2 What is Perception and Why is it Important? Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.It’s important because people’s behavior is based on their perception of what reality is, not on reality itself.
3 FactorsThe Perceiver – attitudes, motives, interests, experiences, expectationsThe Target – novelty, motions, sounds, size, background, proximity, similarityThe Situation – time, work setting, social situation
4 Attribution Theory Fundamental Attribution Error The tendency to… Underestimate the influence of external factors (outside of a person’s control)Overestimate the influence of internal (what you can control) factorsWhen making judgments about the behavior of others.
5 Attributions Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.
6 Sample “Shortcuts” Selective Perception Halo Effect Contrast Effects People selectively interpret what they see on the basis of their interest, background, experience, and attitudes.Halo EffectDrawing a general impression about an individual on the basis of a single characteristic.Contrast EffectsComparisons with other people recently encountered who rank higher or lower on the same characteristics.ProjectionAttributing one’s own characteristics to other people
7 Specific Applications in Organizations Employment InterviewPerceptual biases affect the accuracy of interviewers’ judgments of applicants.Performance ExpectationsSelf-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived expectations about employee capabilities.Performance EvaluationsAppraisals are subjective perceptions of performance.Employee EffortAssessment of individual effort is a subjective judgment subject to perceptual distortion and bias.
8 Assumptions of the Rational Decision-Making Model Problem clarityKnown optionsClear preferencesConstant preferencesNo time or cost constraintsMaximum payoff
9 So, how 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.Intuitive Decision MakingIntuition = an unconscious process created out of distilled experience.
10 “Problems? What Problems?” How and why are some problems identified?Visibility over importance of problemAttention-catching, high profile problemsDesire to “solve problems”Self-interest (if problem concerns decision maker!)Alternative Development“Good enough”: seeking the first alternative that solves problem.
11 Organizational Constraints on Decision Makers Performance EvaluationEvaluation criteria influence the choice of actions.Reward SystemsDecision makers make action choices that are favored by the organization.Formal RegulationsOrganizational rules and policies limit the alternative choices of decision makers.System-imposed Time ConstraintsOrganizations require decisions by specific deadlines.Historical PrecedentsPast decisions influence current decisions.
12 Summary and Implications for Managers Perception- Individuals behave based on what they see or believe reality to be.- Evidence suggests that what individuals perceive from their work situation will influence their productivity more than will the situation itself.- Absenteeism, turnover, and job satisfaction are also reactions to the individual’s perceptions.
13 Summary (continued) Individual Decision Making - Individuals think and reason before they act.- Under some decision situations, people follow the rational decision- making model. However, this doesn’t happen very often…So, what can managers do to improve their decision making?- Analyze the situation.- Be aware of biases.- Combine rational analysis with intuition. - Don’t assume that your specific decision style is appropriate for every job.- Use creativity-stimulation techniques when possible.