Management simulations: determining their effectiveness

Abstract

Purpose -The overall purpose of this research is to increase understanding of the factors that promote the effective use of simulations in management education. Design/methodology/approach -This study uses data from 49 teams of respondents performing a management simulation exercise to achieve the research purpose. Respondents took part in the simulation in teams and were required to manage a business in the global athletic industry. Respondents completed a 21-item instrument designed to assess individual learning. Learning was factor-analyzed and three factors derived that correspond to problem-solving skills, teamwork and seeing oneself as a manager. Measures were developed to assess team dynamic factors (emotional and task conflict), the user-friendliness and realism of the simulation. Findings -The study showed that the nature of the simulation and team dynamics affected learning and performance. First, the extent to which users perceived the simulation as reflective of real life situations was positively associated with learning. Second, the ease of use of the simulation positively affected learning. Third, emotional conflict in the team was negatively associated with learning. Fourth, task conflict, measured by the degree of exchange of ideas, was positively associated with learning. Finally, the ease of use and task conflict in a team positively affected team performance, while emotional conflict had a negative relationship to team performance.Research limitations/implications -The research had some limitations. Reliance was placed on cross-sectional data and a snapshot measure taken of performance and learning. In addition, respondents had fairly limited work experience and that may affect their perception of the simulation. This research can be extended by testing the model with managers with substantial years of experience. Including the role of game administrators may also yield greater insight. Practical implications -The study demonstrated that carefully choosing simulations could affect their effectiveness. The user-friendliness and realism of the simulation are two important criteria. In addition, the findings indicate that those administering simulations with teams should pay attention to team dynamics. The findings also suggest that factors that affect individual learning may not necessarily affect performance on the simulation. This implies that game administrators need to define their objectives clearly. Originality/value -This study has increased understanding of the factors that determine the effectiveness of management simulations. The present research bridged some of the gaps in one's understanding by proposing and empirically testing factors that may lead to the identification of suitable management simulations. It also increased understanding of the situational dynamics that enhance the effective use of simulations. This study, as far is known, is the first to separate learning and performance as outcomes.

Developing Creative Teaching Module: Business Simulation in Teaching Strategic Management

“…Herz and Mertz (1998) also report similar findings in economics subjects, and extended the effectiveness to all learning cycles. Business simulation is also reported to have positive association to individual learning and realism (Adobor & Daneshfar, 2006). Moreover, the study exerts that individual learning still happens even when their performance in the competition is low.…”

“…Secondly, it gives the impression to the students that strategic decision-making is a static process that mainly involves active role of the top managers (MacKay & McKiernan, 2004). These limitations of traditional approaches in teaching are now being moderated by new approaches such as case studies and computer simulation that incorporate real life elements to expose students to actual situations (Adobor & Daneshfar, 2006;Aranda, 2007). Real life case studies have been used in teaching business since its multidimensional nature requires a comprehensive analysis by the students.…”

Evaluating business simulation software: approach, tools and pedagogy

“…Recommendations from the Adobor and Daneshfar (2006) study include the need to pay attention to team dynamics as well as the importance of defining the distinct learning outcomes for individuals as opposed to the objectives for the teams. They also recommend that the ongoing involvement of the game administrator or instructor is integral.…”

“…It was also felt that the Open Source options were not appropriate because they were too specialised or related to specific industries, not recent enough or were using a technology that IT staff at Loughborough had no expertise in. Adobor and Daneshfar (2006), when determining the effectiveness of management simulations, developed measures to assess factors in three main areas. These are; team dynamic factors (emotional and task conflict), userfriendliness and realism of the simulation.…”

“…This research is also important as it addresses the implications highlighted in a study of the effectiveness of Management Simulations (Adobor and Daneshfar, 2006). They initially carried out the evaluation with students but advocated the role of the instructor or tutor in taking an active role in the process.…”