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Prentice Hall, 2001 Chapter 5 2
Learning ObjectivesLearning Objectives
• Learn that two people can see the same
thing and interpret it differently
• List the three determinants of attribution
• Describe how shortcuts can either assist
or distort judgment
• Examine perception and decision-making
• Study the rational decision-making model
Prentice Hall, 2001 Chapter 5 3
Learning ObjectivesLearning Objectives
• Describe the actions of the boundedly
rational decision maker
• Learn when individuals are most likely to
use intuition in decision making
• Describe four styles of decision making
• Learn how heuristics bias decisions
• Contrast the three ethical decision criteria
Prentice Hall, 2001 Chapter 5 4
What is Perception
• A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
Prentice Hall, 2001 Chapter 5 5
Factors ThatFactors ThatInfluence PerceptionInfluence Perception
SituationSituationTargetTarget PerceiverPerceiver
Prentice Hall, 2001 Chapter 5 6
The Perceiver
• Attitude
• Motives
• Interests
• Past experiences
• Expectations (stereotypes)
Prentice Hall, 2001 Chapter 5 7
The Target
• Novelty• Motion• Sounds• Size• Background• proximity• Persons, objects and events that similar to
each other tend to be grouped together
Prentice Hall, 2001 Chapter 5 9
Person Perception: making Judgments about
Others• Attribution Theory–When individuals observe behavior,
they attempt to determine whether it is internally or externally caused• Distinctiveness• Consensus• Consistency
Prentice Hall, 2001 Chapter 5 10
Attribution of Cause
InterpretationObservation
Attribution Attribution
Theory andTheory and
IndividualIndividual
BehaviorBehavior
ExternalExternal
ExternalExternal
ExternalExternal
InternalInternal
InternalInternal
InternalInternal
DistinctivenessDistinctiveness
ConsensusConsensus
ConsistencyConsistency
HighHigh
LowLow
HighHigh
LowLow
HighHigh
LowLow
Prentice Hall, 2001 Chapter 5 11
ContrastContrastEffectEffect
ContrastContrastEffectEffect
SelectivePerceptionSelective
Perception
StereotypingStereotyping
Halo EffectHalo Effect
ProjectionProjection
Frequently Used Shortcuts When Judging Others
Prentice Hall, 2001 Chapter 5 12
Perception Errors
• Fundamental attribution error– Tendency to underestimate external
factors and overestimate internal factors
• Self-serving bias– Tendency for individuals to attribute
their own successes to internal factors rather than external factors (i.e., luck)
Prentice Hall, 2001 Chapter 5 13
Judgmental errors
• Selective perception– Selectively interpret what they see on
the basis of their interest, background , experience and attitudes
• Halo effect– Drawing a general impression about an
individual on the basis of a single characteristic
Prentice Hall, 2001 Chapter 5 14
Perception Errors
• Contrast Effects– Evaluation of a person’s characteristics that
are affected by comparisons with other people
• Projection– Attributing one’s own characteristics to other
people
• Stereotyping– Judging someone on the basis of one’s
perception of the group in which that person belongs
Prentice Hall, 2001 Chapter 5 15
Specific Applications in Specific Applications in OrganizationsOrganizations
• Employment interview
• Performance expectations
• Self-fulfilling prophecy: expectations cause behaviors
consistent with original perceptions
• Performance evaluation
• Employee effort
• More workers are fired for poor attitudes than for lack of ability
• Employee loyalty
Prentice Hall, 2001 Chapter 5 16
Interpretation andInterpretation andEvaluation of InformationEvaluation of Information
Awareness andAwareness andRecognition of ProblemsRecognition of Problems
Perception and Perception and Individual Decision MakingIndividual Decision Making
Prentice Hall, 2001 Chapter 5 17
Rational Model of
Decision Making
Problem
Identify andDefine Problem
DevelopAlternatives
A1
A2
A3
A4
An
EvaluateAlternatives
+
A1 A1
A2 A2
An An
Criteria
Weightthe Criteria
T E C H
Set DecisionCriteria
Choice
Make OptimalDecision
Prentice Hall, 2001 Chapter 5 18
Assumptions of the ModelAssumptions of the ModelAssumptions of the ModelAssumptions of the Model
One:One:
Problem ClarityProblem ClarityOne:One:
Problem ClarityProblem ClarityFour:Four:
Constant PreferencesConstant PreferencesFour:Four:
Constant PreferencesConstant Preferences
Five:Five:
No ConstraintsNo Constraints Five:Five:
No ConstraintsNo Constraints Two:Two:
Known OptionsKnown OptionsTwo:Two:
Known OptionsKnown Options
Three:Three:
Clear PreferencesClear PreferencesThree:Three:
Clear PreferencesClear PreferencesSix:Six:
Maximum PayoffMaximum PayoffSix:Six:
Maximum PayoffMaximum Payoff
Prentice Hall, 2001 Chapter 5 19
The Three Components of The Three Components of Creativity Creativity
Expertise
TaskMotivation
CreativitySkills
Creativity
Prentice Hall, 2001 Chapter 5 20
Bounded Rationality
• Constraints– Time– Resources/costs– Information
• Solutions– Acceptable, Satisfied, but may not
optimal
Prentice Hall, 2001 Chapter 5 21
A Model of Bounded A Model of Bounded RationalityRationality
AscertainAscertainthe Need the Need
for a Decisionfor a Decision
SimplifySimplifythe Problemthe Problem
SelectSelectCriteriaCriteria
Identify aIdentify aLimited Set Limited Set
of Alternativesof Alternatives
CompareCompareAlternativesAlternatives
Against CriteriaAgainst Criteria
ExpandExpandSearch forSearch for
AlternativesAlternatives
Select theSelect theFirst “GoodFirst “Good
Enough” ChoiceEnough” Choice
A “Satisficing”A “Satisficing”AlternativeAlternative
ExistsExists
YesNo
Prentice Hall, 2001 Chapter 5 22
Intuitive Decision MakingAn unconscious process created out of
distilled experience High uncertainty levels Little precedent Hard to predictable variables Limited facts Unclear sense of direction Analytical data is of little use Several plausible alternatives Time constraints
Prentice Hall, 2001 Chapter 5 23
AlternativeAlternativeDevelopmentDevelopmentAlternativeAlternative
DevelopmentDevelopmentProblemProblem
IdentificationIdentificationProblemProblem
IdentificationIdentification
Two Important Two Important Decision-Making Decision-Making
PhasesPhases
Two Important Two Important Decision-Making Decision-Making
PhasesPhases
Prentice Hall, 2001 Chapter 5 24
Making Choices in the Making Choices in the WorkplaceWorkplace
AvailabilityAvailabilityHeuristicHeuristic
AvailabilityAvailabilityHeuristicHeuristic
RepresentativeHeuristic
RepresentativeHeuristic
Escalation ofEscalation ofCommitmentCommitmentEscalation ofEscalation ofCommitmentCommitment
Prentice Hall, 2001 Chapter 5 25
Making Choices
• Availability heuristic– The tendency for people to base their
judgments on information that is readily available
• Representative– Assessing the likelihood of an occurrence by
matching it with a preexisting category
• Escalating commitment– An increased commitment to a previous
decision in spite of negative information
Prentice Hall, 2001 Chapter 5 26
Analytic Conceptual
BehavioralDirective
Rational IntuitiveWay of Thinking
High
Low
To
lera
nce
fo
r A
mb
igu
ity
Decision-Making StylesDecision-Making Styles
Prentice Hall, 2001 Chapter 5 27
Organizational Organizational ConstraintsConstraints
RewardRewardSystemSystem
HistoricalHistoricalPrecedentsPrecedents
ProgrammedProgrammedRoutinesRoutines
PerformancePerformanceEvaluationEvaluation
Prentice Hall, 2001 Chapter 5 28
ProblemProblemIdentificationIdentification
The Value ofThe Value ofRationalityRationality
TimeTimeOrientationOrientation
Groups orGroups orIndividualsIndividuals
CulturalCulturalDifferencesDifferences