Lecture 6 - Team Information Processing and Decision Making

Question 1

What is the common knowledge effect?

Answer 1

Disproportional influence of shared (compared to) unshared information in group settings.
- This information is mentioned and repeated more frequently.

Question 2

What are the three main aspects that increase the probability of common shared knowledge effect to occur?

Answer 2

1. Collective information knowledge (probabilistic)
2. Preference-consistent evaluation of information (confirmation bias)
3. Social costs vs. benefits - no one goes against the group (no superior/inferior level of expertise) because that makes you an outlier and breaks group harmony.

Question 3

Why would organizations delegate decisions to teams rather than to individuals?

Answer 3

• Broader knowledge base
• Shared responsibility
• Motivational benefits
• More oversight

Question 4

Why is collective information sampling problematic?

Answer 4

Individuals randomly derive information from memory.
any recalled information would be mentioned => higher likelihood of shared information to be mentioned and approved.

Question 5

What is the probabilistic explanation for the common knowledge effect?

Answer 5

Collective information sampling/knowledge

Question 6

What factors can help overcome the common knowledge effect, based on logic-collective information sampling?

Answer 6

Info - low percentage of overall and shared info

Tasks - recalling requirements and increased salience (dominance) of unshared info

Temporal factor - the absence of time pressure/length discussion (this factor can be both negative and positive depending on context).

Question 7

What is confirmation bias?

Answer 7

People seek and prefer information that corresponds to their expectations, hypotheses etc. (mindset) even if disconfirming information (different from their views) is more valuable.

Question 8

Why is shared information more likely to be mentioned?

Answer 8

Because it corresponds to preference-consistent evaluation and initial preferences.

Question 9

Common knowledge effect is the result of what?

Answer 9

The result of cognitive bias, socio-motivational influences, or confirmation bias.

Question 10

What are the two directions that explain the common knowledge effect?

Answer 10

Logic-collective information sampling and preference-consistent evaluation of information sampling

Question 11

How can confirmation bias affect interviewing?

Answer 11

More positive and favorable style of interviewing, less intimidating questions, more selling of the company and the role, and less questions overall.

Question 12

What factors can help overcome the common knowledge effect, based on preference-consistent evaluation of information sampling?

Answer 12

Type and distribution of information - divergent initial preferences

RANKING alternatives rather than choosing the best one
Identifying the correct answer, rather than judging the incorrect ones.

Question 13

Which procedures help to switch perspectives and diversify input (based on preference-consistent evaluation of info)?

Answer 13

Mental - switch of perspective and frames
Personal - being Devil’s advocate (provoking opposite opinion to ignite debate or test the strengths of opposing arguments)
Temporally - look into every possible twist and angle of a situation, and have hindsight for the future.

Question 14

Why is preference-consistent evaluation of information sampling problematic?

Answer 14

Because of the confirmation bias.
Shared information is more likely to be mentioned because it corresponds to initial preferences.

Question 15

Why is social costs vs benefits sampling of information problematic?

Answer 15

Sharing unshared information might not find enough support and credibility in a team while sharing shared information helps keep the status quo through its credibility.

Question 16

What factors can help overcome the common knowledge effect, based on social costs vs benefits sampling of information?

Answer 16

• Consensus norm RATHER than critical evaluation
• Expert roles
• High role - both shared and unshared info
• Low role - mostly shared information

Equality (+/-) - depending on context

Partial sharedness (an informed minority in a team)

Question 17

What are the two motivations that shape the way teams process information?

Answer 17

Social motivation and epistemic motivation (always together, not separate)

Question 18

How is social motivation divided?

Answer 18

Pro-self - prioritizing own goals rather than team goals

Pro-social - prioritizing team goals rather than own goals

Question 19

What does epistemic motivation mean?

Answer 19

The amount of effort the individual is ready to put to understand/research/go-in depth in the processing of certain information. (motivation divided by low/high)

Question 20

What do the different combinations of social and epistemic motivation translate to?

Answer 20

Pro-social, high epistemic motivation - asking the right questions, the team succeeds - TEAM SUCESS

Pro-social, low epistemic motivation - agreeing to team decisions but not giving any input.

Pro-self, high-epistemic motivation - advocating dominantly own interest and knowledge with an interest of the self rather than team performance.

Pro-self, low epistemic motivation - having your own interests and little interest in the team topic - SLACKING

Question 21

What types of processing are associated with low and high epistemic motivation?

Answer 21

Low epistemic motivation - heuristic processing
High epistemic motivation - deep processing

Question 22

What variables do epistemic and social motivations take?

Answer 22

Personality variables (agreeableness, need for affiliation, and cognition) and structure variables (time pressure, accountability, incentive schemes, cultural values).

Question 23

What are the intermediate factors between Informational dissemination and Integration and the Quality of group judgment and decision?

Answer 23

Decision urgency and Member input indispensability.

Question 24

What is the positive attribute of decision urgency?

Answer 24

It establishes cohesion and smooths coordination between members (prosocial).

Question 25

What is the positive attribute of member input indispensability?

Answer 25

The input of an indispensable member for high-quality decision-making.

Question 26

What does the sufficiency principle mean?

Answer 26

The more participants believe certain information is not enough for quality decision making, the more likely they are to engage in systematic processing (critical thinking) rather than heuristic thinking (engaging with easy cues to make a decision)

Question 27

What does interdependency mean?

Answer 27

People transform the objective interdependence structure into a subjective interdependence situation, subjective situation forms the basis for further action

Question 28

What are some obstacles for information dissemination?

Answer 28

Advocacy - group members argue for their own position (more likely in pro-self)
Lying and deception - inaccurate information exchange (pro-self)
Spinning preference-consistent information - people get hurt and defensive when their idea is questioned, but they enhance the attractiveness and validity of their argument, in pro-social: less likely to result in emphasizing preference
Self-censorship and mutual enhancement - can lead to bias (pro-social context), not sharing information different from consensus (self-censoring), mutual enhancement (sharing shared information might make you look more knowledgeable) , mutual enhancement => bias

Question 29

What are the two reactions connected with the sufficiency principle?

Answer 29

Seize and freeze (negative) - coming to quick conclusions and sticking to them once closure is reached, no more info procession; lowers epistemic motivation

Minority dissent (positive) - stimulates divergent thinking and innovation, reduces group polarization; raises epistemic motivation

Question 30

What can inhibit creative ideation?

Answer 30

Relevant tasks create fewer creative ideas compared to irrelevant tasks.

Question 31

What are the outcomes of time pressure regarding motivation and creativity?

Answer 31

Time pressure lowers epistemic motivation and lowers creativity.

Question 32

What are the advantages and disadvantages of prosocial groups?

Answer 32

Prosocial groups show better at reaching decisions because there is good cohesion but creativity for truly new decisions might be lowered

Question 33

What are the two main ‘‘directions’’ for error occurrence?

Answer 33

1) Information signals
2) Reputational pressures

Question 34

What are the 4 interrelated problems coming from the information signals and reputational pressure for groups to make errors?

Answer 34

1) Groups don’t correct the errors of their members, they amplify them

2) The cascade effect - informational (you don’t want to discredit other people’s info), reputational - agreeing with information due to social approval

group members follow the statements/actions of the one who spoke first

3) Their opinions become polarized based on what they hear (information signals from others reputation, gaining confidence and thus becoming extreme)

4) Focus on shared rather than unique information which limits critical thinking (hidden profile) and common knowledge effect.

Question 35

What are the determinants of accessibility?

Answer 35

Physical salience, priming and familiar social categories.

Question 36

What are natural assessments?

Answer 36

Distance, loudness, similarities, causal property. Accessibility is a natural assessment.

Question 37

What are the basic principles of framing?

Answer 37

Gain and losses domain

Additional:
Passively accepting the frame.
Framing highlights some features and masks others.

Question 38

What are the two different attachments in expected utility and prospect theory?

Answer 38

Expected utility - utility is attached
Prospect theory - value is attached

Question 39

What is the pseudo certainty effect?

Answer 39

An effect that is uncertain is measured as certain.

Question 40

What is the dead-loss effect?

Answer 40

The subjective state of the individual can be improved by framing negative outcomes as costs rather than as losses.

Question 41

What is a hedonic treadmill?

Answer 41

The tendency of people to come back to a balanced state of happiness after shortlived extreme gain or loss.