Reference no: EM13373451

5. You are at the company convention and your CEO gives a rousing motivational speech about how the company wants its employees to become leaders.

The CEO suggests that short-term thinking is important and urgent, whereas long-term thinking is important but not so urgent. The CEO, however, suggests that leaders engage in long-term thinking and offers the following payoffs for you: If you are involved in important and urgent work (short term thinking), the payoff is $300. If you are involved in important but not urgent work (long term thinking), the payoff for you is $500.

When you go back to the home office, however, you realize that the company culture is such that if you do long term thinking, you look like you are slacking off as long as there are other managers who are doing the urgent short term work. And so there is a loss of social standing for you worth $250. On the other hand, if you do short term work while the other managers are thinking long term, you appear to be working harder than the others and your social standing gain is worth $250.

Given the mixed messages of the CEO's speech and the home office corporate culture, does the company produce managers or leaders? Show your work using game theory.