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Organizational Behaviour Stephen Robbins 14Ed. Chapter 6

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Kelli J Schutte

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Organizational Behaviour Stephen Robbins 14Ed. Chapter 6

  1. 1. Kelli J. Schutte William Jewell College Robbins & Judge Organizational Behavior 14th Edition Perception and Individual Decision Making Perception and Individual Decision Making Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-1
  2. 2. Topics we will coverTopics we will cover  Chapter 6  Perception: what is, Factors that influence perception  Attribution Theory  The rational model, bounded rationality, and intuition  Common biases and errors in decision making – Skip: randomness error, risk aversion, hindsight bias  Ethics: Three ethical decision criteria  Improving creativity in decision making Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall . 6-2
  3. 3. What is Perception?What is Perception?  A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.  People’s 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. Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-3
  4. 4. Factors that Influence PerceptionFactors that Influence Perception Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-4 See E X H I B I T 6-1 See E X H I B I T 6-1
  5. 5. Attribution Theory: Judging OthersAttribution Theory: Judging Others  Our perception and judgment of others is significantly influenced by our assumptions of the other person’s internal state. – When individuals observe behavior, they attempt to determine whether it is internally or externally caused. • Internal causes are under that person’s control • External causes are not under the person’s control  Causation judged through: – 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 Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-5
  6. 6. Elements of Attribution TheoryElements of Attribution Theory Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-6 See E X H I B I T 6-2 See E X H I B I T 6-2
  7. 7. Errors and Biases in AttributionsErrors and Biases in Attributions  Fundamental Attribution Error – The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others – We blame people first, not the situation  Self-Serving Bias – The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors – It is “our” success but “their” failure Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-7
  8. 8. Decision-Making Models in OrganizationsDecision-Making Models in Organizations  Rational Decision Making – The “perfect world” model – Assumes: • complete information, all options known, and maximum payoff – Six-step decision-making process; 1. Define the problem 4. Develop alternatives 2. Id. The decision criteria 5. Evaluate alternatives 3. Allocate weights to criteria 6. Select best alternative Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-8 See E X H I B I T 6-3 See E X H I B I T 6-3
  9. 9. Decision-Making Models in OrganizationsDecision-Making Models in Organizations  Bounded Reality – The “real world” model: seeks satisfactory and sufficient solutions from limited data and alternatives – Why limited data? • People respond to complex problems by “reducing” it to a level they can understand • We construct “simplified” models  Intuition – A non-conscious process created from distilled experience that results in quick decisions • Relies on holistic associations, its fast • Affectively charged – engaging the emotions – “form of reasoning that is based on years of experience and learning” Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-9
  10. 10. Common Biases and Errors in Decision MakingCommon Biases and Errors in Decision Making  Overconfidence Bias – Believing too much in our own ability to make good decisions – especially when outside of own expertise  Anchoring Bias – Using early, first received information as the basis for making subsequent judgments  Confirmation Bias – Selecting and using only facts that support our decision  Availability Bias – Emphasizing information that is most readily at hand • Recent • Vivid Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-10
  11. 11. More Common Decision-Making ErrorsMore Common Decision-Making Errors  Escalation of Commitment – Increasing commitment to a decision in spite of evidence that it is wrong – especially if responsible for the decision! – Perhaps they have invested too much time, resources, energy – Determined to prove they were right Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-11
  12. 12. Ethics in Decision MakingEthics in Decision Making  Ethical Decision Criteria – Utilitarianism • Decisions made based solely on the outcome • Seeking the greatest good for the greatest number • Dominant method for businesspeople – Rights • Decisions consistent with fundamental liberties and privileges • Respecting and protecting basic rights of individuals such as whistleblowers – Justice • Imposing and enforcing rules fairly and impartially • Equitable distribution of benefits and costs • Unions tend to support this criteria Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall . 6-12
  13. 13. Ethical Decision-Making Criteria AssessedEthical Decision-Making Criteria Assessed  Utilitarianism – Pro: Promotes efficiency and productivity – Con: Can ignore individual rights, especially minorities  Rights – Pro: Protects individuals from harm; preserves rights – Con: Creates an overly legalistic work environment  Justice – Pro: Protects the interests of weaker members – Con: Encourages a sense of entitlement Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall . 6-13
  14. 14. Improving Creativity in Decision MakingImproving Creativity in Decision Making  Creativity – The ability to produce novel and useful ideas  Who has the greatest creative potential? – Those who score high in Openness to Experience – People who are intelligent, independent, self-confident, risk- taking, have an internal locus of control, tolerant of ambiguity, low need for structure, and who persevere in the face of frustration Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-14
  15. 15. The Three Component Model of CreativityThe Three Component Model of Creativity Proposition that individual creativity results from a mixture of three components – Expertise is the foundation – Creative-Thinking Skills are the personality characteristics associated with creativity – Intrinsic Task Motivation is the desire to do the job because of its characteristics Copyright © 2011 Pearson Education, Inc. publishing as Prentice Hall 6-15 See E X H I B I T 5-4 See E X H I B I T 5-4

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