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    Robbins eob9 inst_ppt_04 Robbins eob9 inst_ppt_04 Presentation Transcript

    • Perception and Individual Decision Making Chapter 4 Essentials of Organizational Behavior, 9/e Stephen P. Robbins/Timothy A. Judge
    • After studying this chapter, you should be able to:
      • Explain how two people can see the same thing and interpret it differently.
      • List three determinants of attribution.
      • Describe how shortcuts can assist in or distort our judgment of others.
      • Explain how perception affects the decision-making model.
      • Outline the six steps in the rational decision-making model.
    • After studying this chapter, you should be able to:
      • Describe the actions of the boundedly rational decision maker.
      • List and explain the common decision biases or errors.
      • Identify the conditions in which individuals are most likely to use intuition in decision making.
      • Contrast the three ethical decision criteria.
    • Perception
      • A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
      • The world as it is perceived is the world that is behaviorally important.
    • Factors Influencing Perception
    • Attribution Theory
      • Suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused
        • Internally – believed to be under the personal control of the individual
        • Externally – resulting from outside causes
    • Determinants of Attribution
      • Distinctiveness – whether an individual displays different behaviors in different situations
      • Consensus – if everyone who faces a similar situation responds in the same way
      • Consistency – does the person respond the same way over time
    • Determination of Attribution
    • Attribution Errors
      • Fundamental Attribution Error – when we make judgments about the behavior of others, we tend to underestimate external influence and overestimate internal influence
      • Self-serving Bias – we tend to attribute our own success to internal factors and put the blame for failure on external factors
    • Shortcuts used in Judging Others
      • Selective Perception – a characteristic that makes someone stand out in our mind will increase the probability that it will be perceived
      • Halo Effect – drawing a general impression based on a single characteristic
      • Contrast Effects – our reaction is influenced by others we have recently encountered
      • Projection – the tendency to attribute our own characteristics to other people
      • Stereotyping – judging someone on the basis of our perception of the group to which they belong
    • Link between Perception and Decision Making
      • Decision making occurs as a reaction to a problem
      • Perception influences:
        • Awareness that a problem exists
        • The interpretation and evaluation of information
        • Bias of analysis and conclusions
    • Rational Decision-Making Model
    • Assumptions of the Model
      • The problem is clear and unambiguous
      • Options are known
      • Clear preferences
      • Constant preferences
      • No time or cost constraints
      • Maximum payoff
    • Creativity in Decision Making
      • The ability to produce novel and useful ideas
      • Importance is:
        • Better understand the problem
        • See problems others can’t see
        • Identify all viable alternatives
        • Identify alternatives that aren’t readily apparent
    • Three-Component Model of Creativity
    • Bounded Rationality
      • The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize
      • So people seek solutions that are satisfactory and sufficient, rather than optimal
      • Bounded rationality is constructing simplified models that extract the essential features from problems without capturing all their complexity
    • Common Biases and Errors
      • Overconfidence Bias – As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence
      • Anchoring Bias – a tendency to fixate on initial information and fail to adequately adjust for subsequent information
      • Confirmation Bias – seeking out information that reaffirms our past choices and discounting information that contradicts past judgments
    • Common Biases and Errors
      • Availability Bias – the tendency to base judgments on information that is readily available
      • Representative Bias – the tendency to assess the likelihood of an occurrence by inappropriately considering the current situation as identical to past situations
      • Escalation of Commitment – staying with a decision even when there is clear evidence that it is wrong
    • Common Biases and Errors
      • Randomness Error – the tendency to believe that we can predict the outcome of random events
      • Hindsight Bias – the tendency to believe falsely that we accurately predicted the outcome of an event after that outcome is actually known
    • Intuitive Decision Making
      • An unconscious process created out of distilled experience
      • Complements rational analysis
      • Can be a powerful force in decision making
    • When is Intuitive Decision Making Used?
      • A high level of uncertainty exists
      • There is little precedent to draw on
      • Variables are less scientifically predictable
      • “ Facts” are limited
      • Facts don’t clearly point the way
      • Analytical data are of little use
      • There are several plausible alternatives with good arguments for each
      • Time is limited and there is pressure to come up with the right decision
    • Individual Differences
      • Personality – specific facets of conscientiousness affect escalation of commitment
      • Gender – Females are more likely to carefully consider problems and choices but also overanalyze and rehash the decision once it is made
    • Organizational Constraints
      • Performance Evaluation
      • Reward Systems
      • Formal Regulations
      • System-Imposed Time Constraints
      • Historical Precedents
    • Cultural Differences
      • Culture of decision maker influences:
        • Time orientation
        • Importance of rationality
        • Belief in the ability of people to solve problems
        • Preference for collective decision making
    • Criteria used in making ethical choices
      • Utilitarian – provide the greatest good for the greatest number
      • Rights focus – make decisions consistent with fundamental liberties and privileges
      • Justice focus – impose and enforce rules fairly and impartially so that there is equal distribution of benefits and costs
    • Implications for Managers
      • To influence productivity, assess workers perceptions of their jobs
      • To improve decision making:
        • Analyze the situation
        • Be aware of biases and minimize their impact
        • Combine rational analysis with intuition
        • Try to enhance your creativity
    • Summary
      • Explained how two people can see the same thing and interpret it differently.
      • Listed three determinants of attribution.
      • Described how shortcuts can assist in or distort our judgment of others.
      • Explained how perception affects the decision-making model.
      • Outlined the six steps in the rational decision-making model.
    • Summary
      • Described the actions of the boundedly rational decision maker.
      • Listed and explained the common decision biases or errors.
      • Identified the conditions in which individuals are most likely to use intuition in decision making.
      • Contrasted the three ethical decision criteria.