What is Perception?  A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. Why Is it Important?  Because people’s behavior is based on their perception of what reality is, not on reality itself.  The world that is perceived is the world that is behaviorally important.

The Perceiver The Target The Situation .

Factors in the Perceiver Factors in the Perceiver ••Attitudes Attitudes ••Motives Motives ••Interests Interests ••Experience Experience ••Expectations Expectations Factors in the situation Factors in the situation ••Time Time ••Worksetting Work setting ••Socialsetting Social setting Perception Perception Factors in the target Factors in the target ••Novelty Novelty ••Motion Motion ••Sounds Sounds ••Size Size ••Background Background ••Proximity Proximity .

Attribution Theory Basically attempts to explain what meaning we attribute to a given behavior  When individuals observe behavior. situation Consensus – same All in same Situation – behavior Consistency . they attempt to determine whether it is internally or externally caused.  This analysis is dependent on Distinctiveness – diff. behavior diff.same behavior display over time .

Observation Interpretation High Distinctiveness Distinctiveness Low Attribution of cause External External Internal Internal External External Internal Internal Internal Internal External External Individual behavior High Consensus Consensus Low High Consistency Consistency Low .

 Self-Serving Bias – The tendency . for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.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.

and attitudes. experience. .Attributing one’s own characteristics to other people.  Projection . background.  Stereotyping  Judging someone on the basis of one’s perception of the group to which that person belongs.  Halo Effect  Drawing a general impression about an individual on the basis of a single characteristic.  Contrast Effects Evaluations of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Selective Perception  People selectively interpret what they see on the basis of their interest.

Interview Performance expectation – Pygmalion effect Ethnic Profiling Performance evaluation – Recency effect .

Develop the Alternatives. Allocate Weights to the Criteria.Define the Problem. Identify the Decision Criteria. Select the Best Alternative . Evaluate the Alternatives.

 Known Options The decision-maker can identify all relevant criteria and viable alternatives. .  Clear Preferences Rationality assumes that the criteria and alternatives can be ranked and weighted.  Maximum Payoff The choice alternative will yield the highest perceived value.  No Time or Cost Constraints Full information is available because there are no time or cost constraints. Problem Clarity The problem is clear and unambiguous.  Constant Preferences Specific decision criteria are constant and that the weights assigned to them are stable over time.

Fast Vs Slow Risk Vs Risk Averse Empirical Vs Intuitive Rules Vs Rule Breaking People Vs Things Individual Vs Group effort .

Intuitive Decision Making An unconscious process created out of detailed experience .Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

 Decision-Makers self-interest affects .” problem selection because it is usually in the Decision-Maker’s best interest to address problems of high visibility and high payoff. Why?  It is easier to recognize visible problems. Problems that are visible tend to have a higher probability of being selected than ones that are important. This demonstrates an ability to perceive and attack problems.  Decision-Makers want to appear competent and “on-top of problems.

 Efforts made are simple and confined to the familiar.  Thus the decision makers steps are small and limited to comparisons of the current or familiar options. .  Efforts are incremental rather than comprehensive.  Many successive limited comparisons rather than calculating value for each alternative.  This approach makes it unnecessary for the decision maker to thoroughly examine an alternative and its consequences.Decision makers rarely seek optimum solutions but satisfying ones.

all too often creeps into decision making .  Representative Heuristic -.Many decision makers rely on heuristics or judgmental shortcuts in decision making. There are two common categories of heuristics - Availability Heuristic --or the tendency of people to base their judgments on information readily available to them.  Escalation of Commitment --an increased commitment to a previous decision in spite of negative information.The tendency to assess the likelihood of an occurrence by trying to match it with a preexisting category.

people who tend to work well with others.  Directive Style -.people using this style have a much greater tolerance for ambiguity than do directive decision makers. .Research on decision styles has identified four different individual approaches to making decisions.  Analytic Style -.  Conceptual Style -.people using this style have a low tolerance for ambiguity and seek rationality.people tend to be very broad in their outlook and consider many alternatives  Behavioral Style -.

High Tolerance for Ambiguity Analytical Conceptual Directive Low Rational Behavioral Intuitive Way of Thinking .

Performance Evaluations decision makers take decision based on the criteria they are evaluated Reward Systems What the org reward system is influences Decision making Formal Regulations Rules that constrict decision making System-Imposed Time Constraints Deadlines effect Decision making Historical Precedents Past experience influences decision making .

Decisions are made solely on the basis of their outcomes or consequences. .  Utilitarian criterion -.An individual can use three different criteria in framing or making ethical choices. with fundamental liberties  Rights criterion -.Decisions consistent  Justice criterion -.Decisions that impose and enforce rules fairly and impartially so there is an equitable distribution of benefits and costs.

Stage of moral development Organizational environment Ethical decision-making behavior Locus of control .

 What can managers do to improve their decision making?  Analyze the situation. .  Use creativity-stimulation techniques.  Combine rational analysis with intuition. people follow the rational decision-making model. Perception  Individuals behave based not on the way their external environment actually is but. on what they see or believe it to be.  Be aware of biases. and job satisfaction are also reactions to the individual’s perceptions.  Absenteeism. turnover.  Evidence suggests that what individuals perceive from their work situation will influence their productivity more than will the situation itself. rather.  Don’t assume that your specific decision style is appropriate for every job.  Individual Decision Making  Individuals think and reason before they act.  Under some decision situations.

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