1. Perception and Individual Decision Making
Chapter 5
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2. Learning Objectives
Learn that two people can see the same thing and interpret it differently
List the three determinants of attribution
Describe how shortcuts can either assist or distort judgment
Examine perception and decision-making
Study the rational decision-making model
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3. Learning Objectives
Describe the actions of the boundedly rational decision maker
Learn when individuals are most likely to use intuition in decision making
Describe four styles of decision making
Learn how heuristics bias decisions
Contrast the three ethical decision criteria
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4. What is Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
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5. Factors That Influence Perception
Situation
Target
Perceiver
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6. The Perceiver Attitude Motives Interests Past experiences
Expectations (stereotypes)
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7. The Target Novelty Motion Sounds Size Background proximity
Persons, objects and events that similar to each other tend to be grouped together
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8. The Situation Time Work setting Social setting Prentice Hall, 2001
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9. Person Perception: making Judgments about Others
Attribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally caused
Distinctiveness
Consensus
Consistency
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10. Theory and Individual Behavior
Attribution
of Cause
Interpretation
Observation
Theory and
Individual
Behavior
External
Internal
Distinctiveness
Consensus
Consistency
High
Low
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11. Frequently Used Shortcuts When Judging Others
Selective
Perception
Halo Effect
Contrast
Effect
Projection
Stereotyping
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12. Perception Errors Fundamental attribution error Self-serving bias
Tendency to underestimate external factors and overestimate internal factors
Self-serving bias
Tendency for individuals to attribute their own successes to internal factors rather than external factors (i.e., luck)
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13. Judgmental errors Selective perception Halo effect
Selectively interpret what they see on the basis of their interest, background , experience and attitudes
Halo effect
Drawing a general impression about an individual on the basis of a single characteristic
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14. Perception Errors Contrast Effects Projection Stereotyping
Evaluation of a person’s characteristics that are affected by comparisons with other people
Projection
Attributing one’s own characteristics to other people
Stereotyping
Judging someone on the basis of one’s perception of the group in which that person belongs
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15. Specific Applications in Organizations
Employment interview
Performance expectations
Self-fulfilling prophecy: expectations cause behaviors consistent with original perceptions
Performance evaluation
Employee effort
More workers are fired for poor attitudes than for lack of ability
Employee loyalty
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16. Perception and Individual Decision Making
Awareness and
Recognition of Problems
Perception and
Individual Decision Making
Interpretation and
Evaluation of Information
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17. Rational Model of Decision Making
Problem
Identify and
Define Problem
Develop
Alternatives A1 A2 A3 A4 An
Evaluate +
Criteria
Weight
the Criteria
T E C H
Set Decision
Choice
Make Optimal
Decision
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18. Assumptions of the Model
One:
Problem Clarity
Four:
Constant Preferences
Two:
Known Options
Five:
No Constraints
Three:
Clear Preferences
Six:
Maximum Payoff
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19. The Three Components of Creativity
Expertise
Creativity
Task
Motivation
Creativity
Skills
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20. Bounded Rationality Constraints Solutions Time Resources/costs
Information
Solutions
Acceptable, Satisfied, but may not optimal
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21. A Model of Bounded Rationality
Ascertain
the Need
for a Decision
Select
Criteria
Identify a
Limited Set
of Alternatives
Compare
Alternatives
Against Criteria
Select the
First “Good
Enough” Choice
Yes
Simplify
the Problem
Expand
Search for
Alternatives
A “Satisficing”
Alternative
Exists No
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22. Intuitive Decision Making
An unconscious process created out of distilled experience
High uncertainty levels
Little precedent
Hard to predictable variables
Limited facts
Unclear sense of direction
Analytical data is of little use
Several plausible alternatives
Time constraints
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23. Two Important Decision-Making Phases
Alternative
Development
Problem
Identification
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24. Making Choices in the Workplace
Availability
Heuristic
Representative
Escalation of
Commitment
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25. Making Choices Availability heuristic Representative
The tendency for people to base their judgments on information that is readily available
Representative
Assessing the likelihood of an occurrence by matching it with a preexisting category
Escalating commitment
An increased commitment to a previous decision in spite of negative information
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26. Decision-Making Styles Tolerance for Ambiguity
High
Analytic
Conceptual
Tolerance for Ambiguity
Directive
Behavioral
Low
Rational
Way of Thinking
Intuitive
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27. Organizational Constraints
Performance
Evaluation
Reward
System
Organizational Constraints
Programmed
Routines
Historical
Precedents
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28. Cultural Differences Problem Identification The Value of Rationality
Time
Orientation
Groups or
Individuals
Cultural
Differences
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29. Ethics in Decision-Making
Utilitarian
Rights
Justice
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30. Discussion Biases in decision making (p. 149) Ethical dilemma (p. 150)
Video Case (p. 151)
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