Chapter 5 Perception

8/2/2019 Chapter 5 Perception

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Chapter 5

Perception

and

Individual Decision Making


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Perception

Peoples behavior is based

on their perception ofwhat reality is, not on

reality itself.

The world as it is

perceived is the world thatis behaviorally important.


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Factors Influencing Perception


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Person Perception:

Making Judgments about others

Distinctiveness: shows different behaviors in different situations.Consensus: response is the same as others to same situation.

Consistency: responds in the same way over time.


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Attribution Theory


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Errors and Biases in Attribution


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Errors and Biases in Attribution

(Contd)


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Frequently Used Shortcuts

in Judging Others


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in Judging Others (Contd)


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in Judging Others (Contd)


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Shortcuts Applications

in Organizations

Employment Interview Perceptual biases affect the accuracy of interviewers

judgments of applicants.

Performance Expectations

Self-fulfilling prophecy (Pygmalion effect): The lower orhigher performance of employees reflects preconceivedleader expectations about employee capabilities.

Ethnic Profiling Profiling: A form of stereotyping in which a group of

individuals are singled out for intensive inquiry, scrutinizing,or investigation.

Performance Evaluations Appraisals are subjective perceptions of performance.


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The link Between Perception

and Individual Decision Making

Perceptionsof the

decisionmaker

Outcomes


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Rational Decision-making Model


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Rational Decision-making Model

(Contd)

Assumptions

Problem clarity

Known options

Clear preferences

Constant preferences

No time or cost constraints

Maximum payoff


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The Three Creativity Components


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How Decisions Are Actually

Made in Organizations


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Made in Organizations (Contd)

8 conditions for using intuition:1. With a high level of uncertainty.

2. With a little precedents to draw on.

3. When variables are less scientifically predictable.4. When facts are limited.

5. When facts do not clearly point the way.

6. When analytical data are of little use.

7. When there are several plausible solutions from which to

choose, with good arguments for each.8. When time is limited and there is pressure to come up

with the right decision.


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How/Why problems are identified

Visibility over importance of problem Attention-catching, high profile problems

Desire to solve problems Self-interest (if problem concerns decision maker)

Alternative Development

Satisficing: seeking the first alternative that solvesproblem.

Engaging in incremental rather than unique problemsolving through successive limited comparison ofalternatives to the current alternative in effect.


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Making Choice


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Common Biases and Errors

overconfidence biasIt was found that thoseindividuals whose intellectual andinterpersonal abilities are

weakest are more likely tooverestimate their performanceand ability.

anchoring bias

A tendency to fixate on initialinformation, from which we thenfail to adequately adjust forsubsequent information.

confirmation biasThe tendency to seek outinformation that reaffirms pastchoices and to discount

information that contradictspast judgments.

availability biasThe tendency for people tobase their judgments oninformation that is readilyavailable to them.


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(Contd)

representative bias

Assessing the likelihood of an

occurrence by inappropriatelyconsidering the current situation asidentical to ones in the past.

escalation of commitment

An increased commitment to a

previous decision in spite ofnegative information.

randomness error

The tendency of individuals to

believe that they can predict theoutcome of random events.


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(Contd)

winners curse

A decision making dictum thatargues that the winningparticipants in an action typically

pay too much for the winning item.

hindsight bias

The tendency for us to believefalsely that weve have

accurately predicted the

outcome of an event, even afterthe outcome is actually known.


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Individual Differences

Personality Conscientiousness

Achievement-striving people are more likely to escalate their

commitment. Also, they are more susceptible to the hindsight bias. Dutiful people are less likely to escalate. Self-esteem

High self-esteem people highly use the self-serving bias to maintaintheir self-esteem.

Gender Women analyze decisions more than men do. Women engage more in rumination (problem overthinking).


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Organizational Constraints

Performance Evaluation

Evaluation criteria influence the choice of actions. Reward Systems

Decision makers make action choices that are favored by theorganization. Formal Regulations

Organizational rules and policies limit the alternative choices ofdecision makers.

System-imposed Time Constraints Organizations require decisions by specific deadlines. Historical Precedents

Past decisions influence current decisions.


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Cultural Differences

Problems selected

Time orientation

Importance of logic and rationality

Belief in the ability of people to solve problems

Preference for collective decision making


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Ethics in Decision Making

Ethical Decision Criteria

Utilitarianism Seeking the greatest good for the greatest number.

Rights Respecting and protecting basic rights of individuals.

Justice Imposing and enforcing rules fairly and impartially.


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Ethics in Decision Making

(Contd)

Ethics and national culture

There are no global ethical standards.

The ethical principles of global organizationsthat reflect and respect local cultural normsare necessary for high standards andconsistent practices.

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Chapter 5 Perception