Attitudes and Behavior

Cognitive Dissonance TheoryIn the late 1950s, Leon Festinger proposed the theory of Cognitive Dissonance

The theory sought to explain the linkage between attitudes and behavior

Dissonance means an inconsistency

Cognitive dissonance refers to any incompatibility that an individual might perceive between two or more of his/her attitudes, or between his/her behavior and attitudes

Attitudes and Behavior

Cognitive Dissonance Theory continued You know attending in the class is important for your learning. This is your attitude. So you should present, but you do not do that. This is your behavior (incompatibility between attitude and behavior)

You would like to take bribes. This is your one attitude. On the other hand you do not like to take bribes because you are afraid of legal problems and social dishonor. This is your another attitude. There is an incompatibility between two attitudes.

Attitudes and Behavior

Cognitive Dissonance Theory continued Festinger argued that any form of inconsistency is uncomfortable

Individuals will attempt to reduce the dissonance and, hence, the discomfort

Therefore, individuals will seek a stable state, in which there is a minimum of dissonance

No individuals, of course, can completely avoid dissonance

You know attending in the class is important for your learning. So you should present, but you do not do that.

Attitudes and Behavior

Cognitive Dissonance Theory continued Festinger proposed that the desire to reduce dissonance would be determined by the importance of the elements creating the dissonance

and the degree of influence the individual believes he/she has over the elements

and the rewards that may be involved in dissonance

If the elements creating the dissonance are relatively unimportant, the pressure to correct this imbalance will be low.

Attitudes and Behavior

Cognitive Dissonance Theory continued Suppose, you are working as a junior executive in a company. You always dislike and are strongly against to work after regular office hour.But your manager always ask all of you to work up to 8:00 PM to finish pending works.This is very important for the companys export shipment.Now after couple of years, you are the Manager. What will you do?In principle you are against this. At the same time to meet companys goal (which is your responsibility as a Manager and also you are bound to do that to retain your job), you have to do that. The elements involved are very important, so difficult to reduce dissonance.

Attitudes and Behavior

Cognitive Dissonance Theory continued There may be couple of alternatives.You can maintain your principle and let the employees to go home after regular office hour.You can ask the employees to work during interval time to finish the worksYou can now suggest your employees that working longer time is good for their knowledge and skillYou can simply decide that since you are now the Manager, you have to perform your duty. To perform own duty is a more important principle that retaining own perceived principle.Or, you can simply ignore your principle by confirming that you used to believe on that principle in the past, not now. This is a competitive era. We have to work longer time since we are getting good salary.

Perception and Individual Decision Making

Peoples behavior is based on their perception of what reality is, not on reality itself.

The world as it is perceived is the world that is behaviorally important.

Perception and Individual Decision MakingWhat IsPerception,and Why Is ItImportant?PerceptionThe process of recognizing, organizing and interpreting information

A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Perception and Individual Decision Making

Factors Influence Perception

Perception and Individual Decision Making

Person Perception: Making Judgments About Others

Attribution TheoryWhen individuals observe behavior, they attempt to determine whether it is internally or externally caused.

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.

Perception and Individual Decision MakingAttribution Theory

Perception and Individual Decision MakingFundamental AttributionErrorThe tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others

Errors and Biases in Attributions

In general, we tend toblame the person first,not the situation.

Perception and Individual Decision MakingFundamental AttributionErrorSelf-Serving BiasThe tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors

Thought: When students get an A on an exam, they often say they studied hard. But when they dont do well, how does the self-serving bias come into play? Hint: Whose fault is it usually when an exam is tough?

Perception and Individual Decision MakingFrequently Used Shortcutsin Judging OthersSelective PerceptionPeople selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Perception and Individual Decision MakingFrequently Used Shortcutsin Judging Others

Halo EffectDrawing a general impression about an individual on the basis of a single characteristicContrast EffectsEvaluation of a persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics

Perception and Individual Decision MakingFrequently Used Shortcutsin Judging Others

Projection

Attributing ones own characteristics to other peopleStereotyping

Judging someone on the basis of ones perception of the group to which that person belongs

Perception and Individual Decision MakingSpecific Applications in OrganizationsEmployment InterviewPerceptual biases of raters affect the accuracy of interviewers judgments of applicants

Performance ExpectationsSelf-fulfilling prophecy (Pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.

Ethnic ProfilingA form of stereotyping in which a group of individuals is singled outtypically on the basis of race or ethnicityfor intensive inquiry, scrutinizing, or investigation

Performance EvaluationsAppraisals are often the subjective (judgmental) perceptions of appraisers of another employees job performance.

Perception and Individual Decision Making

The Link Between Perceptions and Individual Decision Making

Perception and Individual Decision MakingTwo alternative approaches to decision making

Classical Decision Maker

Clearly defined problem

Knowledge of all possible alternatives and their consequences

Choice of the optimum alternative

Managerial actionCognitive limitationBounded rationalityBehavioral Decision Maker

Problem not clearly defined

Knowledge is limited on possible alternatives and their consequences

Choice of a satisfactory alternative

Managerial action

Perception and Individual Decision MakingAssumptions of the RationalOr Classical Decision-making ModelClassical / Rational Decision-making ModelDescribes how individuals should behave in order to maximize some outcome

Model AssumptionsProblem clarityKnown optionsClear preferencesConstant preferencesNo time or cost constraintsMaximum payoff

Perception and Individual Decision MakingSteps in the Rational Decision-making ModelDefine the problem.Identify the decision criteria.Allocate weights to the criteria.Develop the alternatives.Evaluate the alternatives.Select the best alternative.

Perception and Individual Decision MakingHow Are Decisions Actually Made in Organizations?

Bounded RationalityIndividuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

Perception and Individual Decision MakingHow Are Decisions Actually Made in Organizations?

Satisficing: seeking the first alternative that solves problemEngaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect

Perception and Individual Decision MakingCommon Biases and ErrorsAnchoring BiasUsing early, first received information as the basis for making subsequent judgments

Overconfidence BiasBelieving too much in our own ability to make good decisions

Confirmation BiasUsing only the facts that support our decision

Perception and Individual Decision MakingCommon Biases and ErrorsRepresentative BiasMixing apples with orangesAssessing the likelihood of an occurrence by trying to match it with a preexisting category using only the facts that support our decisionYou have experience that some engineers from a specific university are good, so you are interested in hiring a new manager with MBA from the same university

Availability BiasUsing information that is most readily at handRecent Vivid

Perception and Individual Decision MakingCommon Biases and ErrorsRandomness ErrorCreating meaning out of random events

Escalation of Commitment ErrorWhen a series of decisions has to takeIn spite of new negative information, staying with a decision even when there is clear evidence that its wrong It happens due to escalation of commitment increases for the existing decision

Hindsight BiasLooking back, once the outcome has occurred, and falsely believe that you accurately predicted the outcome of an event It reduces our capability to learn from the past develops unreasonable confidence

Perception and Individual Decision MakingIntuitionIntuitive Decision MakingAn unconscious process created out of distilled experience

Conditions Favoring Intuitive Decision MakingA high level of uncertainty existsThere is little precedent to draw onVariables are less scientifically predictableFacts are limitedFacts dont clearly point the wayAnalytical data are of little useSeveral plausible alternative solutions existTime is limited and pressing for the right

Perception and Individual Decision MakingIndividual Differences in Decision MakingPersonality Aspects of conscientiousness and escalation of commitmentSelf Esteem High self serving bias Gender Women tend to analyze decisions more than men.

CultureBelief, Values, Tradition

Perception and Individual Decision MakingOrganizational Constraints on Decision MakersPerformance EvaluationEvaluation criteria influence the choice of actionsReward SystemsDecision makers make action choices that are favored by the organizationFormal RegulationsOrganizational rules and policies limit the alternative choices of decision makersSystem-imposed Time ConstraintsOrganizations require decisions by specific deadlinesHistorical PrecedentsPast decisions influence current decisions

Perception and Individual Decision MakingWays to Improve Decision MakingAnalyze the situation and adjust your decision making style to fit the situation.Be aware of biases and try to limit their impact.Combine rational analysis with intuition to increase decision-making effectiveness.Dont assume that your specific decision style is appropriate to every situation.Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies.

Perception and Individual Decision MakingReducing Bias and ErrorsFocus on goals.Clear goals make decision making easier and help to eliminate options inconsistent with your interests.Look for information that disconfirms beliefs.Overtly considering ways we could be wrong We should challenge our tendencies to think that were not smarter than we actually are.Dont try to create meaning out of random events.Dont attempt to create meaning out of coincidence.

Perception and Individual Decision MakingMichael has just discovered he is registered for two classes at the same time and must make a decision about which one to take this semester. He considers the professor teaching this semester, the time of the class, and the classes his friends are taking. He then considers his options for when he can take each class again, as well as the costs and benefits for taking each this semester versus later next year. He then makes his decision. Michael has just engaged in what type of decision making?

Perception and Individual Decision MakingIn making his decision, Michael forgot toconsider the implications of the color of paint inthe room where each class was being offered.Given that room color can influence mood,which can influence performance, why didntMichael consider it?

Perception and Individual Decision Making