Managing Cost Salience and Procrastination in Projects: Compensation and Team Composition

The rising trend of projects with high‐skilled and autonomous contributors increasingly exposes managers to the risk of idiosyncratic individual behaviors. In this article, we examine the effects of an important behavioral factor, an individual's cost salience. Cost salience leads individuals to perceive the cost of immediate effort to be larger than the cost of future effort. This leads to procrastination in early stages and back‐loaded effort over the course of the project. We model the problem confronting the manager of a project whose quality is adversely impacted by such distortion of individual effort over time. Complementary to prior works focused on the planning and scheduling tasks of project management in the absence of human behavior, we find that managers should reward contributions made in earlier stages of a project. Our analysis also yields interesting insights on the project team performance: teams with diverse levels of cost salience will perform better than homogeneous teams. We also address another important facet of team composition, namely, the choice between stable and fluid teams, and find that the practice of creating fluid teams might have previously unrecognized benefits when behavioral aspects of projects are considered. We conclude with insights and organizational implications for project managers.     

New Product Development Decision‐Making Effectiveness: Comparing Individuals,Face‐To‐Face Teams,and Virtual Teams*

A total of 411 subjects participated in two decision‐making experiments in order to examine the effectiveness of new product development project continuation decisions. Using escalation of commitment theory, in Study 1, individual versus face‐to‐face team decision‐making effectiveness was compared. Study 2, an extension of Study 1, compared the new product development decision‐making effectiveness of individuals, face‐to‐face teams, and virtual teams. A virtual team is a geographically and temporally dispersed and electronically communicating work group. In Study 2, the virtual teams communicated asynchronously via groupware technology. Our findings suggest that teams make more effective decisions than individuals, and virtual teams make the most effective decisions.     

Risk Framework for an Organizational System With Major Components

Many large organizations accomplish their various functions through interactions across their major components. Components refers to functional entities within a large complex organization, such as business sectors, academic departments, or regional divisions. The dependency between the various components can cause risk to propagate through their overall system. This article presents a risk assessment framework that integrates risk across a diverse set of components to the overall organization functions. This project addresses three major challenges: aggregating risk, estimating component interdependencies including cycles of dependencies, and propagating risk across components. The framework aggregates risk assessments through a value function for severity that is evaluated at the expected outcome of accomplishing planned goals in terms of performance, schedule, and resources. The value function, which represents risk tolerance, scales between defined points corresponding to failure and success. Different risk assessment may be aggregated together. This article presents a novel approach to establishing relationships between the various components. This article develops and compares three network risk propagation models that characterize the overall organizational risk. The U.S. Air Force has applied this risk framework to evaluate success in hypothetical future wars. The analysts employing this risk framework have informed billions of dollars of strategic investment decisions.     

The Role of Insurance in Managing Natural Hazard Risks: Private Versus Social Decisions

We explore the interaction between individual and collective decisions concerning natural hazards. Collective actions such as building a dam change the risks faced by private individuals. We show that, with proper incentives, individual reactions to such changes in risk can serve to enhance risk management by utilizing individual's decisions to take account of their specialized knowledge about their risk preferences and losses. We demonstrate that the efficient response to construction of a dam may be private actions that lead to a fully anticipated increase in flood damage. In such instances, zoning that focuses on reducing flood damage may lead to less efficient use of the flood plain. More generally, even where incentives for underinvestment in market insurance and self-insurance are present, constraining use of the flood plain by zoning will not generally lead to efficient outcomes. The model identifying conditions under which informed individuals have the incentives to make efficient decisions is powerful and directs attention toward more fruitful approaches.     

Dynamic Capability Building in Service Value Networks for Achieving Service Innovation

Service organizations increasingly create new service offerings that are the result of collaborative arrangements operating on a value network level. This leads to the notion of “elevated service offerings,” our definition of service innovation, implying new or enhanced service offerings that can only be eventuated as a result of partnering, and one that could not be delivered on individual organizational merits. Using empirical data from a large telecommunications company, we demonstrate through structural equation modeling (SEM) that higher‐order dynamic capabilities in services are generated as a result of collaboration between stakeholders. Furthermore, it is through collaboration and education of the stakeholders that additional higher‐order capabilities emerge (customer engagement [CuE], collaborative agility [CA], entrepreneurial alertness [EA], and collaborative innovative capacity), all of which influence the service innovation outcome. Our study also reveals empirical evidence for an ongoing process of continuous dynamic capability building in accordance with the changing dynamics of business. Managers of service organizations should recognize the potential embedded in these higher‐order skill sets, starting from collaboration, learning, and management of creative ideas for both strategic and operational benefits. Moreover, the capabilities of CA, EA, and CuE are even more important in managing the flexibility, timely delivery, and reliability of service offerings. Managers should take measures to inculcate, promote, and manage these dynamic capability skill sets to foster innovation in services.     

项目团队成员怠工行为修正的理论模型

项目团队并不总能实现预期目标,项目团队中存在的某些问题属于怠工行为的表现,项目团队中怠工行为修正亟待研究。采用定性研究方法,按照行为修正分析模式,以行为修正理论、态度改变理论、态度与行为理论、认知平衡理论等为理论基础,经理论与文献研究提出:项目团队成员怠工行为与项目团队绩效的关系、工作态度在工作情境认知与怠工行为之间中介作用关系、团队文化认知在工作情境认知与工作态度之间调节作用关系,从而构建起项目团队成员怠工行为修正的理论模型。     

创业者个体学习、组织学习如何交互影响企业创新行为？——基于整合视角的纵向单案例研究

社会经济的不断发展促使分工愈发精细,对个人与组织间的技术隔离也愈加明显,亟待创业者个体及组织开展跨层次的交互学习以构建组织创新优势。基于此,本文援引学习理论与意义构建视角,从"行动"与"解释"出发,采用纵向单案例研究方法,基于"个体-组织"整合性分析框架,探究了不同创业阶段内跨层次行动主体间的学习互动模型,揭示了其对企业创新的影响路径。研究发现:创业者个体学习与组织学习间的互动,表现为渐变初期个体利用式学习经"自上而下"团队互动主导形成组织单环式行动;而在调整转变期,个体学习与组织学习发生交互影响,包含个体探索式学习经"横向协同式"团队互动主导形成组织双环式行动,以及组织双环式行动转换为单环式之后,经由持续反思与质询,刺激形成创业者个体利用式学习;最后,在发展突变期,个体利用式学习经"制度化统筹式"团队交互合作促成组织单环式行动,同时个体探索式学习经"跨越层次自主式"团队交互激活组织双环式学习。此外,在不同创业阶段,3种互动逻辑与意义构建框架下的创新决定机制呈现出以个体创意激发与扩散、信息整合与匹配以及平衡矛盾与冲突3种不同的影响路径展开的态势。本研究为创业学习理论和创业实践过程贡献了新的启示。     

Integration of project management,human resource development,and business teams: a partnership,planning model for organizational training and development initiatives

The changing business environment has challenged organizations to explore unique ways to ensure the success of online training initiatives. Thus, project teams, including training managers, should not only support organizational training and development initiatives; but, they also need to use project-focused, planning models for implementation. This paper proposes a model that is an extension of the model for business and training partnership developed by Price. The proposed model includes the integration of project management, human resource development (HRD), and business teams in order to enhance the success of training implementations through a sequential, planned framework. The model includes phases, best practices, and supporting tools to assist in managing and administering training and development projects. The approach developed in this research includes an account of the activities associated with initiating, planning, executing, monitoring and controlling, and closing processes for an online training initiative conducted in an oil and gas organization. This research also discusses implications of the proposed model for HRD professionals, because they are typically the champion of training and development initiatives within organizations today.     

Economic Evaluation of Scale Dependent Technology Investments

We study the effect of financial risk on the economic evaluation of a project with capacity decisions. Capacity decisions have an important effect on the project̂s value through the up‐front investment, the associated operating cost, and constraints on output. However, increased scale also affects the financial risk of the project through its effect on the operating leverage of the investment. Although it has long been recognized in the finance literature that operating leverage affects project risk, this result has not been incorporated in the operations management literature when evaluating projects. We study the decision problem of a firm that must choose project scale. Future cash flow uncertainty is introduced by uncertain future market prices. The firm's capacity decision affects the firm's potential sales, its expected price for output, and its costs. We study the firm's profit maximizing scale decision using the CAPM model for risk adjustment. Our results include that project risk, as measured by the required rate of return, is related to the inverse of the expected profit per unit sold. We also show that project risk is related to the scale choice. In contrast, in traditional discounted cash flow analysis (DCF), a fixed prescribed rate is used to evaluate the project and choose its scale. When a fixed rate is used with DCF, a manager will ignore the effect of scale on risk and choose suboptimal capacity that reduces project value. S/he will also misestimate project value. Use of DCF for choosing scale is studied for two special cases. It is shown that if the manager is directed to use a prescribed discount rate that induces the optimal scale decision, then the manager will greatly undervalue the project. In contrast, if the discount rate is set to the risk of the optimally‐scaled project, the manager will undersize the project by a small amount, and slightly undervalue the project with the economic impact of the error being small. These results underline the importance of understanding the source of financial risk in projects where risk is endogenous to the project design.     

The SAM Framework: Modeling the Effects of Management Factors on Human Behavior in Risk Analysis

Complex engineered systems, such as nuclear reactors and chemical plants, have the potential for catastrophic failure with disastrous consequences. In recent years, human and management factors have been recognized as frequent root causes of major failures in such systems. However, classical probabilistic risk analysis (PRA) techniques do not account for the underlying causes of these errors because they focus on the physical system and do not explicitly address the link between components' performance and organizational factors. This paper describes a general approach for addressing the human and management causes of system failure, called the SAM (System-Action-Management) framework. Beginning with a quantitative risk model of the physical system, SAM expands the scope of analysis to incorporate first the decisions and actions of individuals that affect the physical system. SAM then links management factors (incentives, training, policies and procedures, selection criteria, etc.) to those decisions and actions. The focus of this paper is on four quantitative models of action that describe this last relationship. These models address the formation of intentions for action and their execution as a function of the organizational environment. Intention formation is described by three alternative models: a rational model, a bounded rationality model, and a rule-based model. The execution of intentions is then modeled separately. These four models are designed to assess the probabilities of individual actions from the perspective of management, thus reflecting the uncertainties inherent to human behavior. The SAM framework is illustrated for a hypothetical case of hazardous materials transportation. This framework can be used as a tool to increase the safety and reliability of complex technical systems by modifying the organization, rather than, or in addition to, re-designing the physical system.     

3D Collaborative Virtual Environments: Exploring the Link between Collaborative Behaviors and Team Performance

Increasingly, organizational work is conducted by virtual teams interacting across boundaries of space and time. Despite advances in collaborative technologies, members of virtual teams often find the experience challenging and a far cry from physically “being there.” In response, immersive and interactive three‐dimensional collaborative virtual environments (3D CVEs) are emerging and purported to address the shortcoming of earlier technologies. How teams will interact and ultimately perform in a 3D environment remains to be seen. In this study, drawing from group and communication theories, we explore the link between collaborative behaviors and the performance of virtual teams working in a 3D CVE. We report on the results of a controlled experiment consisting of 39 virtual teams of 91 individuals. Through cluster analysis, we identify distinct patterns of collaborative behaviors associated with differential levels of performance. Our findings provide a deeper understanding of how the unique spatial and visual characteristics of 3D CVEs may transform virtual work.     

Incentives in a Stage‐Gate Process

Many large organizations use a stage‐gate process to manage new product development projects. In a typical stage‐gate process project managers learn about potential ideas from research and exert effort in development while senior executives make intervening go/no‐go decisions. This decentralized decision making results in an agency problem because the idea quality in early stages is unknown to the executive and the project manager must exert unobservable development effort in later stages. In light of these challenges, how should the firm structure incentives to ensure that project managers reveal relevant information and invest the appropriate effort to create value? In this study, we develop a model of adverse selection in research and moral hazard in development with a go/no‐go decision at the intervening gate. Our results show that the principal's uncertainty regarding early‐stage idea quality—a term we refer to as idea risk—alters the effect of late‐stage development risk. The presence of idea risk can alter the incentives offered to the agent and may lead the principal to reject projects that otherwise seem favorable in terms of positive net present value. A simulation of early‐stage ideas, found through search on a complex landscape, shows that the firm can mitigate the negative effects of idea risk by encouraging breadth of search and high tolerance for failure.     

Implementing the right project structure to achieve coopetitive innovation projects

This research focuses on the project structure used by coopetitors to achieve common innovation projects. Scholars have recently identified an original but complex project structure that they call the Coopetitive Project Team (CPT). However, other project structures can also be implemented by coopetitors to achieve innovation. Therefore, we address the following question: for which types of innovation projects is CPT appropriate? We argue that coopetitors need to use CPT for high-risk and high-cost projects when the aim is to develop radical innovation. CPT allows coopetitors not only to develop innovation capabilities through close resource and knowledge sharing but also to manage the risk of opportunism. Conversely, coopetitors should use another project structure, Separated Project Teams (SPTs), for low-cost and low-risk projects when the aim is to develop incremental innovation. The SPT design allows coopetitors both to achieve the goal of the project and to minimize the risk of opportunism. To confirm our assumptions, we studied the project portfolios of Airbus and Thales, two firms in the space satellite industry. Our findings confirm that coopetitors should implement CPTs to handle innovation projects that are costly, risky and highly innovative. CPTs permit the sharing of knowledge and the management of high opportunism risk, both of which are necessary to achieve radical innovation. Conversely, coopetitors rely on SPTs for low-cost projects that require a low degree of knowledge sharing, thus avoiding the risk of opportunism in achieving their incremental innovation objectives.     

Adoption of Individual Flood Damage Mitigation Measures in New York City: An Extension of Protection Motivation Theory

This study offers insights into factors of influence on the implementation of flood damage mitigation measures by more than 1,000 homeowners who live in flood‐prone areas in New York City. Our theoretical basis for explaining flood preparedness decisions is protection motivation theory, which we extend using a variety of other variables that can have an important influence on individual decision making under risk, such as risk attitudes, time preferences, social norms, trust, and local flood risk management policies. Our results in relation to our main hypothesis are as follows. Individuals who live in high flood risk zones take more flood‐proofing measures in their home than individuals in low‐risk zones, which suggests the former group has a high threat appraisal. With regard to coping appraisal variables, we find that a high response efficacy and a high self‐efficacy play an important role in taking flood damage mitigation measures, while perceived response cost does not. In addition, a variety of behavioral characteristics influence individual decisions to flood‐proof homes, such as risk attitudes, time preferences, and private values of being well prepared for flooding. Investments in elevating one's home are mainly influenced by building code regulations and are negatively related with expectations of receiving federal disaster relief. We discuss a variety of policy recommendations to improve individual flood preparedness decisions, including incentives for risk reduction through flood insurance, and communication campaigns focused on coping appraisals and informing people about flood risk they face over long time horizons.     

PFI项目特点对项目风险事件和脆弱性的影响

不同特点的项目需要不同的管理手段与之相匹配,这样才能有效的提高项目成功率.PFI是一种公私合营的项目运营方式.它的基本目标在于充分利用私有部门的资源来为公共部门项目提供优良的服务.在目前的文献中,还缺少对于PFI项目特点与项目成功(失败)之间关系的研究.对于PFI项目的特点在项目风险过程中所起的作用不是很清楚.通过分析5个英国PFI项目,本文识别出PFI项目的一些特点:新奇性、长期性、高复杂性、紧联结性、高度战略性、多目标性和严格的法律法规限制.本文提出PFI项目的这些特点在一定程度上与项目组织活动和管理活动相互作用,一方面提高了项目风险事件发生的概率,另一方面能够增加项目脆弱性.这些机制说明拥有这些特点的PFI项目需求很高的项目管理能力.     

How Subgroup Interests and Reputations Moderate the Effect of Organizational Identification on Cooperation

Two experiments tested the effects of organizational identification on individual decisions to cooperate. These decisions occurred in the context of a nested social dilemma in which individuals, subgroups, and the larger collective each held distinct and incompatible interests. In Study 1, when the two subgroups in the dilemma were from different real organizations, higher organizational identification caused lower cooperation with the collective (and higher cooperation with the subgroup) when the opposing organization had a purportedly individualistic culture and reputation. The results of Study 2 supported this interpretation by showing that organizational identification had a negative effect on collective cooperation, and a corresponding positive effect on subgroup cooperation, when decision makers perceived the opposing department to have an individualistic reputation. I discuss the implications of these results for organizations that try to elicit cooperation by fostering members’ organizational identification.     

A framework for understanding commitment in the R&D organization

The complex and long-range nature of technological innovation makes commitment particularly important to the R&D organization. Using findings from previous and current research, this paper develops a conceptual framework for understanding commitment in the technology-based organization that may be more precise and meaningful than the traditional, global conceptions. Three general conclusions emerge. First, organizational commitment has positive benefits not only for the organization but also for the individual. Second, given the popularity of the project form of organization in R&D and the deep commitments individuals sometimes make to those projects, some allowance should be made for multi-commitments. Third, one of the most important and least investigated antecedents of organizational commitment is the verbal behavior of the project manager. Some implications of this perspective for future research are presented.     

TEAM INCENTIVES: EVIDENCE FROM A FIRM LEVEL EXPERIMENT

Many organizations rely on teamwork, and yet field evidence on the impacts of team‐based incentives remains scarce. Compared to individual incentives, team incentives can affect productivity by changing both workers’ effort and team composition. We present evidence from a field experiment designed to evaluate the impact of rank incentives and tournaments on the productivity and composition of teams. Strengthening incentives, either through rankings or tournaments, makes workers more likely to form teams with others of similar ability instead of with their friends. Introducing rank incentives however reduces average productivity by 14%, whereas introducing a tournament increases it by 24%. Both effects are heterogeneous: rank incentives only reduce the productivity of teams at the bottom of the productivity distribution, and monetary prize tournaments only increase the productivity of teams at the top. We interpret these results through a theoretical framework that makes precise when the provision of team‐based incentives crowds out the productivity‐enhancing effect of social connections under team production.     

Business as unusual: Coaching in Echtzeit

Business as unusual: Coaching in real time Using the concrete example of a newly founded company, the authors demonstrate how executives and employees can keep themselves, their teams and organizational unity effective and capable of action in an increasingly dynamic, complex and changing world. These managers do not ?muddle through“, they seek functioning action-coalitions where they can act as individuals in interplay with others for the good of the commonly defined whole. Increasing the effectiveness of individual managers, their units and entire businesses, decisively depends on the promotion of trust co-operation, the development of common goals and reference frameworks, and potent jointly produced diagnoses. In successful cases this leads to coherence and sense emerging for individuals, their organizational units, overlapping working teams and, in the best case, for the whole business. The authors describe their supporting function in this process and call it real time-coaching.     

A Collaborative Model for Organizational Transformation

The purpose of this study was to develop a collaborative learning and communication model for higher education. On a university campus there are various psycho-social and organizational barriers to collaboration inside and outside of the classrooms. Scholars have stated that teachers rarely talk with each other about their teaching, there is little multi-disciplinary research and studies have shown that there is little or no collaboration in meetings and forums outside of university classrooms. So, what are the barriers to collaborative communication and learning and how can these barriers be removed through collaborative strategies? These are the questions that this study explored. Through the understanding of the psycho-social and organizational barriers to collaboration, strategies began to unfold and a new model for collaborative learning and communication was developed. This model reflects a high synergy, totally integrated social and cognitive system for individual and organizational transformation.