Basic Research Question Addressed
The author addresses questions related to managers’ use of situational information in evaluating business performance. He does this, by conducting a research experiment based on managers’ abilities as well as their performance and its effects on situational information.
Importance of the question
This question helps in understanding the best way managers can evaluate performance, and gives in-depth information on when and where situational information are useful to managers as well as outcome effects. He emphasizes the fact that when financial outcomes become unfavorable, managers tend to use outcome effects rather than situational issues.
Theoretical Under prints
According to Rose, theories such as those proposed by Reeder and Brewer as well as Skowronski and Carlston show that high ability is usually indicated by favorable outcomes while unfavorable factors are always indicative of either high or low abilities (attribution theory). Although studies demonstrate that outcome information usually determine abilities and judgments, the author believes that situational factors are also crucial in performance evaluation.
Major hypothesis
As cognitive load is increased, situational factors will have less influence on performance evaluation. This hypothesis is major because it forms the basis of experiment that was conducted with focus on influence of situational factors on managers.
Method: Design, Task, Subjects, Experimental procedures
The author uses various credible sources to back his research. These sources range from authors such as brown and Solomon, among others. The method used involves measure of cognitive load in which evaluation score is plotted against situational score and the curves showing the outcomes observed.
The method involves evaluation of eight managers’ performance by selected subjects based on financial data that is budgeted. These subjects are executive MBA graduates, and 101 in number with an average age and experience of 30 and 7.5 years respectively. This was reduced to 97, for a conclusive experiment.
They are related to allied situational and financial outcomes. Four situational factors are used with each manager briefed on them. They included no, neutral, outcome inhibiting and outcome facilitating factors. During performance evaluation, these subjects are placed in either high or low cognitive load conditions. Demographic questionnaires are then filled by the subjects based on their evaluation along with performing free recall duty for situational factors.
Dependent and independent variables
According to Rose, in concurrent task manipulation, the independent variable is situational factors, which range from none, neutral, inhibiting to, facilitating. On the other hand we have dependent variable which shows evaluation score. These variables have been utilized to illustrate relationship between situational factors and outcome effects on high and low cognitive loads, in a process known as split attention manipulation.
V and Z controls
Experiment on outcome effects indicates approval for attribution theory which states that unfavorable financial outcomes are indicative of high or low abilities. On the other hand, experiment on causes of outcome effects show that recall effect is better in favorable than unfavorable financial outcomes.
Statistical Analysis: Comparisons Made and Tests Performed
The article provides information based on conducted research by other authors as well as its investigation. This gives Rose the ability to compare evidences and ideas from other researchers like Kelly with the study conducted, to arrive at a conclusion.
Key Findings and Implications
Key findings show that situational factors rarely influence judgments of abilities and performance. Rather, favorable outcomes more often signify high ability. It is also found that evaluators usually utilize Kelley principle (discounting) whenever the outcomes are unfavorable. This affects manager’s ability to use situational factors in evaluating performance and ability.
Limitations
Limitations are encountered in this research method when there is cognitive loading. Because it encumbers memory thereby splitting attention, this has the effect of inhibiting better analysis.
Opportunities for future Research
This research was conducted to investigate the influence of situational factors on manager’s evaluation. In the process, it opens an opportunity for further research on whether situational factors should take center stage in evaluation of abilities or performance.
Conclusion
The article gives credible Information backed by dependable sources as well as evidences based on research and experiment showing that managers tend to use outcome effects rather than situational issues, especially when financial outcomes are unfavorable. Moreover, in favorable financial conditions, evidence has shown, according to this article, that situational factors do take center stage in performance evaluation. The article is well documented with clear and concise evidences relating to the use of situational information.