1. Chapter 3 Perception and Individual Decision Making
Essentials of
Organizational Behavior, 10/e
Stephen P. Robbins & Timothy A. Judge
Chapter 3
Perception and Individual Decision Making

2. KEY WORDS - VOCABULARY -CONCEPTS
Perception – p. 32 Judging or Judgment – p. 33 Attribution – p. 33 Stereotyping – p. 35 Decision Making – p. 37 Bias – p Ethical or Ethics – p. 41

3. After studying this chapter, you should be able to:
Define perception and explain the factors that influence it.
Identify the shortcuts individuals use in making judgments about others.
Explain the link between perception and decision making.
List and explain the common decision biases or errors.
Contrast the three ethical decision criteria.
Define creativity and discuss the three-component model of creativity.

4. Perception 感悟 (Gǎnwù) p. 32
A process by which individuals give meaning (reality) to their environment by organizing and understanding the senses of seeing, hearing, touching, smelling and tasting. The world that is perceived is the world that is behaviorally important.

5. Factors Influencing Perception p. 33
Situation
(Seeing an object or event)
Perceiver
(You or me)
Target (People)

6. Perception Challenges: What Do You See?
Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

7. Person Perception: Making Judgments判断 (Pànduàn) About Others P. 33
Attribution Theory: Suggests that people try to “attribute”属性 (Shǔxìng) the observed behavior to a type of cause:
Why do people behave the way they do?
Internal – behavior is believed to be under the personal control of the individual
External – the person is forced into the behavior by outside events/causes
The attribution theory helps us to understand our perceptions about others. Research has shown that our perceptions about others are based upon the assumptions we make about them. The attribution theory says that when we observe behavior we try to determine if it is internally or externally driven. If it is internally driven it is under the person’s control whereas external causes are not under the individual’s control.

8. Determinants of Attribution Making Judgments of Others p. 34
Distinctiveness 不同的 (Bùtóng de) – Does an individual show different behaviors in different situations?
Consensus 共识 (Gòngshì) – does everyone who faces the same situation act in the same way as another person
Consistency 一致性 (Yīzhì xìng) – does a person act the same way over time

9. Determination of Attribution Making Judgments of Others p. 34

10. Attribution Errors p. 35 Fundamental Attribution Error
Not understanding the influence of external factors and overestimating 高估 Gāo gū that of internal factors.
Self-Serving Bias 偏见 Piānjiàn
Occurs when individuals overestimate their own (internal) influence on successes and overestimate the external influences on their failures.

11. Shortcuts or ways we may use in Judging 判断 (Pànduàn) Others p. 35
Selective Perception – judging others based on interests, background, and attitude. May not always be good or fair.
Halo Effect – Thinking a person may always be good, like an angel based on past behavior.
Contrast Effects – judging people based in recent experience, could be good or bad.
Stereotyping 刻板印象 (Kèbǎn yìnxiàng) – judging someone on the basis of the perception of the group to which they belong.

12. The Link Between Perception and Decision Making p. 36
Decision making occurs as a reaction to a problem we perceive or see
Perception influences:
Reaction or response to a problem that exists
The interpretation and evaluation of information
How we look at (analyze) and draw conclusions

13. GROUP ACTIVITY – DO YOU SEE WHAT I SEE?
Everyone sees people through our own eyes Perception provides a way we can guide our behavior and the way we relate to others. 1. In your small groups each person choose a picture and write a short story about what you see in the photo.

14. GROUP ACTIVITY – DO YOU SEE WHAT I SEE?
2. Share your story with the group. Compare the different perceptions and discuss stereotypes 定型 (Dìngxíng) and how first impressions 印象 (Yìnxiàng) can shape behavior and communication.

15. Rational 理性 (Lǐxìng) Decision-Making Model p 37
Define the problem.
Identify how we make a decision.
Determine what is most important.
Develop the alternatives, options.
Evaluate the alternatives, options.
Select the best alternative, option.
Seldom actually used: more of a goal than a practical method

16. Intuitive 直观 (Zhíguān) Decision Making p. 38
Intuition – “Gut Feeling”
A non-conscious process that occurs as a result of experiences that result in quick decisions.
Increases with experience
Can be a powerful complement to rational analysis in decision making

17. Common Biases & Errors p. 38-40
Overconfidence Bias – A person thinks too much of his own ability to make good decisions.
As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence
Anchoring Bias – Focused too much on the first information received in making decisions.
Confirmation Bias – Using only information from the past and past experiences to make a decision.
There are many biases and errors that occur in the decision-making process. The overconfidence bias is when an individual believes too much in his own ability to make good decisions. The anchoring bias is when an individual makes decisions based on the information received first and not on the new information received. The next error often made is with the confirmation bias where, during the decision-making process, the individual uses only facts that support his decision.

18. Common Biases & Errors p. 38-40
Availability Bias - Making judgments only on information that is available now
Escalation of Commitment - Staying with a decision even when there is clear evidence that it is wrong
Risk Aversion - Preferring a sure thing over a risky outcome
Hindsight Bias - Believing that we could have predicted the outcome of an event after that outcome is already known. Reduces our ability to learn from the past.
Some additional decision-making errors include the randomness error which involves believing that we can predict the outcome of random events. The availability bias which involves emphasizing information that is more readily at hand, information that is recent and vivid. The escalation of commitment error occurs when there is an increasing commitment to a decision in spite of evidence that it is the wrong decision.
Risk aversion is when the decision maker has a tendency to prefer a sure thing over a risky outcome. The hindsight bias occurs after an outcome is already known and then believing it could have been accurately predicted beforehand.

19. Organizational Constraints 限制 (Xiànzhì) on Decision Making p 40, 41
Performance evaluations
Reward systems
Formal regulations
Self-made time constraints
Historical precedents (what has happened before)

20. Ethical 合乎道德的 (Héhū dàodé de) Frameworks for Decision Making p. 41,42
Utilitarian 功利 Gōnglì
Provide the greatest good for the greatest number of people
Rights
make decisions consistent with fundamental freedoms and privileges
Justice
impose and enforce rules fairly and impartially so that there is equal distribution of benefits and costs

21. Creativity in Decision Making p 42
The ability to produce new and useful ideas
Helps people to:
Better understand the problem
See problems others can’t see
Identify all good alternatives
Identify alternatives that are not able to see right away.

22. Three-Component Model of Creativity p. 43, 44
Expertise
Natural or
Intrinsic 征
(Zhēng) Task Motivation
Creative-Thinking Skills

23. Global Implications Attributions (Links): Decision Making: Ethics:
Cross-cultural differences exist – especially in collectivist traditions
Decision Making:
Cultural background of the decision maker can have significant influence on decisions made
Ethics:
No global ethical standards exist
Need organizational-level guidance

24. Implications for Managers
Perception:
To increase productivity, influence workers’ perceptions of their jobs
To improve decision making:
Analyze the situation
Adjust your decision approach
Be aware of preferences (favorites or bias) and minimize their impact
Combine rational analysis with intuition
Try to enhance your creativity

25. Keep in Mind…
People have inherent biases, preferences or ways of looking and thinking about things in perception and decision making
Understanding those biases allows for better prediction of behavior
Biases can be helpful
Managers must determine when the bias may be counterproductive
Creativity aids in decision making
Helps to appraise, understand, and identify problems

26. Summary
Defined perception and explained the factors that influence it. Slide 4
Identified the shortcuts individuals use in making judgments about others. Slide 11
Explained the link between perception and decision-making. Slide 12

27. Summary 5. Contrasted the three ethical decision criteria. Slide 20
4. Looked at common biases/errors in making decisions. Slides 17, 18
5. Contrasted the three ethical decision criteria. Slide 20
6. Defined creativity and discussed the three- component model of creativity. Slide 21

28. GROUP ACTIVITY –WHO AM I?
Learning more about how others view us makes it easier to know how we are seen in social situations.
On a paper, write down words and phrases that describe who you are.

29. GROUP ACTIVITY –WHO AM I? cont.
3. On a new sheet of paper, 1 person writes his/her name at the top. 4. Pass this paper to the person next to you. Each person then writes a word or phrase that describes the person whose name is at the top of the paper. 5. Keep passing the paper around until it returns to the person listed. Have everyone compare what they wrote about themselves to what was written by others. 6. Discuss the similarities and differences people see about you.

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