Chapter 5 perception and individual

ORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N S

E L E V E N T H E D I T I O N

W W W . P R E N H A L L . C O M / R O B B I N S© 2005 Prentice Hall Inc. All rights reserved.© 2005 Prentice Hall Inc. All rights reserved.

PowerPoint Presentation by Charlie Cook

PowerPoint Presentation by Charlie Cook

Chapter 5Chapter 5

Perception and Individual Decision Making

TWELFTH EDITION

© 2005 Prentice Hall Inc. All rights reserved. 5–2

What Is Perception, and Why Is It Important?What Is Perception, and Why Is It Important?

•People’s behavior is based on their perception of what reality is, not on reality itself.

•The world as it is perceived is the world that is behaviorally important.

•People’s behavior is based on their perception of what reality is, not on reality itself.

•The world as it is perceived is the world that is behaviorally important.

Perception

A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.


Factors ThatInfluence

Perception

Factors ThatInfluence

Perception

E X H I B I T 5–1E X H I B I T 5–1


Person Perception: Making Judgments About Others

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.

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 is internally or externally caused.


Attribution TheoryAttribution TheoryE X H I B I T 5–2

E X H I B I T 5–2


Errors and Biases in AttributionsErrors 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.


Errors and Biases in Attributions (cont’d)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.


Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others

Selective Perception

People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.



Halo Effect

Drawing a general impression about an individual on the basis of a single characteristic

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.



Projection

Attributing one’s own characteristics to other people.

Stereotyping

Judging someone on the basis of one’s perception of the group to which that person belongs.


Specific Applications in OrganizationsSpecific 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 out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation.


Specific Applications in Organizations (cont’d)Specific Applications in Organizations (cont’d)

Performance Evaluations– Appraisals are often the subjective (judgmental)

perceptions of appraisers of another employee’s job performance.

Employee Effort– Assessment of individual effort is a subjective

judgment subject to perceptual distortion and bias.


The Link Between Perceptions and Individual Decision Making

The Link Between Perceptions and Individual Decision Making

Perception of the

decision maker

Perception of the

decision maker

Outcomes

ProblemA perceived discrepancy between the current state of affairs and a desired state.

DecisionsChoices made from among alternatives developed from data perceived as relevant.


Assumptions of the Rational Decision-Making Model

Assumptions of the Rational Decision-Making Model

Model Assumptions

• Problem clarity

• Known options

• Clear preferences

• Constant preferences

• No time or cost constraints

• Maximum payoff

Model Assumptions

• Problem clarity

• Known options

• Clear preferences

• Constant preferences

• No time or cost constraints

• Maximum payoff

Rational Decision-Making Model

Describes how individuals should behave in order to maximize some outcome.


Steps in the Rational Decision-Making ModelSteps in the 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.



The Three Components of CreativityThe Three Components of Creativity

Creativity

The ability to produce novel and useful ideas.

Three-Component Model of Creativity

Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation.


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


How Are Decisions Actually Made in Organizations

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.


How Are Decisions Actually Made in Organizations (cont’d)

How Are Decisions Actually Made in Organizations (cont’d)

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.


Common Biases and ErrorsCommon Biases and Errors

Overconfidence Bias– Believing too much in our own decision

competencies. Anchoring Bias

– Fixating on early, first received information.– Ex.

Confirmation Bias– Using only the facts that support our decision.

Availability Bias– Using information that is most readily at hand.

Representative Bias– Assessing the likelihood of an occurrence by

trying to match it with a preexisting category.


Common Biases and ErrorsCommon Biases and Errors

Escalation of Commitment– Increasing commitment to a previous decision in

spite of negative information. Ex casino player Randomness Error

– Trying to create meaning out of random events by falling prey to a false sense of control or superstitions.

Ex. I wear my lucky tie to important meetings Hindsight Bias

– Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known. Ex.”I knew it all along.” Prophecy after the fact.


IntuitionIntuition

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 don’t clearly point the way– Analytical data are of little use– Several plausible alternative solutions exist– Time is limited and pressing for the right

decision


Individual Differences in Decision MakingIndividual Differences in Decision Making

Personality Aspects of conscientiousness and escalation of

commitment. Self Esteem High self serving bias Gender

Women tend to analyze decisions more than men.

Rumination – to reflect at length Women are affected by events in others’

lives more Women base their self esteem and well-being

on what others think of them. Parents encourage the expression of sadness

and anxiety on girls more than boys.


Organizational Constraints on Decision MakersOrganizational 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.


Cultural Differences in Decision MakingCultural Differences in Decision Making

Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems Preference for collect decision making


Ethics in Decision MakingEthics 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 and impartially.


Ethics in Decision MakingEthics in Decision Making

Ethics and National Culture– There are no global ethical standards.– 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 MakingWays to Improve Decision Making

1. Analyze the situation and adjust your decision making 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. Don’t 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.


Toward Reducing Bias and ErrorsToward 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 wrong

challenges our tendencies to think we’re smarter than we actually are.

Don’t try to create meaning out of random events.– Don’t attempt to create meaning out of

coincidence. Increase your options.

– The number and diversity of alternatives generated increases the chance of finding an outstanding one.

E X H I B I T 5–6E X H I B I T 5–6Source: S.P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control

of Your Life (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), pp. 164–68.

Chapter 5 perception and individual

Self Improvement

prentice hall

perception e x h i b

r o b b i n s e

p r e n h

person perception

individual creativity

basis of ones perception

selective perception