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Chapter 8
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Global Management
8
1
Business Has Gone Global
Why?
Pause here and jot down a few reasons
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Business Has Gone Global
In order to obtain:
Higher profits
New customers
New suppliers
Cheaper labor
Foreign capital
Mitigated risk (e.g., company’s profit isn’t dependent on one
country’s economy)
3
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The Impact of Global Businesses
Consider that…
A multinational corporation is one that owns businesses in two
or more countries
There are over 100,000 of these now, and less than 10% based
in the USA
Most organizations have some global link, even if it’s just
purchasing products or materials from a foreign country, or
selling products and services outside the home country
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4
Considerations in Going Global: Global Consistency or Local
Adaptation?
The first thing one must consider is whether to transplant the
existing business model, largely unchanged (global
consistency), or make changes to reflect local culture (local
adaptation
Global consistency: Multinational company conducting business
in different countries using the same assumptions, policies, and
procedures
Involves the risk of being poorly suited to particular countries
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Global Consistency or Local Adaptation?
Local adaptation: Modifying business to adapt to differences in
foreign countries
Involves the risk of losing established cost effectiveness and
initial productivity, however, this loss could eventually become
a long-term gain when you’ve made the time and $ investment
to do it the right way.
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6
Forms of Global Business
Range from less to more involved
Global sourcing (least involved): materials or services are
purchased around the world for local use
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7
Forms of Global Business
Exporting & importing: selling locally made products abroad &
buying foreign products to sell locally
8
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Forms of Global Business
Cooperative contracts: a foreign business owner pays a company
a fee for the right to conduct that business in his or her country
(two types: licensing and franchising)
Licensing: Domestic company receives royalty payments for
allowing foreign company to use its brand name
Allows for more profit with no initial investment, however you
sacrifice some control over your brand – the foreign company
might use your name to sell something different
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Forms of Global Business
Franchising: Collection of networked firms in which the
manufacturer licenses the entire business
You have much more control than licensing, but still give up
some control when you’re not physically present at various
locations
Doesn’t inherently allow for as much adaptation to local culture
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Forms of Global Business
Strategic alliances: Agreement in which companies combine key
resources, space, costs, risks, technology, or people
These companies are often not in competition (e.g., Bookstore
pairs up with coffee shop – Barnes & Noble and Starbucks)
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11
Forms of Global Business
Coopetition (Cooperative competition): Competitors cooperate
in certain domains
Airlines partnering for rewards programs
Car companies cooperating on hybrid technology (in order to
produce the best possible technology) that they can then keep
for just themselves or sell to other car companies
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12
Becoming Aware of Cultural Differences
National culture: Set of shared values and beliefs
Affects the perceptions, decisions, and behavior of the people
from a particular country
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Becoming Aware of Cultural Differences
Hofstede’s Dimensions of National Culture
Power distance
Individualism vs collectivism
Masculinity vs femininity
Uncertainty avoidance
Short-term vs long-term orientation
New: indulgence vs restraint
https://www.hofstede-insights.com/
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Becoming Aware of Cultural Differences
The GLOBE Project Dimensions of National Culture is
becoming a more dominant framework. It adds the following to
the previous dimensions
Performance orientation
Gender egalitarianism
Human orientation = femininity
Assertiveness = masculinity
Institutional collectivism
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16
Becoming Aware of Cultural Differences
Research findings:
In Western countries, employees are more sensitive to how they
are treated by their leaders (relative to Eastern countries) –
likely reflects smaller power distance
Collectivist cultures place more emphasis on intrinsic work
values (relative to individualistic cultures)
Countries higher in uncertainty avoidance have more
entrepreneurial alliances
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17
Becoming Aware of Cultural Differences
Word of caution:
Use knowledge to guide decisions about strategy and general
management, rather than to make generalizations about each
individual
As we become more globalized, national culture changes
It’s important to stay up-to-date with research into cultural
differences
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Becoming Aware of Cultural Differences
Have you ever experienced an awkward interaction while
traveling abroad that you think occurred due to differences in
national culture? Share your story and explain which dimension
of national culture was at the root of this. (Discussion board
question).
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Factors That Increase the Chances for a Successful International
Assignment
Language and cross-cultural training
Help expatriates make faster adjustments to foreign cultures and
perform better on their international assignments
Documentary training - Focuses on identifying specific critical
differences between cultures
LO 6
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20
Factors That Increase the Chances for a Successful International
Assignment (continued)
Cultural simulations - Trainees practice adapting to cultural
differences
Field simulation - Trainees are placed in a different
neighborhood for three to four hours to talk to residents about
cultural differences
LO 6
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Preparing Families for Successful Overseas Adjustment
Adaptability screening - Used to assess how well managers and
their families are likely to adjust to foreign cultures
Intercultural training - Helping families prepare for the cultural
differences they will encounter
LO 6
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22
https://doi.org/10.1177/0956797620939054
Psychological Science
2020, Vol. 31(7) 770 –780
© The Author(s) 2020
Article reuse guidelines:
sagepub.com/journals-permissions
DOI: 10.1177/0956797620939054
www.psychologicalscience.org/PS
ASSOCIATION FOR
PSYCHOLOGICAL SCIENCEResearch Article
We’re not just fighting an epidemic; we’re fighting
an infodemic.
—Tedros Adhanom Ghebreyesus (2020),
Director-General of the World Health Organization
The COVID-19 pandemic represents a substantial chal-
lenge to global human well-being. Not unlike other chal-
lenges (e.g., global warming), the impact of the COVID-19
pandemic depends on the actions of individual citizens
and, therefore, the quality of the information to which
people are exposed. Unfortunately, however, misinfor-
mation about COVID-19 has proliferated, including on
social media (Frenkel, Alba, & Zhong, 2020; Russonello,
2020).
In the case of COVID-19, this misinformation comes
in many forms—from conspiracy theories about the virus
being created as a biological weapon in China to claims
that coconut oil kills the virus. At its worst, misinforma-
tion of this sort may cause people to turn to ineffective
(and potentially harmful) remedies, as well as to either
overreact (e.g., by hoarding goods) or, more danger-
ously, underreact (e.g., by engaging in risky behavior
and inadvertently spreading the virus). As a conse-
quence, it is important to understand why people believe
and share false (and true) information related to COVID-
19—and to develop interventions to increase the quality
of information that people share online.
Here, we applied a cognitive-science lens to the
problem of COVID-19 misinformation. In particular, we
939054PSSXXX10.1177/0956797620939054Pennycook et
al.Combating COVID-19 Misinformation
research-article2020
Corresponding Author:
Gordon Pennycook, University of Regina, Hill and Levene
Schools of
Business, 3737 Wascana Parkway, Regina, Saskatchewan,
Canada, S4S 0A2
E-mail: [email protected]
Fighting COVID-19 Misinformation on
Social Media: Experimental Evidence for
a Scalable Accuracy-Nudge Intervention
Gordon Pennycook1,2,3 , Jonathon McPhetres1,2,4 , Yunhao
Zhang4,
Jackson G. Lu4 , and David G. Rand4,5,6
1Paul J. Hill School of Business, University of Regina;
2Kenneth Levene Graduate School of Business, University
of Regina; 3Department of Psychology, University of Regina;
4Sloan School of Management, Massachusetts
Institute of Technology; 5Institute for Data, Systems, and
Society, Massachusetts Institute of Technology; and
6Department of Brain and Cognitive Sciences, Massachusetts
Institute of Technology
Abstract
Across two studies with more than 1,700 U.S. adults recruited
online, we present evidence that people share false
claims about COVID-19 partly because they simply fail to think
sufficiently about whether or not the content is
accurate when deciding what to share. In Study 1, participants
were far worse at discerning between true and false
content when deciding what they would share on social media
relative to when they were asked directly about
accuracy. Furthermore, greater cognitive reflection and science
knowledge were associated with stronger discernment.
In Study 2, we found that a simple accuracy reminder at the
beginning of the study (i.e., judging the accuracy of a non-
COVID-19-related headline) nearly tripled the level of truth
discernment in participants’ subsequent sharing intentions.
Our results, which mirror those found previously for political
fake news, suggest that nudging people to think about
accuracy is a simple way to improve choices about what to
share on social media.
Keywords
social media, decision making, policy making, reflectiveness,
social cognition, open data, open materials, preregistered
Received 4/15/20; Revision accepted 6/8/20
TC
https://us.sagepub.com/en-us/journals-permissions
http://www.psychologicalscience.org/ps
http://crossmark.crossref.org/dialog/?doi=10.1177%2F09567976
20939054&domain=pdf&date_stamp=2020-06-30
Combating COVID-19 Misinformation 771
tested whether previous findings from the domain of
political fake news (fabricated news stories presented
as if from legitimate sources; Lazer et al., 2018) extended
to misinformation related to COVID-19. We did so by
drawing on a recently proposed inattention-based
account of misinformation sharing on social media
(Pennycook et al., 2020). According to this account,
people generally wish to avoid spreading misinforma-
tion and, in fact, are often able to tell truth from false-
hood; however, they nonetheless share false and
misleading content because the social media context
focuses their attention on factors other than accuracy
(e.g., partisan alignment). As a result, they get dis-
tracted from even considering accuracy when deciding
whether to share news—leading them to not implement
their preference for accuracy and instead share mislead-
ing content. In support of this inattention-based account,
recent findings (Pennycook et al., 2020) showed that most
participants were surprisingly good at discerning between
true and false political news when asked to assess “the
accuracy of headlines”—yet headline veracity had very
little impact on participants’ willingness to share the head-
lines on social media. Accordingly, subtle nudges that made
the concept of accuracy salient increased the veracity of
subsequently shared political content—both in survey
experiments and in a large field experiment on Twitter.
It was unclear, however, how (or whether) these
results would generalize to COVID-19. First, it may be
that a greater level of specialized knowledge is required
to correctly judge the accuracy of health information
relative to political information. Thus, participants may
be unable to discern truth from falsehood in the context
of COVID-19, even when they do consider accuracy.
Second, it was unclear whether participants would be
distracted from accuracy in the way that Pennycook et
al. (2020) observed for political headlines. A great deal
of evidence suggests that people are motivated to seek
out, believe, and share politically congenial information
(Kahan, Peters, Dawson, & Slovic, 2017; Kunda, 1990;
Lee, Shin, & Hong, 2018; Mercier & Sperber, 2011; Shin
& Thorson, 2017). Thus, it seems likely that these par-
tisan motivations are what distracted participants from
accuracy in the study by Pennycook et al. (2020), who
used highly political stimuli. If so, we would not expect
similar results for COVID-19. Much of the COVID-19
information (and misinformation) circulating online is
apolitical (e.g., that COVID-19 can be cured by Vitamin
C). Furthermore, despite some outliers, there was (at
the time these studies were run) relatively little partisan
disagreement regarding the seriousness of the pandemic
(Galston, 2020). Indeed, as described below, there were
no partisan differences in likelihood to believe true or
false COVID-19 headlines in our data. Thus, if partisan-
ship were the key distractor, people should not be
distracted from accuracy when deciding whether to
share COVID-19-related content. On the contrary, one
might reasonably expect the life-and-death context of
COVID-19 to particularly focus attention on accuracy.
In the current research, we therefore investigated the
role that inattention plays in the sharing of COVID-
19-related content. Study 1 tested for a dissociation
between accuracy judgments and sharing intentions
when participants evaluated a set of true and false news
headlines about COVID-19. Study 1 also tested for cor-
relational evidence of inattention by evaluating the
relationship between truth discernment and analytic
cognitive style (as well as examining science knowl-
edge, partisanship, geographic proximity to COVID-19
diagnoses, and the tendency to overuse vs. underuse
medical services). Study 2 experimentally tested
whether subtly making the concept of accuracy salient
increased the quality of COVID-19 information that
people were willing to share online.
Study 1
Method
We report how we determined our sample size, all data
exclusions, all manipulations, and all measures in this
Statement of Relevance
Misinformation can amplify humanity’s chal leng-
es. A salient example is the COVID-19 pandemic.
The environment created by the pandemic has bred
a multitude of falsehoods even as truth has become
a matter of life and death. In this research, we in-
ves ti gated why people believe and spread false
(and true) news content about COVID-19. We
found that people often fail to consider the accuracy
of content when deciding what to share and that
people who are more intuitive or less knowledgeable
about science are more likely to believe and share
falsehoods. We also tested an intervention to increase
the truthfulness of the content shared on social
media. Simply prompting people to think about
the accuracy of an unrelated headline improved
subsequent choices about what COVID-19 news
to share. Accuracy nudges are straightforward for
social media platforms to implement on top of the
other approaches they are currently employing.
With further optimization, interventions focused on
increasing the salience of accuracy on social media
could have a positive impact on countering the tide
of misinformation.
772 Pennycook et al.
study. Our data, materials, and preregistration are avail -
able on the Open Science Framework (https://osf
.io/7d3xh/). At the end of both surveys, we informed
participants which of the headlines were accurate (by
re-presenting the true headlines).
Participants. This study was run on March 12, 2020.
We recruited 1,000 participants using Lucid, an online
recruiting source that aggregates survey respondents
from many respondent providers (Coppock & Mcclellan,
2019). Lucid uses quota sampling to provide a sample
that is matched to the U.S. public on age, gender, ethnic-
ity, and geographic region. We selected Lucid because it
provides a sample that is reasonably representative of the
U.S. population while being affordable for large samples.
Our sample size was based on the following factors: (a)
1,000 is a large sample size for this design, (b) it was
within our budget, and (c) it is similar to what was used in
past research (Pennycook et al., 2020). In total, 1,143 par-
ticipants began the study. However, 192 did not indicate
using Facebook or Twitter and therefore did not complete
the survey. A further 98 participants did not finish the
study and were removed. The final sample consisted of
853 participants (mean age = 46 years, age range = 18–
90; 357 men, 482 women, and 14 who responded “other/
prefer not to answer”).
Materials and procedure.
News-evaluation and news-sharing tasks. Through
a partnership with Harvard Global Health Institute, we
acquired a list of 15 false and 15 true news headlines
relating to COVID-19 (available at https://osf.io/7d3xh/).
The false headlines were deemed to be false by authori -
tative sources (e.g., fact-checking sites such as snopes
.com and factcheck.org, health experts such as mayo
clinic.com, and credible science websites such as www
.livescience.com). After the study was completed, we
realized that one of the false headlines (about bats being
the source of the virus) was more misleading or unveri-
fied than untrue—however, removing this headline did
not change our results, and so we retained it. The true
headlines came from reliable mainstream media sources.
Headlines were presented in the format of Facebook
posts: a picture accompanied by a headline and lede
sentence. Each participant was randomly assigned to
one of two conditions. In the accuracy condition, they
were asked, “To the best of your knowledge, is the
claim in the above headline accurate?” (yes/no). In the
sharing condition, they were asked, “Would you con-
sider sharing this story online (for example, through
Facebook or Twitter?)” (yes/no); the validity of this
self-report sharing measure is evidenced by the obser-
vation that news headlines that Mechanical Turk par-
ticipants report a higher likelihood of sharing indeed
receive more shares on Twitter (Mosleh, Pennycook, &
Rand, 2020). We counterbalanced the order of the yes/
no options (no/yes vs. yes/no) across participants.
Headlines were presented in a random order.
A key outcome from the news task is truth discernment—
that is, the extent to which individuals distinguish
between true and false content in their judgments
(Pennycook & Rand, 2019b). Discernment is defined as
the difference in accuracy judgments (or sharing inten-
tions) between true and false headlines. For example,
an individual who shared 9 out of 15 true headlines and
12 out of 15 false headlines would have a discernment
level of −.2 (i.e., .6 – .8), whereas an individual who
shared 9 out of 15 true headlines and 3 out of 15 false
headlines would have a discernment level of .4 (i.e.,
.6 – .2). Thus, a higher discernment score indicates a
higher sensitivity to truth relative to falsity.
COVID-19 questions. Prior to the news-evaluation
task, participants were asked two questions specific to the
COVID-19 pandemic. First, they were asked, “How con-
cerned are you about COVID-19 (the new coronavirus)?”
which they answered using a sliding scale from 0 (not
concerned at all) to 100 (extremely concerned). Second,
they were asked “How often do you proactively check the
news regarding COVID-19 (the new coronavirus)?” which
they answered on a scale from 1 (never) to 5 (very often).
Additional correlates. We gave participants a six-item
Cognitive Reflection Test (CRT; Frederick, 2005) that con-
sisted of a reworded version of the original three-item test
and three items from a nonnumeric version (we excluded
the “hole” item; Thomson & Oppenheimer, 2016). The
CRT is a measure of one’s propensity to reflect on intu-
itions (Pennycook, Cheyne, Koehler, & Fugelsang, 2016;
Toplak, West, & Stanovich, 2011) and has strong test-
retest reliability (Stagnaro, Pennycook, & Rand, 2018). All
of the CRT items are constructed to elicit an intuitive
but incorrect response. Consider, for example, the fol-
lowing problem: If you are running a race and pass the
person in second place, what place are you in? For many
people, the intuitive response of “first place” pops into
mind—however, this is incorrect (if you pass the person
in second place, you overtake their position and are now
in second place yourself). Thus, correctly answering CRT
problems is associated with reflective thinking. The CRT
had acceptable reliability (Cronbach’s α = .69).
Participants also completed a general science-knowledge
quiz—as a measure of general background knowledge
for scientific issues—that consisted of 17 questions
about basic science facts (e.g., “Antibiotics kill viruses
as well as bacteria,” “Lasers work by focusing sound
waves”; McPhetres & Pennycook, 2020). The scale had
acceptable reliability (Cronbach’s α = .77).
We also administered the Medical Maximizer-Minimizer
Scale (MMS; Scherer et al., 2016), which measures the
https://osf.io/7d3xh/
https://osf.io/7d3xh/
https://osf.io/7d3xh/
http://www.mayoclinic.com
http://www.mayoclinic.com
http://www.livescience.com
http://www.livescience.com
Combating COVID-19 Misinformation 773
extent to which people are either “medical maximizers”
who tend to seek health care even for minor issues or,
rather, “medical minimizers” who tend to avoid health
care unless absolutely necessary. The MMS also had
acceptable reliability (Cronbach’s α = .86).
Finally, in addition to various demographic ques-
tions, we measured political ideology on both social
and fiscal issues, as well as Democrat versus Republican
Party alignment.
Attention checks. Following the recommendations of
Berinsky, Margolis, and Sances (2014), we added three
screener questions that put a subtle instruction in the
middle of a block of text. For example, in a block of
text ostensibly about which news sources people pre-
fer, we asked participants to select two specific options
(“FoxNews.com” and “NBC.com”) to check whether they
were reading the text. Full text for the screener questions,
along with the full materials for the study, are available
at https://osf.io/7d3xh/. Screener questions were placed
just prior to the news-evaluation and news-sharing tasks,
after the CRT, and after the science-knowledge scale and
MMS. To maintain the representativeness of our sample,
we followed our preregistered plan to include all partici -
pants in our main analyses, regardless of attentiveness.
As can be seen in Table S2 in the Supplemental Material
available online, our key result was robust (the effect size
for the interaction between content type and condition
remained consistent) across levels of attentiveness.
Analysis. We conducted all analyses of headline ratings
at the level of the rating, using linear regression with
robust standard errors clustered on participants and
headline.1 Ratings and all individual-differences mea-
sures were z scored; headline veracity was coded as –0.5
for false and 0.5 for true, and condition was coded as
−0.5 for accuracy and 0.5 for sharing. Our main analyses
used linear probability models instead of logistic regres-
sion because the coefficients are more readily interpre-
table. However, logistic regression yielded qualitatively
equivalent results. The coefficient on headline veracity
indicates overall level of discernment (the difference
between responses to true vs. false headlines), and the
interaction between condition and headline veracity indi -
cates the extent to which discernment differed between
the experimental conditions.
Results
Accuracy versus sharing. We began by comparing
discernment—the difference between responses to true
headlines and false headlines—across conditions. As pre-
dicted, we observed a significant interaction between
headline veracity and condition, β = −0.126, F(1, 25586) =
42.24, p < .0001, indicating that discernment was higher
for accuracy judgments than sharing intentions (Fig. 1;
similar results were obtained when we excluded the few
headlines that did not contain clear claims of fact or that
were political in nature; see Table S3 in the Supplemental
Material). In other words, veracity had a much bigger
impact on accuracy judgments, Cohen’s d = 0.657, 95%
confidence interval (CI) = [0.477, 0.836], F(1, 25586) =
42.24, p < .0001, than on sharing intentions, d = 0.121,
95% CI = [0.030, 0.212], F(1, 25586) = 6.74, p = .009. In
particular, for false headlines, 32.4% more people were
willing to share the headlines than rated them as accu-
rate. In Study 2, we built on this observation to test the
impact of experimentally inducing participants to think
about accuracy when making sharing decisions.
Individual differences and truth discernment. Be -
fore turning to Study 2, we examined how various
individual-differences measures correlated with discern-
ment (i.e., how individual differences interacted with head-
line veracity). All relationships reported below were robust
to including controls for age, gender, education (college
degree or higher vs. less than college degree), ethnicity
(White vs. non-White), and all interactions among controls,
veracity, and condition.
Cognitive reflection. We found that scores on the CRT
were positively related to both accuracy discernment
and sharing discernment, as revealed by the interactions
between CRT score and veracity, F(1, 25582) = 34.95,
p < .0001, and F(1, 25582) = 4.98, p = .026, respectively.
However, the relationship was significantly stronger for
accuracy, as indicated by the three-way interaction among
CRT score, veracity, and condition, F(1, 25582) = 14.68,
p = .0001. In particular, CRT score was negatively correlated
0%
10%
20%
30%
40%
50%
60%
70%
80%
Accuracy Sharing
“Y
es
”
R
es
po
ns
es
Condition
True
False
Fig. 1. Results from Study 1: percentage of “yes” responses for
each combination of headline veracity (true vs. false) and
condition
(accuracy = “To the best of your knowledge, is the claim in the
above
headline accurate?” vs. sharing = “Would you consider sharing
this
story online (for example, through Facebook or Twitter)?”).
Error
bars indicate 95% confidence intervals.
https://osf.io/7d3xh/
774 Pennycook et al.
with belief in false headlines and uncorrelated with belief
in true headlines, whereas CRT score was negatively cor-
related with sharing of both types of headlines (albeit
more negatively correlated with sharing of false head-
lines compared with true headlines; for effect sizes, see
Table 1). The pattern of CRT correlations observed here
for COVID-19 misinformation is therefore consistent with
what has been seen previously with political headlines
(Pennycook & Rand, 2019b; Ross, Rand, & Pennycook,
2019).
Science knowledge. Like CRT score, science knowl-
edge was positively correlated with both accuracy dis-
cernment, F(1, 25552) = 32.80, p < .0001, and sharing
discernment, F(1, 25552) = 10.02, p = .002, but much more
so for accuracy, as revealed by the three-way interaction
among science knowledge, veracity, and condition, F(1,
25552) = 7.59, p = .006. In particular, science knowledge
was negatively correlated with belief in false headlines
and positively correlated with belief in true headlines,
whereas science knowledge was negatively correlated
with sharing of false headlines and uncorrelated with
sharing of true headlines (for effect sizes, see Table 1).
Exploratory measures. Distance from the nearest
COVID-19 epicenter (defined as a county with at least 10
con firmed coronavirus cases when the study was run;
log-transformed because of right skew) was not signifi-
cant ly related to belief in either true or false headlines but
was negatively correlated with sharing intentions for both
true and false headlines—no significant interactions with
veracity, p > .15; the interaction between distance and
condition was marginal, F(1, 25522) = 3.07, p = .080. MMS
score was negatively correlated with accuracy discern-
ment, F(1, 25582) = 11.26, p = .0008. Medical maximizers
showed greater belief in both true and false headlines
(this pattern was more strongly positive for belief in false
headlines); in contrast, there was no such correlation with
sharing discernment, F(1, 25582) = 0.03, p = .87. Thus,
medical maximizers were more likely to consider shar-
ing both true and false headlines to the same degree, as
revealed by the significant three-way interaction among
maximizer-minimizer, veracity, and condition, F(1, 25582) =
7.58, p = .006. Preference for the Republican Party over
the Democratic Party (partisanship) was not significantly
related to accuracy discernment, F(1, 25402) = 0.45, p =
.50, but was significantly negatively related to sharing
discernment, F(1, 25402) = 8.28, p = .004. Specifically,
stronger Republicans were less likely to share both true
and false headlines but were particularly less likel y (rela-
tive to Democrats) to share true headlines—however, the
three-way interaction among partisanship, veracity, and
condition was not significant, F(1, 25402) = 1.62, p = .20.
For effect sizes, see Table 1.
Individual differences and COVID-19 attitudes.
Finally, in Table 2, we report an exploratory analysis of
how all of the above variables relate to concern about
COVID-19 and how often people proactively check
COVID-19-related news (self-reported). Both measures
were negatively correlated with CRT score and prefer-
ence for the Republican Party over the Democratic Party,
positively correlated with being a medical maximizer,
and unrelated to science knowledge when we used pair-
wise correlations but significantly positively related to
science knowledge in models with all covariates plus
Table 1. Standardized Regression Coefficients for Simple
Effects of Each
Individual-Differences Measure Within Each Combination of
Condition and
Headline Veracity (Study 1)
Variable
Accuracy condition Sharing condition
False
headlines
True
headlines
False
headlines
True
headlines
Cognitive Reflection
Test score
−0.148***
(−0.127***)
0.008
(0.006)
−0.177***
(−0.174***)
−0.134***
(−0.125***)
Science knowledge −0.080**
(−0.067*)
0.079**
(0.080**)
−0.082*
(−0.030*)
−0.011
(−0.007)
Preference for
Republican Party
0.003
(0.030)
−0.016
(−0.018)
−0.070*
(−0.012)
−0.128***
(−0.079*)
Distance to nearest
epicenter
−0.046†
(−0.005)
−0.021
(−0.028)
−0.099**
(−0.091**)
−0.099**
(−0.078*)
Medical Maximizer-
Minimizer Scale score
0.130***
(0.120***)
0.047*
(0.051*)
0.236***
(0.0207***)
0.233***
(0.200***)
Note: Values in parentheses show the results when controls are
included for age, gender,
education (college degree or higher vs. less than college
degree), and ethnicity (White vs.
non-White) and all interactions among controls, veracity, and
condition.
†p < .1. *p < .05. **p < .01. ***p < .001.
Combating COVID-19 Misinformation 775
demographic controls. Distance to the nearest county
with at least 10 COVID-19 diagnoses was uncorrelated
with concern and negatively correlated with news check-
ing (although uncorrelated with news checking in the
model with all measures and controls).
Study 2
Study 1 established that people do not seem to readily
consider accuracy when deciding what to share on
social media. In Study 2, we tested an intervention in
which participants were subtly induced to consider
accuracy when making sharing decisions.
Method
Participants. This study was run from March 13 to
March 15, 2020. Following the same sample-size consid-
erations as in Study 1, we recruited 1,000 participants
using Lucid. In total, 1,145 participants began the study.
However, 177 did not indicate using Facebook or Twitter
and therefore did not complete the survey. A further 112
participants did not complete the study. The final sample
consisted of 856 participants (mean age = 47 years, age
range = 18–86; 385 men, 463 women, and 8 who
responded “other/prefer not to answer”).
Materials and procedure.
Accuracy induction. Each participant was randomly
assigned to one of two conditions. In the control con-
dition, they began the news-sharing task as in Study 1.
In the treatment condition, they rated the accuracy of a
single headline (unrelated to COVID-19) before beginning
the news-sharing task; following Pennycook et al. (2020),
we framed this as being for a pretest. Each participant
saw one of four possible headlines, all politically neutral
and unrelated to COVID-19 (see https://osf.io/7d3xh/ for
materials). An advantage of this design is that the manip-
ulation is subtle and not explicitly linked to the main
task. Thus, it is unlikely that any between-conditions
difference was driven by participants’ believing that the
accuracy question at the beginning of the treatment con-
dition was designed to make them take accuracy into
account when making sharing decisions during the main
experiment. It is therefore relatively unlikely that any
treatment effect was due to demand characteristics or
social desirability.
News-sharing task. Participants were shown the same
headlines as for Study 1 and (as in the sharing condition
of Study 1) were asked about their willingness to share
the headlines on social media. In this case, however, we
sought to increase the sensitivity of the measure by ask-
ing, “If you were to see the above on social media, how
likely would you be to share it?” which they answered on
a 6-point scale from 1 (extremely unlikely) to 6 (extremely
likely). As described above, some evidence in support
of the validity of this self-report sharing-intentions mea-
sure comes from Mosleh, Pennycook, and Rand (2020).
Further support for the specific paradigm used in this
study—in which participants are asked to rate the accu-
racy of a headline and then go on to indicate sharing
intentions—comes from Pennycook et al. (2020), who
found similar results using this paradigm on Mechanical
Turk and Lucid and in a field experiment on Twitter mea-
suring actual (rather than hypothetical) sharing.
Table 2. Pairwise Correlations Among Concern About COVID-
19, Proactively Checking News About
COVID-19, and the Individual-Differences Measures (Study 1)
Variable
COVID-19
concern
COVID-19
news
checking
CRT
score
Science
knowledge
Partisanship
(Republican)
Distance
to nearest
epicenter
COVID-19 concern —
COVID-19 news checking .64*** —
Cognitive Reflection Test
(CRT) score
−.22***
(−0.17***)
−.10*
(−0.07*)
—
Science knowledge −.001
(0.10**)
.06
(0.10**)
.40*** —
Partisanship (Republican) −.27***
(−0.19***)
−.21***
(−0.15***)
.09** …
Chapter 9 – Designing Adaptive Organizations
Copyright ©2019 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Designing Adaptive Organizations
9
1
A quick note…
Though the title of this chapter is “designing adaptive
organizations”, it largely focuses on organizational structure,
both traditional and modern
We will start by distinguishing more traditional or mechanistic
structures from more modern or organic structures
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Organizational Structure and Process
Organizational structure: Vertical and horizontal configuration
of departments, authority, and jobs within a company
Based on some form of departmentalization
Organizational process: Collection of activities that transform
inputs into outputs that are valued by customers
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
3
Mechanistic versus Organic Structure
Mechanistic (the org chart for WSU on the previous slide is an
example):
Specialized jobs
Clear and rigid chain of command
Centralized authority/decision-making
Hierarchical structure
Organic (e.g., how Facebook was described in the article
referenced in the Chapter 7 lecture slides):
Broadly defined jobs
Decentralized authority/decision-making
Flat structure
Reliance on teamwork
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Components of a Mechanistic Organizational Structure
Departmentalization: Subdividing work and workers into
separate organizational units responsible for completing
particular tasks
Job Design: Structuring jobs and tasks
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Departmentalization
Different types of departmentalization that we see in
organizations:
Functional
Product
Customer
Geographic
Matrix
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
7
Functional Departmentalization
Groups people and resources into groups based on function or
area of expertise
Accounting, human resources, etc.
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Functional Departmentalization
Advantage:
People work in their area of expertise and their knowledge is
deepened through contact with similar employees
Disadvantages:
Silo problem – lack of communication and coordination across
functions
Employees continue to develop only in their area expertise =
deep but narrow knowledge
Conflict can emerge between departments when on department
inherently requires more resources than another, or when they
misunderstand each other’s purpose
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Product Departmentalization
Groups people into separate units based on the product or
service they are responsible for
E.g., Time Warner has separate departments for internet, cable,
and home phone, each with their own salespeople, tech
specialists, and customer service representatives
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Product Departmentalization
Advantages:
More adaptability and leeway to make adjustments to a specific
service or product
Workers can become familiar with all elements of producing
and selling a product/service
Disadvantages:
Duplication of roles and resources (e.g., each product
department has its own IT specialists)
Difficulty of standardizing procedures across product divisions
(e.g., customer service reps for cable might develop a different
script for customer interactions than reps for internet)
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Customer Departmentalization
Groups employees into work units based on the customers they
serve
What’s an example of this?
I think WSU is! We are grouped not only by discipline, but also
in terms of the students we serve.
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Customer Departmentalization
Advantage
Can tailor service/product to specific needs of customer groups
Each college at WSU has students with specific needs based on
their majors
E.g., Business students have a unique need for
entrepreneurial/innovation experience, so Carson provides a
business plan competition
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Customer Departmentalization
Disadvantages:
Again, there is a duplication of resources
Lack of coordination – students across different colleges likely
have some shared needs
Do students in other colleges have similar access to the business
plan competition?
Moreover, faculty situated in different colleges often have
remarkably similar research, but don’t interact with one another
and might miss out on collaboration and resource-pooling
opportunities
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Geographic Departmentalization
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Geographic Departmentalization
Groups employees into work units based on their location (E.g.,
Dunder Mifflin, the paper company in The Office, has regional
branches)
Each function repeated at each location (E.g., sales reps, HR
personnel, customer service reps, accountants, general manager)
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Geographic Departmentalization
Advantage:
Allows for flexible responses to the specific needs of a
geographic market
Can reduce costs by getting closer in proximity to consumers
Disadvantages:
Again, duplication of roles and resources
Difficult to coordinate long-distance – top management can lose
control of certain offices
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Matrix Departmentalization
A hybrid structure – two or more previous forms of
departmentalization used together
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Matrix structure in a small multi-project firm
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Matrix Departmentalization
Advantages:
Improved coordination without duplication of roles and
resources
Improved flexibility in responding to issues
Disadvantages:
Employees will often report to a departmental manager as well
as a project leader, which can result in confusion and power
struggles
Personnel allocation to projects can be a source of contention
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Design
Job design: the number, kind, and variety of tasks that workers
perform in their jobs
With time, many jobs become automatic and routine – it’s a sad
reality that many people find themselves bored and disengaged
in their jobs
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
21
Job Design
How might we make jobs more engaging while maintaining
efficiency?
Job rotation
Job enlargement
Job enrichment
All of these focus on increasing variety
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Design
Job rotation
Move workers between tasks
This is particularly applicable to jobs where you’re largely
doing just one task at a time
E.g., in fast food service, a worker is either taking
orders/money, preparing food, preparing specific orders,
cleaning tables, handing food to customers
Many fast food restaurants use job rotation by having
employees trained in all tasks and rotating through them over
the course of a week and several shifts
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Design
Job enlargement
Provide workers with a greater number of related tasks
Particularly applicable to work where you’re switching back and
forth between tasks several times over the course of one shift
E.g., an administrative assistant at a medical clinic might have
his job enlarged from answering phones and making
appointments to preparing patient charts in advance of
appointments and transcribing notes from patient visits
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Design
Job enrichment
Allow employees to make meaningful decisions about their
work
E.g., Many organizations now allot their customer service
representatives a monthly allowance to “fix” customer mistakes.
Customer service reps often deal with upset and abusive
customers and it improves their job experience when they can
immediately turn an upset customer into a happy one by
offering a credit without having to ask for permission or
complete onerous paperwork
‹#›
MGMT11 | CH9
Copyright ©2019 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Design
Hackman & Oldham’s Job Characteristics Model (JCM) seeks to
design jobs that result in:
Higher motivation
More positive work outcomes
This model uses principles of rotation, enlargement, &
enrichment
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
9.9 Job Characteristics Model
‹#›
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
MGMT11 | CH9
Exhibit
27
Job Characteristics Model
Examine the JCM, depicted in the textbook and on the previous
slide. Select two of the methods that the model proposes to
redesign jobs (these appear in the yellow boxes) and describe
how each method relates to job rotation, enlargement, and/or
enrichment. (Discussion board question)
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Components of an Organic Organizational Structure
Reengineering
Helps achieve dramatic improvements in critical measures of
performance
Changes work by changing task interdependence
Empowering workers
Passing decision-making authority and responsibility from
managers to workers
Involves providing the required resources to make effective
decisions
LO 4
‹#›
MGMT11 | CH9
Copyright ©2019 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Re-engineering, Task Interdependence, Empowerment, and
Cooperation
Yves Morieux of BCG’s Institute for Organization
https://www.ted.com/talks/yves_morieux_as_work_gets_more_c
omplex_6_rules_to_simplify#t-703368
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Re-engineering
The focus in job re-engineering is on adjusting interdependence
(the level of collective action required to complete a task or
produce something)
‹#›
MGMT11 | CH9
Copyright ©2019 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Re-engineering
Traditionally, there are three types of interdependence:
Pooled (cumulative): each job/department contributes to the
whole independently
Sequential: work is performed in succession – the outputs of
one department are the inputs for the next (picture a conveyor
belt)
Reciprocal: different jobs work together in a back-and-forth,
iterative process
‹#›
MGMT11 | CH9
Copyright ©2019 Cengage Learning. All Rights Reserved. May
not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
Job Re-engineering
Job re-engineering advocates for reducing reliance on sequential
and pooled interdependence and increasing reliance on
reciprocal interdependence
It also advocates for more employee empowerment via self-
management
Read this article for the pros and cons of this approach:
https://hbr.org/2016/07/beyond-the-holacracy-
hype?utm_campaign=harvardbiz&utm_source=twitter&utm_med
ium=social
‹#›
MGMT11 | CH9
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
9.11 Reengineering and Task Interdependence
LO 4
‹#›
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not be scanned, copied or duplicated, or posted to a publicly
accessible website, in whole or in part.
MGMT11 | CH9
Exhibit

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Chapter 8 copyright ©2019 cengage learning. all rights reserved

  • 1. Chapter 8 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Global Management 8 1 Business Has Gone Global Why? Pause here and jot down a few reasons ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 Business Has Gone Global In order to obtain: Higher profits New customers New suppliers Cheaper labor Foreign capital Mitigated risk (e.g., company’s profit isn’t dependent on one country’s economy)
  • 2. 3 ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 The Impact of Global Businesses Consider that… A multinational corporation is one that owns businesses in two or more countries There are over 100,000 of these now, and less than 10% based in the USA Most organizations have some global link, even if it’s just purchasing products or materials from a foreign country, or selling products and services outside the home country ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 4 Considerations in Going Global: Global Consistency or Local Adaptation?
  • 3. The first thing one must consider is whether to transplant the existing business model, largely unchanged (global consistency), or make changes to reflect local culture (local adaptation Global consistency: Multinational company conducting business in different countries using the same assumptions, policies, and procedures Involves the risk of being poorly suited to particular countries ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 5 Global Consistency or Local Adaptation? Local adaptation: Modifying business to adapt to differences in foreign countries Involves the risk of losing established cost effectiveness and initial productivity, however, this loss could eventually become a long-term gain when you’ve made the time and $ investment to do it the right way. ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8
  • 4. 6 Forms of Global Business Range from less to more involved Global sourcing (least involved): materials or services are purchased around the world for local use ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 7 Forms of Global Business Exporting & importing: selling locally made products abroad & buying foreign products to sell locally 8 ‹#›
  • 5. Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 Forms of Global Business Cooperative contracts: a foreign business owner pays a company a fee for the right to conduct that business in his or her country (two types: licensing and franchising) Licensing: Domestic company receives royalty payments for allowing foreign company to use its brand name Allows for more profit with no initial investment, however you sacrifice some control over your brand – the foreign company might use your name to sell something different ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 9 Forms of Global Business Franchising: Collection of networked firms in which the manufacturer licenses the entire business You have much more control than licensing, but still give up some control when you’re not physically present at various locations Doesn’t inherently allow for as much adaptation to local culture
  • 6. ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 10 Forms of Global Business Strategic alliances: Agreement in which companies combine key resources, space, costs, risks, technology, or people These companies are often not in competition (e.g., Bookstore pairs up with coffee shop – Barnes & Noble and Starbucks) ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 11 Forms of Global Business Coopetition (Cooperative competition): Competitors cooperate in certain domains Airlines partnering for rewards programs Car companies cooperating on hybrid technology (in order to produce the best possible technology) that they can then keep
  • 7. for just themselves or sell to other car companies ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 12 Becoming Aware of Cultural Differences National culture: Set of shared values and beliefs Affects the perceptions, decisions, and behavior of the people from a particular country ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 13 Becoming Aware of Cultural Differences Hofstede’s Dimensions of National Culture Power distance Individualism vs collectivism Masculinity vs femininity Uncertainty avoidance Short-term vs long-term orientation
  • 8. New: indulgence vs restraint https://www.hofstede-insights.com/ ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 14 Becoming Aware of Cultural Differences The GLOBE Project Dimensions of National Culture is becoming a more dominant framework. It adds the following to the previous dimensions Performance orientation Gender egalitarianism Human orientation = femininity Assertiveness = masculinity Institutional collectivism ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly
  • 9. accessible website, in whole or in part. MGMT11 | CH8 16 Becoming Aware of Cultural Differences Research findings: In Western countries, employees are more sensitive to how they are treated by their leaders (relative to Eastern countries) – likely reflects smaller power distance Collectivist cultures place more emphasis on intrinsic work values (relative to individualistic cultures) Countries higher in uncertainty avoidance have more entrepreneurial alliances ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 17 Becoming Aware of Cultural Differences Word of caution: Use knowledge to guide decisions about strategy and general management, rather than to make generalizations about each individual
  • 10. As we become more globalized, national culture changes It’s important to stay up-to-date with research into cultural differences ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 Becoming Aware of Cultural Differences Have you ever experienced an awkward interaction while traveling abroad that you think occurred due to differences in national culture? Share your story and explain which dimension of national culture was at the root of this. (Discussion board question). ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 Factors That Increase the Chances for a Successful International Assignment Language and cross-cultural training Help expatriates make faster adjustments to foreign cultures and perform better on their international assignments Documentary training - Focuses on identifying specific critical differences between cultures LO 6
  • 11. ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 20 Factors That Increase the Chances for a Successful International Assignment (continued) Cultural simulations - Trainees practice adapting to cultural differences Field simulation - Trainees are placed in a different neighborhood for three to four hours to talk to residents about cultural differences LO 6 ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 Preparing Families for Successful Overseas Adjustment Adaptability screening - Used to assess how well managers and their families are likely to adjust to foreign cultures Intercultural training - Helping families prepare for the cultural differences they will encounter LO 6 ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May
  • 12. not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH8 22 https://doi.org/10.1177/0956797620939054 Psychological Science 2020, Vol. 31(7) 770 –780 © The Author(s) 2020 Article reuse guidelines: sagepub.com/journals-permissions DOI: 10.1177/0956797620939054 www.psychologicalscience.org/PS ASSOCIATION FOR PSYCHOLOGICAL SCIENCEResearch Article We’re not just fighting an epidemic; we’re fighting an infodemic. —Tedros Adhanom Ghebreyesus (2020), Director-General of the World Health Organization The COVID-19 pandemic represents a substantial chal- lenge to global human well-being. Not unlike other chal- lenges (e.g., global warming), the impact of the COVID-19 pandemic depends on the actions of individual citizens and, therefore, the quality of the information to which
  • 13. people are exposed. Unfortunately, however, misinfor- mation about COVID-19 has proliferated, including on social media (Frenkel, Alba, & Zhong, 2020; Russonello, 2020). In the case of COVID-19, this misinformation comes in many forms—from conspiracy theories about the virus being created as a biological weapon in China to claims that coconut oil kills the virus. At its worst, misinforma- tion of this sort may cause people to turn to ineffective (and potentially harmful) remedies, as well as to either overreact (e.g., by hoarding goods) or, more danger- ously, underreact (e.g., by engaging in risky behavior and inadvertently spreading the virus). As a conse- quence, it is important to understand why people believe and share false (and true) information related to COVID- 19—and to develop interventions to increase the quality of information that people share online. Here, we applied a cognitive-science lens to the problem of COVID-19 misinformation. In particular, we 939054PSSXXX10.1177/0956797620939054Pennycook et al.Combating COVID-19 Misinformation research-article2020 Corresponding Author: Gordon Pennycook, University of Regina, Hill and Levene Schools of Business, 3737 Wascana Parkway, Regina, Saskatchewan, Canada, S4S 0A2 E-mail: [email protected] Fighting COVID-19 Misinformation on Social Media: Experimental Evidence for a Scalable Accuracy-Nudge Intervention
  • 14. Gordon Pennycook1,2,3 , Jonathon McPhetres1,2,4 , Yunhao Zhang4, Jackson G. Lu4 , and David G. Rand4,5,6 1Paul J. Hill School of Business, University of Regina; 2Kenneth Levene Graduate School of Business, University of Regina; 3Department of Psychology, University of Regina; 4Sloan School of Management, Massachusetts Institute of Technology; 5Institute for Data, Systems, and Society, Massachusetts Institute of Technology; and 6Department of Brain and Cognitive Sciences, Massachusetts Institute of Technology Abstract Across two studies with more than 1,700 U.S. adults recruited online, we present evidence that people share false claims about COVID-19 partly because they simply fail to think sufficiently about whether or not the content is accurate when deciding what to share. In Study 1, participants were far worse at discerning between true and false content when deciding what they would share on social media relative to when they were asked directly about accuracy. Furthermore, greater cognitive reflection and science knowledge were associated with stronger discernment. In Study 2, we found that a simple accuracy reminder at the beginning of the study (i.e., judging the accuracy of a non- COVID-19-related headline) nearly tripled the level of truth discernment in participants’ subsequent sharing intentions. Our results, which mirror those found previously for political fake news, suggest that nudging people to think about accuracy is a simple way to improve choices about what to share on social media. Keywords social media, decision making, policy making, reflectiveness, social cognition, open data, open materials, preregistered
  • 15. Received 4/15/20; Revision accepted 6/8/20 TC https://us.sagepub.com/en-us/journals-permissions http://www.psychologicalscience.org/ps http://crossmark.crossref.org/dialog/?doi=10.1177%2F09567976 20939054&domain=pdf&date_stamp=2020-06-30 Combating COVID-19 Misinformation 771 tested whether previous findings from the domain of political fake news (fabricated news stories presented as if from legitimate sources; Lazer et al., 2018) extended to misinformation related to COVID-19. We did so by drawing on a recently proposed inattention-based account of misinformation sharing on social media (Pennycook et al., 2020). According to this account, people generally wish to avoid spreading misinforma- tion and, in fact, are often able to tell truth from false- hood; however, they nonetheless share false and misleading content because the social media context focuses their attention on factors other than accuracy (e.g., partisan alignment). As a result, they get dis- tracted from even considering accuracy when deciding whether to share news—leading them to not implement their preference for accuracy and instead share mislead- ing content. In support of this inattention-based account, recent findings (Pennycook et al., 2020) showed that most participants were surprisingly good at discerning between true and false political news when asked to assess “the accuracy of headlines”—yet headline veracity had very little impact on participants’ willingness to share the head-
  • 16. lines on social media. Accordingly, subtle nudges that made the concept of accuracy salient increased the veracity of subsequently shared political content—both in survey experiments and in a large field experiment on Twitter. It was unclear, however, how (or whether) these results would generalize to COVID-19. First, it may be that a greater level of specialized knowledge is required to correctly judge the accuracy of health information relative to political information. Thus, participants may be unable to discern truth from falsehood in the context of COVID-19, even when they do consider accuracy. Second, it was unclear whether participants would be distracted from accuracy in the way that Pennycook et al. (2020) observed for political headlines. A great deal of evidence suggests that people are motivated to seek out, believe, and share politically congenial information (Kahan, Peters, Dawson, & Slovic, 2017; Kunda, 1990; Lee, Shin, & Hong, 2018; Mercier & Sperber, 2011; Shin & Thorson, 2017). Thus, it seems likely that these par- tisan motivations are what distracted participants from accuracy in the study by Pennycook et al. (2020), who used highly political stimuli. If so, we would not expect similar results for COVID-19. Much of the COVID-19 information (and misinformation) circulating online is apolitical (e.g., that COVID-19 can be cured by Vitamin C). Furthermore, despite some outliers, there was (at the time these studies were run) relatively little partisan disagreement regarding the seriousness of the pandemic (Galston, 2020). Indeed, as described below, there were no partisan differences in likelihood to believe true or false COVID-19 headlines in our data. Thus, if partisan- ship were the key distractor, people should not be distracted from accuracy when deciding whether to share COVID-19-related content. On the contrary, one
  • 17. might reasonably expect the life-and-death context of COVID-19 to particularly focus attention on accuracy. In the current research, we therefore investigated the role that inattention plays in the sharing of COVID- 19-related content. Study 1 tested for a dissociation between accuracy judgments and sharing intentions when participants evaluated a set of true and false news headlines about COVID-19. Study 1 also tested for cor- relational evidence of inattention by evaluating the relationship between truth discernment and analytic cognitive style (as well as examining science knowl- edge, partisanship, geographic proximity to COVID-19 diagnoses, and the tendency to overuse vs. underuse medical services). Study 2 experimentally tested whether subtly making the concept of accuracy salient increased the quality of COVID-19 information that people were willing to share online. Study 1 Method We report how we determined our sample size, all data exclusions, all manipulations, and all measures in this Statement of Relevance Misinformation can amplify humanity’s chal leng- es. A salient example is the COVID-19 pandemic. The environment created by the pandemic has bred a multitude of falsehoods even as truth has become a matter of life and death. In this research, we in- ves ti gated why people believe and spread false (and true) news content about COVID-19. We found that people often fail to consider the accuracy
  • 18. of content when deciding what to share and that people who are more intuitive or less knowledgeable about science are more likely to believe and share falsehoods. We also tested an intervention to increase the truthfulness of the content shared on social media. Simply prompting people to think about the accuracy of an unrelated headline improved subsequent choices about what COVID-19 news to share. Accuracy nudges are straightforward for social media platforms to implement on top of the other approaches they are currently employing. With further optimization, interventions focused on increasing the salience of accuracy on social media could have a positive impact on countering the tide of misinformation. 772 Pennycook et al. study. Our data, materials, and preregistration are avail - able on the Open Science Framework (https://osf .io/7d3xh/). At the end of both surveys, we informed participants which of the headlines were accurate (by re-presenting the true headlines). Participants. This study was run on March 12, 2020. We recruited 1,000 participants using Lucid, an online recruiting source that aggregates survey respondents from many respondent providers (Coppock & Mcclellan, 2019). Lucid uses quota sampling to provide a sample that is matched to the U.S. public on age, gender, ethnic- ity, and geographic region. We selected Lucid because it provides a sample that is reasonably representative of the U.S. population while being affordable for large samples. Our sample size was based on the following factors: (a)
  • 19. 1,000 is a large sample size for this design, (b) it was within our budget, and (c) it is similar to what was used in past research (Pennycook et al., 2020). In total, 1,143 par- ticipants began the study. However, 192 did not indicate using Facebook or Twitter and therefore did not complete the survey. A further 98 participants did not finish the study and were removed. The final sample consisted of 853 participants (mean age = 46 years, age range = 18– 90; 357 men, 482 women, and 14 who responded “other/ prefer not to answer”). Materials and procedure. News-evaluation and news-sharing tasks. Through a partnership with Harvard Global Health Institute, we acquired a list of 15 false and 15 true news headlines relating to COVID-19 (available at https://osf.io/7d3xh/). The false headlines were deemed to be false by authori - tative sources (e.g., fact-checking sites such as snopes .com and factcheck.org, health experts such as mayo clinic.com, and credible science websites such as www .livescience.com). After the study was completed, we realized that one of the false headlines (about bats being the source of the virus) was more misleading or unveri- fied than untrue—however, removing this headline did not change our results, and so we retained it. The true headlines came from reliable mainstream media sources. Headlines were presented in the format of Facebook posts: a picture accompanied by a headline and lede sentence. Each participant was randomly assigned to one of two conditions. In the accuracy condition, they were asked, “To the best of your knowledge, is the claim in the above headline accurate?” (yes/no). In the sharing condition, they were asked, “Would you con- sider sharing this story online (for example, through
  • 20. Facebook or Twitter?)” (yes/no); the validity of this self-report sharing measure is evidenced by the obser- vation that news headlines that Mechanical Turk par- ticipants report a higher likelihood of sharing indeed receive more shares on Twitter (Mosleh, Pennycook, & Rand, 2020). We counterbalanced the order of the yes/ no options (no/yes vs. yes/no) across participants. Headlines were presented in a random order. A key outcome from the news task is truth discernment— that is, the extent to which individuals distinguish between true and false content in their judgments (Pennycook & Rand, 2019b). Discernment is defined as the difference in accuracy judgments (or sharing inten- tions) between true and false headlines. For example, an individual who shared 9 out of 15 true headlines and 12 out of 15 false headlines would have a discernment level of −.2 (i.e., .6 – .8), whereas an individual who shared 9 out of 15 true headlines and 3 out of 15 false headlines would have a discernment level of .4 (i.e., .6 – .2). Thus, a higher discernment score indicates a higher sensitivity to truth relative to falsity. COVID-19 questions. Prior to the news-evaluation task, participants were asked two questions specific to the COVID-19 pandemic. First, they were asked, “How con- cerned are you about COVID-19 (the new coronavirus)?” which they answered using a sliding scale from 0 (not concerned at all) to 100 (extremely concerned). Second, they were asked “How often do you proactively check the news regarding COVID-19 (the new coronavirus)?” which they answered on a scale from 1 (never) to 5 (very often). Additional correlates. We gave participants a six-item Cognitive Reflection Test (CRT; Frederick, 2005) that con-
  • 21. sisted of a reworded version of the original three-item test and three items from a nonnumeric version (we excluded the “hole” item; Thomson & Oppenheimer, 2016). The CRT is a measure of one’s propensity to reflect on intu- itions (Pennycook, Cheyne, Koehler, & Fugelsang, 2016; Toplak, West, & Stanovich, 2011) and has strong test- retest reliability (Stagnaro, Pennycook, & Rand, 2018). All of the CRT items are constructed to elicit an intuitive but incorrect response. Consider, for example, the fol- lowing problem: If you are running a race and pass the person in second place, what place are you in? For many people, the intuitive response of “first place” pops into mind—however, this is incorrect (if you pass the person in second place, you overtake their position and are now in second place yourself). Thus, correctly answering CRT problems is associated with reflective thinking. The CRT had acceptable reliability (Cronbach’s α = .69). Participants also completed a general science-knowledge quiz—as a measure of general background knowledge for scientific issues—that consisted of 17 questions about basic science facts (e.g., “Antibiotics kill viruses as well as bacteria,” “Lasers work by focusing sound waves”; McPhetres & Pennycook, 2020). The scale had acceptable reliability (Cronbach’s α = .77). We also administered the Medical Maximizer-Minimizer Scale (MMS; Scherer et al., 2016), which measures the https://osf.io/7d3xh/ https://osf.io/7d3xh/ https://osf.io/7d3xh/ http://www.mayoclinic.com http://www.mayoclinic.com http://www.livescience.com http://www.livescience.com
  • 22. Combating COVID-19 Misinformation 773 extent to which people are either “medical maximizers” who tend to seek health care even for minor issues or, rather, “medical minimizers” who tend to avoid health care unless absolutely necessary. The MMS also had acceptable reliability (Cronbach’s α = .86). Finally, in addition to various demographic ques- tions, we measured political ideology on both social and fiscal issues, as well as Democrat versus Republican Party alignment. Attention checks. Following the recommendations of Berinsky, Margolis, and Sances (2014), we added three screener questions that put a subtle instruction in the middle of a block of text. For example, in a block of text ostensibly about which news sources people pre- fer, we asked participants to select two specific options (“FoxNews.com” and “NBC.com”) to check whether they were reading the text. Full text for the screener questions, along with the full materials for the study, are available at https://osf.io/7d3xh/. Screener questions were placed just prior to the news-evaluation and news-sharing tasks, after the CRT, and after the science-knowledge scale and MMS. To maintain the representativeness of our sample, we followed our preregistered plan to include all partici - pants in our main analyses, regardless of attentiveness. As can be seen in Table S2 in the Supplemental Material available online, our key result was robust (the effect size for the interaction between content type and condition remained consistent) across levels of attentiveness. Analysis. We conducted all analyses of headline ratings
  • 23. at the level of the rating, using linear regression with robust standard errors clustered on participants and headline.1 Ratings and all individual-differences mea- sures were z scored; headline veracity was coded as –0.5 for false and 0.5 for true, and condition was coded as −0.5 for accuracy and 0.5 for sharing. Our main analyses used linear probability models instead of logistic regres- sion because the coefficients are more readily interpre- table. However, logistic regression yielded qualitatively equivalent results. The coefficient on headline veracity indicates overall level of discernment (the difference between responses to true vs. false headlines), and the interaction between condition and headline veracity indi - cates the extent to which discernment differed between the experimental conditions. Results Accuracy versus sharing. We began by comparing discernment—the difference between responses to true headlines and false headlines—across conditions. As pre- dicted, we observed a significant interaction between headline veracity and condition, β = −0.126, F(1, 25586) = 42.24, p < .0001, indicating that discernment was higher for accuracy judgments than sharing intentions (Fig. 1; similar results were obtained when we excluded the few headlines that did not contain clear claims of fact or that were political in nature; see Table S3 in the Supplemental Material). In other words, veracity had a much bigger impact on accuracy judgments, Cohen’s d = 0.657, 95% confidence interval (CI) = [0.477, 0.836], F(1, 25586) = 42.24, p < .0001, than on sharing intentions, d = 0.121, 95% CI = [0.030, 0.212], F(1, 25586) = 6.74, p = .009. In particular, for false headlines, 32.4% more people were willing to share the headlines than rated them as accu-
  • 24. rate. In Study 2, we built on this observation to test the impact of experimentally inducing participants to think about accuracy when making sharing decisions. Individual differences and truth discernment. Be - fore turning to Study 2, we examined how various individual-differences measures correlated with discern- ment (i.e., how individual differences interacted with head- line veracity). All relationships reported below were robust to including controls for age, gender, education (college degree or higher vs. less than college degree), ethnicity (White vs. non-White), and all interactions among controls, veracity, and condition. Cognitive reflection. We found that scores on the CRT were positively related to both accuracy discernment and sharing discernment, as revealed by the interactions between CRT score and veracity, F(1, 25582) = 34.95, p < .0001, and F(1, 25582) = 4.98, p = .026, respectively. However, the relationship was significantly stronger for accuracy, as indicated by the three-way interaction among CRT score, veracity, and condition, F(1, 25582) = 14.68, p = .0001. In particular, CRT score was negatively correlated 0% 10% 20% 30% 40% 50%
  • 25. 60% 70% 80% Accuracy Sharing “Y es ” R es po ns es Condition True False Fig. 1. Results from Study 1: percentage of “yes” responses for each combination of headline veracity (true vs. false) and condition (accuracy = “To the best of your knowledge, is the claim in the above headline accurate?” vs. sharing = “Would you consider sharing this story online (for example, through Facebook or Twitter)?”). Error bars indicate 95% confidence intervals.
  • 26. https://osf.io/7d3xh/ 774 Pennycook et al. with belief in false headlines and uncorrelated with belief in true headlines, whereas CRT score was negatively cor- related with sharing of both types of headlines (albeit more negatively correlated with sharing of false head- lines compared with true headlines; for effect sizes, see Table 1). The pattern of CRT correlations observed here for COVID-19 misinformation is therefore consistent with what has been seen previously with political headlines (Pennycook & Rand, 2019b; Ross, Rand, & Pennycook, 2019). Science knowledge. Like CRT score, science knowl- edge was positively correlated with both accuracy dis- cernment, F(1, 25552) = 32.80, p < .0001, and sharing discernment, F(1, 25552) = 10.02, p = .002, but much more so for accuracy, as revealed by the three-way interaction among science knowledge, veracity, and condition, F(1, 25552) = 7.59, p = .006. In particular, science knowledge was negatively correlated with belief in false headlines and positively correlated with belief in true headlines, whereas science knowledge was negatively correlated with sharing of false headlines and uncorrelated with sharing of true headlines (for effect sizes, see Table 1). Exploratory measures. Distance from the nearest COVID-19 epicenter (defined as a county with at least 10 con firmed coronavirus cases when the study was run; log-transformed because of right skew) was not signifi- cant ly related to belief in either true or false headlines but was negatively correlated with sharing intentions for both
  • 27. true and false headlines—no significant interactions with veracity, p > .15; the interaction between distance and condition was marginal, F(1, 25522) = 3.07, p = .080. MMS score was negatively correlated with accuracy discern- ment, F(1, 25582) = 11.26, p = .0008. Medical maximizers showed greater belief in both true and false headlines (this pattern was more strongly positive for belief in false headlines); in contrast, there was no such correlation with sharing discernment, F(1, 25582) = 0.03, p = .87. Thus, medical maximizers were more likely to consider shar- ing both true and false headlines to the same degree, as revealed by the significant three-way interaction among maximizer-minimizer, veracity, and condition, F(1, 25582) = 7.58, p = .006. Preference for the Republican Party over the Democratic Party (partisanship) was not significantly related to accuracy discernment, F(1, 25402) = 0.45, p = .50, but was significantly negatively related to sharing discernment, F(1, 25402) = 8.28, p = .004. Specifically, stronger Republicans were less likely to share both true and false headlines but were particularly less likel y (rela- tive to Democrats) to share true headlines—however, the three-way interaction among partisanship, veracity, and condition was not significant, F(1, 25402) = 1.62, p = .20. For effect sizes, see Table 1. Individual differences and COVID-19 attitudes. Finally, in Table 2, we report an exploratory analysis of how all of the above variables relate to concern about COVID-19 and how often people proactively check COVID-19-related news (self-reported). Both measures were negatively correlated with CRT score and prefer- ence for the Republican Party over the Democratic Party, positively correlated with being a medical maximizer, and unrelated to science knowledge when we used pair- wise correlations but significantly positively related to
  • 28. science knowledge in models with all covariates plus Table 1. Standardized Regression Coefficients for Simple Effects of Each Individual-Differences Measure Within Each Combination of Condition and Headline Veracity (Study 1) Variable Accuracy condition Sharing condition False headlines True headlines False headlines True headlines Cognitive Reflection Test score −0.148*** (−0.127***) 0.008 (0.006) −0.177*** (−0.174***)
  • 29. −0.134*** (−0.125***) Science knowledge −0.080** (−0.067*) 0.079** (0.080**) −0.082* (−0.030*) −0.011 (−0.007) Preference for Republican Party 0.003 (0.030) −0.016 (−0.018) −0.070* (−0.012) −0.128*** (−0.079*) Distance to nearest epicenter −0.046† (−0.005)
  • 30. −0.021 (−0.028) −0.099** (−0.091**) −0.099** (−0.078*) Medical Maximizer- Minimizer Scale score 0.130*** (0.120***) 0.047* (0.051*) 0.236*** (0.0207***) 0.233*** (0.200***) Note: Values in parentheses show the results when controls are included for age, gender, education (college degree or higher vs. less than college degree), and ethnicity (White vs. non-White) and all interactions among controls, veracity, and condition. †p < .1. *p < .05. **p < .01. ***p < .001. Combating COVID-19 Misinformation 775
  • 31. demographic controls. Distance to the nearest county with at least 10 COVID-19 diagnoses was uncorrelated with concern and negatively correlated with news check- ing (although uncorrelated with news checking in the model with all measures and controls). Study 2 Study 1 established that people do not seem to readily consider accuracy when deciding what to share on social media. In Study 2, we tested an intervention in which participants were subtly induced to consider accuracy when making sharing decisions. Method Participants. This study was run from March 13 to March 15, 2020. Following the same sample-size consid- erations as in Study 1, we recruited 1,000 participants using Lucid. In total, 1,145 participants began the study. However, 177 did not indicate using Facebook or Twitter and therefore did not complete the survey. A further 112 participants did not complete the study. The final sample consisted of 856 participants (mean age = 47 years, age range = 18–86; 385 men, 463 women, and 8 who responded “other/prefer not to answer”). Materials and procedure. Accuracy induction. Each participant was randomly assigned to one of two conditions. In the control con- dition, they began the news-sharing task as in Study 1. In the treatment condition, they rated the accuracy of a single headline (unrelated to COVID-19) before beginning the news-sharing task; following Pennycook et al. (2020),
  • 32. we framed this as being for a pretest. Each participant saw one of four possible headlines, all politically neutral and unrelated to COVID-19 (see https://osf.io/7d3xh/ for materials). An advantage of this design is that the manip- ulation is subtle and not explicitly linked to the main task. Thus, it is unlikely that any between-conditions difference was driven by participants’ believing that the accuracy question at the beginning of the treatment con- dition was designed to make them take accuracy into account when making sharing decisions during the main experiment. It is therefore relatively unlikely that any treatment effect was due to demand characteristics or social desirability. News-sharing task. Participants were shown the same headlines as for Study 1 and (as in the sharing condition of Study 1) were asked about their willingness to share the headlines on social media. In this case, however, we sought to increase the sensitivity of the measure by ask- ing, “If you were to see the above on social media, how likely would you be to share it?” which they answered on a 6-point scale from 1 (extremely unlikely) to 6 (extremely likely). As described above, some evidence in support of the validity of this self-report sharing-intentions mea- sure comes from Mosleh, Pennycook, and Rand (2020). Further support for the specific paradigm used in this study—in which participants are asked to rate the accu- racy of a headline and then go on to indicate sharing intentions—comes from Pennycook et al. (2020), who found similar results using this paradigm on Mechanical Turk and Lucid and in a field experiment on Twitter mea- suring actual (rather than hypothetical) sharing. Table 2. Pairwise Correlations Among Concern About COVID- 19, Proactively Checking News About COVID-19, and the Individual-Differences Measures (Study 1)
  • 33. Variable COVID-19 concern COVID-19 news checking CRT score Science knowledge Partisanship (Republican) Distance to nearest epicenter COVID-19 concern — COVID-19 news checking .64*** — Cognitive Reflection Test (CRT) score −.22*** (−0.17***) −.10* (−0.07*) — Science knowledge −.001
  • 34. (0.10**) .06 (0.10**) .40*** — Partisanship (Republican) −.27*** (−0.19***) −.21*** (−0.15***) .09** … Chapter 9 – Designing Adaptive Organizations Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Designing Adaptive Organizations 9 1 A quick note… Though the title of this chapter is “designing adaptive organizations”, it largely focuses on organizational structure, both traditional and modern We will start by distinguishing more traditional or mechanistic structures from more modern or organic structures
  • 35. ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Organizational Structure and Process Organizational structure: Vertical and horizontal configuration of departments, authority, and jobs within a company Based on some form of departmentalization Organizational process: Collection of activities that transform inputs into outputs that are valued by customers ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Mechanistic versus Organic Structure Mechanistic (the org chart for WSU on the previous slide is an example): Specialized jobs Clear and rigid chain of command Centralized authority/decision-making Hierarchical structure Organic (e.g., how Facebook was described in the article
  • 36. referenced in the Chapter 7 lecture slides): Broadly defined jobs Decentralized authority/decision-making Flat structure Reliance on teamwork ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of a Mechanistic Organizational Structure Departmentalization: Subdividing work and workers into separate organizational units responsible for completing particular tasks Job Design: Structuring jobs and tasks ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Departmentalization Different types of departmentalization that we see in organizations: Functional Product Customer Geographic
  • 37. Matrix ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Functional Departmentalization Groups people and resources into groups based on function or area of expertise Accounting, human resources, etc. ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Functional Departmentalization Advantage: People work in their area of expertise and their knowledge is deepened through contact with similar employees Disadvantages: Silo problem – lack of communication and coordination across functions Employees continue to develop only in their area expertise = deep but narrow knowledge Conflict can emerge between departments when on department inherently requires more resources than another, or when they
  • 38. misunderstand each other’s purpose ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Product Departmentalization Groups people into separate units based on the product or service they are responsible for E.g., Time Warner has separate departments for internet, cable, and home phone, each with their own salespeople, tech specialists, and customer service representatives ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Product Departmentalization Advantages: More adaptability and leeway to make adjustments to a specific service or product Workers can become familiar with all elements of producing and selling a product/service Disadvantages: Duplication of roles and resources (e.g., each product department has its own IT specialists) Difficulty of standardizing procedures across product divisions (e.g., customer service reps for cable might develop a different
  • 39. script for customer interactions than reps for internet) ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customer Departmentalization Groups employees into work units based on the customers they serve What’s an example of this? I think WSU is! We are grouped not only by discipline, but also in terms of the students we serve. ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customer Departmentalization Advantage Can tailor service/product to specific needs of customer groups Each college at WSU has students with specific needs based on their majors E.g., Business students have a unique need for entrepreneurial/innovation experience, so Carson provides a business plan competition ‹#›
  • 40. MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Customer Departmentalization Disadvantages: Again, there is a duplication of resources Lack of coordination – students across different colleges likely have some shared needs Do students in other colleges have similar access to the business plan competition? Moreover, faculty situated in different colleges often have remarkably similar research, but don’t interact with one another and might miss out on collaboration and resource-pooling opportunities ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Geographic Departmentalization ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Geographic Departmentalization
  • 41. Groups employees into work units based on their location (E.g., Dunder Mifflin, the paper company in The Office, has regional branches) Each function repeated at each location (E.g., sales reps, HR personnel, customer service reps, accountants, general manager) ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Geographic Departmentalization Advantage: Allows for flexible responses to the specific needs of a geographic market Can reduce costs by getting closer in proximity to consumers Disadvantages: Again, duplication of roles and resources Difficult to coordinate long-distance – top management can lose control of certain offices ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Matrix Departmentalization A hybrid structure – two or more previous forms of departmentalization used together
  • 42. ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Matrix structure in a small multi-project firm ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Matrix Departmentalization Advantages: Improved coordination without duplication of roles and resources Improved flexibility in responding to issues Disadvantages: Employees will often report to a departmental manager as well as a project leader, which can result in confusion and power struggles Personnel allocation to projects can be a source of contention ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 43. Job Design Job design: the number, kind, and variety of tasks that workers perform in their jobs With time, many jobs become automatic and routine – it’s a sad reality that many people find themselves bored and disengaged in their jobs ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 21 Job Design How might we make jobs more engaging while maintaining efficiency? Job rotation Job enlargement Job enrichment All of these focus on increasing variety ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 44. Job Design Job rotation Move workers between tasks This is particularly applicable to jobs where you’re largely doing just one task at a time E.g., in fast food service, a worker is either taking orders/money, preparing food, preparing specific orders, cleaning tables, handing food to customers Many fast food restaurants use job rotation by having employees trained in all tasks and rotating through them over the course of a week and several shifts ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Design Job enlargement Provide workers with a greater number of related tasks Particularly applicable to work where you’re switching back and forth between tasks several times over the course of one shift E.g., an administrative assistant at a medical clinic might have his job enlarged from answering phones and making appointments to preparing patient charts in advance of appointments and transcribing notes from patient visits ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 45. Job Design Job enrichment Allow employees to make meaningful decisions about their work E.g., Many organizations now allot their customer service representatives a monthly allowance to “fix” customer mistakes. Customer service reps often deal with upset and abusive customers and it improves their job experience when they can immediately turn an upset customer into a happy one by offering a credit without having to ask for permission or complete onerous paperwork ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Design Hackman & Oldham’s Job Characteristics Model (JCM) seeks to design jobs that result in: Higher motivation More positive work outcomes This model uses principles of rotation, enlargement, & enrichment ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
  • 46. 9.9 Job Characteristics Model ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH9 Exhibit 27 Job Characteristics Model Examine the JCM, depicted in the textbook and on the previous slide. Select two of the methods that the model proposes to redesign jobs (these appear in the yellow boxes) and describe how each method relates to job rotation, enlargement, and/or enrichment. (Discussion board question) ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Components of an Organic Organizational Structure Reengineering Helps achieve dramatic improvements in critical measures of performance
  • 47. Changes work by changing task interdependence Empowering workers Passing decision-making authority and responsibility from managers to workers Involves providing the required resources to make effective decisions LO 4 ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Re-engineering, Task Interdependence, Empowerment, and Cooperation Yves Morieux of BCG’s Institute for Organization https://www.ted.com/talks/yves_morieux_as_work_gets_more_c omplex_6_rules_to_simplify#t-703368 ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Re-engineering The focus in job re-engineering is on adjusting interdependence (the level of collective action required to complete a task or produce something)
  • 48. ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Re-engineering Traditionally, there are three types of interdependence: Pooled (cumulative): each job/department contributes to the whole independently Sequential: work is performed in succession – the outputs of one department are the inputs for the next (picture a conveyor belt) Reciprocal: different jobs work together in a back-and-forth, iterative process ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Job Re-engineering Job re-engineering advocates for reducing reliance on sequential and pooled interdependence and increasing reliance on reciprocal interdependence It also advocates for more employee empowerment via self- management Read this article for the pros and cons of this approach: https://hbr.org/2016/07/beyond-the-holacracy- hype?utm_campaign=harvardbiz&utm_source=twitter&utm_med ium=social
  • 49. ‹#› MGMT11 | CH9 Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9.11 Reengineering and Task Interdependence LO 4 ‹#› Copyright ©2019 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. MGMT11 | CH9 Exhibit