Maintaining Beliefs in the Face of Negative News

Bradley R. Staats; Diwas S. KC; F.  Gino

Article | Management Science | February 2018

Maintaining Beliefs in the Face of Negative News: The Moderating Role of Experience

by Bradley R. Staats, Diwas S. KC and F. Gino

Abstract

Many models in operations management involve dynamic decision making that assumes optimal updating in response to information revelation. However, behavioral theory suggests that rather than updating their beliefs, individuals may persevere in their prior beliefs. In particular, we examine how individuals’ prior experiences and the experiences of those around them alter their belief perseverance in operational decisions after the revelation of negative news. We draw on an exogenous announcement of negative news by the Food and Drug Administration and explore how it affects interventional cardiologists deciding between two types of cardiac stents. Analyzing 147,000 choices over six years, we find that individuals do respond to negative news by using the focal production tool less often. However, we find that both individuals’ own experiences and others’ experiences alter their responses. Moreover, although individual and other experience act as substitutes prior to negative news, we find that this substitution curtails significantly following the negative announcement. Finally, we find that experience leads doctors to discount negative news more rapidly over time. Two lab studies replicate our main findings and show that behavioral biases due to differences in perceptions of expertise drive the effect. Our research contributes not only to operations research, but also to the practice of health care and operations.

Keywords: Information; Announcements; Service Operations; Decision Making; Medical Specialties; Experience and Expertise; Medical Devices and Supplies Industry;

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Citation:

Staats, Bradley R., Diwas S. KC, and F. Gino. "Maintaining Beliefs in the Face of Negative News: The Moderating Role of Experience." Management Science 64, no. 2 (February 2018): 804–824.

Article | Management Science | October 2020

Task Selection and Workload: A Focus on Completing Easy Tasks Hurts Long-Term Performance

Diwas S. KC, Bradley R. Staats, Maryam Kouchaki and Francesca Gino

How individuals manage, organize, and complete their tasks is central to operations management. Recent research in operations focuses on how under conditions of increasing workload individuals can decrease their service time, up to a point, in order to complete work more quickly. As the number of tasks increases, however, workers may also manage their workload by a different process—task selection. Drawing on research on workload, individual discretion, and behavioral decision-making, we theorize and then test that under conditions of increased workload, individuals may choose to complete easier tasks in order to manage their load. We label this behavior task completion preference (TCP). Using six years of data from a hospital emergency department, we find that physicians engage in TCP, with implications for their performance. Specifically, TCP helps physicians manage variance in service times; however, while it initially appears to improve shift-level throughput volume, after adjusting for the complexity of the work completed, TCP is related to worse throughput. Moreover, we find that engaging in easier tasks, as compared to hard ones, is related to lower learning in service times. We then turn to the lab to replicate conceptually the short-term task selection effect under increased workload and show that it occurs due to both fatigue and the sense of progress individuals get from task completion. These findings provide another mechanism for the workload-speedup effect from the literature. We also discuss implications for both research and the practice of operations in building systems to help people succeed.

Keywords: healthcare; knowledge work; discretion; Workload; Employees; Health Care and Treatment; Decision Making; Performance Effectiveness; Performance Productivity;

Citation:

KC, Diwas S., Bradley R. Staats, Maryam Kouchaki, and Francesca Gino. "Task Selection and Workload: A Focus on Completing Easy Tasks Hurts Long-Term Performance." Management Science 66, no. 10 (October 2020). View Details

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Maintaining Beliefs in the Face of Negative News: The Moderating Role of Experience

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