CURRICULUM INTEGRATION IN THE DECISION SCIENCES: AN EVALUATION*

Recent interest in curriculum integration in the decision sciences has led to the proposal that topics in computer science, statistics, quantitative methods, operations research, and possibly mathematics might be integrated into a single unified set of courses. Such a unification may reinforce the learning process of the student and form the basis for the eventual synthesis of tools topics with functional area decision making. This integration proposal and speculation is examined using research in learning and motivation theory, and concludes that the integration of tools concepts with functional area topics is much more promising than the integration of tools topics alone. A pair of example course integrations is provided to illustrate in detail the application of learning and motivation principles to tools-into-functions curriculum integration.     

INTEGRATING THE COMPUTER INTO A BUSINESS SCHOOL CURRICULUM*

The results of a study of computer utilization in the Graduate School of Business at Stanford are presented. The benefits and costs of a dedicated time-sharing system acquired by the Business School to supplement the central campus computer facility are discussed. The study showed that the time-sharing system produced many benefits, including improved service and a lower per student cost for computing. The implications of the Stanford experience for other schools are discussed.     

A STRATEGY FOR INTEGRATING QUANTITATIVE TECHNIQUES INTO THE BUSINESS CURRICULUM*

Quantitative methods courses play an increasingly significant role in the programs of Schools of Business. However, maximum utilization of the concepts can occur only when these quantitative techniques have been integrated into the various functional areas via a faculty knowledgeable with such techniques and their applications. Lacking sufficient stimuli, this integrative process is observed to be one of an evolutionary nature. This article presents a strategy for stimulation of this process.     

AN EMPIRICAL EXAMINATION OF THE BIASING EFFECTS OF FRAMING ON BUSINESS DECISIONS*

This paper presents results of three studies testing whether decision bias due to framing, found in consumer purchase contexts, also would occur in a business setting. In the first study, business-student subjects displayed framing-induced decision bias just as subjects had in an earlier study by Tversky and Kahneman [12]. When the consumer problem was recast into a business decision in the second study, student subjects trained to handle the problem still revealed bias, although to a lesser extent. In the third study, experienced business managers revealed the same pattern of decision bias as the student subjects. Implications of this bias for business decision makers are discussed.     

THE USES OF BUSINESS GAMING IN EDUCATION AND LABORATORY RESEARCH*

This paper reports an empirical investigation of business gaming in education and research. Subjects were approximately 200 junior and senior undergraduate students who were assigned to seven-man teams on the basis of scores on the Least Preferred Co-worker (LPC) leadership style questionnaire, and who played the Marksim business game during one academic semester. Relationships were explored between post-game perceptions of the game, team atmosphere and the leader, combinations of congruent and incongruent leadership styles, and measures of team performance. Also explored were relationships between several predictor variables (including grade point average) and measures of team performance. The results were generally disappointing in regard to business gaming as an educational tool. However, it seems that business gaming may hold promise for laboratory research in the behavioral sciences. The results of this investigation suggest that relationship-oriented and task-oriented leadership styles and combinations of these styles within hierarchically structured groups affect members' perceptions of the task and other aspects of the task environment but do not affect group performance, at least directly. These results may have significance for those interested in organizational design and the selection and development of leaders for first and second-level managerial positions.     

AN INTEGRATIVE SUMMARY OF DOCTORAL DISSERTATION RESEARCH IN QUALITY MANAGEMENT

Since 1980, practitioner interest in the field of quality management (qm) has grown significantly, resulting in academic researchers embracing QM as a legitimate discipline of study. One approach to evaluating the intellectual health of a discipline is an examination of doctoral dissertation research. This work both complements and extends other published reviews of the quality management discipline by analyzing doctoral dissertation research since 1981, categorizing this research, examining shifts in major research themes, evaluating data collection and analysis methodologies, and discussing general trends in this research area. Our findings suggest that the challenges in QM have become more interdisciplinary and integrated, and reveal an encouraging trend toward more rigorous research methodologies and the increased use of theories from other disciplines, leading to a more mature body of research in this field.     

ADVERTISING AND VALUE MAXIMIZATION: AN INTEGRATIVE APPROACH *

The model developed in this paper is interdisciplinary in that we incorporate the advertising decision into the capital asset pricing model (CAPM) for valuation of risky income streams. The advertising decision involves the purchase of media services whose effects on sales (profit) are hypothesized to vary with general economic activity. As in any asset expansion, the firm purchases an income distribution with a given expected value and covariance with the economy. By consulting the CAPM, we are able to obtain a value for the income distribution associated with the advertising expenditure. By failing to account for both risk and return, those previous studies which have examined the effect of advertising on profit or valuation are, at best, incomplete. We are able to demonstrate the inappropriateness of ranking alternative advertising strategies solely on the basis of expected income.     

AN EVALUATION OF TWO MODELS OF UNDERGRADUATE STATISTICS

The paper reports on a large scale evaluation of two alternative models of undergraduate statistics courses. The traditional course orientation was compared with a problem-solving orientation in which the emphasis was on real world problem-solving, during the winter and spring quarters of 1973–74. The evaluation battery included behavioral and problem-solving skill measures. The findings indicate that improvements in statistics programs can be made.     

SPECTRAL ANALYSIS IN BUSINESS FORECASTING: THE WIENER-KOLMOGOROV METHOD *

The objective of this paper is to introduce the Wiener-Kolmogorov (WK) method to business researchers and to applied workers who have an interest in spectral techniques. It is seen that the advantage of the WK method is that it provides better forecasts than autoregressive regression analysis when the order of the true autoregressive process is large. The paper outlines the steps involved in the WK method. Also discussed is a labor-saving feature to guide one at the outset as to whether the WK algorithm should be used. A numerical example is given to illustrate the application of the method in time-series forecasting.     

THE EFFECTS OF GAME COMPLEXITY ON THE ACQUISITION OF BUSINESS POLICY KNOWLEDGE *

Certain cognitive and affective results obtained by three increasingly complex business games were examined. All simulations taught facts and concepts but the most complex simulation produced the greatest effect. More game complexity also brought about heightened challenge, lesser monotony, and greater decision-making comprehensiveness. Motivational and learning levels, however, were not linearly positive with increasing complexity. The intermediate game was as motivating as the complex one although it was inferior to the simple game as a teaching device. The complex game also experienced higher student mortality.     

AN ANALYSIS OF BEHAVIOR AND PERFORMANCE IN THE FOOD RETAILING INDUSTRY USING EXPERIMENTAL BUSINESS GAMING

This research tested hypotheses concerning the effects of organizational affiliation, differences among managers nested within organizational affiliation, degree of price competition and selected demographic and psychological traits of managers on economic behavior and performance. Experimental gaming in a behavioral science laboratory was used with a group of 60 subjects who were managers of Indiana supermarkets. The results support the influence of economic factors on the behavior and performance of managers. Degree of price competition imposed by the researchers significantly affected pricing decisions. At the same time, factors not usually considered in the static theory of the firm, such as organizational affiliation, had a significant influence on behavior and performance. While psychological and demographic traits generally did a poor job of explaining manager behavior, their effect may have been masked by the main treatments to which subjects were exposed. Realism in the experiment was not as high as expected, but the approach used was judged to be superior to alternative approaches.     

QUANTITATIVE METHODS IN THE UNDERGRADUATE CURRICULA OF AACSB MEMBER INSTITUTIONS

Since the discipline of quantitative methods varies more widely from institution to institution than any other discipline, a survey was conducted to establish a profile of the undergraduate quantitative methods curricula. The survey was made among member institutions of the American Association of Collegiate Schools of Business in order to determine the current status of the structure and orientation of undergraduate programs in quantitative methods, faculty background and requirements, undergraduate course requirements for each of the major areas in business, and directions of future changes. This paper presents the survey results.     

SPECTRAL ANALYSIS IN BUSINESS FORECASTING*

Although spectral analysis has previously been discussed in a number of business journals, the discussion has not been detailed enough for non-mathematicians. The objective of this paper is to review in detail the concepts and to go over the computations of spectral analysis as they pertain to forecasting. To gain insight into the model building technique of spectral analysis, a passing comparison with a familiar model–regression–is made. Regression analysis attempts to find a set of independent variables that shed some light on the dependent variable to be forecasted. In other words, if the independent variables have some functional relationship with the dependent variable, a reliable forecast of the dependent variable can then be made. Forecasting using spectral analysis, on the other hand, is based on the assumption that the variation of a time series can be explained by some mixture of sine and cosine waves. Model parameters can then be estimated for these waves and forecasts be made. These parameters have the same property of least squares as in ordinary regression analysis. A transformation of these parameters gives the spectra of the time series. The spectra are related to the explained variation present in regression analysis. An extension of the spectra gives a set of coefficients of an autoregressive forecasting model. This latter model is referred to as the Wiener-Kolmogorov forecasting model.     

TESTING THE ROBUSTNESS OF MULTIATTRIBUTE UTILITY THEORY IN AN APPLIED SETTING*

Multiattribute utility theory (MAUT) was employed to model the professional judgments of external auditors. Fully developed MAUT models elicited from each subject according to keeney and Raiffa's [6] procedures were used to predict the internal control systems evaluations made by auditor-subjects. Correlation analyses were used to compare the predictive ability of the “correct” MAUT models to the accuracy of models developed under simplifications of the MAUT procedures. One simplified model resulted from relaxing the requirements for attribute independence that determine the functional forms. A second modified MAUT function was formed using unitary weightings on conditional utility functions instead of elicited scaling constants. Tests showed essentially no significant differences in predictive accuracy among the models in the contact of this study.     

AN EMPIRICAL INVESTIGATION OF THE DIMENSIONALITY OF THE CONCEPT OF INFORMATION *

An empirical study is described that derives the dimensionality of the concept of information. The resulting information structure was found to be in agreement with the structures suggested in the literature. Additionally, subject evaluations of three distinct report formats were determined using the derived dimensions of information. A graphical format was found to be preferred over both a tabular format and a bar chart format.     

PROPOSALS FOR A PROGRAM OF EMPIRICAL RESEARCH INTO THE PROPERTIES OF TRIANGLES*

Physical geometry is viewed in this essay as the prototype of a successful generalizing empirical science. Suppose that physical geometry had been studied in ancient Egypt by empirical methods similar to those commonly used today by many researchers seeking general propositions useful in explaining, predicting, or controlling phenomena of interest to practicing managers. Would these methods have produced valid and useful geometric generalizations? This intriguing question is explored in Part I by means of a parable which suggests a negative answer to the question. The reasons for this negative conclusion are developed in Part II. In the successful generalizing sciences, general propositions (or theory) have not been the result of an a posteriori“induction” from observational data, but rather the result of an a priori“construction” of a framework for the coordination of measurement operations. Such a framework, whether explicitly articulated or not, is a necessary condition for the collection of coherent and reproducible observational data and, therefore, for explanation, prediction, and control of phenomena. Yet, despite its a priori character, an acceptable framework or theory must be “empirical” in Popper's sense of being subject to refutation by observation. If the framework is logically prior to data, however, what is its source? In the successful generalizing sciences, it is argued in Part III, theories have been generalized not from data but from the skills—the coordination of operations—of practitioners. This genesis “explains” the success of the sciences, because an effective skill includes within itself tests of its range of applicability and adapts itself to changing conditions. A discussion of the implications of this argument for making management “scientific” concludes the essay.     

AN EXPERIMENTAL EVALUATION OF THE RELATIONSHIP OF UNCERTAINTY IN THE ENVIRONMENT TO INFORMATION USED BY DECISION MAKERS*

This paper discusses the relationship between uncertainty in a decision making environment and the desired characteristics of information used for decision making. The work is aimed at providing a better understanding of the variables that affect the design of Management Information Systems. An experiment was conducted using an inventory simulator. The subjects could decide on inventory control variables and the amount and type of information to be used in monitoring system performance. The demand for inventory was an external random variable under the control of the experimenter. The experiment investigated how different demand variances affected the decision information used, the decisions made, and the resulting decision effectiveness (cost.) It was found that decision review frequency was not affected by demand variability. However, age and degree of summary of information used were greatly affected. Subjects exposed to high variability used data with a shorter history and a higher level of detail than those exposed to low variability. It was also found that the number of reports used increased from the low to middle variance group, then decreased at very high variance. Subjects tended to “give-up” on their information system at high variance, and they relied on additional safety stock to prevent frequent stockouts. Finally, the correlation between the information used and decision effectiveness as measured by cost was low. This result was contrary to the subjects' beliefs that more and better information produced “better” decisions. It indicates that although variability may strongly affect preferences for different types of information, the information used may not in turn affect decision performance.     

BARGAINING BEHAVIOR IN A BUSINESS SIMULATION GAME *

Three studies of labor-management negotiations were conducted within the context of a business simulation game. Face-to-face bargaining lasted approximately two hours and resulted in settlements that were incorporated into the simulation game parameters. A total of 56 simulated companies, each comprised of five MBA students, were studied. Results from the first study showed that extending low initial offers, extracting large first concessions, and making a high number of concessions were management bargaining tactics associated with obtaining a low wage rate. These findings were supported by study two. The third study found that an intrateam power mode of orientation was positively correlated with bargaining success and was negatively correlated with overall game success. The results support the use of a simulation game for teaching and research in bargaining.     

EXTERNALITIES IN PROGRAM EVALUATION: THE IMPACT OF A WOMEN'S EMPOWERMENT PROGRAM ON IMMUNIZATION

Impact evaluations of development programs usually do not explicitly take into account externalities on non‐participants. Based on a unique dataset we estimate the direct as well as the spillover effects of Mahila Samakhya, a women's empowerment program in India, on child immunization. The survey covers both participants and non‐participants in program villages, as well as respondents in control villages. We account for participation selection bias using instrumental variables. We propose a direct test for the exclusion restriction using the control villages. We find both direct effects on the immunization rates of participants’ children and significant spillovers on immunization rates of non‐participants’ children. The impact of interventions might be substantially underestimated if such external effects were not taken into account. Alternative estimation methods such as propensity score matching and a regression discontinuity approach yield comparable results.