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Perception  and Individual  Decision Making
What Is Perception, and Why Is It Important? ,[object Object],[object Object],Perception A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
Factors that Influence Perception E X H I B I T  5 –1
Person Perception: Making Judgments About Others 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. Attribution Theory When individuals observe behavior, they attempt to determine whether it is internally or externally caused.
Attribution Theory E X H I B I T  5 –2
Errors 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 In general, we tend to blame the  person  first, not the situation.
Errors and Biases in Attributions (cont’d) Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors Thought: When students get an “A” on an exam, they often say they studied hard. But when they don’t do well, how does the self-serving bias come into play?  Hint: Whose fault is it usually when an exam is “tough”?
Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics
Frequently Used Shortcuts in Judging Others Projection Attributing one’s own characteristics to other people Stereotyping Judging someone on the basis of one’s perception of the group to which that person belongs
Specific Applications in Organizations ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Specific Applications in Organizations (cont’d) ,[object Object],[object Object]
The Link Between Perceptions and Individual Decision Making Perception of the Decision Maker Outcomes Problem A  perceived  discrepancy between the current state of affairs and a desired state Decisions Choices made from among alternatives developed from data  perceived  as relevant
Assumptions of the Rational Decision-making Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Rational Decision- making Model Describes how individuals should behave in order to maximize some outcome
Steps in the Rational Decision-making Model ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],E X H I B I T  5 –3
The Three Components of Creativity Creativity The ability to produce novel and useful ideas Three-Component  Model of Creativity Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation E X H I B I T  5 –4 Source:  T.M. Amabile, “Motivating Creativity in Organizations,”  California Management Review , Fall 1997, p. 43.
How Are Decisions Actually Made in Organizations? Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
How Are Decisions Actually Made in Organizations? (cont’d) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Biases and Errors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Biases and Errors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Common Biases and Errors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Intuition ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Individual Differences in Decision Making  Source:  A.J. Rowe and J.D. Boulgarides,  Managerial Decision Making , (Upper Saddle River, NJ: Prentice Hall, 1992), p. 29. ,[object Object],[object Object],[object Object],[object Object],[object Object]
Organizational Constraints on Decision Makers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cultural Differences in Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object]
Ethics in Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Ethics in Decision Making ,[object Object],[object Object],[object Object]
Ways to Improve Decision Making ,[object Object],[object Object],[object Object],[object Object],[object Object]
Toward Reducing Bias and Errors ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],E X H I B I T  5 –5 Source:  S.P. Robbins,  Decide & Conquer: Making Winning Decisions and Taking Control of Your Life  (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), pp. 164–68.
[object Object],[object Object],[object Object],[object Object],[object Object],Chapter Check-up: Perception
[object Object],Chapter Check-up: Perception ,[object Object],[object Object],[object Object],[object Object],Discuss with your neighbor what the answer would be if your sister came home and said “I just knew that everyone would buy that dress!”
If all of these perceptual shortcuts happen un-consciously, how can we keep the stereotypes we have from interfering with the way we work in group projects? Identify two specific things you could do to help prevent stereotypes from inhibiting effective group relationships. Discuss with a neighbor.  Chapter Check-up: Perception
[object Object],Chapter Check-up: Decision Making
In making his decision, Michael forgot to consider the implications of the color of paint in the room where each class was being offered. Given that room color can influence mood, which can influence performance,  why didn’t Michael consider it ?   Chapter Check-up: Decision Making
Michael engaged in the  rational decision making model,  and didn’t consider the paint color of the rooms because he operates under the confines of  bounded rationality.  Chapter Check-up: Decision Making
Chapter Check-up: What biases might have affected Martha Stewart’s judgment? Discuss with a classmate.

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Perception and individual decision making

  • 1. Perception and Individual Decision Making
  • 2.
  • 3. Factors that Influence Perception E X H I B I T 5 –1
  • 4. Person Perception: Making Judgments About Others 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. Attribution Theory When individuals observe behavior, they attempt to determine whether it is internally or externally caused.
  • 5. Attribution Theory E X H I B I T 5 –2
  • 6. Errors 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 In general, we tend to blame the person first, not the situation.
  • 7. Errors and Biases in Attributions (cont’d) Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors Thought: When students get an “A” on an exam, they often say they studied hard. But when they don’t do well, how does the self-serving bias come into play? Hint: Whose fault is it usually when an exam is “tough”?
  • 8. Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
  • 9. Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic Contrast Effects Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics
  • 10. Frequently Used Shortcuts in Judging Others Projection Attributing one’s own characteristics to other people Stereotyping Judging someone on the basis of one’s perception of the group to which that person belongs
  • 11.
  • 12.
  • 13. The Link Between Perceptions and Individual Decision Making Perception of the Decision Maker Outcomes Problem A perceived discrepancy between the current state of affairs and a desired state Decisions Choices made from among alternatives developed from data perceived as relevant
  • 14.
  • 15.
  • 16. The Three Components of Creativity Creativity The ability to produce novel and useful ideas Three-Component Model of Creativity Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation E X H I B I T 5 –4 Source: T.M. Amabile, “Motivating Creativity in Organizations,” California Management Review , Fall 1997, p. 43.
  • 17. How Are Decisions Actually Made in Organizations? Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31.
  • 32. If all of these perceptual shortcuts happen un-consciously, how can we keep the stereotypes we have from interfering with the way we work in group projects? Identify two specific things you could do to help prevent stereotypes from inhibiting effective group relationships. Discuss with a neighbor. Chapter Check-up: Perception
  • 33.
  • 34. In making his decision, Michael forgot to consider the implications of the color of paint in the room where each class was being offered. Given that room color can influence mood, which can influence performance, why didn’t Michael consider it ? Chapter Check-up: Decision Making
  • 35. Michael engaged in the rational decision making model, and didn’t consider the paint color of the rooms because he operates under the confines of bounded rationality. Chapter Check-up: Decision Making
  • 36. Chapter Check-up: What biases might have affected Martha Stewart’s judgment? Discuss with a classmate.