CONSIDERATIONS FOR THE USE OF COMPUTERIZED BUSINESS SIMULATIONS Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 169 CONSIDERATIONS FOR THE USE OF COMPUTERIZED BUSINESS SIMULATIONS Daniel H. Strang Michael D. Crino Thomas F. Pray State University of New York at Geneseo The authors have employed various management simulations to augment student interest and learning in both introductory and upper division courses. During the past year they developed and wrote a management simulation game (ADSIM: Administrative Simulation) with the purpose of (1) improving upon the decision-making aspects of the existing computer games and (ii) reducing certain of the “costs” associated with utilizing business simulations in introductory management courses. It was with special interest, therefore, that the authors read the literature outlining the benefits of the simulation approach to learning. Such evidence, given the state of the art, is necessarily inconclusive. The inconclusive nature of the evidence notwithstanding, previous empirical research has been limited in both scope and direction. Extensive attention has been paid to potential benefits, to the exclusion of pertinent costs. Our purpose is an attempt to regain a balanced perspective. This task requires that attention be paid to both costs and benefits associated with the use of simulations. The contribution of this article lies not with the data, for they are, of necessity, exploratory, but rather with its orientation. From the use of ADSIM and other simulations, the authors have observed the typically reported instructional benefits. These benefits include: (1) The acquisition of threshold levels of understanding of Accounting, Finance, Economics and Management. (2) The recognition of and appreciation for the interrelationships of managerial decisions. (3) The stimulation of interest and enthusiasm for management as a discipline. A less obvious benefit is the use of decision-making teams as focal points for lectures, discussions and written assignments on such topics as leadership, organization design and. work group dynamics. During the past year the authors have successfully experimented with this dimension. At appropriate times during the semester, students were required to write analyses of group structure, group leadership, and group member roles (e.g. building, blocking, maintenance). In addition, students were expected to develop and analyze a sociogram representing the degree of member interaction. Such detailed assignments are of limited effectiveness within the context of trivial-task ad hoc work groups. In addition to such alluring benefits, the authors have become aware of a number of “costs” associated with the use Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 170 of simulations. These costs are both explicit and implicit. Explicit costs include the allocation of instructional resources (e.g. computer time, instructor time, student out-of-class time, material costs and course content adjustment). Implicit costs include heightened levels of anxiety and frustration, evidenced on occasion by students withdrawal from the group and, in some instances, from the course. The extent and underlying causes of such implicit costs are of particular interest to the authors and in part prompted this study. METHODOLOGY Subjects were one hundred and fifty-two students taking the introductory course in Management at the State University of New York College at Geneseo during the Fall Semester, 1977. These students were drawn from five different sections across four different instructors. All sections actively used one of two management decision-making computer simulations available (.ADSIM, The Executive Game) [3,5]. Students were randomly assigned to teams (firms) of five to six people and provided with approximately five hours of lecture instruction on the mechanics of the appropriate simulation. In all sections the simulation comprised a major portion of the course (approximately one third of both class time and final grade). A questionnaire was administered at the end of the semester. The questionnaire contained a number of 5-point Likert Scales designed to measure the degree of frustration, involvement, and confidence experienced by the student during particular periods of the simulation (i.e. trial period, first and subsequent quarters [25%] of play). In addition, certain simulation-related. factors assumed a priori to contribute to participant frustration and confidence were examined. Demographic information was also collected (sex, academic year, group size, academic major, previous business coursework, final team ranking, out of class time commitment).1 Open-ended questions dealing with possible frustration-instigated behavior were also included. RESULTS A summary of’ some of’ the most interesting results of the study are presented briefly in this section. Consistent with a priori assumptions, the mean active involvement increased throughout the simulation. See table 1. 1 Although this information if not reported in this paper it may be obtained from the first author. Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 171 Table 2 indicates, coincident with a priori expectations, that the degree of confidence in ability to make managerial decisions increased significantly with additional simulation experience. Table 3 summarizes the factors leading to increased confidence in decision-making ability in descending order by response mean. Table 4 summarizes the students’ reported mean frustration, over time. While there is weak evidence suggesting a decline in frustration, it is clear that there is a substantial degree of variability in subject response. Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 172 Figure 1 summarizes the trends throughout the simulation for the degree of involvement, frustration and confidence associated with the decision-making experience. FIGURE 1 TRENDS OF INVOLVEMENT, FRUSTRATION AND CONFIDENCE THROUGHOUT SIMULATION Table 5 presents in descending order of importance the various components of’ frustration. Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 173 Subjects were asked to indicate the time spent outside the classroom on simulation-related activities. The mean time spent per week outside the classroom was approximately 2 hours per student. This time commitment exceeded the a priori expectations. The following comments are excerpted from open-ended questions concerning the benefits arid “costs” of the simulation usage. The inclusion of these comments may be a better indication of the true nature of the feelings of selected subjects as opposed to the numerical responses reported above. Positive Comments “ADSIM has been a very worthwhile experience for me. In learning more about the management processes, I also learned a lot about myself and other people--how to be more responsible myself and how to trust and depend on others.” “The game taught me a lot about myself, it showed me strengths that I hadn’t realized, and. also revealed to me my weaknesses and limitations.” Negative Comments “I thought I’d never understand enough to make good decisions thus I participated very little.” something must be done. I don’t want anyone else going through the agony we did.” “...we could not maintain, no matter how hard we tried, a high ranking.” “What a stupid game. I skipped class.” “I thought that our whole objective was ruined because of a keypunching error.” “I considered dropping the course. I would make suggestions and the group would reject them without considering them. I had given these ideas a lot of thought.” Figure 2 presents the overall assessment of the desirability of the simulation. It should be noted that 80% of the respondents classified the simulation as either desirable or very desirable. Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 174 DISCUSSION The primary purpose of this study was to investigate some of the implicit costs associated with the instructional use of simulations. The reported patterns of confidence, involvement and frustration, although weak, are to some degree comforting. However, the very nature of the aggregation process subordinates the “exception.” As a consequence, such data warrant cautious assessment. This caveat is underscored by the intensity of the negative comments generated by the open-ended questions. It is perhaps the isolated individuals whose confidence and involvement declined, and whose frustration increased, that warrant special consideration. Even the very positive acceptance of the simulations does not excuse the failure to address the problem of frustration at an individual level. Based on the data there appear to be three underlying sources of frustration. They are: (1) Difficulty understanding the economic and managerial interrelationships (e.g. reasons for team performance). (2) Interpersonal conflict among group members. (3) Administrative and clerical problems (e.g. keypunching errors, distortions in the simulation environment due to unrealistic decisions). The authors suggest judicious application of the following measures and techniques to minimize frustration: (1) Extended trial periods with classroom discussion and full disclosure. (2) Special out-of-class sessions and increased instructor Exploring Experiential Learning: Simulations and Experiential Exercises, Volume 5, 1978 175 availability to aid in game start-up. (3) Open class discussion dealing with the inevitability and resolution of interpersonal conflict. (4) The inclusion of an “override option” allowing the administrator to control the number of decision variables and, as a consequence, the number of interrelationships. Such an option has been included in ADSIM for this purpose. (5) Special attention in the development of simulation “software” to limit distortions arising from either keypunching errors or unrealistic decisions. (6) The inclusion of a function designed to minimize the long-, run consequences of’ an inferior decision made early in the simulation. A variant of this function ‘was incorporated in ADSIM. It is hoped that this presentation motivates practitioners to be cognizant of frustration as an implicit cost and to investigate measures to limit it. In addition, it is hoped that this exploratory effort generates researcher interest in the area of implicit costs. REFERENCES 1. Catalanello, Ralph F. and Daniel C. Brenenstuhl. “An Assessment of the Effect of’ Experiential, Simulation and Discussion Pedagologies Used in Laboratory Sections of an Introductory Management Course,” ABSEL (Association of Business Simulations and Experiential Learning) Proceedings of Annual Meeting, 1971, pp. 51 - 58. 2. Fritzsche, David J. “Changing Perceptions of Learning in a Simulated Environment,” ABSEL (Association of Business Simulations and Experiential Learning) Proceeding of Annual Meeting, 1977, pp. 101 - 109. 3. Henshaw, Richard C. and James R. Jackson. The Executive Game. (Homewood, Illinois: Richard D. Irwin, Inc., 1972). 4. Keys, Bernard. “A Review of Learning Research in Business Gaming,” (Tennessee Technological University, Working Paper, 1976). 5. Pray, Thomas F. and Daniel R. Strang. ADSIM: Administrative Simulation: A Management and Economic Decision Making Game. (Unpublished manuscript, 1977). 6. Sampson, Nancy and Constantine Sotirion, “Student Perceptions: Simulation and The Corporate Policy Course,” ABSEL (Association of Business Simulation and Experiential Learning) Proceedings of Annual Meeting, 1977, pp. 110 - 117. Table of Contents Volume 5, 1978 Debriefing: The Key to Effective Experiential Learning A Kiss Before Debriefing Debriefing with Serialized Theory Development for TaskTeam Learning Insights Into Debriefing Experiential Learning Exercises The Two-Step Flow of Experiential Learning: A Preliminary Investigation Programmatic Experienced-Based Learning in an MBA Program The New Research Focus: An Analysis of the Simulation Game User An Analysis of Performance in Simulation Games Compared to Performance on Structured Course Criteria: A Case Study Le's Simplify the Administrative Requirements of Computerized Educational Simulations Assessment of Sex Stereotypes Within Task Group Simulation The Use of Program BAYAUD in the Teaching of Audit Sampling The Effectiveness of Progressively Complex Accounting Simulations in Increasing Decision-Making Performance The Natural Learning Project The Application of a US-USSR Trade Simulation to the Reaching of Business Russian The Use of Semi-Autonomous Work Group in Graduate Management Education: An Australian Experience Evaluation of an Experimental Course in Organizational Behavior for Managers of Japanese Banks Berkshire II: An Experiential Decision Making Exercise: An Exercise in Hegelian Inquiry Creating a Responsible Managerial Experience A Framework for Determining the Pedagogical Value of Simulation Gaming: Implications for Future Simulation Gamin Research Emergent Simulations in Administration Courses Measurement of Administrator Role for Feedback on Structure and Goals An Experiment in Assessing the Theoretical Recognition and Application Leaning Skills of Student Case Writers Some Game Information Systems Experience Using Job Control Language (JCL) for Group and Individual Simulation Considerations for the Use of Computerized Business Simulations Assessing the Effectiveness of Learning Styles as Predictors of Performance within Three Distinct Pedogogic Methodologies Learning Style and Performance A Psychometric Analysis of Kolb's Learning Styles Inventory Learning to Identify and Satisfy consumer Wants: A Classroom Game An Experiential Exercise in Product Benefit Segmentation Sales and Sales Management: A Case/Simulation Approach The SBI Case as Experiential Learning The Use of a Live Case in Teaching Organization Theory and management Principles to Graduate Students The Residency in Hospital and health Administration as Experiential Learning The Extended Live Case Approach to Teaching Marketing Research Experiential Learning in Marketing: Student Consultants The Brazil-Columbia Coffee Marketing Negotiations: An Experiential Exercise Aimed at Highlighting the Dynamics Involved in the International Business Negotiation Process Educational Values of Simulation Gaming Business Simulation Re-Revisited Simulation and Experiential Learning as Human Subject Research An Experiential Evaluation of a Didactic - Experiential Apporach for Teaching personnel Management Experiential Learning in Wage and Salary Administration Integrating Structured Experiences into Personnel Simulation Locus of Control and Performance in a Management Simulation Correlations Between Academic Achievement, Aptitude, and Business Game Performance Suggestions for Student Input of Decisions in General Management Simulations An Exploratory Investigation of Student Perceptions of Computer Simulation as an Educational Tool Time to Sell?: An Experiential Learning Approach to Stock Market Decisions through Interactive Gaming