

Donald C. Hambrick


Don Hambrick is the Samuel Bronfman Professor of Democratic Business Enterprise at the Graduate School of Business, Columbia University. He holds degrees from the University of Colorado (B.S.), Harvard University (M.B.A.), and the Pennsylvania State University (Ph.D.). An internationally recognized scholar in the field of top management, he is the author of numerous articles, chapters, and books on the topics of strategy formulation, strategy implementation, executive staffing and incentives, and the composition and processes of top management teams. Among his works is "Top Management Teams: Key to Strategic Success," which won the award for best article in California Management Review. His recent book, Navigating Change: How CEOs, Top Teams, and Boards Steer Transformation, presents leading-edge thinking for executives who are embarking on corporate change initiatives. Another recent book, Strategic Leadership: Top Executives and Their Effects on Organizations, is extensively used by scholars of executive leadership. He also conducted the widely-noted worldwide study of executive leadership, Reinventing the CEO.

2.Upper Echelons Theory: Origins, Twists and Turns, and Lessons Learned. Donald C. Hambrick


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Most fundamental question in UET:

•  How do executives really perceive the world, and how do they reach their decisions?

•  How do they differ in their most primary cognitive processes, and how do these processes affect their strategic choices?


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Some of the questions that will be addressed during the panel discussion are:

• What are the main challenges in using words as proxies for mindsets, personality, and identities?Which personality constructs and worldviews other than those primarily studied in upper echelons research could be important to organizational outcomes? • What are the most advanced techniques in measuring corporate leaders’ personality and views through the words they use? • Which newly available data sources can be smartly used to gain direct, unobtrusive, and comprehensive access to top executives’ communication? • Which automated and non-automated methods can be used? Which promising methods are used in other fields? • Which theoretical lenses that have not yet been applied could enrich our efforts to open the black box of executive cognition?


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THE POSSIBILITY OF AN INCREASED “CEO EFFECT”

Ever since Lieberson and O’Connor’s (1972) seminal study, researchers have been interested in understanding and measuring “the CEO effect,” or the

degree to which company performance is traceable to CEOs as opposed to contextual factors.

These scholars acknowledge, on the one hand, the potential for CEOs to influence their firms’ performance – through their strategic decisions, organizational design choices, and leadership behaviors – while also

recognizing the constraints that prevent CEOs from having complete leeway in determining their companies’ forms and fates.

For these researchers, the question is not whether managers matter, but rather

how much they matter (e.g., Crossland & Hambrick, 2011; Mackey, 2008).


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SPAN OF CONTROL AND SPAN OF ATTENTION Oriana Bandiera, Andrea Prat, Raffaella Sadun and Julie Wulf* December 19, 2013

Abstract Using novel data on CEO time use, we document the relationship between the size and composition of the executive team and the attention of the CEO. We combine information about CEO span of control for a sample of 65 companies with detailed data on how CEOs allocate their time, which we define as their span of attention. CEOs with larger executive teams do not save time for personal use, or to cultivate external constituencies. Instead, CEOs with broader spans of control invest more in a “team” model of interaction. They spend more time internally, specifically in pre-planned meetings that have more participants from different functions. The complementarity between span of control and the team model of interaction is more prevalent in larger firms.


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Risk attitudes in company boardrooms in a developing country Denice Bodeutsch,Philip Hans Franses 2015

Abstract We test risk attitude and risk propensity of executive and non-executive directors of almost all (read: 10) companies listed at the Suriname Stock Exchange. This stock exchange associates with an emerging market, which currently seems to be at its initial stage. With a personalized survey we collect data for 13 members in the board room. The sample size is small as the population is small, but still we can test various hypotheses that are put forward in the literature. Our main finding is that the differences between risk attitudes of board members of companies in a developing country do not differ tremendously from those of board members in developed countries.


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Performance over the CEO life cycle: the impact of structural power creation activities

Abstract In extending leader life cycle theory (Hambrick and Fukutomi, 1991), the authors examine how structural power creation activities of a CEO influence firm performance over his time in office. On the basis of a sample of 118 CEOs in Germany’s 83 largest companies, for an overall number of 717 tenure years, the paper shows that different structural power creation activities of CEOs lead to different slopes of the leader life cycle and that active structural power creation during early tenure results in higher company performance over the course of a CEO’s tenure. The authors contribute to leader life cycle research by highlighting the effect of structural power creation activities on the shape of leader life cycles as well as on company performance. To the best of our knowledge, this is the first study that researches the relationship between structural power creation activities of a CEO and company performance over the CEO’s tenure. Seminar in contemporary management 2015

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What did you learn ? 3 Grand theories and Mid – Range theories

Michael Frese

Upper Echelons Theory

Donald C.Hambrick

Goal Setting Theory

Edwin A. locke Gary P. Latham

Tension การเรียนรูเกิดจากขอผิดพลาด แนวโนมผูบริหารมี 2 ประเภท 1.Psychological Characteristics 2. Observable experiences

They are psychology and interesting Human action ,work motivation, achievement motive

Search What errors ? Study of errors management

ผูบริหารมีความสัมพันธกับความสําเร็จหรือไม

How well people perform work ? Performance goal

Elaboration การสรางแนวทางการบริหาร Error ไดอยางไร 1.Systematic approach 2. นโยบาย

Executive ’s orientations -Field of vision -Selectively perceive - interprets

The conditions necessary for goal accomplishment change on the basis of feedback , goal commitment ,ability and task complexity

Research Inductive by Error Management Training

Case study Style การบริหารของผูบริหาร

Theory Building Inductive

Presentation Personal Initiative (PI) (เปนพฤติกรรมที่เกิดขึ้นถาวร สม่ําเสมอ และเปนพฤติกรรมที่ทําใหสมาชิกในองคการมีการทํางานมากกวาที่บริษัทมอบหมายให

Strategic Management Goal setting theory เปนที่มาของ SMART

Piyawan Petmee Id 56030315


3. GOAL SETTING THEORY: THEORY BUILDING BY INDUCTION.

Edwin A. Locked and Gary P. Latham


Goal Setting Theory

Edwin A. Locked Gary P. Latham


•  A goal is defined simply as what the individual is consciously trying to do. Locke and Latham postulate that the form in which one experiences one’s value judgments is emotional.

•  That is, one’s values create a desire to do things consistent with them. Goals also affect behavior (job performance) through other mechanisms. For Locke and Latham, goals, therefore, direct attention and action.

•  Furthermore, challenging goals mobilize energy, lead to higher effort, and increase persistent effort. Goals motivate people to develop strategies that will enable them to perform at the required goal levels.

•  Finally, accomplishing the goal can lead to satisfaction and further motivation, or frustration and lower motivation if the goal is not accomplished.


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General model of goal-setting theory.


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Edwin Locke - The Importance of Subconscious Goals for Influencing Organizational Behavior


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Evidence-Based Management with Dr. Gary Latham



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Building a Practically Useful Theory of Goal Setting and Task Motivation A 35-Year Odyssey


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New Directions in Goal-Setting Theory Edwin A. Locke1 and Gary P. Latham

ABSTRACT—Goal-setting theory is summarized regarding the effectiveness of specific, difficult goals; the relationship of goals to affect; the mediators of goal effects; the relation of goals to self-efficacy; the moderators of goal effects; and the generality of goal effects across people, tasks, countries, time spans, experimental designs, goal sources (i.e., self-set, set jointly with others, or assigned), and dependent variables. Recent studies concerned with goal choice and the factors that influence it, the function of learning goals, the effect of goal framing, goals and affect (well-being), group goal setting, goals and traits, macrolevel goal setting, and conscious versus subconscious goals are described. Suggestions are given for future research.


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Motivation through conscious goal setting EDWIN A. LOCKE Abstract

The article describes what has been found during 30 years of research by the author and others on the relationship between conscious performance goals and performance on work tasks. This approach is contrasted with previous approaches to motivation theory which stressed physiological, external or subconscious causes of action. The basic contents of goal setting theory are summarized in terms of 14 categories of findings. An applied example is provided.


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8. HOW JOB CHARACTERISTICS THEORY HAPPENED.

Greg R. Oldham and J. Richard Hackman


Job Characteristics Theory

Greg R. Oldham J. Richard Hackman


HTTPS://WWW.YOUTUBE.COM/WATCH?V=ZVP_C7YIWXS Hackman and Oldham Model of Job Design by J.Roman



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