Diversity Management: aus der Beratungspraxis geplaudert

The article describes two consulting cases out of the context of Diversity Management in Germany. It is shown that differences between persons are still interpreted as negative tensions, which call for quick dismissal. Taking differences as a chance instead of a threat and giving thereby a company new positive impulses remains a topic for the future.     

The Centenarian Question: Old-Age Mortality in the Soviet Union, 1897 to 1970

There is a long history of claims of extraordinary longevity among the populations of the Soviet Union, and the Russian Empire before it, especially in the Caucasus region. Exceptionally high proportions of centenarians have been reported in the censuses, and much publicity has accompanied the announcements of ‘super-centenarians’ living well beyond 150 years. The major question regarding this phenomenon of supposed extraordinary longevity is whether the claims are, indeed, true or, rather, the result of age exaggeration. This paper examines the available Russian and Soviet census and mortality data from 1897 to 1970 in order to assess Soviet claims of extraordinary numbers of centenarians. A detailed analysis of age overstatement in the census data and death registration statistics shows that the long history of longevity claims goes hand in hand with a long history of age overstatement. The extraordinary longevity observed in the Soviet Union is in all likelihood the result of that age overstatement.     

Construal level theory and escalation of commitment

Escalation of commitment causes people to continue a failing course of action. We study the role of construal level in such escalation of commitment. Consistent with the widely held view of construal level as a primed effect, we employed a commonly used prime for manipulating this construct in a laboratory experiment. Our findings revealed that the prime failed to produce statistically significant differences in construal level, which was measured using the Behavior Identification Form (BIF). Furthermore, there was no effect of the prime on escalation of commitment, or on constructs that have previously been linked to construal level such as the perceived importance of feasibility considerations relative to desirability considerations, and the number of pros and cons that subjects can think of.

Interestingly, however, subjects’ actual construal level scores on the BIF were found to significantly affect escalation. Specifically, our findings show that people with a low construal level are less willing to continue a failing project. This relation is mediated by the perceived importance of the feasibility of the project relative to its desirability. For people with a low construal level, the perceived importance of feasibility relative to desirability is higher, which in turn makes escalation of commitment less likely.

Our findings are consistent with prior research suggesting that priming construal level may not always be effective. Thus, while construal level has typically been regarded as a state-like variable that can be primed, in this study, we show that construal level may also be considered as a trait.

     

The Bounded Rationality Bias in Managerial Valuation of Real Options: Theory and Evidence from IT Projects*

Although real options theory normatively suggests that managers should associate real options with project value, little field research has been conducted to test whether they suffer from systematic biases in doing so. We draw on the notion of bounded rationality in managerial decision making to explore this understudied phenomenon. Using data collected from managers in 88 firms, we show that managers exhibit what we label the bounded rationality bias in their assessments: They associate real options with value only when a project's easily quantifiable benefits are low, but fail to do so when they are high. The study also contributes the first set of empirical measures for all six types of real options. The study contributes to managerial practice by identifying the conditions under which managers must be vigilant about inadvertently neglecting real options and by providing a simple approach for assessing real options in technology development projects.     

Toward a Theory of Whistleblowing Intentions: A Benefit‐to‐Cost Differential Perspective*

In order to rescue information technology (IT) projects when they go awry, it is critical to understand the factors that affect bad news reporting. Whistleblowing theory holds promise in this regard and a number of salient factors that may influence whistleblowing intentions have been identified. However, an integrative theory that explains how they influence whistleblowing intentions has been conspicuously absent. In this research, we introduce and test a middle‐range theory of whistleblowing that can explain how and why a variety of factors may influence an individual's whistleblowing intentions. Drawing on the social information processing perspective, we propose that individuals holistically weigh the perceived “benefit‐to‐cost differential” and that this mediates the relationship between whistleblowing factors and whistleblowing intentions. Tests using data collected from 159 experienced IT project managers largely support our theoretical perspective, in which the central explanatory variable (benefit‐to‐cost differential) significantly mediates a majority of the proposed relationships. Implications of these findings for research and practice are discussed.     

Netzwerk Management – im virtuellen globalen Raum effizient sein

The results of the author’s research on virtual international teams are presented and applied to organizational networks. Based on some typical challenges of working in virtual work relationships, success factors for efficient management and leadership as well as perspectives for counselling in virtual teams and organizational networks are developed.     

How Software Project Risk Affects Project Performance: An Investigation of the Dimensions of Risk and an Exploratory Model*

To reduce the high failure rate of software projects, managers need better tools to assess and manage software project risk. In order to create such tools, however, information systems researchers must first develop a better understanding of the dimensions of software project risk and how they can affect project performance. Progress in this area has been hindered by: (1) a lack of validated instruments for measuring software project risk that tap into the dimensions of risk that are seen as important by software project managers, and (2) a lack of theory to explain the linkages between various dimensions of software project risk and project performance. In this study, six dimensions of software project risk were identified and reliable and valid measures were developed for each. Guided by sociotechnical systems theory, an exploratory model was developed and tested. The results show that social subsystem risk influences technical subsystem risk, which, in turn, influences the level of project management risk, and ultimately, project performance. The implications of these findings for research and practice are discussed.     

Information Systems Project Continuation in Escalation Situations: A Real Options Model

Software project escalation has been shown to be a widespread phenomenon. With few exceptions, prior research has portrayed escalation as an irrational decision‐making process whereby additional resources are plowed into a failing project. In this article, we examine the possibility that in some cases managers escalate their commitment not because they are acting irrationally, but rather as a rational response to real options that may be embedded in a project. A project embeds real options when managers have the opportunity but not the obligation to adjust the future direction of the project in response to external or internal events. Examples include deferring the project, switching the project to serve a different purpose, changing the scale of the project, implementing it in incremental stages, abandoning the project, or using the project as a platform for future growth opportunities. Although real options can represent a substantial portion of a project's value, they rarely enter into a project's formal justification process in the traditional quantitative discounted cash‐flow‐based project valuation techniques. Using experimental data collected from managers in 123 firms, we demonstrate that managers recognize and value the presence of real options. We also assess the relative importance that managers ascribe to each type of real option, showing that growth options are more highly valued than operational options. Finally, we demonstrate that the influence of the options on project continuation decisions is largely mediated by the perceived value that they add. Implications for both theory and practice are discussed.     

The centenarian question and old-age mortality in the Soviet Union, 1959–1970

Are claims of extraordinarily low mortality levels in the USSR justifiable? Applying a recently developed methodology appropriate for nonstable populations to 1959 and 1970 census data from the Soviet Union, we find that mortality is generally understated for the country as a whole and for various regions and republics. This is particularly so for the republics composing the Central Asian region and the Caucasus. Age overstatement appears to be extremely pronounced in the oldest segments of the population. Using the new methodology, we can derive the age distribution that is uniquely implied by a given life table and a set of age-specific rates of growth obtained from two censuses. When we use the official Soviet life tables in this procedure, we find that the reported number of centenarians is at least 28.9 percent overstated for males and 7.5 percent for females. If one were to posit that Soviet mortality during 1959 to 1970 was, in fact, no better than the Swedish mortality experience during roughly the same time period, then the true number of centenarians could be no more than 2 percent of that reported.