Doctoral Seminar in Contemporary Management Images and Decision Frames

Doctoral Seminar in Contemporary
Management
Wai Chamornmarn
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Textbook
Seminar in contemporary management 2015
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HTTPS://WWW.YOUTUBE.COM/WATCH?V=KF8WGVUNYG8
Ontology, Epistemology, and Methodology - Research Methodology
Course
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Behaviorism refers to the school of psychology founded by John B. Watson
based on the belief that behaviors can be measured, trained, and changed.
•  "Give me a dozen healthy infants,
well-formed, and my own specified
world to bring them up in and I'll
guarantee to take any one at
random and train him to become
any type of specialist I might select
-- doctor, lawyer, artist, merchant-
chief and, yes, even beggar-man
and thief, regardless of his talents,
penchants, tendencies, abilities,
vocations, and race of his
ancestors."
--John Watson, Behaviorism, 1930
• 
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Types of Behavioral Conditioning
•  There are two major types of conditioning:
1.  Classical conditioning is a technique used in behavioral training in which a
naturally occurring stimulus is paired with a response. Next, a previously
neutral stimulus is paired with the naturally occurring stimulus. Eventually,
the previously neutral stimulus comes to evoke the response without the
presence of the naturally occurring stimulus. The two elements are then
known as the conditioned stimulus and the conditioned response.
2.  Operant conditioning (sometimes referred to as instrumental conditioning) is
a method of learning that occurs through reinforcements andpunishments for
behavior. Through operant conditioning, an association is made between a
behavior and a consequence for that behavior. When a desirable result
follows an action, the behavior becomes more likely to occur again in the
future. Responses followed by adverse outcomes, on the other hand,
become less likely to happen again in the future.
•  Seminar in contemporary management 2015
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Behaviorism versus Other Schools of Thought
•  One of the major benefits of behaviorism is that it allowed researchers to
investigate observable behavior in a scientific and systematic manner.
However, it many thinkers believed that it fell short by neglecting some
important influences on behavior. Freud, for example, felt that behaviorism
failed by not accounting for the unconscious mind's thoughts, feelings, and
desires that exert an influence on people's actions. Other thinkers like
Carl Rogers and the otherhumanistic psychologists believed that behaviorism
was too rigid and limited, failing to take into consideration things like free will.
•  More recently, biological psychology has emphasized the power that the
brain and genetics play in determining and influencing human actions.
The cognitive school of psychology focuses on mental processes such as
thinking, decision-making, language, and problem-solving. In both cases,
behaviorism neglects these process and influences in favor of studying just
observable behaviors.
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Major Schools of Thought in Psychology
1. Structuralism
2.  and Functionalism
3. Gestalt Psychology
4. Behaviorism
5. Psychoanalysis
6. Humanistic Psychology
7. Cognitive Psychology
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Doctoral Seminar in Contemporary
Management
Wai Chamornmarn
2015
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Part I: Individuals and Their Environment
1. Image Theory, Lee R. Beach and Terrence R. Mitchell
2. Upper Echelons Theory: Origins, Twists and Turns, and Lessons Learned, Donald
C. Hambrick
3. Goal Setting Theory: Theory Building by Induction, Edwin A. Locked and Gary P.
Latham
4. How Job Characteristics Theory Happened, Greg R. Oldham and J. Richard
Hackman
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Behavioural Research
•  Social learning theory proposes that learning takes place vicariously and
through imitation (Bandura, 1965, 1976).
•  Vicarious learning is learning by observation resulting in behaviour patterns
that are learned by watching others and observing the consequences
(Atkinson et al, 1987).
•  Reinforcement theory is concerned with the consequences or outcomes that
influence behaviour (Skinner, 1969).
•  The underlying assumption of social learning theories is that what an
individual learns from experience is likely to influence their perception of a
task and the subsequent choice they make.
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Cognitive theories, by comparison, employ information processing models to explain how
individuals organise information in order to make a decision (Cronbach, 1960).
•  The three key cognitive approaches are heuristic/analytic reasoning, Image
theory and Prospect theory.
•  Heuristic reasoning involves searching for familiar solved problems and
reducing the task to a core set of causal relationships to make a decision
(Huysman, 1968).
•  Image theory posits that individuals apply existing knowledge (images) to
establish standards that guide their decision making (Beach, 1990).
•  Prospect theory is a descriptive model that modifies expected utility theory to
accommodate decision behaviour that violates the rational choice model
(Tversky & Kahneman, 1981).
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1.IMAGE THEORY.
Lee R. Beach and Terrence R. Mitchell
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Image Theory, Lee R. Beach and Terrence R. Mitchell
•  “Cognitive errors.”
•  “The sunk cost effect “
•  “ Intuitive scientists” who learn about the physical world as a result of having
to cope with its demands and constraints
•  “Man as an intuitive statistician”
•  Attributing cognitive errors to the difference between aleatory and epistemic
thinking was provocative but ultimately not very productive.
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Normative process or prescription
•  Reluctantly, behavioral researchers have recognized that decision
makers’ behavior seldom resembles normative process or
prescription (Hershey & Shoemaker, 1980).
“The story of behavioral decision theory has been the growing
realization that SEU often does not describe the decision making
process. … The dramatic tension has been provided by SEU’s
remarkable ability to hang on despite mounting doubts about its
descriptive competence”
•  (Fischhoff, Goitein, & Shapira, 1983, p. 185).
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From observations of real-life decision making
•  Observations of professional decision makers making on-the-job decisions.
(Beach, 1996, 1997)
•  Most of their decisions involved only one option rather than multiple
options,and the decision was whether to go with that option rather than a
choice among competing options.( Mintzberg ,1975)
•  Donaldson and Lorsch’s (1983) ambitious study of 12 major corporations
found that corporate managers do not strive to increase shareholder wealth;
their first priority is the survival of the corporation itself.
•  A more recent response has been to approach decision making as a branch
of cognitive or social psychology (see Abelson & Levi, 1985), evolving
descriptive theory from observations of real-life decision making. Image
theory is part of this third response (Beach & Mitchell, 1987, 1990).
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Image theory
•  is the most comprehensively and thoroughly developed naturalistic decision
theory (Klein et al. 1993).
•  Image theory proposes that decision makers have limited cognitive capacity
(Simon 1955) and decisions are made within a decision frame (Beach 1993).
•  Decision makers will limit their decision deliberations to that portion of
knowledge that is stored and considered relevant to the current decision.
•  According to image theory, this knowledge structure consists of three
images: value image, trajectory image, and strategic image.
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Image theory
•  is an alternative to classical decision theories that are based on subjective
expected utility, propounded by Lee Roy Beech (Beach, 1990[1]).
•  Expected utility models of decision making do not match real-world
processes, according to Beach. Studies of actual managerial decisions show
that decisions are rarely based on explicit cost/benefit calculations. They are
also rarely treated as gambles or wagers, as probability-based models
suggest.
•  Many decisions do not even involve choices between two commensurate
options. They revolve instead around sticking with the status quo vs.
introducing a change.
•  Maintaining the status quo is a low-risk default option requiring little
justification. Introducing a change is a potentially hazardous choice that one
will be held accountable for.
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1. Image Theory, Lee R. Beach and Terrence R. Mitchell
•  SCHEMA/IMAGE THEORY
•  Beach & Mitchell (1990); Mitchell & Beach (1990) developed a theory in
which a larger framework is considered than in simple decision models--it
builds on schema theory.
•  A.) Images
•  Images of one's goals and one's self are considered: these are the schemata:
organized knowledge structures of each individual person’s LTM. They are
made up of several types of images:
–  1.) Value Image: Beliefs and values which influence goal selection.
–  2.) Trajectory Image: Future agenda--where one is going to
–  3.) Strategic Image: Plans and actions to achieve these--sequences of
activities for achieving a goal.
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In PAE order, the images are:
•  P – The Strategic Image (bottom): Plans and tactics for pursuing adopted
goals to successful outcomes. Involves anticipation and short-term
forecasting.
•  A – The Value Image (top): Standards, ideals, beliefs, morals, ethics and
other principles serve as imperatives or rigid guides that establish decisions
as right or wrong. Principles generate goals and also govern the adoption or
rejection of candidate goals and plans or tactics that violate the value image.
•  E – The Trajectory Image (middle): This is an image of direction or
directedness, created by establishing both specific goals and abstract goals,
as well as by defining markers of progress towards goals. Timely progression
towards desired outcomes is itself a goal within the trajectory image.
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B.) Images as they Influence two Types of Decisions:
•  1.) Adoption Decision: refers to which decision is selected--affected by:
–  a.) compatibility - degree of consistency between a course of action and
one’s personal values and beliefs.
–  b.) profitability - comes into play when several alternatives are equally
good--can be achieved by other decision making strategies (i.e., additive
models).
•  2.) Progress Decision: reevaluation of an initial decision to monitor its
progress. This is much like an assessment of subgoals in means/ends
analysis.
•  Schematic models predict that one would use a simpler strategy early on, when many
decisions are possible; but once the number of alternatives is narrowed down than a
more complex strategy can be instituted. This agrees with the work by Payne (1972).
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Naturalistic decision making
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Memory
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Intuition in decision making
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Normative decision making model
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Normative decision making model
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Behavioral decision making model
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Naturalistic decision making model
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Decision making model
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Stanford model
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2.UPPER ECHELONS THEORY: ORIGINS, TWISTS
AND TURNS, AND LESSONS LEARNED.
Donald C. Hambrick
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Don Hambrick is the Samuel Bronfman Professor of Democratic Business Enterprise at
the Graduate School of Business, Columbia University. He holds degrees from the
University of Colorado (B.S.), Harvard University (M.B.A.), and the Pennsylvania State
University (Ph.D.).
An internationally recognized scholar in the field of top management, he is the author of
numerous articles, chapters, and books on the topics of strategy formulation, strategy
implementation, executive staffing and incentives, and the composition and processes of
top management teams. Among his works is "Top Management Teams: Key to Strategic
Success," which won the award for best article in California Management Review. His
recent book, Navigating Change: How CEOs, Top Teams, and Boards Steer
Transformation, presents leading-edge thinking for executives who are embarking on
corporate change initiatives. Another recent book, Strategic Leadership: Top Executives
and Their Effects on Organizations, is extensively used by scholars of executive
leadership. He also conducted the widely-noted worldwide study of executive
leadership, Reinventing the CEO.
2.Upper Echelons Theory: Origins, Twists and Turns, and Lessons Learned.
Donald C. Hambrick
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Most fundamental question in UET:
•  How do executives really perceive the world, and how do they reach their
decisions?
•  How do they differ in their most primary cognitive processes, and how do
these processes affect their strategic choices?
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Some of the questions that will be addressed during the panel discussion are:
• What are the main challenges in using words as proxies for mindsets,
personality, and identities?Which personality constructs and worldviews other
than those primarily studied in upper echelons research could be important to
organizational outcomes?
• What are the most advanced techniques in measuring corporate leaders’
personality and views through the words they use?
• Which newly available data sources can be smartly used to gain direct,
unobtrusive, and comprehensive access to top executives’ communication?
• Which automated and non-automated methods can be used? Which
promising methods are used in other fields?
• Which theoretical lenses that have not yet been applied could enrich our
efforts to open the black box of executive cognition?
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THE POSSIBILITY OF AN INCREASED “CEO EFFECT”
Ever since Lieberson and O’Connor’s (1972) seminal study, researchers have
been interested in understanding and measuring “the CEO effect,” or the
degree to which company performance is traceable to CEOs as opposed to
contextual factors.
These scholars acknowledge, on the one hand, the potential for CEOs to
influence their firms’ performance – through their strategic decisions,
organizational design choices, and leadership behaviors – while also
recognizing the constraints that prevent CEOs from having complete leeway in
determining their companies’ forms and fates.
For these researchers, the question is not whether managers matter, but rather
how much they matter (e.g., Crossland & Hambrick, 2011; Mackey, 2008).
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SPAN OF CONTROL AND SPAN OF ATTENTION
Oriana Bandiera, Andrea Prat, Raffaella Sadun and Julie Wulf*
December 19, 2013
Abstract
Using novel data on CEO time use, we document the relationship between the
size and composition of the executive team and the attention of the CEO. We
combine information about CEO span of control for a sample of 65 companies
with detailed data on how CEOs allocate their time, which we define as their
span of attention. CEOs with larger executive teams do not save time for
personal use, or to cultivate external constituencies. Instead, CEOs with
broader spans of control invest more in a “team” model of interaction. They
spend more time internally, specifically in pre-planned meetings that have more
participants from different functions. The complementarity between span of
control and the team model of interaction is more prevalent in larger firms.
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Risk attitudes in company boardrooms in a developing country
Denice Bodeutsch,Philip Hans Franses 2015
Abstract
We test risk attitude and risk propensity of executive and non-executive
directors of almost all (read: 10) companies listed at the Suriname Stock
Exchange. This stock exchange associates with an emerging market, which
currently seems to be at its initial stage. With a personalized survey we collect
data for 13 members in the board room. The sample size is small as the
population is small, but still we can test various hypotheses that are put forward
in the literature.
Our main finding is that the differences between risk attitudes of board
members of companies in a developing country do not differ tremendously from
those of board members in developed countries.
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Performance over the CEO life cycle: the impact of structural
power creation activities
Abstract
In extending leader life cycle theory (Hambrick and Fukutomi, 1991), the
authors examine how structural power creation activities of a CEO influence
firm performance over his time in office. On the basis of a sample of 118 CEOs
in Germany’s 83 largest companies, for an overall number of 717 tenure years,
the paper shows that different structural power creation activities of CEOs lead
to different slopes of the leader life cycle and that active structural power
creation during early tenure results in higher company performance over the
course of a CEO’s tenure. The authors contribute to leader life cycle research
by highlighting the effect of structural power creation activities on the shape of
leader life cycles as well as on company performance. To the best of our
knowledge, this is the first study that researches the relationship between
structural power creation activities of a CEO and company performance over
the CEO’s tenure.
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What did you learn ? 3
Grand theories
and Mid – Range
theories
Michael Frese
Upper Echelons
Theory
Donald C.Hambrick
Goal Setting Theory
Edwin A. locke
Gary P. Latham
Tension การเรียนรูเกิดจากขอผิดพลาด แนวโนมผูบริหารมี 2 ประเภท
1.Psychological
Characteristics
2. Observable experiences
They are psychology and
interesting Human action
,work motivation,
achievement motive
Search What errors ?
Study of errors
management
ผูบริหารมีความสัมพันธกับ
ความสําเร็จหรือไม
How well people perform
work ?
Performance goal
Elaboration การสรางแนวทางการบริหาร
Error ไดอยางไร
1.Systematic approach
2. นโยบาย
Executive ’s orientations
-Field of vision
-Selectively perceive
- interprets
The conditions necessary for
goal accomplishment change
on the basis of feedback ,
goal commitment ,ability and
task complexity
Research Inductive by Error
Management Training
Case study
Style การบริหารของผูบริหาร
Theory Building
Inductive
Presentation Personal Initiative (PI)
(เปนพฤติกรรมที่เกิดขึ้นถาวร สม่ําเสมอ และ
เปนพฤติกรรมที่ทําใหสมาชิกในองคการมี
การทํางานมากกวาที่บริษัทมอบหมายให
Strategic Management Goal setting theory
เปนที่มาของ SMART
Piyawan Petmee Id 56030315
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3. GOAL SETTING THEORY: THEORY BUILDING BY
INDUCTION.
Edwin A. Locked and Gary P. Latham
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Goal Setting Theory
Edwin A. Locked Gary P. Latham
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•  A goal is defined simply as what the individual is consciously trying to do.
Locke and Latham postulate that the form in which one experiences one’s
value judgments is emotional.
•  That is, one’s values create a desire to do things consistent with them. Goals
also affect behavior (job performance) through other mechanisms. For Locke
and Latham, goals, therefore, direct attention and action.
•  Furthermore, challenging goals mobilize energy, lead to higher effort, and
increase persistent effort. Goals motivate people to develop strategies that
will enable them to perform at the required goal levels.
•  Finally, accomplishing the goal can lead to satisfaction and further motivation,
or frustration and lower motivation if the goal is not accomplished.
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General model of goal-setting theory.
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HTTPS://WWW.YOUTUBE.COM/WATCH?V=MC5MV91LU9E
Edwin Locke - The Importance of Subconscious Goals for Influencing
Organizational Behavior
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HTTPS://WWW.YOUTUBE.COM/WATCH?V=JECB83XIX1M
Evidence-Based Management with Dr. Gary Latham
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Building a Practically Useful Theory of Goal Setting and Task
Motivation A 35-Year Odyssey
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New Directions in Goal-Setting Theory
Edwin A. Locke1 and Gary P. Latham
ABSTRACT—Goal-setting theory is summarized regarding
the effectiveness of specific, difficult goals; the relationship
of goals to affect; the mediators of goal effects; the relation
of goals to self-efficacy; the moderators of goal effects; and
the generality of goal effects across people, tasks,
countries,
time spans, experimental designs, goal sources
(i.e., self-set, set jointly with others, or assigned), and
dependent variables. Recent studies concerned with goal
choice and the factors that influence it, the function of
learning goals, the effect of goal framing, goals and affect
(well-being), group goal setting, goals and traits, macrolevel
goal setting, and conscious versus subconscious goals
are described. Suggestions are given for future research.
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Motivation through conscious goal setting
EDWIN A. LOCKE
Abstract
The article describes what has been found during 30 years of research by the
author and others on the relationship between conscious performance goals
and performance on work tasks.
This approach is contrasted with previous approaches to motivation theory
which stressed physiological, external or subconscious causes of action.
The basic contents of goal setting theory are summarized in terms of 14
categories of findings. An applied example is provided.
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8. HOW JOB CHARACTERISTICS THEORY
HAPPENED.
Greg R. Oldham and J. Richard Hackman
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Job Characteristics Theory
Greg R. Oldham
J. Richard Hackman
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HTTPS://WWW.YOUTUBE.COM/WATCH?V=ZVP_C7YIWXS
Hackman and Oldham Model of Job Design by J.Roman
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Doctoral Seminar in Contemporary Management Images and Decision Frames

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Doctoral Seminar in Contemporary Management Images and Decision Frames