DESIGNING MANAGEMENT SEMINARS USING BUSINESS SIMULATIONS Development In Business Simulation & Experiential Exercises, Volume 18, 1991 151 DESIGNING MANAGEMENT SEMINARS USING BUSINESS SIMULATIONS Sam E. White and Alan M. Cabelly, Portland State University ABSTRACT Lack of experience is the greatest impediment in adapting simulations to organization training situations. Adaption requires revision of practices and procedures to meet the learning styles, needs, and expectations of executives. Suggestions are offered to change administrative procedure, simulation parameters and learning environment to meet the needs of organizational training. INTRODUCTION Although simulations are a popular method of instruction in university programs, there is minimal evidence that they are viewed as an effective pedagogy in executive training programs. [Ralphs and Stephan, 1986]. Since there is empirical evidence that the results of using simulations for management training are similar to those obtained in academic setting [For example, Faria, 1987; Wolfe, 1985], why is there a divergence in use of simulations between university and organizational settings? One plausible explanation for the discrepancy appears to be that there is a general lack of sufficient experience in adapting simulations to meet the requirements of the executive training. Our objective is to share some ideas about adapting simulations and to stimulate others to address the issues related to using simulations as a training method in organizations. ADAPTING TO TRAINING SITUATIONS The executive’s learning orientation and decision making experience and the time allocated to program activities must be considered in adapting simulations for organizational programs. The executive role requires continuous evaluation of situations and decision making in concert with coordinated team activity. In addition, most managers are minimally aware of the multi-faceted nature of the effects of executive decisions among functional areas. Most executives also expect training activities to be intense, quick paced and limited in duration. This configuration of attitudes and expectations suggests that to be effective simulation activities must be compressed into a tight schedule and the emphasis must align with the experiences of participants. Changes in Administrative Procedures There are four primary adjustments that are necessary when moving to a corporate training situation. These are: decreasing the decision to results turnaround time; balancing power and influence differences in team assignments; providing sufficient decision support systems; and adding incidents to maintain concentration on simulation activities. Since the duration of the simulation experience has been shortened, more rapid turnaround may be necessary. It may be achieved by using electronic entry of decision data and simultaneous processing of decision results. Previous power relationships among participants may interfere with training objectives. Minimizing these effects while ensuring that each team has the required expertise to understand how functional areas interrelate is an important balance to be achieved. Assistance in data entry for spreadsheet analysis and decision input along with sufficient time for understanding results will help executives overcome the technicalities of “data crunching.” If interest in making decisions begins to wane, it is important to introduce feature such as labor disputes to refocus attention on simulation activities. Modifying a Simulation for Executives It is important to accurately capture the essence of economic effects for the industry from which the executives originate. Five simulation dimensions that should be adjusted are the business orientation of the simulation; the demand elasticity of the product or service; the macroeconomic conditions; the specifies of industry characteristics; and the geographical areas of product distribution. Depending on the purpose of the training, the administrator may select either a service or a manufacturing oriented simulation. Next, the trainer should strive to create an experience in which the elasticities affecting product or service demand have the same relative relationships as those experienced in actual practice. To provide exposure to the dynamics of international business a simulation should minimally include differing exchange rates, differing tariffs and trade restrictions, and differing salary and wage rates. A lecture on the impact of culture on business practices is also helpful. Since most simulations limit the number of competitors and the relative effect of each competitor’s actions, matching actual industry characteristics is difficult. One method of bridging the gap is through a lecture on strategic groups. Changes in the Learning Environment Changes to the learning environment include changes in facilities, changes in the length of lectures and changes in the content of lectures and discussions. It is advisable to select a training location that reduces the number of distractions for participants. Company facilities often do not provide adequate space and there is a tendency for executives to be interrupted for crisis situations” on a regular basis. Mini-lectures providing new ideas and illustrations of their application are especially well received by executives. There is a strong need to provide illustrations of the techniques and procedures for analysis and how to interpret results. CONCLUDING REMARKS Changing simulations to increase compatibility with executive needs is a challenging endeavor. When properly executed it is a stimulating methodology. It provides benefits, which are unavailable from other training methods. REFERENCES Faria, A. J., A Survey of the Use of Business Games in Academia and Business.” Simulation & Games, 18, 207- 224, (June 1987) Ralphs, L., and E. Stephan, “HRD in the Fortune 5007 Training and Development Journal, 40: 69-76. (October 1986) Wolfe, Joseph, The Teaching Effectiveness of Games in Collegiate Business Course.” Simulation & Games, 16: 251- 288 (September 1985) Table of Contents Volume 18, 1991 Personality Types and Total Enterprise Simulation Performance Using DIS 'n DAT as a Decision Support System for a Marketing Simulation Game Theoretical Derivation of a Market Demand Function for Business Simulators The Ethnographic Case Study: An Experiential Approach to Teaching Retail Management Electronic Bulletin Board Systems (BBS): Support Software for Computer Simulations The New Budget Game Negame: A Cross-Cultural Role-Play to Introduce Students to the Familiarization Stage of Negotiations Modeling Short-Run Cost and Production Functions Using Sheppard's Lemma in Computerized Business Simulations Increasing Simulation Realism through the Modeling of Step Costs Predicting Simulation Performance: Differences Between Groups and Individuals A Facility Location Case to Stimulate Classroom Interaction Educational Effectiveness of Business Simulation Gaming: A Comparative Study of Students and Practitioner Perspective Ethical Dilemmas in Experiential Learning: Issues and Strategies A Critical Review and Assessment of ABSEL's Award-Winning Procedures and Protocols Political Risk: A Simulation for Business Practitioners Upside Down: A Cross-Cultural Game in Experiential Learning Gorby's Dilemma: From Communism to Free Enterprise in Two Hours Strategic Market: Planning with the COMPLETE Product Portfolio Analysis Package: A Marketing Decision Support System Career Concepts and Total Enterprise Simulation Performance Experiential Learning in Human Resources: A Performance Appraisal Application Managerial Motivation and Realism Among MBA Student as Viewed through The Looking Glass, Inc. Simulation An Experiential Approach to Teaching Data Analysis Using MYSTAT: Rationale, Procedures and Results Practicing What Was Preached: A Sequential Learning Model put to the Test Student Attitudes about Policy Course Simulations An Investigation of the Relationship Between Simulation Play, Performance Level and Recency of Play on Exam Scores The Effect of Leadership and Cognitive Processing Styles upon Peer Performance Evaluation: Implication for the Utilization of Simulations in Business Pedagogy On the Transfer of Market Oriented Business Games to Socialist Cultures An Application of Financial Analysis of the Business Firm in a Simulated Competitive Environment Collective Bargaining Simulation: An Exercise based on a Familiar Theme Making Business Policy a Strategic Management Experience A Student Exercise for Intergrating the Concepts of Power and Motivation The Boundaries Extended: An Experiment Comparing Dialectical Inquiry, Devil's Advocacy and Consensus Using the Executive Game Using a Simulation Package to Develop a Simulation Exercise in Cost Accounting Success Factors in Experiential Training for Creative Problem-Solving Teams An Experiential Approach for teaching Quality management Critical Success Ratios: A Comparison of Two Business Simulations in a Multi-Year Environment Stocklogs: A Classroom Exercise for Teaching the Logistical Relationship of Location and Inventory The Organizational Leadership Program Simulating Business Decision-Making: Using Statistical Cases for Classroom Exercises Scripting for the Classroom Upgrading the Business Strategy and Policy Game Developing Student Team-Building and Leadership Skills Using Computer-Aided Experiential learning Strategies Organizing and Outward Bound Field Trip An Architecture for Extensible Simulation Games Performance in the Capstone Business Course: What is the effect of Pedagogy, Learning Styles, and Student Motivation? Operational Strategy with Participant-Modifiable Parameters An Example of a Personal Selling Case Transformed into a Role Play Scenario Instructional Software: It's Evolution and Current State of the Art in the Business Curriculum Ascertaining Performance Variables for use in Determining Student's Grades in Courses Employing a Business Simulation Designing Management Seminars Using Business Simulations The Accounting Information Systems Course: Bridging the Gap between the Classroom and the Real World The Good Cooks Guide to Training Excellence: Working with Passion A Demonstration on Multiple Data Collection Methods: Seeing Strategic Issues Through the Looking Glass Simulation Systems Analysis and Design: Why Undergraduate Education gets a Failing Grade Accommodating Organizational Culture: An Evaluation of Management Development Delivery Modes in Varying Organizational Cultures Modeling Total Quality into Business Simulations The Political Futures Game Meeting Meeting Objectives