Professional Documents
Culture Documents
Unit - 2
What will you learn ?
• Personality Definition
• MBTI
• Big 5 Traits
• Managerial Implications of Personality
• Perception and Attribution
• Features and Definition
• Perceptual and Attribution Errors
• Managerial Implications
What is Personality?
The dynamic organization within the individual of those psycho-physical
systems that determine his unique adjustments to his environment.
Gordon Allport
• The sum total of ways in which an individual reacts and interacts with others,
the measurable traits a person exhibits
• Measuring Personality
• Helpful in hiring decisions
• Most common method: self-reporting surveys
• Observer-ratings surveys provide an independent assessment of personality
– often better predictors
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Personality Determinants
• Heredity
• Factors determined at conception: physical stature, facial
attractiveness, gender, temperament, muscle composition
and reflexes, energy level, and bio-rhythms
• This “Heredity Approach” argues that genes are the
source of personality
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Personality Traits
Enduring characteristics that describe an individual’s behavior
• The more consistent the characteristic and the more
frequently it occurs in diverse situations, the more important
the trait.
• Two dominant frameworks used to describe personality:
• Myers-Briggs Type Indicator (MBTI®)
• Big Five Model
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The Myers-Briggs Type Indicator
• Most widely-used instrument in the world.
• Participants are classified on four axes to determine one of 16
possible personality types, such as ENTJ.
• Extroverted (E) vs. Introverted (I)
• Sensing (S) vs. Intuitive (N)
• Thinking (T) vs. Feeling (F)
• Judging (J) vs. Perceiving (P)
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Definitions
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The Big Five Model of Personality Dimensions
• Extroversion
• Sociable, gregarious, and assertive
• Agreeableness
• Good-natured, cooperative, and trusting
• Conscientiousness
• Responsible, dependable, persistent, and organized
• Emotional Stability
• Calm, self-confident, secure under stress (positive), versus nervous, depressed,
and insecure under stress (negative)
• Openness to Experience
• Curious, imaginative, artistic, and sensitive
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How Do the Big Five Traits Predict Behavior?
• Research has shown this to be a better framework.
• Certain traits have been shown to strongly relate to higher job
performance:
• Highly conscientious people develop more job knowledge, exert greater
effort, and have better performance.
• Other Big Five Traits also have implications for work.
• Emotional stability is related to job satisfaction.
• Extroverts tend to be happier in their jobs and have good social skills.
• Open people are more creative and can be good leaders.
• Agreeable people are good in social settings.
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Other Personality Traits Relevant to OB
• Core Self-Evaluation
• The degree to which people like or dislike themselves
• Positive self-evaluation leads to higher job performance
• Machiavellianism
• A pragmatic, emotionally distant power-player who believes that ends justify
the means
• High Machs are manipulative, win more often, and persuade more than they
are persuaded. Flourish when:
• Have direct interaction
• Work with minimal rules and regulations
• Emotions distract others
• Narcissism
• An arrogant, entitled, self-important person who needs excessive admiration
• Less effective in their jobs
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More Relevant Personality Traits
• Self-Monitoring
– The ability to adjust behavior to meet external, situational factors.
– High monitors conform more and are more likely to become leaders.
• Risk Taking
– The willingness to take chances.
– May be best to align propensities with job requirements.
– Risk takers make faster decisions with less information.
• Proactive Personality
– Identifies opportunities, shows initiative, takes action, and perseveres to
completion
– Creates positive change in the environment
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Implications of Personality Traits
• Job Fit
• Functional Roles
• Leadership Roles
• Organization Fit
• Cultural Fit
• Predicting On Job Performance
Perception and Attribution
Unit - 2
Perception
The world as it is perceived is the world that is behaviorally
important.
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Importance
Factors Influencing Perception – PST
Perceiver
Target
Situation
Perception
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Person Perceptions
Person Perception: Attribution Theory
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Determinants of Attribution
Consistency – does the person respond the same way over time ( habitual or
constancy in behavior)
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Determination of Attribution
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Attribution Errors
• Fundamental Attribution Error
The tendency to underestimate the influence of
external factors and overestimate that of internal
factors.
• Self-Serving Bias
Occurs when individuals overestimate their own
(internal) influence on successes and overestimate the
external influences on their failures like
Bad luck , coworkers failure, blame game etc.
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Shortcuts Used in Judging Others
• Selective Perception – a perceptual filtering process based on interests,
background, and attitude. May allow observers to draw unwarranted
conclusions from an ambiguous situation.
• Halo Effect – drawing a general impression based on a single
characteristic.
• Contrast Effects – our reaction is influenced by others we have recently
encountered (the context of the observation).
• Stereotyping – judging someone on the basis of the perception of the
group to which they belong.
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Selective Perception
The Link Between Perception and Decision Making
Decision making occurs as a reaction to a perceived problem
• Perception influences:
• Awareness that a problem exists
• The interpretation and evaluation of information
• Bias of analysis and conclusions
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Applications
• Employment Interviews
• Performance Expectations
• Performance Evaluations
Rational Decision-Making Model
1. 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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Assumptions of the Model
• Complete knowledge of the situation
• All relevant options are known in an unbiased manner
• The decision-maker seeks the highest utility
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Decision Making in Bounded Rationality
So people seek solutions that are satisfactory and sufficient, rather than
optimal (they “satisfice”)
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Intuitive Decision Making
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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
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Common Biases and Errors
• Availability Bias
The tendency to base judgments on information that is readily
available
• Escalation of Commitment
Staying with a decision even when there is clear evidence that it is
wrong
• Hindsight Bias
The tendency to believe falsely that we could have accurately
predicted the outcome of an event after that outcome is already
known
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Organizational Constraints on Decision Making
• Performance evaluations
• Reward systems
• Formal regulations
• Self-imposed time constraints
• Historical precedents
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Ethical Frameworks for Decision Making
Utilitarian
• Provide the greatest good for the greatest number
Rights
• make decisions consistent with fundamental liberties and
privileges
Justice
• impose and enforce rules fairly and impartially so that
there is equal distribution of benefits and costs
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Creativity in Decision Making
The ability to produce novel and useful ideas
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Three-Component Model of Creativity
Expertise
Creative- Intrinsic
Thinking Task
Skills Motivation
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Global Implications
Attributions:
• Cross-cultural differences exist – especially in collectivist traditions
Decision Making:
• Cultural background of the decision maker can have significant
influence on decisions made
Ethics:
• No global ethical standards exist
• Need organizational-level guidance
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Implications for Managers
Perception:
• To increase productivity, influence workers’ perceptions of their
jobs
To improve decision making:
1. Analyze the situation
2. Adjust your decision approach
3. Be aware of biases and minimize their impact
4. Combine rational analysis with intuition
5. Try to enhance your creativity
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Keep in Mind…
1. People have inherent biases in perception and decision making
• Understanding those biases allows for better prediction of
behavior
2. Biases can be helpful
• Managers must determine when the bias may be
counterproductive
3. Creativity aids in decision making
• Helps to appraise, understand, and identify problems
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Summary
1. Defined perception and explained the factors that
influence it.
2. Identified the shortcuts individuals use in making
judgments about others.
3. Explained the link between perception and decision-
making.
4. Listed and explained the common decision biases or
errors.
5. Contrasted the three ethical decision criteria.
6. Defined creativity and discussed the three-component
model of creativity.
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End of Unit 2