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We don t see things as they are, we see things as we are.
- A Nin
How two people can see the same thing and interpret it differently. Three determinants of attribution. How shortcuts can assist in or distort our judgment of others. How perception affects the decisionmaking process. Six steps in the rational decision-making model.
. Robbins .Stephen P. .Steven Mc Shane and Marry Ann Von Glinow Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.Definitions Perception is the process of receiving information about and making sense of the world around us.
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Perception A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. The world as it is perceived is the world that is behaviorally important. People act based on how they view their world What exists is not as important as what is believed Managers must also manage perception . not on reality itself. People¶s behavior is based on their perception of what reality is.
Perceptual Process Environmental Stimuli Feeling Hearing Seeing Smelling Tasting Selective attention Perceptual Organization and Interpretation Emotions and Behaviour .
Factors 5 8 .
Factors y What is seen and interpreted is influenced by the perceiver y Characteristics of the target affect what we perceive. Loud and silent y The context or situation in which we see objects and evens influence y Perception is the reality .
mba4career.com .Factors Influencing Perception Factors in the Situation Time Work setting Social setting Factors in the Perceiver Attitudes Motives Interests Experience Expectations Factors in the Target Sound Size Background Proximity www.
Attribution Theory y When individuals observe behavior. . y Consistency y Responds in the same way over time. Coming late. y Internal : Behaviors that are under the control of the individual and responsibility y External: Behaviors which are influenced by the external circumstance Three factors that determine the behavior are y Distinctiveness y Shows different behaviors in different situations. if not usual attribute internal reason for such behavior y Consensus y If every one who faces the same situation gives the same response . they attempt to determine whether it is internally or externally caused..
Attribution Theory .
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© 2005 Prentice Hall Inc.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. 5 14 . All rights reserved.
The tendency to overattribute behavior to internal rather than external causes.22 Attributional Biases y Fundamental attribution error .The tendency to take Selfcredit for successes and avoid blame for failures.The tendency to attribute Actorthe behavior of others to internal causes and to attribute one s own behavior to external causes. y Self-serving attribution . y Actor-observer effect . .
5 16 .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.
background.Frequently Used Shortcuts in Judging Others Selective Perception People selectively interpret what they see on the basis of their interests. experience. and attitudes. 5 17 .
Evaluation is not done in isolation but in comparison 5 18 .Frequently Used Shortcuts in Judging Others Halo Effect Drawing a general impression about an individual on the basis of a single characteristic HP Carly Fiorina 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.
f 5 19 . t r Stereotyping J d i s m t sis f s rc ti r t ic t t t rs l s.Frequently Used Shortcuts in Judging Others Pr jecti Attri ti s c r ct ristics t l .
y Performance Expectations y Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities. y Ethnic Profiling y A form of stereotyping in which a group of individuals is singled out typically on the basis of race or ethnicity for intensive inquiry. 5 20 .Specific Applications in Organizations y Employment Interview y Perceptual biases of raters affect the accuracy of interviewers judgments of applicants. or investigation. scrutinizing.
y Employee Effort y Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.Specific Applications in Organizations (cont d) y Performance Evaluations y Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee s job performance. 5 21 .
Perception of the decision maker Outcomes 5 22 . Decisions Choices made from among alternatives developed from data perceived as relevant.The Link Between Perceptions and Individual Decision Making Problem A perceived discrepancy between the current state of affairs and a desired state.
Model Assumptions Problem clarity Known options Clear preferences Constant preferences No time or cost constraints Maximum payoff 5 23 .Assumptions of the Rational Decision-Making Model Rational DecisionMaking Model Describes how individuals should behave in order to maximize some outcome.
2. 5. 6. EXHIBIT 5 3 5 24 . Select the best alternative. Develop the alternatives. Define the problem. Identify the decision criteria. 4. Evaluate the alternatives.Steps in the Rational DecisionMaking Model 1. 3. Allocate weights to the criteria.
M. 43. Fall 1997. creati e-thi ki g skills. Motivating Creativity in Organizations. p. California Management Review. EXHIBIT 5 4 5 25 . Three-Component Model of Creativity siti that i i i al Pr creati it requires ex ertise.The Three Components of Creativity Creativity The ilit t r ce el sef l i eas. Amabile. Source: T. and intrinsic task m ti ati n.
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. 5 26 .
5 27 . y Engaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect. high profile problems Desire to solve problems y Self-interest (if problem concerns decision maker) y Alternative Development y Satisficing: seeking the first alternative that solves problem.How Are Decisions Actually Made in Organizations (cont d) y How/Why problems are identified y Visibility over importance of problem y y Attention-catching.
5 28 . y Availability Bias y Using information that is most readily at hand. first received information. y Representative Bias y Assessing the likelihood of an occurrence by trying to match it with a preexisting category. y Anchoring Bias y Fixating on early. y Confirmation Bias y Using only the facts that support our decision.Common Biases and Errors y Overconfidence Bias y Believing too much in our own decision competencies.
y Hindsight Bias y Falsely believing to have accurately predicted the outcome of an event. after that outcome is actually known.Common Biases and Errors y Escalation of Commitment y Increasing commitment to a previous decision in spite of negative information. 5 29 . y Randomness Error y Trying to create meaning out of random events by falling prey to a false sense of control or superstitions.
Intuition y Intuitive Decision Making y An unconscious process created out of distilled experience. y Conditions Favoring Intuitive Decision Making y A high level of uncertainty exists y There is little precedent to draw on y Variables are less scientifically predictable y Facts are limited y Facts don t clearly point the way y Analytical data are of little use y Several plausible alternative solutions exist y Time is limited and pressing for the right decision 5 30 .
(Upper Saddle River. EXHIBIT 5 5 5 31 . Boulgarides.D. Rowe and J. 1992).Decision-Style Model Source: A. Managerial Decision Making. NJ: Prentice Hall. 29. p.J.
y System-imposed Time Constraints y Organizations require decisions by specific deadlines. y Formal Regulations y Organizational rules and policies limit the alternative choices of decision makers.Organizational Constraints on Decision Makers y Performance Evaluation y Evaluation criteria influence the choice of actions. 5 32 . y Historical Precedents y Past decisions influence current decisions. y Reward Systems y Decision makers make action choices that are favored by the organization.
Cultural Differences in Decision Making y Problems selected y Time orientation y Importance of logic and rationality y Belief in the ability of people to solve problems y Preference for collect decision making 5 33 .
y Rights y y Justice y 5 34 . Respecting and protecting basic rights of individuals such as whistleblowers. Imposing and enforcing rules fairly and impartially.Ethics in Decision Making y Ethical Decision Criteria y Utilitarianism y Seeking the greatest good for the greatest number.
Ethics in Decision Making y Ethics and National Culture y There are no global ethical standards. 5 35 . y The ethical principles of global organizations that reflect and respect local cultural norms are necessary for high standards and consistent practices.
Ways to Improve Decision Making 1. Be aware of biases and try to limit their impact. 3. 5. 4. Analyze the situation and adjust your decision making style to fit the situation. Don t assume that your specific decision style is appropriate to every situation. 2. Combine rational analysis with intuition to increase decision-making effectiveness. and using analogies. 5 36 . Enhance personal creativity by looking for novel solutions or seeing problems in new ways.
y Increase your options. y Overtly considering ways we could be wrong challenges our tendencies to think we re smarter than we actually are. y Don t try to create meaning out of random events. 164 68. NJ: Financial Times/Prentice Hall. Source: S. 5 6 5 37 . Decide & Conquer: Making Winning Decisions and Taking Control of Your Life (Upper Saddle River. pp.P. y Don t attempt to create meaning out of coincidence. Robbins. y Clear goals make decision making easier and help to eliminate options inconsistent with your interests. y Look for information that disconfirms beliefs.Toward Reducing Bias and Errors y Focus on goals. 2004). y The number and diversity of alternatives generated increases EXHIBIT the chance of finding an outstanding one.
Organizational Constraints y Performance Evaluation y Managerial evaluation criteria influence actions y Reward Systems y Managers will make the decision with the greatest personal payoff for them y Formal Regulations y Limit the alternative choices of decision makers y System-imposed Time Constraints y Restrict ability to gather or evaluate information y Historical Precedents y Past decisions influence current decisions 5-38 .