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164 EXPERIMENTAL DESIGNS

in which activities are usually carried on. In that sense, the simulation lies some-
where between a lab and a field experiment, insofar as the environment is arti-
ficially created but not far different from “reality.” Participants are exposed to
real-world experiences over a period of time, lasting anywhere from several
hours to several weeks, and they can be randomly assigned to different treatment
groups. If managerial behavior as a function of a specific treatment is to be stud-
ied, subjects will be asked to operate in an environment very much like an office,
with desks, chairs, cabinets, telephones, and the like. Members will be randomly
assigned the roles of directors, managers, clerks, and so on, and specific stimuli
will be presented to them. Thus, while the researcher would retain control over
the assignment and manipulation, the subjects would be left free to operate as
in a real office. In essence, some factors will be built into or incorporated in the
simulated system and others left free to vary (participants’ behavior, within the
rules of the game). Data on the dependent variable can be obtained through
observation, videotaping, audio recording, interviews, or questionnaires.
Causal relationships can be tested since both manipulation and control are
possible in simulations. Two types of simulations can be done: one in which the
nature and timing of simulated events are totally determined by the researcher
(called experimental simulation), and the other (called free simulation) where the
course of activities is at least partly governed by the reaction of the participants
to the various stimuli as they interact among themselves. Looking Glass, the free
simulation developed by Lombardo, McCall, and DeVries (1983) to study leader-
ship styles, has been quite popular in the management area.
Cause-and-effect relationships are better established in experimental simula-
tions where the researcher exercises greater control. In simulations involving sev-
eral weeks, however, there could be a high rate of attrition of members.
Experimental and free simulations are both expensive, since creating real-world
conditions in an artificial setting and collecting data over extended periods of
time involve the deployment of many types of resources. Simulations can be
done in specially created settings using subjects, computers, and mathematical
models. Steufert, Pogash, and Piasecki (1988), who assessed managerial compe-
tence through a 6-hour computer-assisted simulation, are of opinion that simu-
lation technology may be the only viable method to simultaneously study several
types of executive styles. Computer-based simulations are frequently used in the
accounting and finance areas. For example, the effectiveness of various analytic
review procedures in detecting errors in account balances has been tested
through simulations (Knechel, 1986). In the finance area, risk management has
been studied through simulations. Simulations have also been used to under-
stand the complex relationships in the financing of pension plans and making
important investment decisions (Perrier & Kalwarski, 1989). It is possible to vary
several variables (workforce demographics, inflation rates, etc.) singly or simul-
taneously in such models.
Prototypes of machines and instruments are often the result of simulated mod-
els. Simulation has also been used by many companies to test the robustness
and efficacy of various products. We are also familiar with flight simulators, dri-
ving simulators, and even nuclear reactor simulators. Here, the visual patterns