Perception and D-M

8/8/2019 Perception and D-M

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Perception

and IndividualDecision Making


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What Is Perception, and Why Is It

Important? Peoples behavior is

based on their

perception of whatreality is, not on reality

itself.

The world as it is

perceived is the worldthat is behaviorally

important.

Perception

A process by which

individuals organize and

interpret their sensory

impressions in order togive meaning to their

environment.


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ac ors

that

InfluencePerceptio

n


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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 isinternally or externally

caused.


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Attribution Theory


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Errors and Biases in AttributionsFundamental Attribution Error

The tendency to underestimate the

influence of external factors and

overestimate the influence of

internal factors when makingjudgments about the behavior of

others

In general, we

tend to blame theperson first, not

the situation.


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Errors and Biases in Attributions

(contd)Self-Serving BiasThe tendency for individuals to

attribute their own successes to

internal factors while putting the

blame for failures on externalfactors

Thought: When

students get an A on

an exam, they often

say they studied hard.

But when they dontdo well, how does the

self-serving bias

come into play?

Hint: Whose fault is itusually when an

exam is tough?


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Frequently Used Shortcuts in

Judging OthersSelective PerceptionPeople selectively interpret what they see on the basis

of their interests, background, experience, and

attitudes.


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Judging OthersHalo EffectDrawing a general impression

about an individual on the basis

of a single characteristic

Contrast Effects

Evaluation of a persons characteristics that are

affected by comparisons with other peoplerecently encountered who rank higher or lower on

the same characteristics


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Judging OthersProjection

Attributing ones own

characteristics to other

people

Stereotyping

Judging someone on the

basis of ones perception ofthe group to which that person

belongs


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Specific Applications in

Organizations Employment Interview - Perceptual biases of

raters affect the accuracy of interviewers

judgments of applicants

Performance Expectations- Self-fulfilling prophecy(Pygmalion effect): The lower or higher

performance of employees reflects preconceived

leader expectations about employee capabilities.

Ethnic Profiling-A form of stereotyping in which a

group of individuals is singled outtypically on

the basis of race or ethnicityfor intensive

inquiry, scrutinizing, or investigation


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Specific Applications in

Organizations (contd) Performance Evaluations

Appraisals are often the subjective

(judgmental) perceptions of appraisers ofanother employees job performance.


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The Link Between Perceptions

and Individual Decision Making

Perception ofthe Decision

Maker

Outcomes

ProblemAperceiveddiscrepancy

between the current state of

affairs and a desired state

DecisionsChoices made from among

alternatives developed fromdataperceivedas relevant


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Assumptions of the Rational

Decision-making ModelModel Assumptions

Problem clarity

Known options

Clear preferences

Constant preferences

No time or costconstraints

Maximum payoff

Rational Decision-

making Model

Describes how individuals

should behave in order tomaximize some outcome


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Steps in the Rational Decision-

making Model1. Define the problem.

2. Identify the decision

criteria.

3. Allocate weights to the

criteria.

4. Develop the alternatives.

5. Evaluate the alternatives.

6. Select the best alternative.


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The Three Components of

CreativityCreativityThe ability to produce novel

and useful ideas

Three-Component

Model of Creativity

Proposition that individual

creativity requires expertise,

creative-thinking skills, andintrinsic task motivation

Source: T.M. Amabile, Motivating Creativity in Organizations, California Management Review, Fall 1997, p. 43.


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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 alltheir complexity.


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How Are Decisions Actually

Made in Organizations? (contd) How/Why problems are Identified Visibility over importance of problem

Attention-catching, high profile problems

Desire to solve problems Self-interest (if problem concerns decision maker)

Alternative Development

Satisficing: seeking the first alternative that solves

problem Engaging in incremental rather than unique problem

solving through successive limited comparison of

alternatives to the current alternative in effect


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Common Biases and Errors

Overconfidence Bias

Believing too much in our own ability to

make good decisions

Anchoring Bias

Using early, first received information as

the basis for making subsequent

judgments

Confirmation Bias

Using only the facts that support our

decision


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Common Biases and Errors

Availability Bias

Using information that is most readily at hand

Recent and Vivid

Representative Bias Mixing apples with oranges

Assessing the likelihood of an occurrence by trying to matchit with a preexisting category using only the facts thatsupport our decision

Winners Curse Highest bidder pays too much

Likelihood of winners curse increases with the number ofpeople in auction


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Intuition Intuitive Decision Making

An unconscious process created out of distilled

experience

Conditions Favoring Intuitive Decision Making

A high level of uncertainty exists There is little precedent to draw on

Variables are less scientifically predictable

Facts are limited

Facts dont clearly point the way

Analytical data are of little use

Several plausible alternative solutions exist

Time is limited and pressing for the right decision


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Individual Differences in

Decision Making PersonalityAspects of conscientiousness and escalation of

commitment

SelfEsteem High self serving bias

GenderWomen tend to analyze decisions more than men.


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Organizational Constraints on Decision Makers

Performance Evaluation Evaluation criteria influence the choice of actions

Reward Systems

Decision makers make action choices that are

favored by the organization Formal Regulations

Organizational rules and policies limit the alternative

choices of decision makers

System-imposed Time Constraints Organizations require decisions by specific deadlines

Historical Precedents

Past decisions influence current decisions


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Cultural Differences in Decision

Making Problems selected Time orientation

Importance of logic and rationality Belief in the ability of people to solve

problems

Preference for collectivedecision making


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Ethics in Decision Making

Ethical Decision Criteria

Utilitarianism

Seeking the greatest good for the greatest number

Rights

Respecting and protecting basic rights of

individuals such as whistleblowers

Justice - Imposing and enforcing rules fairly andimpartially


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Ways to Improve Decision

Making1. Analyze the situation and adjust your decisionmaking style to fit the situation.

2. Be aware of biases and try to limit their impact.

3. Combine rational analysis with intuition to increase

decision-making effectiveness.

4. Dont assume that your specific decision style is

appropriate to every situation.

5. Enhance personal creativity by looking for novel

solutions or seeing problems in new ways, and

using analogies.


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Toward Reducing Bias and Errors

Focus on goals. Clear goals make decision making easier and help to

eliminate options inconsistent with your interests.

Look for information that disconfirms beliefs.

Overtly considering ways we could be wrongchallenges our tendencies to think were smarter than

we actually are.

Dont try to create meaning out of random events.

Dont attempt to create meaning out of coincidence. Increase your options.

The number and diversity of alternatives generated

increase the chance of finding an outstanding one.


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Its your little sisters senior Prom night, and she

notices that everyone is wearing the same dress

she has on! Which perceptual shortcut may be

occurring?

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!

Escalation of commitment

Representative bias

Availability bias

Hindsight bias

Chapter Check-up: Perception


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If all of these perceptual shortcuts

happen un-consciously, how can we

keep the stereotypes we have from

interfering with the way we work ingroup 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


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Michael has just discovered he is registered for two

classes at the same time and must make a decision

about which one to take this semester.He considers

the professor teaching this semester, the time of the

class, and the classes his friends are taking.He then

considers his options for when he can take each class

again, as well as the costs and benefits for taking each

this semester versus later next year.He then makes

his decision. Michael has just engaged in what?

Chapter Check-up: Decision Making


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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, whydidnt Michaelconsiderit?



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Michael engaged in the

rational decision making model,

and didnt consider the paint color ofthe rooms because he operates

under the confines of

bounded rationality.


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Perception and D-M