5 Psychology of Microeconomic Processes II

Question 1

Communication Psychology

What is the The Shannon-Weaver Model of Communication used for in business context?

Answer 1

The Shannon-Weaver model can be used to explain and predict communication outcomes in business settings.
A meeting presentation, for example - the signal-to-noise ratio should be high (i.e., a clear signal with little background noise) to increase the chances that the destination receives the signal.

Question 2

Communication Psychology

What does the Schramm’s Model of Communication emphasize?

Answer 2

Schramm’s communication model places more emphasis on the reciprocal nature of communication. According to Schramm, communication is a constant exchange of information with no explicit start or end. That is, during communication, information flows back and forth between two sources. The response to a message is called feedback.
Schramm does not make a strict distinction between sender and receiver, as each person takes both roles when communication is a loop.

Question 3

Communication Psychology

What is the Elaboration Likelihood Model (ELM)?

Answer 3

It focuses on how communication is able to change attitudes (i.e., the way one thinks about a certain subject). Generally, attitude changes can happen in two ways: by deliberate processing of information on a central, more cognitive route, or by an automatic processing of information on a peripheral route.

Question 4

Communication Psychology

What are the The Five Axioms of Communication?

Answer 4

The five axioms of communication by Watzlawick, while not formal models, are foundational assumptions about human communication. These axioms include:

1. One cannot not communicate: Even refusal to communicate sends a message, as all behavior is interpreted as meaningful.
2. Content and relationship: Communication always conveys content, but it also reflects and shapes the relationship between communicators.
3. Punctuated sequence: Communication is a continuous exchange where each action is both a response and a trigger, making cause-and-effect hard to pinpoint.
4. Digital and analog: Communication includes both explicit (digital) verbal messages and implicit (analog) non-verbal cues like body language.
5. Symmetrical and complementary: Interactions can either minimize differences (symmetrical) or highlight complementary roles.

These axioms are intuitive and useful but lack strong empirical support. For example, distinguishing between symmetrical and complementary communication can be difficult, and randomness in behavior challenges the idea that all actions convey meaningful information.

Question 5

Group

What is the genesis of a group?

Answer 5

The Genesis of Groups describes the stages that groups typically go through, as proposed by Tuckman (1965). These phases are:

1. Forming: The initial stage where group members get to know each other and try to establish roles.
2. Storming: A phase where conflicts often arise due to unclear roles or competition, causing discomfort but helping to establish group norms.
3. Norming: After resolving differences, the group agrees on behaviors and norms for working together effectively.
4. Performing: The group reaches a stage where it can function efficiently and focus on its objectives.

Question 6

Groups

What are some advantages and disadvantages of groups?

Answer 6

Advantages of Teamwork:
1. Social facilitation: Performance increases when tasks are performed in the presence of others, especially for simple tasks (Triplett, 1898).
2. Social compensation: Team members may work harder to compensate for others’ weaker performance if they believe their contribution matters.
3. Social laboring: Members who identify strongly with their group will enhance their performance to improve their group position (Worchel et al., 1998).

Disadvantages of Teamwork:
1. Groupthink: High group cohesion can lead to poor decision-making, as the group may become detached from reality, as seen in the Bay of Pigs invasion.
2. Brainstorming pitfalls: While group brainstorming can generate ideas, it may hinder creativity if done sequentially, as listening to others can interfere with one’s own idea generation. Simultaneous communication, such as through electronic media, can improve this process (Valacich et al., 1994).
3. Social loafing: Unconscious reduction of effort occurs when individual contributions in a group are not easily visible.
4. Free-riding: Unlike social loafing, this is a deliberate reduction of effort, often seen in larger groups.

Question 7

Conflicts

What type of conflicts do we recognize in business context?

Answer 7

Task conflicts: These conflicts emerge due to disagreements with task related information, i.e., the goal or requirements of the task. An example for a task conflict is a disagreement of how to approach a given problem.

Process conflicts: Process conflicts are disagreements regarding the organization of work. For example, such a conflict may arise when seeking to determine who is responsible for addressing a customer complain.

Relationship conflicts: These conflicts arise from personal relationships. For example, one employee might find another employee’s manner to be too forward.

Question 8

Conflict

What type of conflict behaviour do we recognize?

Answer 8

**1. Avoidance: **The conflict is avoided and no solution is sought. It is often hoped that the conflict will pass by itself.
2. Adaptation/Giving in: The conflict is solved by giving to the other party.
**3. Compromising: **Here, people try to find the middle ground between partners.
4. Problem solving: People search for new solutions which benefit all parties.
5. Fighting: Punishments, misinformation, etc., are used to achieve to one’s own goals.

We categorize these behaviours on a scale of assertivness and cooperativeness.

Question 9

Leadership

Explain th 4 most common types of leadership.

Answer 9

1. Great Man Theory (Carlyle, 1841)
   - This early theory assumes that leaders are born with innate leadership qualities. It often cited historical male figures like Caesar and Napoleon. Due to its gender bias and outdated assumptions, it is no longer practical.
2. Trait Theories
   - Trait theories focus on identifying personality traits that predict leadership success (Arvey et al., 2007). Research shows modest correlations between traits like extraversion, openness, and intelligence with leadership success. However, the overall impact of personality traits on leadership is still debated.
3. Transformational Leadership
   - This theory emphasizes motivating employees through vision, intellectual stimulation, individualized support, and being a role model (Bono & Judge, 2004). Transformational leaders inspire intrinsic motivation and foster creativity, personal growth, and a positive work environment.
4. Transactional Leadership
   - Transactional leadership relies on rewards and punishments to drive behavior. Leaders offer contingent rewards for performance and manage by setting standards and correcting deviations (Bono & Judge, 2004). This approach is more likely to increase extrinsic motivation.