The Handbook of Behavioral Operations Management: Social and Psychological Dynamics in Production and Service Settings

441 Pages·2015·10.234 MB·English

by  Elliot Bendoly, Wout van Wezel, Daniel G. Bachrach

The Handbook
of Behavioral Operations
Management

The Handbook of Behavioral
Operations Management
Social and Psychological Dynamics
in Production and Service Settings
EDITED BY ELLIOT BENDOLY
WOUT VAN WEZEL
AND
DANIEL G. BACHRACH
1
1
Oxford University Press is a department of the University of Oxford.
It furthers the University’s objective of excellence in research, scholarship,
and education by publishing worldwide.
Oxford New York
Auckland Cape Town Dar es Salaam Hong Kong Karachi
Kuala Lumpur Madrid Melbourne Mexico City Nairobi
New Delhi Shanghai Taipei Toronto
With offices in
Argentina Austria Brazil Chile Czech Republic France Greece
Guatemala Hungary Italy Japan Poland Portugal Singapore
South Korea Switzerland Thailand Turkey Ukraine Vietnam
Oxford is a registered trade mark of Oxford University Press
in the UK and certain other countries.
Published in the United States of America by
Oxford University Press
198 Madison Avenue, New York, NY 10016
© Oxford University Press 2015
All rights reserved. No part of this publication may be reproduced,
stored in a retrieval system, or transmitted, in any form or by any means,
without the prior permission in writing of Oxford University Press,
or as expressly permitted by law, by license, or under terms agreed with the
appropriate reproduction rights organization. Inquiries concerning reproduction
outside the scope of the above should be sent to the Rights Department,
Oxford University Press, at the address above.
You must not circulate this work in any other form
and you must impose this same condition on any acquirer.
Library of Congress Cataloging-in-Publication Data
The handbook of behavioral operations management : social and psychological dynamics
in production and service settings / edited by Elliot Bendoly, Wout van Wezel,
and Daniel G. Bachrach.
p. cm.
Includes bibliographical references and index.
ISBN 978–0–19–935721–5 (alk. paper) — ISBN 978–0–19–935722–2 (alk. paper)
1. Production management. 2. Management science—Psychological aspects. I. Bendoly, Elliot.
II. Wezel, Wout van. III. Bachrach, Daniel G.
TS155.H28133 2015
658.5—dc23
2014046429
9 8 7 6 5 4 3 2 1
Printed in the United States of America on acid-free paper
CONTENTS
Contributors vii
Introduction ix
Elliot Bendoly
PART ONE Background and Theoretical Considerations
1. The Study of Behavioral Operations 3
Stephanie Eckerd and Elliot Bendoly
2. The Virtuous Cycles of Experimental Learning 24
Elliot Bendoly
PART TWO Lessons in Production and Service Contexts
3. Synch and Swim: Managing and Mismanaging Process Constraints
and Variability 33
Elliot Bendoly
4. Process and Perception: Kristen’s Cookie Company from a Behavioral Point
of View 44
Steve V. Walton and Michael Alan Sacks
5. Outflanking Undecided, Ever-Changing Puzzles: The Role of Human
Behavior in Scheduling 56
Wout van Wezel, Kenneth N. McKay, and Toni Wäfler
6. Hitting the Target: Process Control, Experimentation, and Improvement in a
Catapult Competition 97
George Easton
7. The Wait or Buy Game: How to Game the System That’s Designed to Game
You Back 120
Anton Ovchinnikov
8. Seeing the Forest (and Your Tree): Envisioning Motivation and Performance
in Work Design 140
Karen Eboch
vi Contents
9. Satisfaction Architect: Service Design and Its Behavioral Implications 154
Louis St. Peter, Walter L. Wallace, and Yusen Xia
10. Sharing the Load: Group Behavior and Insights into Simulating Real-World
Dynamics 176
Diego Crespo Pereira and David del Rio Vilas
PART THREE Lessons in Supply Chains and Integrative/Enabling
Technology
11. Booms, Busts, and Beer: Understanding the Dynamics of Supply Chains 203
John Sterman
12. Kicking the “Mean” Habit: Joint Prepositioning in Debiasing Pull-to-Center
Effects 238
Jaime A. Casteneda and Paul Gonçalves
13. Sharing the Risk: Understanding Risk-Sharing Contracts from the Supplier’s
Perspective 251
Karen Donohue and Yinghao Zhang
14. A Chain of Hands: Prosocial Integration in a Coffee Supply Chain Setting 268
Tung Nhu Nguyen and Khuong Ngoc Mai
15. Supply Chain Negotiator: A Game of Gains, Losses, and Equity 284
Young K. Ro, Yi-Su Chen, Thomas Callahan, and Tsai-Shan Shen
16. ERP Simulator: Examining Competitive Supply Chain Team Dynamics 340
David E. Cantor and Pamela Manhart
17. The Fresh Connection: Cross-Functional Integration in Supply Chain
Management 359
Sander de Leeuw, Michaéla C. Schippers, and Stefan J. Hoogervorst
18. Wrapping It Up: Behavior and Decision-Making Revealed in Business
Simulation Games 378
Arturo Orozco and Miguel Estrada
19. Behavioral Operations in Practice and Future Work 398
Elliot Bendoly and Daniel G. Bachrach
Index 413
Website and Links to Activities: www.ombehavior.com (permalink)
CONTRIBUTORS
Daniel G. Bachrach, University of Alabama
Elliot Bendoly, Ohio State University
Thomas Callahan, Michigan State University
David E. Cantor, Iowa State University
Jaime A. Casteneda, University of Lugano
Yi-Su Chen, Michigan State University
Sander de Leeuw, VU University Amsterdam & Nottingham Trent University
David del Rio Vilas, UDC–Universidade da Coruña
Karen Donohue, University of Minnesota
Miguel Estrada, IPADE Business School
George Easton, Emory University
Karen Eboch, Bowling Green State University
Stephanie Eckerd, University of Maryland
Paul Gonçalves, University of Lugano
Miguel Guzman, IPADE Business School
Stefan J. Hoogervorst, Involvation
Khuong Ngoc Mai, International University, Vietnam
Pamela Manhart, Iowa State University
Kenneth N. McKay, University of Waterloo
Tung Nhu Nguyen, International University, Vietnam
Arturo Orozco, IPADE Business School
Anton Ovchinnikov, Queen’s University
Diego Crespo Pereira, UDC–Universidade da Coruña
Young K. Ro, Michigan State University
Michael Alan Sacks, Emory University
Tsai-Shan Shen, Eastern Michigan University
Michaela Schippers, Rotterdam School of Management
John Sterman, Massachusetts Institute of Technology
Louis St. Peter, Georgia State University
Wout van Wezel, University of Groningen
viii Contributors
Toni Wäfler, University of Applied Sciences, Northwestern Switzerland
Walter L. Wallace, Georgia State University
Steve V. Walton, Emory University
Yusen Xia, Georgia State University
Yinghao Zhang, Salisbury University
INTRODUCTION
ELLIOT BENDOLY ■
Let’s start with a definition:
Behavioral operations management explores the interaction of human behav-
iors and operational systems and processes. Specifically, the study of be-
havioral operations management has the goal of identifying ways in which
human psychology and sociological phenomena impact operational perfor-
mance, as well as identifying the ways in which operations policies impact
such behavior.
In 2013, the following question was posed by an academic scholar trained in the
normative mathematical modeling of operations research:
How much knowledge of Behavioral Operations (BeOps) is necessary for the
field?
Such a question would strike most people as odd. One might as well as ask how
much knowledge of genetics is needed. The answer’s simple: All of it. Effective de-
cisions in a real-world context require understanding of the key elements of that
context. And as any operations manager worth her salt would tell you, people are
key to operations. Or more directly put, as a counter to the original question:
If we don’t account for the human factor in the operational contexts we hope to
manage, how can we possibly hope to manage them?
A LITTLE BACK HISTORY
As a point of fact, the academic field of operations has long suffered from a discon-
nect with practical application. Many of the mathematical models, which have
been the hallmark of OR scholarship, are not being applied (or even referenced)
by practice. It’s not a “newly recognized” problem either. The identification of
and attempts to resolve this deficit go back to the founding of journals such as