Use of Simulation in Management and Management Education -
Speeding up the Wheel of Learning?
Dipl.-Kfm. Ulli H. Konig
Industrieseminar der Universitat Mannheim
D- 68131 Mannheim, Germany
Phone: (+49 621) 292-2805 ° Fax: (+49 621) 292-5259
e-mail: ukoenig@is. bwl.uni-mannheim.de
ABSTRACT
The shortening of product life cycles is one of the big problems to be solved in the 1990s. So
a lot of energy is used to speed up the R&D-processes and put more flexibility to the produc-
tion line. Time is not the only key-variable of the R&D-process and production, quality and
individuality of the products are getting more and more important. These variables are not
only significant for production and R&D but also for decision making.
The classical way to enhance the quality of decisions is the use of decision-support-
systems (DSS), often based on artificial-intelligence (AI). Another tool to improve the effec-
tiveness of decision making is management simulation. These tools are used to assist the de-
cision maker with the goal of ,,better‘ results.
Deciding can be seen as a part of the ,,wheel of learning“ (described by Rick Ross, Bryan
Smith and Charlotte Roberts in: The Fifth Discipline Fieldbook). So the process of making a
decision is an element of the phenomenon learning. Improving decision making implicates
improving the learning process not only the quality but also the consumption of time. It is
obvious that group learning is much more complicated and protracted than individual learn-
ing. Each step of the process could be aided by computer simulation or tools.
During our management courses we use different versions of simulators. This simulators
are a ,.Management-Flight-Simulator“ and a ,,Planning-Game“. Both are based on a fix VEN-
SIM-Model, the students are only able to decide on budgeting, staff etc. not the structure of
the simulation. This means that the students are trained in System-Thinking and Group-
Decision-Making. A third simulator is used in the advanced course of System Dynamics. In
this case the students are confronted with a complex VENSIM-Model of a firm, supplier,
competitor and market. They are told to analyse and improve several parts of this system. The
goal is to implement better rules of decision and to sharpen the ,,System-View~ of the stu-
dents.
Could combined use of these simulators improve the quality of decisions and shorten the
time needed to decide? In this discourse the main point lies on the time aspect.
BONO
The “Time-Problem” in Normal Work and Learning Situations
The negative effect of time pressure is familiar to all of us. If we are forced to do more things
in less time the effectiveness goes down and the faultiness goes up. So we have to correct
more faults, this means less time, and so on. The causal loops of this system are shown in
Figure 1. This structure is important to understand the problem of learning and decision
making in normal working situations.
Figure 1: Effect of Time Pressure (Bellinger 1996)
The “Wheel of Leaning” (Ross 1994/Figure 2a) is used to describe the process of ( individ-
ual) learning. The most interesting parts of this wheel are reflecting, connecting and deciding.
These sections are very time consuming; Ross et al wrote that the more time you use for re-
flecting, connecting and deciding the more you understand the problems you are faced with
and the faster you learn. But time is a barely sufficient resource, so an “economic” use of this
resource is the goal.
Simulation in Management and Management Education
Simulators based on computer models of the reality are often used tools to support learning.
Especially the education of pilots would be more expensive and less efficient without flight
simulators. Management and management education are rather more complicated than pilot-
ing an aircraft because management decisions are based on more and dynamic information
and system structures. The principles of piloting are the same within most airplanes, organi-
zations are originals. Simulator oriented education (for pilots) can be described as a more
sublime form of conditioning. For example: If the red light on the left panel flashes you have
to pull the orange marked handle on the front panel; if the plane stalls, do this or that ....
EN
On the contrary, the student or manager should not learn to recognize several patterns of be-
havior, such as: Profits are declining so we have to cut our spending. Simulators in manage-
ment and management education should be used as “learning-catalysts” (Milling 1995), for
instance the users are able to:
¢ Reflect the actual situation (e.g. system) with an analyzing tool.
¢ Connect several ideas (e.g. structures/archetypes) with a sketching tool.
* Select the “best” solution (e.g. decision) with a decision support system (DSS).
So every part of the wheel of learning, except “Doing”, can be seen as smaller and faster ver-
sions of this wheel. This structure is shown in Figure 2b.
More Undividnadl More Undividnal
Concrete concrete
DOING N] DOING N] .
REFLECTING ior
(inkig and Petng) Se ne
en etn
DECIDING ne
pean Pao
Wore lore CONNECTING
‘abstract abstract
More action More reflection More action Mere reflection
Figure 2a: Wheel of (individual) Learning Figure 2b: Enhanced Wheel of Learning
The implementation of learning in the causal loops of the “Time Pressure Model” shown in
Figure 3 follows the ideas of Ross at al (Ross 1994):
¢ More Time Available to Leam (ceteris paribus) equals Better Quality of Learning
¢ Better Quality of Learning (ceteris paribus) equals Higher Effectiveness (of Work)
¢ More Time Needed to Learn (ceteris paribus) equals Less Quality of Learning
Figure 3: Learning and the Effect of Time Pressure
DEL
But where is the influence of simulation/simulators on this structure? There are two possible
point of departure “ Time Needed to Learn” and “ Quality of Learning”. As you can see in
Figure 3, there are no polarities added to the arrows. The statement “ Simulation enhances
Learming” is often used, but (as far as I know) not proofed by empirical studies. In 1995 the
Industrieseminar started a research on the effect of the use of simulators in a planning game.
(Check: “ Do Management-Simulators really enhance Decision Making?” by Frank H. Maier
and Jiirgen Strohhecker in this years proceedings)
Figure 4: Structural Influence of Simulation on the Effect of Time Pressure
This is a very compressed version of the paper/discourse for the 1996 System Dynamics Con-
ference in Cambridge/MA. The detailed version and complete references can be retrieved via
the internet: http://iswww.bwl.uni-mannheim.de/pr/sd96/a_ukoe.htm
References (Short Version)
Bellinger, Gene: Managing Time in Time Management - Failure by Belief, WWW-Page:
http://www.radix.net/~crbnblu/timemgmt. html, date: 2/20/96.
Milling, Peter: Organisationales Lernen und seine Unterstiitzung durch Managementsimula-
toren, in:Albach, Horst/Wildemann, Horst. (Eds.): Lernende Unternehmen, Z{B-
Erganzungsheft 3/95, Wiesbaden, 1995, p. 93-112.
Ross, Rick/Smith, Bryan/Roberts, Charlotte: The Wheel of Learning - Mastering the Rhythm
of a Learning Organization, in: Senge, Peter/et al: The Fifth Discipline Fieldbook -
Strategies and Tools for Building a Learning Organization, New York, 1994, p. 59-64.
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