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The Unintended Consequences of Risk Averse Managers

Idea posted: October 2017
  • CSR & Governance
  • Finance
  • Leadership & Change

Risk aversion and career concerns are pushing managers to play it safe, reducing the shareholder value of their companies — and the incentive compensation structures meant to motivate managers often have the opposite effect. 

Idea #676
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Buyers of Experiential Products and Consumer Reviews

Idea posted: September 2015
  • Marketing

Shoppers find consumer reviews to be less useful, and are less likely to seek out such reviews, for experiential purchases (events to be lived through such as vacation packages) than for material products (objects to keep such as electronics). 

Idea #546
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How Political Correctness Increases Creativity in Mixed-Sex Teams

Idea posted: April 2015
  • CSR & Governance
  • Leadership & Change
  • Learning & Behaviour

Creativity can suffer in mixed-sex teams. Men and women both experience uncertainty when asked to generate ideas as members of a mixed-sex work group: men because they may fear offending the women and women because they fear having their ideas devalued or rejected. Being PC helps men and women become more creative. 

Idea #505
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William Glackens, The Shoppers, 1907-1908, Chrysler Museum of Art, Norfolk, Virginia

How Price Expectations Drive Customer Purchasing Decisions

Idea posted: November 2014
  • Marketing

Customers have price expectations in their minds before entering a store, as well as expectations of prices in other stores. How customers update their expectations once they see the actual prices can help businesses better manage their promotions and sales for maximum effect. 

Idea #463
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How Competition for Customers Causes Unethical Behaviour

Idea posted: June 2014
  • Strategy
  • CSR & Governance
  • Operations

Do you encourage a culture of competition in your organization in order to motivate your employees? This Idea shows that doing so may also promote corruption and unethical behaviour. In the face of local competition, firms operating in the New York air-pollution testing industry were found to be more likely to behave unethically. Read on to find out the implications of this finding for your organization.

Idea #397
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How Price, Time and Functionality Affect Customers' Choices

Idea posted: March 2014
  • Learning & Behaviour
  • Marketing

New research shows that when purchases are time-sensitive — buying a camera the day before leaving for vacation, for example — consumers tend to look for convenient, easier-to-use products. But in the long term, consumers are more interested in desirable product features. According to the research, reminding consumers of a product’s price will help them focus, even in the short term, on what they truly value: functionality over convenience.

Idea #338
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Keep Mum She's Not So Dumb: Careless Talk Costs Lives', WW II poster (detail), Harold Foster, 1941

Political Correctness Helps Expression in Mixed-Sex Teams

Idea posted: May 2013
  • Leadership & Change
  • Learning & Behaviour

In recent years, speaking in a ‘politically correct’ way has been criticised by many as excessive restriction on the freedom of speech. What was initiated as a positive way to minimize offence, had been taken too far and had come to be viewed negatively. But now, research demonstrates that in organizational settings, and in mixed-sex groups in particular, being politically correct is still a very positive step that can go far to facilitate better team work.

Idea #147
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Leadership to Reconcile Team Diversity or Conflict

Idea posted: January 2013
  • CSR & Governance
  • Leadership & Change
  • Learning & Behaviour

A diverse team can achieve great things. But diversity can sometimes lead to conflict too. The effects of team diversity on team outcomes vary considerably from study to study. This Idea digs deeper, investigating the effects of ‘values diversity’ on team effectiveness – and how leaders can play a significant controlling role in the relationship between values diversity and conflict within a team. 

Idea #042
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