Cognitive biases Two departments within Cougar Gear Inc. are Production and Sales. Each department has a unique scorecard, as follows: Production Sales Learning and Growth Internal Processes Learning and Growth Customer Train Retain employees employees Improve production times Reduce production shutdowns Train employees Retain employees Please the customer Common Metrics Median training hours per employee Average employee tenure Median training Production time per unit Number of production shutdowns Average employee tenure hours per Percentage of customer's who shop again 50% Online Customer satisfaction rating employee 120 hrs. 80 hrs. 2.0 yrs. 2 hrs. 3 per mo. Unique Metrics 3.0 yrs. 9.0 81 hrs. 2.1 yrs. 2.5 hrs. 4 per mo. 118 hrs. 2.9 yrs. 62% 9.8 The Production Department scorecard focuses on the learning and growth and internal processes perspectives. The Sales Department scorecard focuses on the learning and growth and customer perspectives. Both scorecards have the learning and growth performance metrics of median training hours per employee and average employee tenure. The Production scorecard has the unique metrics of production time per unit and number of production shutdowns. The Sales scorecard has the unique metrics of percentage of customers who shop again and online customer satisfaction rating. The performance targets for each metric are shown in the tan boxes just under the performance metrics. The actual achieved metrics are shown in the red boxes just below the tan boxes. When evaluating both departments, Cougar Gear's management looks at the median training hours per employee and average employee tenure metrics and subsequently decides to give the Sales Department a large bonus while giving the Production Department a minimal bonus. a. Identify the cognitive bias in the given situation. a. The common measure for both the department employees b. The unique measure restricted to the departments c. Importance given to the unique metrics than the common metrics d. None of the above b. Identify the department that performs well. a. Production department b. Sales department c. Production and sales department d. Overall the company c. Identify the advantage of having a unique scorecard. a. There is no such advantage of having a unique scorecard. b. The number of employees and their level of training are common metrics which may affect the performance metric of the company. C. The performance of the different divisions cannot be compared with another. d. The company can accurately measure the performance of the departments. a ntage of having a unique scorecard. b advantage of having a unique scorecard. d D. The number or employees and their level of training are common metrics which may affect the performance metric of the company. Identify the disadvantage of having a unique scorecard. a. There is no such advantage of having a unique scorecard. b. The number of employees and their level of training are common metrics which may affect the performance metric of the company. c. The performance of the different divisions cannot be compared with the other divisions. d. The company can accurately measure the performance of the departments. b A
