MGT 357 Final (Peterson)
Actionable or non-actionable? Sales training has a moderate to large effect on sales performance.
Actionable
Actionable or non-actionable? How a salesperson perceives a new product influences the amount of effort he or she puts into selling it.
actionable
Actionable or non-actionable? Financial incentives (e.g., bonus pay based on number of products sold) have a moderate positive effect on sales performance.
actionable
A company decides to survey its clients to understand their satisfaction with the new service the company has been providing for two months. For this purpose, the company's 40 largest clients are invited to complete an online a survey about their experiences. Which of the following might negatively affect the outcome of the survey? A) The sample is not random. B) The period of two months after the introduction of the new service is too short C) A sample of 40 is too small. D) An online survey is not a good method to measure customer experience.
A
An international food retailer considers launching a new type of business: high-end grocery stores stocking the best and freshest organic health foods and a wide selection of prepared gourmet food. The company's marketing director suggests that these stores should be located in high-income areas, because empirical research indicates there is a correlation between income and food expenditure. When the company's data analysts analyze the organizational data, they indeed find a statistically significant correlation: r = 0.23. Given this correlation, would you support the marketing directors' recommendation? A) No, because the r-squared indicates only 5 percent of the variation (increase or decrease) in food expenditure can be explained by people's income. B) Yes, because the correlation is statistically significant. C) No, because the correlation may be nonexistent. D) No, because the r-squared indicates the recommendation is supported by the data
A
At age 89, mathematician Sir Michael Atiyah is recognized as one of the giants in his field. In 2004, he was honored with the Abel Prize, the math world's equivalent of the Nobel. But Atiyah, who is now retired, isn't one to rest on his laurels. In a recent talk at the Heidelberg Laureate Forum, he created a stir with his claim to be able to prove the 159-year-old Riemann hypothesis, long one of the great unsolved problems in mathematics. If Atiyah's proof eventually is accepted as correct, it could win a $1 million prize from the Clay Mathematics Institute. Is the use of the term proof in the article correct or incorrect? A) Correct, because in mathematics, you can prove that a hypothesis is true. B) Incorrect, because even in the domain of mathematics, you should refrain from using the word proof.
A
Healthcare executives in a large, academic hospital are concerned with the number of medical errors made by the nurses and physicians. They strongly believe that a significant proportion of these errors are preventable and feel that the errors result from a poor safety climate within the hospital. They decide to discuss their view with some of the hospital's most senior and authoritative medical specialists to see whether those specialists agree. The executives' decision to discuss their view with some senior medical specialists to see whether the specialists agree is a questionable decision because it leaves the executives prone to which bias? A) Confirmation bias B) Group conformity C) Overconfidence bias D) Outcome bias
A
Read the following scenario and determine the PICOC terms: The organizational data of a German pharmaceutical company indicate that the firm's overall productivity is below the average in the sector. Given that a company's productivity is dependent upon the collective performance of its employees, the HR director suggests conducting an employee engagement survey. After all, according to Gallup—a global analytics and consulting firm—engagement is the most important driver for employee performance. The outcome of the survey shows that the company's engagement score is below Gallup's Global Employee Engagement Benchmark. For this reason, structured interviews with employees are conducted to identify factors that negatively affect their engagement. Based on the outcome of the interviews, several techniques for improving employee engagement are presented to the board, and a corporate action plan is agreed upon. What is the (final) outcome of interest? A) The company's overall productivity B) The collective performance of the employees C) Employee performance D) Employee engagement
A
Several studies have demonstrated that interpersonal conflict between colleagues (IC) negatively affects employee satisfaction (ES). A researcher wants to know if leaders' conflict management behavior influences this relationship. In a well-designed study, the researcher finds that when a leader is conflict-avoidant, the negative effect of IC on ES is stronger than when a leader exhibits problem-solving behavior. However, in a follow-up study, the researcher finds that the relationship between IC and ES is more nuanced: IC negatively affects ES only when an employee experiences feelings of anger. In fact, when employees don't experience feelings of anger, the negative effect of IC on ES disappears. In this scenario . . . A) ... leaders' conflict management behavior is a moderator, and employees' feelings of anger is a mediator. B) ... leaders' conflict management behavior is a mediator, and employees' feelings of anger is a moderator. C) ... leaders' conflict management behavior and employees' feelings of anger are both moderators. D) ... leaders' conflict management behavior and employees' feelings of anger are both mediators.
A
We identified seven companies that had implemented flexible working hours in the past year. To understand employees' satisfaction with the new working hours, a survey questionnaire was administered on a random selected Monday to the first 100 employees that start their working day, making a total sample size of 700. The questions in the survey were derived from the ESM-12, a validated 12-item employee satisfaction questionnaire, and were answered anonymously. It was found that 83 percent of the employees are satisfied to very satisfied with the flexible working hours and 63 percent reported that the flexible working hours had substantially improved their work-life balance. Could there be methodological bias that may have affected the results? A) Yes, selection bias. B) Yes, social desirability bias. C) Yes, halo effect. D) No, there is no clear indication of methodological bias.
A
You are working as a manager at a large Italian IT firm. The productivity of the engineers is far below average for the sector. The chief operating officer tells you the organizational data show that the engineers' productivity varies widely per team. In fact, analysis shows that teams with a large number of senior and experienced engineers are twice as productive as teams with a large number of young and inexperienced engineers. She therefore advises you to invest in the training and support of young and inexperienced engineers to improve productivity. What is your estimate of the probability that this claim (advice) is true, given the available evidence? A) P(Htrue|E) > 0.50: The probability that this claim is true, given the available evidence, is higher than 50 percent. B) P(Htrue|E) = 0.50: The probability that this claim is true, given the available evidence, is 50 percent. C) P(Htrue|E) < 0.50: The probability that this claim is true, given the available evidence, is lower than 50 percent.
A
Why do we need evidence-based practice? Check all that apply. A) Through benchmarking and so-called best practices, practitioners sometimes copy what other organizations are doing without critically evaluating whether these practices actually work and, if they do, whether they also are likely to work in a different context. B) Most practitioners prefer to base their decisions solely on personal experience, which is not a very strong/reliable source of evidence. C) What practitioners think is effective and what the current scientific research shows really differ.
A , B and C
A large American home improvement supplies retailer sells tools, construction products, and services. Customer satisfaction is regarded by the company as an important key performance indicator (KPI) and is presented in a dashboard that is accessible for the 320 managers of the company's 560 local stores. The data are collected, processed, and reported according to the steps below. Identify the two steps that introduce significant risk of inaccurate data. Check all that apply. A) A customer's satisfaction is measured by a short questionnaire distributed by the local manager to a representative sample of the store's customers. B) The satisfaction scores are put into the company's management information system by the local manager. C) For each local store, the average score is automatically calculated. D) The local scores are automatically converted into an overall company average score. E)The local scores are presented in the company's dashboard and automatically assigned a RAG status: red = below average, amber = on average, green = above average
A and B
Based on 521 cross-sectional studies with a total sample size of 9,939 business units and 23,567 employees, this meta-analysis examined the relationship at the business-unit level between employee satisfaction and turnover. We found a significant correlation between satisfaction and business-unit turnover. Corrected for performance measurement error, the correlation was r = −.15 What conclusion(s) can be drawn based on these findings? Check all that apply. A) The findings indicate that a higher level of employee satisfaction leads to a lower turnover. B) It is unclear whether a higher level of employee satisfaction leads to a lower turnover. C) The findings indicate there is a weak relationship between employee satisfaction and turnover. D) Given the large number of studies, a causal relation between employee satisfaction and performance is likely.
A and B
Many organizations thank and encourage employees by handing out Christmas hampers as a year-end bonus. The chief executive officer of a large Australian civil service organization, however, issues a directive to all department directors, asking them to "stop using public resources for Christmas gifts." The CEO's decision is motivated by the pressure on the organization's finances, which has led to a huge budget deficit, so the organization is forced to cut back on nonpriority expenses. The organization's chief financial officer has calculated that the directive saves $1.2 million in expenses. All department directors agree that this outcome justifies the decision. Do you agree that a cost reduction of $10 million is a sufficient justification for the decision? Check all that apply. A) No, because there may be a negative impact on employee turnover. B) Yes, because the organization faces a huge budget deficit that needs to be reduced. C) No, because there may be a negative impact on employee performance. D) Yes, because it signals to employees that the financial situation is dire.
A and C
John is interested in the differences between managers and entrepreneurs. After a search in several research databases, he finds a research article called "Differences between Entrepreneurs and Managers in Large Organizations: Biases and Heuristics in Strategic Decision-making." The article contains 28 pages. When he starts reading, he notices the article's introduction and middle section are very lengthy and are dedicated primarily to theory. In addition, the Results section explains the outcome of a structural equation model, a statistical technique that he finds hard to understand. After about 30 minutes, when he is almost at the end of the article, he has lost track of what the authors are saying and stops reading. What are the most disadvantageous mistakes John has made? Check all that apply. A) He should have just skimmed the introduction, the middle section, and the Results section rather than read them in detail. B) He should have gained knowledge on research methods and common statistical procedures before reading research articles. C) He should have read only the abstract and the conclusion in detail; the other sections are not relevant. D) The only sections that he should have read in detail are the abstract, the Methods section, and the conclusion. E) He first should have read other research articles on this topic so he had a better understanding of relevant theories and key insights.
A and D
Read the following four statements regarding peer-reviewed journals. Check all that apply. A) Research articles published in peer-reviewed journals are evaluated and critiqued by independent, anonymous scientists in the same field. B) The process of peer review ensures that a research article is valid and reliable. C) A research article published in a peer-reviewed journal with a high impact factor does not need to be critically appraised. D) Peer review gives you some guarantee that a research article is not seriously flawed.
A and D
Read the following meeting minutes: Minutes of the Delasota State Economic Development Council—May 1 The Chairman opens the meeting by welcoming all present. The Chairman provides a summary of the worrisome economic developments in our state. The analyses from the Bureau of Economic Affairs indicates that labor market conditions continue to weaken, and the annual growth rate for Delasota's economy is expected to drop to 0.2 percent. This means the economy is doing very poorly, especially when compared to our neighbor state, Minneware, whose economy is expected to grow to 5.7 percent. The Chairman points out that last year, to stimulate its economy, Minneware's State Bureau of Tourism started a very successful campaign to promote ecotourism. In fact, within six months after the start of the campaign, the number of foreigners arriving at Minneware's airport doubled. In addition, economic analyses forecast that this year Minneware's average income per capita will increase by more than 10 percent. To stimulate Delasota's economy and increase the income of our citizens, the Chairman therefore proposes to start a similar campaign to promote ecotourism in our state. To make sure that the campaign will be successful, it is proposed to hire the director of Minneware's State Bureau of Tourism as an advisor. In this scenario, what would you consider to be the two most critical assumption(s) that should be checked to see whether there is sufficient evidence to support them? A) The director of Minneware's State Bureau of Tourism is directly responsible for the success of the campaign to promote ecotourism. B) To make sure that Delasota's campaign will be successful, the state should hire the director of Minneware's State Bureau of Tourism as an advisor. C) Delasota's economy is expected to drop to 0.2 percent. D) The growth of Minneware's economy is a direct result of the states campaign to promote ecotourism and the ensuing increase in the number of tourists.
A and D
In 1997, Korean Air Flight 801 crashed into a hill while on approach to an airport in Guam, killing 223 people. After thorough investigation into the cause of the crash, it turned out that, in addition to a series of misfortunes—including bad weather and an offline warning system—the captain had made a wrong decision. This wrong decision, however, was noticed by the co-pilot, but due to the hierarchical Korean culture, he was afraid to question the captain's judgment. Which of the following biases influenced the co-pilot's fatal decision not to speak up? - Patternicity/illusion of causality - Confirmation bias - Group conformity - Availability bias - Authority bias - Outcome bias - Overconfidence bias
Authority
In the months after the September 11 terrorist attacks, many people in the United States made the decision that traveling to their destination by car was far safer than traveling by air. Although statistically it is more dangerous to drive than to fly, having in mind the salient and dramatic events of September 11, these people felt that driving was the smarter choice. Which of the following biases influenced their judgment? - Patternicity/illusion of causality - Confirmation bias - Group conformity - Availability bias - Authority bias - Outcome bias - Overconfidence bias
Availability
A company wants to know whether its customers are satisfied with a new product it introduced three months ago. What would be the best method to acquire this evidence? A) Use a mobile voting system B) Conduct a survey C) Use the Delphi method D) Walking around and ask
B
We have collected organizational data on employee turnover. After analyzing the data,, we noticed that the turnover rate of employees born between 1981 and 1996 (also known as the millennial generation) is on average 30 percent higher than that of other employees. This suggests that millennials are actually job-hopping more frequently than other generations and consequently are more likely than other age groups to leave the company. We should therefore focus our efforts to decrease the company's turnover rate on this group rather than all employees. A) A logic model was used. B) A logic model was not used.
B
John is interested in the differences between managers and entrepreneurs. After a search in several research databases, he finds a research article called "Differences between Entrepreneurs and Managers in Large Organizations: Biases and Heuristics in Strategic Decision-making." The article contains 28 pages. When he starts reading, he notices the article's introduction and middle section are very lengthy and are dedicated primarily to theory. In addition, the Results section explains the outcome of a structural equation model, a statistical technique that he finds hard to understand. After about 30 minutes, when he is almost at the end of the article, he has lost track of what the authors are saying and stops reading. What is the most disadvantageous mistake John has made? A) He first should have read other research articles on this topic so he had a better understanding of relevant theories and key insights. B) He should have just read the abstract, the Methods section and the conclusion and 'skimmed' the introduction, the middle section, and outcome/results section rather than read them in detail. C) He should have read only the abstract and the conclusion; the other sections are not relevant. D) He should have gained knowledge on research methods and common statistical procedures before reading research articles.
B
Optimizing Organization Design® is our approach to improving organization performance. The proof that our approach works is evident in 24 research studies completed over the past 25 years and our client experience across more than 100 large-scale projects. Is the use of the term proof in this claim correct or incorrect? A) Correct, because the claim is based on a large number of scientific studies. B) Incorrect, because although the claim is based on a large number of scientific studies, the word proof should be avoided.
B
Over a five-year period, whose professional expertise would you judge to be the least trustworthy (valid and reliable)? Check all that apply. A) A car salesperson specializing in selling secondhand cars B) A management consultant specializing in culture change C) An eye surgeon specializing in eye laser surgery
B
Scenario 1 A British political consulting firm collects consumer data for use in election campaigns around the world. The company routinely collects the data of 220 million US citizens who are eligible to vote and claims it has more than 5,000 unique data-points per person. These data-points include static information such as demographics (age, gender, country of birth), but also dynamic data such as information from Facebook and other social media (posts, likes, clicks, uploaded pictures), peoples' browsing behavior, and frequent website visits. Scenario 2 The integrated database of a British airline company contains the records of more than 80 million customers. The database not only contains customers' contact details (name, address, phone number, email address, etc.), demographic information (age, gender, country of birth), but also information such as travel history, frequent flyer status, contacts with the call center, visits to the website, total amount of money spent on flight tickets, customer profitability, etc. On average, the database contains more than 100 unique data-points per customer. A) Both scenarios can be considered examples of big data B) Only scenario 1 can be considered an example of big data C) Only scenario 2 can be considered an example of big data D) None of the scenarios can be considered an example of big data.
B
The CEO of a mid-sized company that offers customer service centers notices that in the past 6 months the company's client satisfaction score has dropped from 7.6 to 6.2. When the CEO discusses this disturbing decrease with four experienced call center agents they state that many of their colleagues feel that their supervisors display abusive and/or uncivilized behavior. The CEO is quite shocked by this revelation, and decides to run focus groups to gather more evidence. A random sample of 40 agents is selected to participate in four focus groups that will be led by an experienced external moderator. In addition, the focus groups will take place in a special room with a large one-way mirror covering one wall. The supervisors will be behind the mirror (unseen) so they can observe what the agents say and learn from it. Which of the following might negatively affect the trustworthiness of the outcome of the focus groups? A) The CEO's decision to run focus groups based on an (unfounded) assertion of a very small sample of agents. B) The presence of the supervisors behind the one-way mirror C) The focus groups being led by an external moderator D) The size of the focus group: 10 participants
B
This paper reports an analysis of whether state-owned enterprises (SOEs) increase their levels of entrepreneurship after privatization. The study uses a sample of 38 firms for its empirical research. Data on these firms were available for two years before and after privatization. The findings show that corporate entrepreneurship increases after privatization. What is the research design of this study? A) A controlled study B) A before-after study C) A cross-sectional study D) A meta-analysis or systematic review
B
This study examined the magnitude of teacher effects on MBA student achievement. We used longitudinal data from 3,651 MBA students from business schools across the United States who took the the Major Field Test for Master of Business Administration (MFT-MBA), a national standardized exam administered in the United States at the end of MBA programs. After controlling for intra-classroom heterogeneity, student-teacher interaction, and class size, it was found that teacher effects are the dominant factors affecting students' MFT-MBA scores. Thus, a major conclusion is that teachers make a difference. Do you agree that teachers are the dominant factor affecting students' achievement scores? A) Yes, the findings are clear. B) No, the findings are inconclusive. C) No, the findings may be biased. D) I can't tell, I need more information
B
This study tested hypotheses related to leadership styles of entrepreneurs and managers. A sample of 621 owners of small businesses and 127 managers of large companies participated in a survey conducted in early 2014. A questionnaire was used for data collection and was sent out to all participants for them to rate their leadership style. We found significant differences in leadership styles. Entrepreneurs were more likely than managers to use inspirational and charismatic leadership behaviors. Managers had higher levels of passive, laissez-faire leadership behaviors than did entrepreneurs. What is the research design of this study? A) A randomized controlled study B) A cross-sectional study C) A before-after study D) A meta-analysis or systematic review
B
You are working as a manager at a large Italian IT firm. The productivity of the engineers is far below average for the sector. The HR director tells you that he thinks the most likely cause is lack of teamwork: it is well known that engineers in general lack social skills, and as a result don't share task-relevant knowledge among one another that is necessary to solve practical problems and improve performance. What is your estimate of the probability that the HR director's claim is true, given the available evidence? A) P(Htrue|E) > 0.50: The probability that this claim is true, given the available evidence, is higher than 50 percent. B) P(Htrue|E) = 0.50: The probability that this claim is true, given the available evidence, is 50 percent. C) P(Htrue|E) < 0.50 The probability that this claim is true, given the available evidence, is lower than 50 percent.
B
Which of the following may be a reason the question below is not adequately formulated? Check all that apply. Does it seem possible or does it seem impossible to you that the new code of conduct has led to more unethical behavior and fraud rather than less? A) The question may lead to social desirability bias. B) This is a double-barreled question. C) The question contains vague and confusing terms. D) The question contains leading and emotional language.
B and C
Which two factors determine the trustworthiness of evidence that is acquired from stakeholders? A) The extent to which the evidence could be affected by cognitive biases. B) The extent to which the evidence is representative for all stakeholders C) The extent to which the stakeholders could freely express their views and feelings D) The extent to which the evidence is based on objectifiable facts
B and C
A Canadian trucking company has 62 locations in the provinces Alberta, Ontario, Quebec, and British Columbia. Each location has its own clients (e.g., manufacturers or distributors) and operates relatively independently of the others. Nevertheless, there are many similarities among the 62 locations in terms of the equipment and technology used, employee profiles, and business processes. To improve efficiency and reduce costs, the company decides to implement just-in-time delivery, a logistics strategy in which products and materials are kept off-site and delivered to the client precisely when they are needed. To assess the effect of this decision, the new strategy was first implemented in three locations in Alberta and Ontario. The outcome showed a spectacular reduction in operational costs of 12 percent. However, six months after the strategy was implemented in the other locations, it turned out that in 5 locations, the operational costs had not changed, whereas in the other 57 locations, costs dropped on average by 10 percent. What could be two reasons that the operational costs in these 5 locations did not change? A) This could just be coincidence. B) The five locations may have insufficient financial or human resources to (completely) implement just-in-time delivery. c) Just-in-time delivery may have no or little impact on operational costs. D) The managers of the five locations who are supposed to implement the new strategy may lack the necessary skills to do so.
B and D
In the second scenario of the previous question, the manager of the call center decides to disregard the call center agents' subjective feelings and perceptions regarding their new supervisor and to introduce the new performance management system. When asked about the rationale for her decision she states "I am an evidence based manager, so I make decisons based on objectifiable facts, not subjective feelings and emotions". Do you agree that the manager should disregard the stakeholders' subjective feelings and emotions? Check all that apply. A) Yes, because the manager is right: subjective feelings and emotions can't be considered evidence. B) No, because even though stakeholders' feelings and perceptions are highly subjective and maybe even irrational, it has an actual impact on them. C) Yes, because the call center agents' feelings and perceptions towards their new supervisor are highly subjective and maybe even irrational, so they could be wrong. D) No, because the stakeholders may affect the outcome of the manager's decions.
B and D
Health managers of a large hospital chain in the United Kingdom have been ordered by the board to draw up strategies setting out how they will reduce costs and improve care in the wake of a £200 million deficit. Several managers float the possibility of closing the emergency departments at the smaller hospitals because these departments incur some of the largest costs. Which three external stakeholder groups may be negatively affected by the decision to close the emergency department? A) The hospital suppliers B) The neighboring hospitals C) The health-insurance companies D) The local community E) The ambulance services providers
B, D, and E
Operational data, metric, KPI, benchmark, organizational information? The number 20, representing the percentage that a company's annual absentee rate is above the average in the sector.
Benchmark
A German tech company specializing in the development of wind turbines considers implementing a new production method to increase productivity. It is expected that the new method will lead to a cheaper and faster manufacturing process, which will result in a significant productivity increase and an annual revenue growth of $1.5 million. According to the company's chief operating officer, there is a 70 percent chance that the new method will indeed boost productivity. This, of course, means that there is a 30 percent chance that the new method will be less efficient than the current manufacturing process—the worst case scenario would be a substantial decrease in productivity and a 20 percent drop of annual revenue. The company's current annual revenue is $32 million. Would you recommend that the company implement the new method? A) Yes, because the expected value is $1.5 million. B) Yes, because a risk of 30 percent is acceptable. C) No, because the expected value is too low. D) I need more information
C
A study reports that manufacturing companies that implement dexterous teams (a new management technique for production teams) achieve a 12 percent higher productivity compared with companies that use traditional teams. A 1 percent production increase equates to a $90,000 profit increase, while the costs of implementing dexterous teams are rather low. However, the study indicates that this finding is not statistically significant, because the p-value is higher than 0.05 (in fact, it's 0.12). The study's research design is qualified by peer reviewers as rigorous. Should you implement the model? A) No, because a 12 percent higher productivity is a small increase. B) No, because the p-value indicates the outcome could be due to chance. C) Yes. D) I need more information.
C
A small manufacturing company wants to cut costs. The CEO takes some tough austerity measures and checks the effect in the financial reports every month. If the reports show the company's financial position has improved, he compliments his managers and considers the measures a success. If the company's financial position has declined, he writes it off as normal fluctuation. For months, the CEO is convinced the austerity measures have an effect even though the company's financial position remains constant. Which of the following biases influences the CEO's judgment? - Patternicity/illusion of causality - Confirmation bias - Group conformity - Availability bias - Authority bias - Outcome bias - Overconfidence bias
Confirmation Bias
A young entrepreneur presents his business plan for an IT start-up to a group of early-stage investors: people who provide funding for start-up businesses still in the development stage. The investors, mostly former investment bankers or venture capitalists with relevant experience in a wide range of industries, get very excited about the business plan. Based on their experience and professional judgment, they estimate that the probability that this start-up will be successful is higher than 50 percent. Do you agree with this estimate? A) Yes, because investors should be able to identify a good business plan (it's their job). B) Yes. The investors have relevant experience in a wide range of industries, so they should be able to determine whether a start-up is likely to be successful. C) No, because the prior probability that an IT start-up will survive the first five years is less than 10 percent - you can check this for yourself on Google D) No. There is no evidence available that supports or contradicts the investors' estimate, so the probability should be estimated at 50/50.
C
In 2016, an investigation by the Seattle Times revealed a serious gender bias within the careers platform LinkedIn. Highly paid jobs were not displayed as frequently for searches by women as they were for men because of the way LinkedIn's algorithms were written. When LinkedIn examined this embarrassing flaw, it found that for these high-paying jobs, the users of the site's job search function were predominantly male, so the algorithm ended up proposing these jobs only to men. Which ethical principle is of concern here? A) Beneficence B) Respect C) Justice
C
Read the following claim and identify the (hidden) underlying assumption(s). Select the best answer. Since IBM, Boeing, Ford, and several other Fortune 500 companies introduced the Agile methodology, their annual revenues have increased by 10 to 15 percent. Therefore, if a company wants to increase its performance and annual revenue, it should seriously consider introducing the Agile methodology. A) An increase of a company's performance and annual revenue can't be solely attributed to the introduction of the Agile methodology. B) Low-performing organizations don't use the Agile methodology. C) Organizations with a declining performance and annual revenue should introduce the Agile methodology. D) Agile methodology causes a company's performance and annual revenue to increase.
C
The Chief Nursing Officer of a large Canadian hospital that has around 15,000 employees, notices that an increasing number of nurses suffer from burnout. Given the impact of burnout on nurse absenteeism and the quality of care, she decides to consult the new hospital's integrated information system to get a better idea of the seriousness of this problem. In particular, she wants to know how many nurses have been absent from work in the past year due to burnout, and whether this number has increased. Although the information system provides accurate and detailed information on nurse absenteeism in general, it does not contain information on whether nurses were absent due to burnout, because this is considered medical information, which is protected by privacy laws. The Chief Nursing Officer therefore decides to consult other sources of organizational evidence. What would be the source that MOST likely would have information on the number of nurses that were absent due to burnout? A) Physical records B) Staff C) Professional associations, unions, and census bureaus D) Social media
C
The aim of this study is to analyze the effectiveness of early entrepreneurship education. To this end, we evaluate a leading entrepreneurship education program that is taught worldwide in the final grade of primary school. We focus on pupils' development of entrepreneurship knowledge and a set of non-cognitive skills relevant for entrepreneurial activity. The study was conducted between February and July in 2010, and again during the same period in 2011. In total, 120 schools participated in the study. Random assignment to the treatment or control group took place at the class level. Classes assigned to the control group were excluded from participating in the education program. To gather data for determining the effect of the education program, all pupils had to complete two extensive questionnaires, measuring entrepreneurial knowledge and non-cognitive entrepreneurial skills. The questionnaires were sent to all 120 schools in February 2010, before the education program started. The second questionnaire was sent out to both treatment and control classes in July 2010, after the education program ended. The results indicate that knowledge is unaffected by the program. However, the program has a robust positive effect on non-cognitive entrepreneurial skills. What is the research design of this study? A) An empirical study B) A meta-analysis or systematic review C) A randomized controlled study D) A cross-sectional study
C
The following question is not adequately formulated. Select the most important shortcoming. Do you oppose not being allowed to use your work laptop to watch movies at home? A) The question may lead to social desirability bias. B) This is a double-barreled question. C) This is a double-negative question. D) The question contains vague and ambiguous terms.
C
You are responsible for the organizational data of the National CPR Institute, which offers CPR (cardiopulmonary resuscitation) training courses through 1,200 local training centers. The average pass rate for this training is 85 percent. However, the institute's information system shows that in the past three months at 237 training centers, the pass rate was below 80 percent. The institute's medical director asks you how she should interpret these numbers. When you look at the characteristics of these 237 centers, you notice that most of them are small centers that provide training to relatively small groups. Based on this information, what would be your answer to the medical director? A) The pass rate at the 237 training centers is below average, but the cause is unclear. B) The pass rate at the 237 training centers is not too low; it is probably average. C) It is unclear whether the pass rate at the 237 training centers is below average.
C
You are the founding partner of an IT startup. Because the company is very successful, you need to hire a new software developer. Which of the following would be the best choice to avoid confirmation bias during the selection process? A) Conduct multiple structured interviews. B) Let the software developers (future colleagues) in your company decide. C) Blind all personal information in the application letters and leave out the photos. D) Let a professional recruitment firm do the first screening. E) Let all applicants try out the job for a few days, and then select the best one.
C
Your CEO is very enthusiastic about a new, revolutionary model developed by Google to stimulate employees' creativity and considers implementing it in the organization (an international bank). She suggests paying a visit to Google's headquarters in California to see if this new model is indeed as successful as claimed. However, if your CEO were to visit Google, she might hear only success stories that will confirm her prior (positive) beliefs regarding the model. What would be the best advice you could give your CEO to prevent confirmation bias? A) Cancel the visit and instead invite people from Google to give a presentation. B) Write down in advance many critical questions that should be asked during the visit. C) In addition to visiting Google, visit a company where the implementation of the model has not led to greater creativity. D) Ask Google for hard, objective evidence that the model is a success. E) Bring along someone who can play devil's advocate and take an opposite view.
C
Your colleague claims that tall employees tend to get higher performance ratings. To substantiate this claim, she refers to a cross-sectional study that indeed shows a remarkably large correlation between height and performance rating. You know, however, that a cross-sectional study is not an appropriate research design to test a cause-and-effect claim. You therefore estimate the likelihood that a cross-sectional study will show a positive correlation even when tall employees do NOT get higher performance ratings as rather high. Therefore, you set the P(E|Hfalse) at 70 percent. On the other hand, if the claim were true and tall employees indeed get higher performance ratings, even a cross-sectional study would find a positive correlation. You therefore set the P(E|Htrue) at 90 percent. Since there is no reliable prior probability available, other than your personal judgment, you set the prior at 50 percent. What is the probability of your colleague's claim being true, given the likelihood of the evidence? A) Lower than 50 percent B) 50 percent C) Between 50 percent and 60 percent D) Between 60 percent and 70 percent E) Higher than 70 percent
C
A large German hospital chain with 42 locations decides to introduce a new compensation plan for its physicians in order to improve patient care. In this new plan, physician compensation would include both a base salary and a bonus portion tied to two metrics: the number of re-admissions of the same patient for the same condition and the average satisfaction score of the physician's patients. To assess the effect of the new plan, the hospital's chief medical officer (CMO) decides to conduct an after-action review (AAR) with a representative group of 20 physicians. During the review, the CMO focuses on learning and improvement rather than on evaluation or judgment. This developmental, nonpunitive focus yields a lot of honest and straightforward feedback: most physicians are skeptical about the need for the new compensation plan and whether the change in incentives has improved the hospital's care quality. In addition, they question whether the hospital's management has evidence to support its claim that the introduction of the new compensation plan has improved patient care. What is the BEST advice you could give to the CMO about how to improve the reliability of the assessment of the effect of the new compensation plan? A) Conduct a pilot in one location: Introduce the new compensation plan and closely monitor whether the number of readmissions drops and patient satisfaction improves B) Increase the number of participants in the after-action review and include input from at least one additional source of evidence (e.g., organizational data). C) Increase the number of participants in the after-action review and include people who can bring in other perspectives (e.g., nurses and/or patients). D) Conduct a randomized controlled trial: Randomly assign the 42 locations to an intervention group (new compensation plan) and a control group (old compensation plan) and measure the number of readmissions and patient satisfaction a few weeks before and several months after the trial.
D
A large multinational company decides to survey its most important stakeholders - the customers - to understand their satisfaction with the new service the company has been providing for two months. For this purpose, the company's 40 largest clients are invited to complete an online survey about their experiences. Which of the following might negatively affect the trustworthiness of the outcome? A) A sample of 40 is too small. B) An online survey is not a good method to collect stakeholder evidence C) The period of two months after the introduction of the new service is too short. D) The 40 largest clients may not be representative for the company's total population of clients.
D
A pre-post design was used to compare differences between employees who bring their dogs to work (DOG group) and employees who do not bring their dogs to work (NODOG group) on perceived stress. Significant differences were found between the two groups. Although perceived stress was similar at baseline, over the course of the day, stress declined for the DOG group with their dogs present and increased for the NODOG group. The NODOG group had higher stress than the DOG group by the end of the day (p < 0.04, d = .03). In addition, a significant difference was found in the stress patterns for the DOG group on days their dogs were present and absent. On dog absent days, owners' stress increased throughout the day, mirroring the pattern of the NODOG group (p < 0.02, d = .04). Based on these findings, what would your conclusion be? A) The statistical significance of the findings is below .05, which is too low. B) Not allowing employees to bring their dog to work induces stress. C) Managers should consider allowing employees to bring their dogs to work, as this substantially reduces stress. D) The effect of dogs at the workplace on perceived stress is very small and practically irrelevant.
D
Read the following claim and identify the underlying (hidden) assumption. Select the best answer. Companies like Google have used the Agile methodology in the past but found it to be ineffective, so I don't think we should introduce this methodology in our company. A) Google has used the Agile methodology in the past. B) A company does not need to use the Agile methodology to be successful. C) The Agile methodology is not effective. D) Our company is comparable to companies like Google.
D
Research examining the relative risk-taking propensities of entrepreneurs and managers has produced conflicting findings and no consensus. To facilitate a comprehensive evaluation of the scientific literature, we systematically searched three research databases (ABI-Inform, Business Source Premier, and PsycINFO) for empirical studies. The primary criterion for inclusion was that a study must make a risk propensity comparison of a clearly defined entrepreneurial group to a managerial group of adults. Our search yielded 12 studies representing a combined sample size of more than 3,000 entrepreneurs and managers. Results indicate that entrepreneurs score higher on risk propensity than managers. In addition, there are differences between entrepreneurs whose primary goal is venture growth versus those who focus is on producing family income. What is the research design of this study? A) A randomized controlled study B) A controlled before-after study C) A cross-sectional study D) A meta-analysis or systematic review
D
The following question is not adequately formulated. Select the most important shortcoming. How satisfied are you with the pay and work benefits of your current job? A) The question contains vague and ambiguous terms. B) The question may lead to social desirability bias. C) This is a double-negative question. D) This is a double-barreled question
D
Information, evidence, or data? The number 20, representing the percentage that the total number of process stops is below the average in the sector, confirming the assumption of the Chief Operations Officer that the plant is doing worse than its competitors.
Evidence
How would you define evidence-based management?
Evidence-based management is about making decisions using critically appraised evidence from multiple sources to increase the likelihood of a favorable outcome.
The new CEO of a large mental healthcare organization with 26 locations announces that his strategy for the next four years will be to make the transition to e-health. According to the CEO, the medical treatment of most mental disorders such as depression, anxiety, PTSD, and personality disorders don't require in-person sessions, so online therapy is a quicker, better, and - most important - cheaper solution. About six months after online therapy is implemented at six locations, a group of senior psychiatrists notices that the number of new patients has decreased. Because they suspect that this may be due to the fact that most patients prefer in-person sessions rather than online therapy, they ask the head of the patient administration department for an overview of all new patient registrations in the past six month, broken down by location. What could be a potential barrier to acquiring this organizational evidence? A) Costs versus benefits B) Accessibility C) Data protection and privacy regulations D) Organizational politics
D
You were recently appointed as managing director for a small manufacturing firm. In your first months working there, it became clear to you that the accounting system does not work properly, and there is limited insight into the firm's fixed and variable costs, which has a negative impact on the firm's financial performance. The financial director suggests introducing zero-based budgeting, a widely used costing method. The financial director is pretty certain that this method will improve the situation and even have a positive impact of at least 5 percent on the firm's profit margin. When you ask the financial director what the evidence is for his claim, he refers to a survey published in a popular magazine that suggests that 60 percent of all American companies adopting this costing method indicate that their financial performance has increased by 5 percent or more. The firm's accountant considers the financial director's claim probable, so you set the prior at 60 percent. Given that a survey is not an appropriate design to measure a cause-and-effect relationship, you set the P(E|Htrue) at 60 percent and the P(E|Hfalse) at 40 percent. When you apply Bayes rule, you find that the probability that the director's claim is true, given the prior and given the available evidence, is 69 percent. Because you suspect more rigorous scientific evidence is available, you conduct a search in the database ABI/INFORM and find a recent meta-analysis based on 20 longitudinal studies that used before and after measures. Because the methodological appropriateness of the meta-analysis is much better, you set the the P(E|Htrue) at 80 percent and the P(E|Hfalse) at 20 percent. Apply Bayes rule to calculate the new P(Htrue|E), the new probability that the claim is true given this new evidence. What posterior probability do you get? A) Lower than 0.50 B) Between 0.50 and 0.70 C) Between 0.70 and 0.80 D) Higher than 0.80
D
Rank order these options in terms of whose professional expertise you would judge to be more trustworthy (valid and reliable) over a five-year period: 1 = the most trustworthy to 4 = the least trustworthy. Use each number only once. - A business consultant specializing in Agile working - A sales manager specializing in selling life insurance policies - A dermatologist specializing in the treatment of eczema - A personal counselor specializing in how to live a happy life
Dermatologist Sales manager Business consultant Personal counselor
During a board meeting of a large German automotive manufacturer the report of an external consultant is discussed. The report states that in the last quarter the number of sales has decreased relative to its competitors. The CEO warns that this could seriously damage the company's market share, and therefore demands immediate action. The company's head of marketing thinks the decrease is due to the unfavorable economic situation, so she suggests lowering the prices of the luxury cars. The head of sales, however, thinks that the decrease is caused by the high number of young, inexperienced sales agents, so he suggests sending them to a training course to improve their sales techniques. Finally, the Chief Operation Officer thinks that the decrease can be attributed to a decline in production that is caused by the implementation of a new production process. What evidence from the organization should the board collect first? A) Internal data regarding the number of sales agents that have received a sales training. B) External data regarding customers' perception of prices of luxury cars and whether its sales has decreased in the past quarter. C) Internal data regarding the number of cars produced and whether there is a decline that coincides with the implementation of the new production process. D) Internal data regarding the number of young, inexperienced sales agents and whether this number has increased in the past quarter. E) External data regarding the average number of sales in the sector and whether the company's sales have decreased relatively in the past quarter.
E
Information from the industry body and the national census bureau confirms there is indeed a serious problem: in the last quarter the company's number of sales has decreased by 20 percent relative to its competitors. As a result, the company's market share has decreased too. Thus, next step would be to identify the possible cause(s) of this problem. As mentioned, the head of marketing thinks the prices of the luxury cars should be lowered, whereas the head of sales thinks that sales numbers will increase after sending young, inexperienced sales agents to a sales training course. Finally, the Chief Operation Officer suggests first the implementation problems of the new production process should be solved. Based on this information, what evidence from the organization would you collect next? A) External data regarding customers' perception of prices of luxury cars and whether sales have decreased in the past quarter. B) Internal data regarding the number of young, inexperienced sales agents and whether this number has increased in the past quarter. C) Internal data regarding the number of cars produced and whether there is a decline that coincides with the implementation of the new production process. D) Internal data regarding the number of sales agents that have received a sales training. E) Nothing, I first need more information.
E
Search Inside Yourself (SIY) is a mindfulness program that was developed by Google. It consists of an interactive two-day program followed by four weeks of daily 30-minute online sessions. In the past years, more than 200 companies in 20 countries have offered the program to their employees. The program claims that it reduces stress, improves focus, raises performance, and improves interpersonal relationships. A researcher decides to see whether these claims stand up to scientific scrutiny. She selects a random sample of 60 managers from the UK who were enrolled in the program. The results of the study demonstrate that the SIY program is effective: after four weeks, the participants showed statistically significant lower stress levels, a better focus, and a higher task performance (p < .05). Could the outcome of the study be affected due to the placebo effect? Why or why not? A) Yes, because there is no comparison with a random sample of employees who continued their daily work. B) Yes, because it is unclear whether the effect sizes are practically relevant. C) No, because the results are statistically significant at the p < .05 level, which indicates the effect was genuine. D) No, because there is a pre- and post-measurement, so it is not likely that a placebo effect has affected the outcome. E) Yes, because there is no comparison with a random sample of employees who did something relaxing for 30 minutes (e.g., listened to music, took a stroll)
E
True or false? Evidence from scientific research is the strongest (most trustworthy) evidence.
False
True or false? Evidence-based practice tells you what works and what doesn't.
False
True or false? Experience doesn't count as evidence.
False
True or false? Practitioners rarely use evidence in their decisions.
False
True or false? Research conducted by a top university professor published in a top academic journal does not need to be critically evaluated.
False
True or false? You cannot use evidence-based practice for completely new problems because there is no evidence on which to draw.
False
A civil service organization in Australia considers implementing goal setting—the ability of all employees, managers, and executives to set performance goals that support the common objectives of the organization. One of the departmental heads, however, points out that several high-quality studies have demonstrated that when a complex or novel task is involved, a learning goal (e.g., adopting a specific number of strategies or procedures to perform the task correctly) leads to higher performance than a performance goal (focused on results). The department head therefore argues that for new or complex tasks, people should set learning goals, not performance goals. When asked about the generalizability of these findings, the department head explains that most studies were conducted in law firms, insurance companies, and healthcare organizations in the United States. How do you judge the generalizability of these studies' findings to the context of an Australian civil service organization? - Generalizable - Not generalizable - I need more information.
Generalizable
According to a famous Harvard Business School professor, 70 percent of all organizational change interventions fail. Would you regard this as evidence?
No
All air traffic control centers around the world record near-misses (when two aircraft have gotten closer than they should have). In 2016, a European center introduced a new traffic control system, and the number of near-misses decreased by 80 percent. At a center in the United States, handling a comparable number of flights, the number of near-misses increased by 20 percent. Is the flight safety in the European center better than in the US center? - Yes - No - They are probably about the same. - I need more information.
I need more information
Determine the place where you most likely could obtain the following types of evidence: 1. The number of part-time workers at a small insurance company. 2. The average number of medical errors per month in a large university hospital 3. The (assumed) market share increase of a airline company
HR Quality & safety Marketing & sales
In order to improve the performance and innovation of its R&D teams, the tech start-up mentioned above decides to increase trust and social cohesion among team members. The company's HR manager suggests implementing team-building activities, which are assumed to have a positive effect on both intra-team trust and social cohesion. The HR manager acknowledges that team-building activities sometimes backfire and lead to distrust and conflicts, but based on the available scientific evidence, he estimates this chance to be about 5 percent. Within a week after the team-building activities start, however, several teams report an increased number of conflicts between members, which negatively affects performance and stifles innovation. The company's CEO considers firing the HR manager—obviously, his risk estimate was inaccurate. Do you agree that the HR manager's risk estimate was inaccurate? - Yes - No - I need more information.
I need more information
A study reports a significantly higher employee performance score in companies that use "empowering people," a new, cutting-edge HR management model. The p-value for the difference in employees' task performance (compared with companies that do not use the model) is 0.003, suggesting that there is only a very small probability of 0.3 percent that this finding is due to chance. Should you implement the model? Yes. No. I need more information.
I need more information
Information, evidence, or data? The number 12, represents the times that a beer bottling plant had to stop the production process because of human error incidents
Information
Information, evidence, or data A list with codes and definitions used to categorize the reason why the production process of a beer bottling plant was stopped.
Information
Operational data, metric, KPI, benchmark, organizational information? The number 12, representing the percentage that a department's monthly absentee rate was under the company's target.
KPI
Operational data, metric, KPI, benchmark, organizational information? The number 2, representing the percentage of nurses that were absent from work in the past month.
Metric
How strong/trustworthy would you consider the following evidence? Findings from a survey that assessed the experience of sales managers with a new customer management system implemented a year ago. The survey was completed by 85 percent of the sales managers; more than 90 percent of them responded that the new system helped increase sales.
Moderate
In 2017, Delta Airlines had more than 180 million passengers. The company's organizational data indicate a small increase in financial compensation to customers due to delayed flights in 2017 compared to 2016. In 2016, the airline paid a total compensation of $1.7 million; in 2017, this amount was $1.8 million. Would you consider this a big number? Yes No I need more information.
No
Is there a moderator? In general, mergers do not lead to a substantial increase of firm performance.
No
In 2018 athletic shoe manufacturer Nike decided to select controversial American football player Colin Kaepernick as the face of its new global advertising "Just Do it Campaign." The company even decided to give Kaepernick his own branded line of shoes. Kaepernick had not played in America's National Football League (NFL) since 2016. Kaepernick claims the NFL blacklisted him for protesting in 2016. Kaepernick, who is black like most NFL players, protested against police killings of African-American men by kneeling during the national anthem. His protest drew a lot of criticism - even Donald Trump, president of the United States, called Kaepernicks protest a "sign of great disrespect for US troops". Nike, however, stated that sticking with Kaepernick is important because it demonstrates the company's commitment to free speech, diversity, and human rights. Which two of the following stakeholders could affect this decision? - Nike's shareholders - Nike's employees - Nike's suppliers - Nike's customers - The president of the United States - The US Federal Communications Commission
Nike shareholders and Nike customers
Are the following four questions and statements adequately formulated? Select Yes or No. - How likely are you to go out for dinner and a movie this weekend? - In the team meetings I attend, risk management is always on the agenda. - The last team meeting was well attended. - How would you rate the new procedure that was implemented last month that has dramatically reduced the number of errors?
No Yes No No
What type of decision is this? A hotel chain that wants to introduce learning goals for new, inexperienced staff
Non-Routine
What type of decision is this? A manufacturing company that wants to introduce self-managed teams
Non-routine
What type of decision is this? A retail bank that wants to be the first bank that uses artificial intelligence to improve the compliance to ethical standards
Novel/ Hyper-complex
A new study suggests that most golfers overstate how far they can hit the ball. Forty percent think they can hit the ball much farther than they are able to. Which of the following biases most likely influences the golfers' judgment? - Patternicity/illusion of causality - Confirmation bias - Group conformity - Availability bias - Authority bias - Outcome bias - Overconfidence bias
Overconfidence Bias
At a board meeting of a German engineering company that recently was forced to adopt tough austerity measures, the high level of workplace stress that many senior engineers experience is discussed. The HR director suggests allowing the engineers to bring their dogs to work, because this is believed to have a positive effect on workplace stress. The CEO, however, thinks that this is nonsense and wants to maintain the status quo unless there is evidence from the scientific literature that supports this belief. What are the PICOC terms?
P: Senior Engineers I: Allowing employees to bring their dogs to work C: Doing nothing/ status quo O: Reduce workplace stress C: A German engineering company that recently was forced to adopt tough austerity measures
As described in the introduction of this module, physicians for decades falsely believed that a stomach ulcer was caused by lifestyle factors, such as severe stress, because they noticed that people with a lot of occupational or personal stress were more likely to develop a stomach ulcer. Which of the following biases influenced the physicians' judgment? - Patternicity/illusion of causality - Confirmation bias - Group conformity - Availability bias - Authority bias - Outcome bias - Overconfidence bias
Paternity/ illusion of causality
What type of decision is this? A travel agency that wants to develop a new policy for handling customer complaints
Routine
What type of decision is this? An insurance company that wants to reduce the absenteeism of its back-office staff
Routine
Read the following case and determine which source of evidence was NOT consulted. An international hotel chain conducted a job satisfaction survey among its 6,500 employees. The outcome showed that 63 percent of employees were dissatisfied with their supervisor. In addition, it was found that hotels with the lowest score on supervisory support also had the highest number of complaints and the lowest profit margins. Focus group discussions with employees indicated that they felt their supervisors lacked general management skills (e.g., goal setting, performance feedback, running a meeting) and interpersonal skills (e.g., listening, coaching). When managing directors were asked about their view, most of them stated that, in their experience, supervisors who lack skills to support their employees also tend to generate high complaint rates and low profit margins. Based on these findings, the board decides to provide management training for all supervisors.
Scientific Evidence
Read the following scenario and determine whether the decision taken was based on System 1 or System 2 thinking. A candidate applying for the position of project manager gives a presentation that uses poorly designed slides. In addition, he doesn't smile often, and the suit he wears looks a little worn out. The organization's senior managers therefore decide not to give him the job.
System 1
Read the following scenario and determine whether the decision taken was based on System 1 or System 2 thinking. A recently appointed managing director of a small manufacturing firm notices that the accounting system is not working properly and there is limited insight into the firm's fixed and variable costs. The financial director suggests introducing activity-based costing, a popular costing method that is used by most large international manufacturing firms. The managing director is not familiar with this method but feels that if so many large manufacturing firms use activity-based costing, the method must be good for their company as well. He therefore decides to implement the method.
System 1
Read the following scenario and determine whether the decision taken was based on System 1 or System 2 thinking. A well-known consulting firm recommends introducing Agile methods to boost the company's performance. The CEO decides that she first wants to know what the research literature suggests about the benefits (effectiveness) and costs (possible negative effects) of Agile working.
System 2
Read the following scenario and determine whether the decision taken was based on System 1 or System 2 thinking. An international hotel chain decides to invest in a new customer relationship management (CRM) system. The IT director suggests inviting four well-known IT companies to tender for the development of the new CRM system. The CEO, however, decides that also two-lesser known IT companies will be invited to tender and that all tender proposals must be blinded, meaning that the names and logos of the tendering companies must be removed.
System 2
In 2019 the German car manufacturing company Volkswagen announced that it will reduce €5.9 billion of costs by reducing the workforce and eliminating up to 7,000 positions. However, the company's board decided that existing workers in Volkswagen's German operations will not face layoffs for the next 10 years. Volkswagen will achieve this by not filling empty jobs. For instance, Volkswagen will not hire replacements for retiring workers. Which stakeholder group(s) may experience harm from this decision? - The employees - The customers - The shareholders - The society at large - The suppliers
The employees
Read the continuation of the scenario we used above (in question 6) and determine whether the assumed problem is sufficiently supported by evidence from multiple sources. Riverview Healthcare's executives agree on the following problem description and related assumptions: (1) The new metrics required by the federal government are intended to improve quality of care; it shifts reimbursement for patients from quantity (services provided) to quality (clinical outcomes, patient satisfaction, etc.). (2) Riverview's physicians are focused on quantity rather than quality, and their treatment plans are not patient-centered. (3) As a result, Riverview will score poorly on the new metrics. (4) As a result, the federal government will pay Riverview a lower compensation for the care provided. (5) In the long term, this may lead to a serious loss of revenue and possible bankruptcy. The executives decide to see whether there is evidence to support this problem description. They hold several focus groups with managers, team leaders, and nurses. All participants feel that many physicians at Riverview lack patient focus—often, their main concern is the number of treatments rather than the quality of care. For this reason, they expect the hospital to score poorly on the new performance metrics. However, they point out that this is partly due to the current compensation system: more treatments = more dollars earned. When the executives consult the organizational evidence, they notice that in the past five years, both the number of medical procedures and the physicians' average income have increased. In the same period, however, several quality indicators (some of which are included in the new performance metrics) show poor outcomes: the number of readmissions, hospital acquired infections, and preventable medical errors have all increased. Not surprisingly, patient satisfaction has dropped significantly, and the number of complaints has surged. Finally, interviews with the most important stakeholders, the physicians, paint a similar picture. Riverview is a hospital that emphasizes productivity and high performance, so physicians with a patient-centered focus who invest time in the doctor-patient relationship prefer to work elsewhere. Although there are still excellent physicians at Riverview whose first concern is the patient's well-being, the hospital's current compensation system provides a strong incentive to prioritize quantity over quality. As a result, they too expect the hospital to score poorly on the new metrics. Does the evidence from practitioners support the assumed problem? In the scenario we used above does the evidence from the organization support the assumed problem? In the scenario we used above does the evidence from relevant stakeholders support the assumed problem? In the scenario we used above does the evidence from the scientific literature support the assumed problem?
To a great extent To a great extent To a great extent Unclear
Read the continuation of the scenario we used previously and determine whether the preferred solution is sufficiently supported by evidence from multiple sources. Riverview Healthcare's executives decide to see whether there is evidence to support the preferred solution: implementing a new compensation system that provides a strong financial incentive to prioritize quality over quantity of care and that includes a variable bonus tied to the physicians' group performance on the new metrics. Again, they hold several focus groups with managers, team leaders, and nurses. Most participants state that their experience is that, in general, most physicians are sensitive to financial bonuses and are gladly willing to change their focus and behavior if it yields more money. They therefore expect the new compensation system to shift physicians' mindset and priorities to be more patient-centered. When the research literature is consulted, it becomes clear that overall financial incentives (such as bonuses) have a strong positive effect on performance. Although some early studies found that financial incentives may negatively effect people's intrinsic motivation—which is a strong predictor for quality of performance—this finding was not observed in later, more rigorous studies. Finally, interviews with the most important stakeholders, the physicians, suggest that most of them welcome the new compensation system. They feel that including a variable bonus tied to the physicians' group performance will definitely improve the hospital's score on the new metrics and eventually shift physicians' mindset. In addition, they expect the new compensation system to attract young physicians with a patient-centered focus whose first concern is the patient's well-being rather than making a lot of money. Does the evidence from practitioners support the preferred solution? In the scenario we used above can the kind of organizational data currently gathered be used to monitor the future effectiveness of the preferred solution? In the scenario we used above does the evidence from the scientific literature support the preferred solution? In the scenario we used above does the evidence from relevant stakeholders support the preferred solution?
To great extent No Somewhat To great Extent
True or false? Most experts are not a very reliable source of evidence.
True
True or false? Not all evidence is of the same quality/strength
True
How strong/trustworthy would you consider the following evidence? Findings from a survey of 100 CEOs, conducted by an international consulting firm, regarding the best way to reduce expenses and improve profitability.
Very Low
How strong/trustworthy would you consider the following evidence? The opinion of a well-known CEO regarding the effects of participative budgeting on cost management
Very Low
Read the following scenario and determine whether the problem is sufficiently clear: The passage of the Affordable Care Act (ACA, also called Obamacare) in 2010 required that US hospitals report their performance on new metrics. These new metrics allow the federal government to reimburse hospitals for the costs of care based on their performance. Riverview Healthcare, a large hospital located in the eastern United States, decided to take the challenge of implementing the new performance metrics one step further by also changing the financial compensation plan for its physicians: under the new plan, compensation would include both a base salary and a variable bonus tied to the physicians' individual performance on the new metrics. According to Riverview's executives, the new compensation plan would give greater emphasis to quality over quantity of care. As a result, the new plan would change Riverview's culture and shift the physicians' mindset and priorities to be more in line with a patient-centered view of health care. However, to provide reliable information on physicians' individual performance, the hospital's IT system required substantial changes in the collection, processing, and reporting of data because different medical specialties require different metrics to accurately reflect quality of care. Therefore, it would take much time and money to make the current system compatible with the new requirements. The time and cost investment involved came as a complete surprise to the executives, who believed the current system would meet the new requirements and thus guarantee a smooth implementation of the new metrics and compensation plan. How clearly defined is the problem (what, who, when, where, why)? How clear is the organizational consequences of the problem? How clear is the most serious and urgent problem?
Very Unclear Very Unclear Very Unclear
Imagine you are a manager at an educational institution. Would you regard the following statement from a consultant as evidence about trust and information sharing? "In the fifteen years I have worked as a consultant, I have noticed knowledge workers are more likely to share information when they trust each other."
Yes
Imagine you are an executive of an international IT firm. You are thinking about introducing virtual teams. Would you regard the experience of software engineers with virtual teams as evidence?
Yes
Imagine you are the CEO of a large financial firm. You are thinking about introducing performance bonuses for executives and senior-level employees. Would you consider as evidence the outcome of a national survey that indicates that most people disapprove of awarding financial bonuses to executives?
Yes
Is there a moderator? Cultural differences between the merging firms is negatively correlated with firm performance.
Yes
Is there a moderator? The turnover of top managers after a merger is negatively correlated with firm performance.
Yes
If you had to compose a team that would advise you in important decisions, what factors would you consider? Select Yes or No. - The composition of the team (age, social background, area of expertise) - An explicit decision-making process - Making sure the people on the team get along with each other - Appointing a devil's advocate - Setting up a procedure to prevent task conflicts - Setting up a second team to work on the same problem - Assigning a group leader who is responsible for the ultimate decision
Yes Yes No Yes No Yes No
To which of the following biases could a face-to-face meeting be susceptible? Select Yes or No for each option. - Authority bias - Confirmation bias - Group conformity - Availability bias
Yes No Yes No
Based on the scenario and logic model above, what organizational data would you collect? Select yes or no - The level of psychological safety within new teams - The performance of new teams - The performance of teams with low psychological safety compared to those with high psychological safety. - The average performance of all teams - The costs of team-building activites
Yes No Yes No Yes
Thinking again about the scenario in question 14, what should the executives do instead to avoid bias? Select Yes or No for each option. - Install a red team - Ask someone to play devil's advocate - Actively seek information that contradicts their assumption - Consult people within the hospital who may have contradictory beliefs
Yes Yes Yes Yes
Actionable or non-actionable? Motivation has a small to moderate effect on sales performance.
non-actionable
