Chapter 5 Perceptions and Individual DM

ORGANIZATIONAL BEHAVIORORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N SS 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 NE 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 SW 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

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

After studying this chapter,you should be able to:After studying this chapter,you should be able to:

1. Explain how two people can see the same thing and interpret it differently.

2. List three determinants of attribution.

3. Describe how shortcuts can assist in or distort our judgment of others.

4. Explain how perception affects the decision-making process.

5. Outline the six steps in the rational decision-making model.

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After studying this chapter,you should be able to:After studying this chapter,you should be able to:

6. Describe the actions of a boundedly rational decision maker.

7. Define heuristics and explain how they bias decisions.

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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.

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

Perception

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

How do we perceive?How do we perceive?

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Factors ThatInfluence

Perception

Factors ThatInfluence

Perception

E X H I B I T 5–1E X H I B I T 5–1


Attribution TheoryAttribution Theory• How people assign causes to events…

• It involves perception about why things happen or why

people behave in the way they do.

• It explains how we make judgments about people at work.

• We make an attribution when we perceive and describe

other people’s actions and try to discover why they behaved

in the way they did.

Criteria for deciding whether behaviour is attributable to personal rather than external (situational) causes

Criteria for deciding whether behaviour is attributable to personal rather than external (situational) causes

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Reference: Kelly, H.H. (1967) Attribution theory in social psychology, in (ed) D. Levine, Nebraska Symposium on Motivation, University of Nebraska Press, Lincoln, NB

That determination depends largely on four factors:

1. Distinctiveness: The behaviour can be distinguished from the behaviour of other people in similar situations.

2. Consensus: If other people agree that the behaviour is governed by some personal characteristic. (i.e., response is the same as others to same situation.)

3. Consistency over Time: Whether the behaviour is repeated (i.e., responds in the same way over time.)

4. Consistency over Modality (i.e., the manner in which things are done): Whether or not the behaviour is repeated in different situations.

That determination depends largely on four factors:

1. Distinctiveness: The behaviour can be distinguished from the behaviour of other people in similar situations.

2. Consensus: If other people agree that the behaviour is governed by some personal characteristic. (i.e., response is the same as others to same situation.)

3. Consistency over Time: Whether the behaviour is repeated (i.e., responds in the same way over time.)

4. Consistency over Modality (i.e., the manner in which things are done): Whether or not the behaviour is repeated in different situations.

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Attribution TheoryAttribution Theory


Errors and Biases in AttributionsErrors and Biases in Attributions

1. 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.

Example: Why a sales manager is prone to attribute the poor performance of his sales representatives to laziness rather than to the innovative product line introduced by a competitor?

Clarification…Clarification…

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Reference: Weiner, B. (1974) Achievement Motivation and Attribution Theory, General Learning Press, New Jersey

Attribution theory is concerned with the way in which people attribute success or failure to themselves. Research by Weiner (1974) and others have indicated that when people with high achievement needs have been successful they ascribe this to internal factors such as their ‘ability’ and ‘efforts’.

High achievers tend to attribute failure to lack of effort and not lack of ability.

Low achievers tend not to link success with effort but to ascribe their failure to lack of ability.

Self-efficacySelf-efficacy


Reference: Bandura, A. (1982) Self-efficacy mechanism in human agency, American Psychology, vol. 37, 122-47

Reference: Grandy, A. (2000) Emotion regulation in the workplace: a new way to conceptualize emotional behaviour, Journal of Occupational Psychology, vol. 5, 95-110

Self-EfficacySelf-Efficacy


The concept of self-efficacy was developed by Bandura

(1982) who defined it as ‘how well one can execute

courses of action required to deal with prospective

situations’. It is concerned with an individual’s self-belief

that s/he will be able to accomplish certain tasks, achieve

certain goals or learn certain things. Research by Grandy

(2000) established that individuals high on self-efficacy

tended to perform at a higher level.


Locus of Control Attributions

Locus of Control Attributions

Locus of Control AttributionsLocus of Control Attributions


What is Locus (place) of Control?

“Extent to which an entity believes the current and anticipated circumstances, and its response to them (behavior), are within its control”.


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.

Bounded Rationality (BR)Bounded Rationality (BR)


The extent to which people behave rationally is limited by their capacity to understand the complexities of the situation they are in and their emotional reactions to it.

Your home assignment…

Q. What is the knowledge construct (or contribution) of the following literature towards BR?

Miller, S.; Hickson, D.J.; and Wilson, D.C. (1999) Decision-making in organizations, in (ed.) S. R. Clegg, C. Hardy and WR Nord, Managing Organizations: Current issues, Sage, London

Harrison, R. (2005) Learning and Development, 4th Edition, CIPD, London


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. 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. Randomness Error

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

Hindsight Bias (a.k.a. knew-it-all-along effect; creeping determinism)– Hindsight = ability to see, after the event, what should

have been done– is the inclination to see events that have already

occurred as being more predictable than they were before they took place.

– Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known.

Schizophrenia [skit-suh-free-nee-uh, -freen-yuh] is an example of a disorder that directly affects the hindsight bias. The hindsight bias has a stronger effect on schizophrenic individuals compared to individuals from the general public.

Also called Dementia Praecox [pree-koks]. a severe mental disorder characterized by some, but not necessarily all, of the following features: emotional blunting, intellectual deterioration, social isolation, disorganized speech and behavior, delusions, and hallucinations.

A state characterized by the coexistence of contradictory or incompatible elements.


Dementia PraecoxDementia Praecox

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Schizophrenia (a.k.a. Dementia Praecox)Schizophrenia (a.k.a. Dementia Praecox)

Schizophrenia is a psychological disorder, thought to be caused by imbalances in brain chemistry, which involves delusions and faulty perceptions of the world. People suffering from schizophrenia often hear voices in their head and have delusions of grandeur. It's not uncommon for people with schizophrenia to believe that they are Jesus or other prominent figures.

There are several types of schizophrenia including disorganized, catatonic, paranoid, undifferentiated, and residual.

See also: http://www.alleydog.com/glossary/psychology-glossary.php 5–25

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Decision-Style ModelDecision-Style Model


Source: A.J. Rowe and J.D. Boulgarides, Managerial Decision Making, (Upper Saddle River, NJ: Prentice Hall, 1992), p. 29.

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Chapter 5 Perceptions and Individual DM

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