M528 Cognitive Psychology and Leadership

Background:

“To make the best products on earth and leave the world better than we found it” This is the vision
statement of Apple inc. company. Who Doesn’t know or at least heard about Apple inc. company?

This corporate vision statement combined with the company’s social corporate responsibility strategy
emphasis on the importance of being actively conscious and concerned about all impacts they can
have on all aspects of the society: Economic, social, and environmental.

Based on these grounds, apple’s CSR business model makes the company accountable towards its list
of stakeholders: Customers, employees, and investors.

Over and above, Apple insists on the importance of high values. Therefore, the company’s business
conduct policy consists of: Honesty, respect, confidentiality & compliance.

In a nutshell, Apple inc. company is the dream company for any employee.

However, in 2022 the supposedly dream jobs became almost a nightmare.

The story goes back to 2016, upon the release of IOS 10.1.0031. Deliberate processor slowdown and
battery defects issues facts came to light, causing one of Apple’s biggest scandals. 32 lawsuits were
filled against the company in different countries because of the battery and the processor issues. *1

Apple company’s scandal well known as “Batterygate” was not the only issue the company was facing,
but it was to a certain extent the reason behind a second shameful scandal.

A fabricated story on social media widely divulged that the company will terminate the contracts of
3,750 employees as part of a redundancy program to economize the budget. The well-established
company’s employees linked these rumors to the lawsuits being filed.

The further step of calling all employees who worked on slowing the “batterygate” project for an
investigation to check all implications of reducing the capacity of batteries and processors aggravated
the problem.

These news on social media went viral. Everybody from inside and outside of the company was
discussing the redundancy plan of Apple and making assumptions. In addition, the Human Resource
department sent a very strict email to all employees asking them not to talk to the media and insisting
on the legal implications of disclosing information.

Certain employees started already looking for jobs. But others were simply contacted by competitors.

The story was snowballing on social media because of the legal threats, the investigations and the
company’s history. Regarding the latter, Apple is well known for its ability to fire employees in case
they don’t meet the Chief Executive Officer’s expectations*2

Although the source of the rumors couldn’t be really revealed even after a tremendous number of
investigations, it was proved that rumors were strengthen because of the malice efforts of
competitors and certain hateful parties, which validated the conspiracy attempt.
 1. Problem Identification:
New challenges and opportunities are presented in the digital age. Companies are fighting to have a
favorable position and a competitive advantage. Apple, a giant, reputable and profitable technology
company which is leading the innovation and the technological advancement, although it is at the top,
it is not immune to problems.

The termination of 3,750 employees, for a company such as Apple, is not just a rumor, but, a real
problem that must be evaluated through a critical event examination to be able to come up with real
constructive solutions.

Effective problem solving, starts with a root cause analysis to identify faults and problems. Following
this process, makes a link between all pieces of evidence to various internal and external factors.

Externally, the malicious intention of causing harm to the company through fake news and
propaganda can be recognized as a major cause. Moreover, human tendency to believe negative news
makes it inflammatory and must be studied from a cognitive, psychological sociological and business
perspective.

Internally, the questionable organizational culture, the poor company choice of reducing the batteries
and processors’ quality, in addition to the lawsuits being filed against the company, are evaluated as
a base for the troubles facing Apple. Equally, the Management philosophy played a significant role in
amplifying the issue.

2. Major Problems Evaluation:

2.1 Propaganda & Fake News: Creation-Distribution-Consumption.

The definition of Propaganda has evolved throughout History. Initially the term propaganda can be
traced back to 1621, when Pope Gregory XV had the mission of “spreading the doctrine of the Catholic
Church to non-believers” *14. During the first world war propaganda terminology evolved to emerge
in the political field to promote political points of view.

Historically, propaganda has always been used as an instrument of control and conformity by the
dominant political power*15, (Church to state). Nowadays, companies are more powerful than
governments. Thus, as Bernays (1928) stated “Those who manipulate this unseen mechanism of
society constitute an invisible government which is the true ruling power of our country.” *16, we
should expand the concept of propaganda to business organizations.

With technological advancement, most of the definitions establish that propagandists aim to control
the flow of information, deceive recipients, spread untruthful information*17, and intentionally
misinform the public to benefit the spreader over all others*18.

In our case, we will discuss propaganda as a type of fake news because of the misleading rumor stating
that Apple will terminate 3750 employees. Therefore, the question that arises is how propaganda was
created, distributed, and consumed?

Initially, the general understanding of fake news refers to the fake stories fabricated to spread
misleading and false information which cannot be linked, neither, to facts, nor, sources that can be
verified.

However, the deep diving in the concept of fake news led us to think about three misleading
information types. What should be noted in this particular stage is the intention and the truthfulness
of information. In our scenario, it is reasonable to only discuss disinformation and mal information,
but not misinformation because it necessitates the absence of causing real harm intention. The
untruthful information was backed up with a number. Therefore, there is no doubt about the
malicious intention.

Disinformation: this kind of information refers to untruthful fabricated information that is intended to
cause a real harm to society components: people, organizations or even countries.

Mal-information is based on reality and correct facts but manipulated in a way to cause harm.

Based on the aforementioned definitions, the propaganda as an unethical technique of mass

persuasion used disinformation consisting of firing employees plan, and combined it with mal
information related to the critical situation that the company is going through to persuade employees
of the rumor’s truthfulness.

Under modern conditions, Internet has seen its surge as the primary communication medium between
people. Moreover, with the turn of millennium, social media platforms became a powerful weapon to
spread fake news and to sway public’s opinion and exert a degree of control over the people. The
distribution of misleading information to promote a particular agenda benefitting competitors
seemed to be likely true. It is unquestionable that certain parties created a fake story to influence and
persuade employees that a major issue will be facing them soon which may result on their contract
termination.

The consumption of fake news is a very debatable and heavy subject. However, for the purpose of this
report, it should be noted that propaganda is manoevring social media platforms using manipulative
techniques such as bots, recommendation algorithms and filters to cloud the judgement of all
audience’s categories which makes Propaganda and other fake news types very successfully
disseminated largely in high-speed due human biases and gullibility.

“We found that falsehood diffuses significantly farther, faster, deeper, and more broadly than the
truth, in all categories of information, and in many cases by an order of magnitude,” says Sinan Aral,
a professor at the MIT Sloan School of Management and co-author of a new paper detailing the
findings.2*

2.2 Inclination to fake news belief: Human Biases and Gullibility

In the Digital Era, when the entire human knowledge can be verified or at least investigated or
challenged through several channels and platforms, 75 % of the people can fall victims of
misinformation, mal-information and even disinformation fabricated to deceive him.

The reason behind believing in Fake news can be explained through the examination of Cognitive
human biases and gullibility.

Therefore, let us start by explaining what gullibility is, then, investigate human biases.

Gullibility refers to a vulnerability to being manipulated*3 and believing another person where there
was some clear- cut evidence that the person should not be believed” *4. The tendency to believe
without evidence in this case explained as gullibility in cognitive science is a primary reason why
employees inclined to believe the fake news and be trapped in the propaganda.

Likewise, cognitive biases are a subconscious error in thinking that leads human to misinterpret
information from the world around us and affect the rationality and accuracy of decisions and
judgments that we make. Biases are the unconscious and automatic processes designed to make
decision-making quicker and more efficient. Cognitive biases can be caused by a number of different
things, such as heuristics (mental shortcuts), social pressures, and emotions. *3
In the broader sense, Biases represent the human tendency to incline in favor or to disfavor a person,
a group, or even an idea, with no fair reasons. The human nature can be blamed for our tendency to
be subjective as our emotions play a major role in this trait of human character.

It should be highlighted based on the foregrounded, that cognitive biases have two branches same as
our human brain: Conscious Basis and Unconscious Biases. And hereunder, I tried to list the most
relevant biases to this case, knowing that the human biases are excessive and intersecting.

Blind Spot Bias:

Certain people tend to believe that they are better at taking decisions, as they know why and how?
Therefore, we can call this bias as self-deception bias. In general people believe that others are biased
but not them, although we all know that we are far from being perfect.

In fact, ÄAlbert Einstein” one of the smartest people who ever lived on this earth, recognized how
much human being can be arrogant and ignorant to their own biases. The wise scientist said, “There
is nothing known as "Perfect". It’s only those imperfections which we choose not to see!!”.

Bandwagon Effect Bias:

Is a psychological phenomenon in which people tend to adopt certain habits, behaviors, practices,
attitudes, and ideas because simply the majority of others are doing it? People in general might be
influenced by the general tendency to follow a relative majority within networks, because this majority
may signal that something is good, which implies it should be good for oneself” *5 Can everyone else
can be wrong? Certainly, there is a valid reason behind the popularity of it? *5. People are more
confident in their beliefs if they are shared by others*6. Therefore, the fake news can be widely spread
because of the social consensus impact on attitude certainty*7

The Negativity Bias:

Most sociologists and psychologists, argue that human beings have a tendency to believe and give
more weight to negative emotions and thoughts. They incline to see the future darker and more
twisted in contrast to the past. Therefore, Apple employees unconsciously leaned towards thinking
that the company will fire them because of their frustration at first and because the fake news are, to
a certain, extent based on a real factual story that can’t be denied.

The availability Heuristic Bias:

Although heuristics mental shortcuts are very useful to facilitate decision making, problem solving
and probability judgement, it can be a real prejudice. Heuristic theory as explained by “Adele
Gabrielcik, Russell H. Fazio” in their research paper “Priming and Frequency Estimation: A Strict Test
of the Availability Heuristic”* demonstrates the brain capability of presenting vivid, and repeated
memories in addition to supportive pieces of information that comes easy to mind, which makes
decisions constructed based on certain examples, information or even recent experience.

2.3 Apple Organizational Culture:

Although there is no doubt that Organizational Culture is essential for companies to reach their fullest
potential, as it provides consistency, directions, and affects all aspects of the business from email tone
to punctuality to business’ vision, there is not a consensus on what an organizational culture is. As of
today, the debate can only be productive but not interrupted. However, let us take the lead of the
Doctor of Psychology and anthropology, Mr. Geert Hofsted “and define it as: “the collective
programming of the mind that distinguishes the members of one organization from another. This
includes the shared beliefs, values, and practices that distinguish one organization from another. “*9.
Or simply yet better: lets us quote Robbie Katanga and give this disputable concept a broader
definition by saying: “Culture is how organizations ‘do things.” *10
In this instance we will discuss only Apple values and management philosophy to illustrate how apple
do Thigs?

Apple values:
As a matter of fact, Apple doesn’t have fixed values. The chief Executive Officer Mr. Tim Cook during
an interview Said” My belief is that companies should have values, like people do,".

On Apple official website, you can find different employees quotes selected as corporate values. The
question that arises is who selected these employees and can they speak for all employees.

In September 2019, China Labor Watch released a report revealing numerous labor rights violations
at the Zhengzhou Foxconn factory, the largest iPhone factory in the world. The report is based on the
findings of undercover investigators employed at Zhengzhou Foxconn factory, one of whom worked
there for over four years. *11: This is a taste of what an unchosen employees can reveal about the
giant tech-company values.

Based on this undercover investigation, it can be concluded that this company is double faced, which
is enough to provide a base for the fake news.

Management Philosophy:
“We believe in investing through the downturn,” *12, this was the statement of apple CEO ‘Tim cook”
when discussing the 100 Apple terminated employees.

A management philosophy provides employees with clarity regarding your expectations for them and
their job performance. It establishes a benchmark for their success. *13. Comparing Apple CEO
statement, and the definition of management philosophy, we can conclude that employees at apple
are not feeling secure. If the leader believes that investment can be through redundancy plans instead
of capability building, for instance employees will not feel secure in typical circumstances. Therefore,
in times of fake news, it is natural for them to incline towards believing that the company is able to
terminate their contracts.

3. Solutions suggestions:

In this Disruptive era, Digital technologies are developed exponentially. Apple as a leader for
technology advancement should be as much innovative in problem solving as in software and
hardware development. Otherwise, propaganda and fake news can create a room for other
competitors to take over the market.

Fake news and sophisticated propaganda campaigns leverage social media to reach maximum people
instantly. Therefore, the company should benefit from internet platform to face the crisis.

The company should adopt the inside out approach in the long term and the midterm to develop an
efficient crisis response plan. However, in the short run company should response very quickly to
mitigate the risks.

• The short-term solutions: As a starting point, to minimize the impact of the propaganda
campaign and the fake news in general, the company should address the employees directly
to regain their trust. On the other hand, the management shouldn’t disregard the
environmental factors and therefore respond across all channels to reach maximum audience,
influence their understanding and change their perception. For instance, getting in touch with
the public through a press release while considering the narrative and the human biases is
essential to ensure maximum benefits.
• The midterm (6-12 months): A serious review of the company’s strategy and management
style should take place to address the problem properly to avoid any kind of replication.
 Furthermore, the company should review the Job description of all employees and link it
explicitly to department plans and the overall business objectives. Connecting roles and
responsibilities through a precise process to the company ‘s strategy, business model, mission,
and vision to provide the employees with a clear understanding over the company’s
expectations.

Also, starting a cyber propaganda and fake news literacy training will help the employees
understand the building blocks of the business ecosystem and how to recognize fake news
and avoid being part of any type of conspiracy against their company.

• The long-term solutions: Building trust and organizational culture development is the key to
defend the company against tensional and intentional harm that can cause real damage to
the company.

4. Solutions Construction:

Benjamin Franklin said: “Well done is better than well said.” It may seem obvious that, between
Suggesting solutions and construction solutions, there is a big difference. Hence, coming up with big
buzz words in the digital age is easy comparing to a real savoir-faire, based on knowledge management
and best practices.

Taking into consideration that, strategic decisions making, is influenced by human biases and
environmental factors, the leaders should pay attention to complexities and uncertainties and
especially decision biases such as illusion of control, recallability trap and IKEA effects. The human
biases and the environmental factors are “useful measurements for detecting process improvement
actions” *22.
Therefore, the construction of the following decisions respects the 6 steps of “DECIDE” Model of
decision making*23 to make quality decisions.

Define the
problem

Evaluate and m Establish

onitor the or Enumerate
solution all the criteria

Develop and Consider

implement or Collect all
a plan of action the alternatives

Identify the
best alternative

Please check DECIDE model of decision-making developed by Kristina Guo for more details:

• Regarding the short-term Solution, the company, as explained, should take an immediate
action and correct the fake news through a direct email from the CEO to all employees and
connect with the public across different challenges.

What it should be noted in this instance, is that the company should develop a communication
plan, while considering persuasion techniques.

Rhetoric is known, in general, as a persuasion art using words. This art become very interesting
in management science, because of the humanistic approach. Persuading people doesn’t
happen by only using logic, data and reasonable arguments. In our case Apple management
 represented by the CEO should be able to address the whole situation using emmotional
intelligence and reason while considering peoples’ values and ethics.

✓ Pathos driven manner of speaking should be of great place when writing a press
release, a speech or even a post on social media, to raise emotions and to engage
employees.
✓ Over and above, the management should back up the communication plan with logos
driven manners such as data and facts. Perhaps, they can leverage an old story when
the company had to face a rough moment but did not let down the employees to give
employees a certain feeling of security.
✓ Finally, Ethos base communications and speeches on the personal credibility of the
speaker. Therefore, asking company leaders and reputable employees will be the best
way to convince employees.

Brian Legget Josep and M. Rosanas explains on their “Rhetoric and persuasion in
Management” research how rhetoric and persuasions techniques can help companies?
Change people’s attitudes, opinions, and behavior, reinforce beliefs, attitudes, and behavior,
and Establish attitudes and opinions which are the goal in our scenario*24. Thus, using the
three rhetorical dimensions to balance emotions, ethics, and reason is critical to fight
propaganda and fake news.

• In the midterm after addressing the urgency of the fake news and the propaganda direct
problems, the company should pay more attention to the strategy and management style.
Pursuit of a specific, difficult goal can increase stress. If so, employee performance and leader
effectiveness can suffer. Therefore, as employees are constantly in fear of losing their jobs,
due to the high level of competitiveness, the company should really apply SMART (Specific,
Measurable, achievable, and time-bound) parameters to assess employees’ performance.
Moreover, linking these goals to the job descriptions, department plan, organizational
objectives, vision, and mission is fundamental to ensure a productive and trustworthy
environment.
On the other hand, with suitable training and development opportunities, as well as effective
employee performance assessment approaches, employees will be capable of assisting the
organization in achieving its competitive posture in today’s global market*25, without being
victim of social media threats and conspiracy theories.

• The long-term solutions are always deep-rooted, which means they are always established on
strong building blocks and based on continuous efforts mentality. Hence, organizational
culture may be derived from various sources, such as the beliefs and assumptions of the
founders, and the learning experience of members of the organization*26. Therefore, to
concretize this concept, Apple should build a stronger relationship with employees based on
transparency and positivity. Also, The Human resource department should listen more to
employees and give them the ability to discuss their problems and fears. Creating a positive
environment starts by building trust in their company which can minimize considerably the
chances of any fake news crisis
 5. Solutions Implementation Plan:

The decision making always necessitates the commitment of the top-management to think ahead and
plan as well as respond to novel problems. Therefore, the authority holders should be aware of the
significance of the cognitive biases, persuasion methods and environmental factors to make good
decisions.

Based on the aforementioned, as a Chief People Officer, I suggest the following plan to handle the
propaganda and fake news Crisis

The CEO and the HR department should use syllogism to create masterful, persuasive messages.
Moreover, persuasion techniques should be leveraged to convince the public. Considering the power
of positivity and human biases is crucial in this stage. In order to achieve the goal additionally the
management should take into consideration, the organizational culture to be reactive and proactive.

• On day 1 after the Crisis: The Human Resource department should send an email to all
employees announcing explicitly that the company will not terminate the contract of 3750
employee. Then, inviting all employees to attend a general meeting with the CEO to discuss
the fake news and the propaganda being conducted against the company.
• Within 3 days after the Crisis: The Marketing and Communication department should develop
a Crisis communication strategy to fight the fake news and the propaganda and regain public
trust. As previously emphasized, the plan should be strategic to reach the maximum audience.
Responding across many channels and dedicating a team to deal with the crisis and to interact
with the public on social media, is a key to control the impact.
• Within one week after the Crisis: Scheduling interviews with different Tv channels and Radios,
developing videos and posting them on social media is also mandatory to ensure the efficiency
of the crisis response plan. Not Only the management should be represented but also
reputable employees to keep the trust of the public.
• Within the First 3 to six months: Strategy and job descriptions review and conducting
interviews with the employees, to understand their needs and expectation, are of necessity
to address the crisis properly.
• Continuously from day one: The management should open the door for employees’
suggestions, attend conferences and events related to management development skills,
develop surveys to monitor the efficiency of the crisis plan and the improvement of company’s
culture.
Organizing events and build employees capabilities through trainings, should be part of the
organizational culture, to increase productivity and minimize risks while insuring employee’s
satisfaction.
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