People react differently to decisions based on what they perceive was the fairness of the outcome as well as the fairness of the process — and whether or not they trusted the decision makers in the first place. For example, if people trust a manager, they are more likely to see both the outcome and […]
Read More… from How People React to the Fairness of Decisions: Trust Makes a Difference
Shifting the bulk of compensation from mostly incentives (how much employees earn depends on how much they work) to mostly wages (employees earn the same guaranteed amount no matter how much they work) would, according to economic theory result in less productivity. Employees are no longer incentivised to work as much as possible and, human […]
Read More… from Economic Initiatives Can Lead to Unexpected Behaviours… at First
To make decisions, leaders must understand, to use the vernacular, ‘what is happening’. They must make sense of the events and situations that impact their areas of responsibility; this sense-making not only involves the past and present, but also the future: what is likely to happen. In July of 2005, an innocent man commuting to […]
Read More… from Bad Framing Leads to Bad Decisions and Bad (Even Fatal) Actions
CEOs tend to be strong in decision-making and the financial elements of their jobs, but weak when it comes to managing their people and developing talent, according to a survey of 160 North American boards of directors and CEOs. Specifically, ‘mentoring skills’ was tied with ‘board engagement’ for first place in CEO weaknesses, followed closely […]
There is a decision to be made. The decision makers know what they want to do, and take action. Reflecting on the action later, however, they realize that they did not make the decision that they should have made. On reflection, they see the attributes of the should choice — the new elements or special […]
“Strategy is often like desert rain. Before the raindrops leave the desert floor, they evaporate, creating little or no effect below” — George Labovitz and Victor Rosansky, The Power of Alignment (Wiley, 1997). Failure rates for strategy execution are notoriously high: estimates by academics and consultants range from 40 to 90%. It’s no surprise, then, that […]
The decisions of C-suites and boards are influenced by the previous experiences of their members. In uncertain situations, organizations gain legitimacy — and reduce the costs of experimentation — by copying others. These common-sense principles are borne out in a large body of research that points to the importance of ‘interlocks’ — i.e. previous or current ties to […]
It is well established, in research, that employees who are allowed to voice their opinions perceive decision-making procedures as more fair and are more likely to display pro-social behaviours and work in the collective interest. Relatively little, however, is known about what influences leaders’ decisions to grant ‘voice’ and act fairly. The results of the […]
Read More… from How Employees Win ‘Voice’ and Influence Decisions
Technology acceptance research tells us that user evaluations (i.e. beliefs, perceptions and attitudes) strongly influence rates of adoption and diffusion. The problem for companies that develop and sell new technologies — and for those that would benefit from using and buying them — is that user evaluations aren’t always accurate or fair. As many studies […]
Read More… from Decision Support Systems: Under-rated and Under-used?
New products and technologies often fail to depose inferior ‘incumbents’. (The classic example is the Dvorak keyboard, which, despite being more efficient, lost out to the original QWERTY model in the 1930s.) New products and technologies of equal strengths often go on to win unequal shares of the market. The dynamics of competition are complex. […]
Read More… from Why Inferior Innovations Often Beat the Best
