Decision Making at Work

Seminar Uni Würzburg

Seminar Uni Würzburg


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Cartes-fiches 58
Langue Deutsch
Catégorie Psychologie
Niveau Université
Crée / Actualisé 12.07.2020 / 22.06.2023
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What are the main features of „Pay-what-you-want-pricing (PWYW)“?

PWYW is a pricing strategy, in which the costumer can decide on the price they want to pay for the product, including nothing. This concept can be interesting for exploring non-selfish consumer behavior. 
Other important concepts in this context are CSR (Corporate Social Responsibility) and SSR (Shared Social Responsibility).

Which main research questions were investigated in the three studys by Gneezy et al. (themepark, tour boat, restaurant)? What were possible explanations for the effects found?

The themepark study was aimed at exploring if a charitable component can change the consumer's behavior in a PWYW situation. (The main finding was that people pay substantially more when they learn that half of their payment will benefit charity, making PWYW profitable and socially beneficial. Those who did buy the photo in the charity treatment paid on average five times more).
A possible explanation would be that people want to maintain a positive self-image, so when people believe that the “right” price is high, they simply prefer to forego the opportunity to buy the product (and benefit the charity) rather than to appear cheap by paying too little. 

The tour boat study was aimed at finding out if knowledge about the regular price can change the consumer's behavior in a PWYW situation. (The result: yes, fewer people chose to buy the photo when they had to choose how much to pay than when the price was $5)
A possible explanation is that the people were managing their self-image. Paying less than the perceived fair price sends a negative signal about the person. If the customer does not want to pay the perceived fair price, they do not buy the product at all. But: if the company sets this price by themselves, there are no concerns about fairness.

The study conducted in a restuarant explored if anonymity and normative knowledge can change PWYW behavior. (Result: Customers pay more when they pay anonymously than when they pay publicly).
A possible explanation for the results could be that being monitored by the owner may crowd out the self-signaling strength, leaving the individual to believe that they chose to pay the specific amount because they “had to,” not because they are a fair person. Under this account, the transaction carries relatively little self-signaling value, so the customer may end up paying less when monitored by the owner. 

Name three implications for the implementation of PWYW in practice.

  • make use of „shared social responsibility“ (instead of corporate social responsibility) (see charitable component)
  • guarantee sufficient communication/information of the PWYW-campaign
  • announce the reference price (tour boat> people rather pay nothing with PWYW, instead of reference price)
  • guarantee high quality

Which between-and within-interviewer factors are significantly related to the decision-making time of interviewers? (personnel selection)

Between-interviewer factors influencing the decision making time of interviewers are the interview structure, such as the questions' consistency or rapport building (question consistency is significantly associated with longer decisions, while rapport building is associated with shorter decision time), as well as the individual differences of the interviewers, such as their experience and training (negeative relationship between interviewing efficacy and decision making time; interviewers with more experience tend to make quicker decisions).

As to the within-interviewer factors, one significant one was the interview order, for instance the order in which interviewers interview a slate of applicants. 

Describe the relation between interview order and decision-making time. (personnel selection)

The relationship between the interview order and the decision-making time is curvilinear.
Early on, there is a positive relationship between the two variables, in a way that decision time increases as interviewers progress through the first few applicants. After about four applicants, decision time reaches an asymptote and then begins to decrease as interviewers evaluate additional applicants. This occurs due to the interviewer’s transition from effortful to automatic information processing strategies.

Based on the findings by Frieder et al. (2015), how can the selection process based on interviews be improved?

Based on the findings, scheduling breaks between interviews might reduce the extent to which interviewers rely on cognitive schemas for reducing the (cognitive) demand of applicant evaluation. 
Furthermore, "refresher trainings" for experienced interviewes might help reframing the evaluation process as a toughtfulness-demanding and important task. 
The process can also be improved by training interviewers to use structured procedures that focus on job-relevant questions and information, as well as emphasizing deliberate information processing strategies that may help to reduce interviewers’ tendencies to make quick decision. 

What is the adverse impact – validity dilemma in personnel selection?

Adverse impact describes a disparity in selection for hiring or promotion, that disadvantages individuals of a particular race, ethnicity or sex.
The dilemma situation relies on the fact that cost-effective procedures with high criterion-related validity (e.g. cognitive ability tests) exhibit high level of adverse impact. On the other hand, alternatives that also exhibit high level of validity but less adverse impact (e.g. structured interviews or assessment centers) are too costly to administer to a large number of candidates.

In which sense can computer scoring of candidate essays help to overcome it (adverse impact)? What are the benefits of using computer scoring in personnel selection found by Campion et al. (2016)?

 

The effect of adverse impact might be reduced by using computer scoring techniques for applicant's essays, since they showed no gender or ethnicity differences.
The scores generated by the computer show a similar reliability as human rater scores. Convergent and divergent validity are also given, since the correlation between the computer scores and human scores for the same competency are larger than with other competencies.
Additionall, cmputer scores can substantially reduce costs.
Finally, computer scores can identify applicants, who would have otherwise not been recognized, since not only keyword-programs are used.

What are the main steps in the computer modeling analysis process?

There are three main steps in a computer modeling analysis process.
The first step is text mining, where the meaningful information of an unstructured text-based data is extracted. In the second step, a predictive model is generated via regression. This model is used to predict rater's scores. In the third an final step, the predictive model is applied to new data. This produces the computer scores. 

What are practical advices for the implementation of computer scoring methods described by Campion et al. (2016)

There are several possible ways to use computer scores such as replacing one rater or eliminating the lowest scoring candidates. Five AR questions are reliable enough in case one AR is revised. The minimum sample size to use computer scoring is not excessively high, such as about 500 in this setting.
Practitioners interested in trying out the computer scoring apporach might start to use existing datasets within the organization that contain constructed response data (e.g. applications). Here, only criterion data would be necessary to allow the creation of a computer scoring model, such as job performance, turnover, or ratings by subject matter experts.

What is the difference between self-initiated and company-backed expatriates? (decisions to go abroad)

Company-backed expatriates are employees who are supported by a company to undertake an international assignment. 
Self-initiated expatriates, on the other hand, are employees who themselves want to take on an international working opportunity without the support or sponsoship of an organization

What are differences in self-initiated expatriate's and company-backed expatriates motivations to go abroad?

Company-backed expatriates might be motivated by the prospect of professional development, career opportunities, monetary considerations, international experience and/ or the location
Self-initiated expatriates might be motivated by the prospects to explore, escape their current situation, financial opportunities, build their career, adventure and/ or family reasons

Name four of the factors that influence decisions to go abroad.

Four factors influencing the decision to go abroad are the location, home-host relations, foreign experience and personal relationships. (furthermore: host (good reputation), career, family benefits, push factors)

Application: What does the distinction of the two types of expatriates mean for the management of expatriates (e.g. selection, training etc.)?

Dependend on what motivates the company-backed vs. self-initiated expatriates, different incentives should be used for applicants. To ensure an optimal fit, a clear distinction of the two groups is needed, to ensure interest match between the individual and the company.
It has been suggested that self-initiated individuals usually lack any organisation specific track record which increases the need for sophisticated selection, induction and knowledge management approachesFor the self-initiated, attraction and retention processes need to take account of the particular nature of this population, including their approach to choice of destination and their protean attitude towards career. Research suggests the need for a more holistic approach to recruitment incorporating realistic job previews and realistic living conditions previews.

How would you define the term “self-concept clarity”? What is the difference between the content and the structure of self-concept clarity?

The term "self-concept clarity" describes a personality trait-like construct. It is the extent of the sense of how a person is, their strengths and weeknesses, the nature of their personality and their standpoint in life.
The content of this construct refers to the contents of the self-concept in the form of self-representations, while the structure of self-concept clarity connects and organizes these self-representations into a meta-perspective of the self. 

How does living abroad experience increase self-concept clarity? Are there any mediators?

Due to the confrontation with an unfamiliar environment containing different norms, values and behaviors, the personal beliefs of an individiual are questioned and as a result strengthened or discarded. This process is mediated by self-discerning reflections on whether parts of the person's identity are truly theirs or only reflect their cultural upbringing

In a study of Adam et al. (2018) does the depth or the breadth (=Breite) increase self-concept clarity and career decision-making clarity? What is the underlying process?

According to the study, the depth of living abroad experiences (length of a stay) predicts self-concept clarity, not the breadth (how many countries). The same goes for career-decision making clarity, where self-concept clarity functions as a mediator. 
It is implicit in this argument that the clearer one’s understanding of the self, the higher the likelihood of making effective career choices. Indeed, having relevant information about the self, such as one’s skills, abilities, vocational interests, aspirations, and career goals, significantly reduces career indecision.

Kempen:
The underlying process is explained by self-discerning reflections. According to the authors, living abroad leads to self-discerning reflections on whether parts of an identity truly define who a person is or merely represent their cultural upbringing. They also mention that cultural values are put to the test while living abroad.
Specifically, a cultural shock may occur when own cultural values are questioned which in turn leads to self discerning reflections (and more self concept clarity).

Method: What are the challenges associated with research on expatriates’ motives?

The challenges in researching expatriate's motifs are for one a lack of insight into the expatriate's thoughts and feelings, as well as the danger of social desirability (motives externally not intrinsic) which could lead to falsifications.