Threat-Rigidity Effects (Straw et al.)
What is "Threat-Rigidity"?
Under threat, individuals/groups/organisations narrow information processing and centralize control, which may be adaptive for familiar problems but maladaptive under radical change.
Explain the "Threat-Rigidity Paradox"
Crisis makes managers more innovative VS risk-averse and rigid.
Explain "Loss Aversion".
When people are overly cautious because they hate losses more than they like gains.
Is rigidity always a problem? Can it be acceptable?
Maladaptive = Major environmental change.
Good = No radical change.
What is the prospect theory?
When people face potential losses, they become more willing to take risks.
What was the main idea of the text?
You cannot erase these biases, but you can try catching them beforehand.
What is "Restriction of Information Processing"
Narrowing of attention, simplification of information, and ignoring alternatives.
Do threats alone contribute to rigidity/change?
The first hypothesis suggested that the link wasn't direct.
Explain the difference between system one and system two thinking.
One = Intuitive, spontaneous way of thinking, also the dominant process.
Two = Deliberate, requires efforts, and a lot slower.
Explain "Constriction of Control" and why it happens.
Power gets concentrated in top of hierarchy as they think they "know best".
Name the 3 dimensions in a crisis.
Critical threat, time pressure, predictability.
Name and explain 2 biases that can be used as challenge questions.
1. Saliency Bias: It worked last time.
2. Confirmation Bias: Only take supporting evidence into account.
3. Availability Bias: Only basing yourself on available info.
4. Anchoring Bias: Number that proves you right.
5. Halo Effect: Good in one area, good in everything.
6. Sunk Cost Fallacy: Stick with bad projects even if ressource is wasted.
What is the "System Approach"?
When threatened, a system (individual) "saves energy" by cutting down on information/ways to process it, which limits the response range.
- Depends.
Rigidity = Low predictability, high time pressure.
Change = High predictability, low time pressure.
What are the 3 biases that decision makers should ask themselves about?
1. Self-Interested Bias: Recommendations that benefits themselves
2. Affect Heuristic: Only seeing positive.
3. Groupthink:Avoiding conflict.