The document delves into the topics of perception, attribution, emotions, and emotional intelligence within the context of organizational behavior. It discusses various biases and errors in decision-making and how emotions impact workplace dynamics, including the challenge of expressing emotions at work and the implications of emotional intelligence. Through case studies and examples, it highlights the importance of recognizing and managing emotions effectively in organizational settings.

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Unit – 3 CHAPTER - 10
Perception, Attributions, Emotion
& Emotional Intelligence
MBA 12 ORGANIZATIONAL
BEHAVIOUR - 1
Delivered By,
Dr. S. Gokula Krishnan, PhD.,
Associate Professor – OB, HR & Data Analytics,
Nehru School of Management,
Nehru College of Engineering & Research Centre.
E-mail : prof.gokulakrishnan@gmail.com
Discussions on
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM2
 Case Incident: PredictionsThat Didn’t Quite Pan Out (p.206)
 What is Perception?
 Factors that influencing Perception
 Person Perception: Making Judgment About Others
 AttributionTheory
 Common shortcuts in judging others
 Individual Decision Making
 Impression Management
 Case Incident: Is It Okay to Cry atWork (p.128)
 Emotions
 Emotional Intelligence
Reference:
Stephen P Robbins,Timothy A Judge & NeharikaVohra, Organizational Behaviour,
15th ed., p. 175-201 & 101-125

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Case Incident: Predictions That Didn’t Quite Pan Out
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM3
Consider the following examples of predictions:
 Prediction: “More people are going to be put to work this summer.”— Vice President Joe
Biden (June 17, 2010)
 Status: By August, job growth in the private sector fell by two-thirds and unemployment
increased to 9.8 percent in November.
 Prediction: “The market is telling you that something is not quite right. . . . The Chinese
economy is going to slow down regardless.”—Investment analyst Marc Faber (May 3,
2010)
 Status: The Chinese economy grew by 9.5 percent over the rest of the year.
 Prediction: A quick, prepackaged bankruptcy for General Motors might stall, leading to
“a long period of bankruptcy which I believe would result in liquidation of the
company.”—CEO RickWagoner (March 17, 2009)
 Status: GM’s bankruptcy court lasted a mere 40 days, and by September the company
held $43 billion in cash.
 Prediction: “My long-term opinion is that the bear market has several years left to run,
and stock prices will go a lot lower. . . . So any rally that happens is going to be a bear
market rally.”—Robert Prechter, CEO at research company Elliot Wave International
(February 27, 2009)
 Status: The S&P 500 was up 64 percent from its lowest point by the middle of
December, and stocks have continued to perform well since.
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM4
 Prediction: “I think this is a case where Freddie Mac (FRE) and Fannie Mae (FNM)
are fundamentally sound.They’re not in danger of going under. . . . I think they are
in good shape going forward.”—Representative Barney Frank (July 14, 2008)
 Status: Just 2 months later, the mortgage companies were in conservatorship, and
the government had pledged to invest $100 billion in each.
 Prediction: “I think Bob Steel’s the one guy I trust to turn this bank around, which
is why I’ve told you on weakness to buyWachovia.”—CNBC commentator Jim
Cramer (March 11, 2008)
 Status: Investors fledWachovia within the next 2 weeks, and the company nearly
failed, with shares losing half their value from September 15 to December 29.
Questions
1. Despite the difficulty of making predictions, many people confidently make
assertions about what will happen in the future.Why do you think this is?
2. What perceptual or decision-making errors can you identify in these predictions?
3. Can you think of some predictions you’ve made that haven’t turned out the way
you expected?
4. Why do you think it’s so hard to make accurate predictions?

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Perception
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM5
 Definition A process by which individuals organize and
interpret their sensory impressions in order to give meaning to
their environment
Person Perception: Making Judgment About
Others
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM6
 Attribution theory An attempt to determine whether an individual’s
behavior is internally or externally caused.
 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.
 Self-serving bias The tendency for individuals to attribute their own
successes to internal factors and put the blame for failures on external
factors.

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Dr. S. GOKULA KRISHNAN,Associate Professor @NSM7
Common shortcuts in judging others
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM8
 Selective perception The tendency to selectively interpret
what one sees on the basis of one’s interests, background,
experience, and attitudes.
 Halo effect The tendency to draw a general impression about an
individual on the basis of a single characteristic
 Contrast effect Evaluation of a person’s characteristics that is
affected by comparisons with other people recently encountered
who rank higher or lower on the same characteristics
 Stereotyping Judging someone on the basis of one’s perception
of the group to which that person belongs

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Individual Decision Making
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM9
 The Link Between Perception and Individual Decision Making
 Decisions Choices made from among two or more alternatives.
 Problem A discrepancy between the current state of affairs and some
desired state
 Decision Making in Organizations
 Rational Characterized by making consistent, value-maximizing choices
within specified constraints.
 Rational decision-making model A decision-making model that
describes how individuals should behave in order to maximize some outcome.
complexity.
 Intuitive decision making An unconscious process created out of distilled
experience.
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM10

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Common Biases and Errors in Decision
Making
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM11
 Anchoring bias A tendency to fixate n initial information, from which one
then fails to adequately adjust for subsequent information.
 Confirmation bias The tendency to seek out information that reaffirms past
choices and to discount information that contradicts past judgments.
 Availability bias The tendency for people to base their judgments on
information that is readily available to them.
 Escalation of commitment An increased commitment to a previous
decision in spite of negative information.
 Randomness error The tendency of individuals to believe that they can
predict the outcome of random events.
 Risk aversion The tendency to prefer a sure gain of a moderate amount over
a riskier outcome, even if the riskier outcome might have a higher expected
payoff.
 Hindsight bias The tendency to believe falsely, after an outcome of an event
is actually known, that one would have accurately predicted that outcome.
Influences on decision making
Individual Differences Organizational Constraints
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM12
 Personality
 Gender
 MentalAbility
 Cultural Differences
 Performance Evaluation
 Reward Systems
 Formal Regulations
 System-ImposedTime
Constraints
 Historical Precedents

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Impression Management
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM13
 Impression management is a conscious or subconscious process in which people attempt
to influence the perceptions of other people about a person, object or event. They do so by
regulating and controlling information in social interaction
 Kindly referWikipedia.org for further references
 2Theory
 2.1Motives
 2.2Self-presentation
 2.3Social interaction
 2.4Dramaturgical analogy
 2.5Manipulation and ethics
 3Application
 3.1Face-to-face communication
 3.1.1Self, social identity and social interaction
 3.1.2Cross-cultural communication
 3.1.3Team-working in hospital wards
 3.2Computer-mediatedcommunication
 3.2.1Corporate brand
 3.2.1.1Corporate storytelling
 3.2.1.2Corporate document
 3.2.2Media
 3.2.2.1Profiles on social networking sites
CASE INCIDENT: Is It Okay to Cry at Work?
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM14
As this chapter has shown, emotions are an inevitable par of people’s
behavior at work. At the same time, it’s not entirely clear that we’ve reached a point
where people feel comfortable expressing all emotions at work. The reason might be
that business culture and etiquette remain poorly suited to handling overt emotional
displays. The question is, can organizations become more intelligent about emotional
management? Is it ever appropriate to yell, laugh, or cry at work?
Some people are skeptical about the virtues of more emotional displays at
the workplace. As the chapter notes, emotions are automatic physiological responses
to the environment, and as such, they can be difficult to control appropriately. One
22-year-old customer service representative named Laura who was the subject of a
case study noted that fear and anger were routinely used as methods to control
employees, and employees deeply resented this use of emotions to manipulate them.
In another case, the chairman of a major television network made a practice of
screaming at employees whenever anything went wrong, leading to badly hurt
feelings and a lack of loyalty to the organization. Like Laura, workers at this
organization were hesitant to show their true reactions to these emotional outbursts
for fear of being branded as “weak” or “ineffectual.” It might seem like these
individuals worked in heavily emotional workplaces, but in fact, only a narrow range
of emotions was deemed acceptable. Anger appears to be more acceptable than
sadness in many organizations, and anger can have serious maladaptive
consequences.

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Dr. S. GOKULA KRISHNAN,Associate Professor @NSM15
Others believe organizations that recognize and work with emotions effectively are
more creative, satisfying, and productive. For example, Laura noted that if she could. express
her hurt feelings without fear, she would be much more satisfied with her work. In other words,
the problem with Laura’s organization is not that emotions are displayed, but that emotional
displays are handled poorly. Others note that use of emotional knowledge, like being able to
read and understand the reactions of others, is crucial for workers ranging from salespeople and
customer service agents all the way to managers and executives. One survey even found that 88
percent of workers feel being sensitive to the emotions of others is an asset. Management
consultant Erika Anderson notes, “Crying at work is transformative and can open the door to
change.” The question then is, can organizations take specific steps to become better at allowing
emotional displays without opening a Pandora’s Box of outbursts?
Questions
1. What factors do you think make some organizations ineffective at managing emotions?
2. Do you think the strategic use and display of emotions serve to protect employees, or does
covering your true emotions at work lead to more problems than it solves?
3. Have you ever worked where emotions were used as part of a management style? Describe
the advantages and disadvantages of this approach in your experience.
4. Research shows that acts of co-workers (37 percent) and management (22 percent) cause
more negative emotions for employees than do acts of customers (7 percent). 130 What
can Laura’s company do to change its emotional climate?
Emotions and Moods
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM16
 Affect A broad range of feelings that people experience.
 Emotions Intense feelings that are directed at someone or
something.
 Moods Feelings that tend to be less intense than emotions and
that lack a contextual stimulus.
 The basic Moods: Positive and Negative Affect
 Positive affect A mood dimension that consists of specific positive
emotions such as excitement, self-assurance, and cheerfulness at the
high end and boredom, sluggishness, and tiredness at the low end.
 Negative affect A mood dimension that consists of emotions such
as nervousness, stress, and anxiety at the high end and relaxation,
tranquility, and poise at the low end.

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Affect, Emotions, and Moods
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM17
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM18

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Sources of Emotions and Moods
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM19
 Personality
 Weather
 Stress
 Social activities
 Sleep
 Exercise
 Age
 Sex
Emotional Labor
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM20
 Emotional labor A situation in which an employee expresses
organizationally desired emotions during interpersonal
transactions at work.
 Emotional dissonance Inconsistencies between the emotions
people feel and the emotions they project.
 Felt emotions An individual’s actual emotions.
 Displayed emotions Emotions that are organizationally
required and considered appropriate in a given job.
 Surface acting Hiding one’s inner feelings and forgoing
emotional expressions in response to display rules.
 Deep acting Trying to modify one’s true inner feelings based on
display rules.

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Affective Events Theory
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM21
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM22
 Affective Events Theory (AET) A model that suggests that workplace
events cause emotional reactions on the part of employees, which then
influence workplace attitudes and behaviors
Tests of affective events theory suggest the following:
 An emotional episode is actually a series of emotional experiences,
precipitated by a single event and containing elements of both emotions
and mood cycles.
 Current emotions influence job satisfaction at any given time, along with
the history of emotions surrounding the event.
 Because moods and emotions fluctuate over time, their effect on
performance also fluctuates.
 Emotion-driven behaviors are typically short in duration and of high
variability.
 Because emotions, even positive ones, tend to be incompatible with
behaviors required to do a job, they typically have a negative influence on
job performance.

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Emotional Intelligence
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM23
 Emotional Intelligence (EI) The ability to detect and to manage
emotional cues and information.
 Emotional Intelligence (EI) is a person’s ability to
 (1) perceive emotions in the self and others,
 (2) understand the meaning of these emotions, and
 (3) regulate one’s emotions accordingly in a cascading model
Emotional Intelligence
The Case for EI ( Merits)
The Case against EI ( De-
Merits)
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM24
 Intuitive Appeal
 EI Predicts Criteria
That Matter
 EI Is Biologically Based
 EI Researchers Do Not
Agree on Definitions
 EI Can’t Be Measured
 EI Is Nothing but
Personality with a
Different Label

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OB Applications of Emotions and
Moods
Dr. S. GOKULA KRISHNAN,Associate Professor @NSM25
 Selection
 Decision Making
 Creativity
 Motivation
 Leadership
 Negotiation
 Customer Service
 JobAttitudes
 DeviantWorkplace Behaviors
 Safety and injury at work
END OF THE CHAPTER