Chapter 5 Perception & Individual Decision Making

ORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N SW W W . P R E N H A L L . C O M / R O B B I N ST E N T H E D I T I O N 2003 Prentice Hall Inc. All rights reserved.PowerPoint Presentation by Charlie Cook

AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:Explain how two people can see the same thing and interpret it differently.List three determinants of attribution.Describe how shortcuts can assist in or distort our judgment of others.Explain how perception affects the decision-making process.Outline the six steps in the rational decision-making model.L E A R N I N G O B J E C T I V E S

AFTER STUDYING THIS CHAPTER,YOU SHOULD BE ABLE TO:Describe the action of a boundedly rational decision maker.Identify the conditions in which individuals are most likely to use intuition in decision making.Describe four styles of decision making.Define heuristics and explain how they bias decisions.Contrast the three ethical decision criteria.L E A R N I N G O B J E C T I V E S (contd)

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

Factors ThatInfluence PerceptionE X H I B I T5-1

Person Perception: Making Judgments About OthersDistinctiveness: 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 TheoryE X H I B I T5-2

Errors and Biases in Attributions

Errors and Biases in Attributions (contd)

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Specific Applications in OrganizationsEmployment InterviewPerceptual biases affect the accuracy of interviewers judgments of applicants.Performance ExpectationsSelf-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.Performance EvaluationsAppraisals are subjective perceptions of performance.Employee EffortAssessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

The Link Between Perceptions and Individual Decision MakingPerceptions of the decision makerOutcomes

Assumptions of the Rational Decision-Making ModelProblem clarityKnown optionsClear preferencesConstant preferencesNo time or cost constraintsMaximum payoff

Steps in the Rational Decision-Making ModelE X H I B I T5-3

The Three Components of CreativityE X H I B I T5-4

How Are Decisions Actually Made in Organizations

How Are Decisions Actually Made in Organizations (contd)How/Why problems are identifiedVisibility over importance of problemAttention-catching, high profile problemsDesire to solve problemsSelf-interest (if problem concerns decision maker)Alternative DevelopmentSatisficing: 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.

Making Choices

Making Choices

Decision-Style ModelE X H I B I T5-5

Organizational Constraints on Decision MakersPerformance EvaluationEvaluation criteria influence the choice of actions.Reward SystemsDecision makers make action choices that are favored by the organization.Formal RegulationsOrganizational rules and policies limit the alternative choices of decision makers.System-imposed Time ConstraintsOrganizations require decisions by specific deadlines.Historical PrecedentsPast decisions influence current decisions.

Cultural Differences in Decision MakingProblems selectedTime orientationImportance of logic and rationalityBelief in the ability of people to solve problemsPreference for collect decision making

Ethics in Decision MakingEthical Decision CriteriaUtilitarianismSeeking the greatest good for the greatest number.RightsRespecting and protecting basic rights of individuals.JusticeImposing and enforcing rules fairly and impartially.

Ethics in Decision MakingEthics and National CultureThere 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.