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    Perceptions and DM

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    Malik Noraiz
    This chapter discusses perception and individual decision making. It explains that perception is how individuals interpret and organize their sensory impressions to make meaning of their environment, and behavior is based on one's perceived reality rather than objective reality. It also outlines several biases and errors that influence perception and decision making, such as the fundamental attribution error, self-serving bias, and confirmation bias. The chapter emphasizes that managers should consider perception and how to manage it effectively.

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    Perceptions and DM

    Uploaded by

    Malik Noraiz
    12 views12 pages
    This chapter discusses perception and individual decision making. It explains that perception is how individuals interpret and organize their sensory impressions to make meaning of their environment, and behavior is based on one's perceived reality rather than objective reality. It also outlines several biases and errors that influence perception and decision making, such as the fundamental attribution error, self-serving bias, and confirmation bias. The chapter emphasizes that managers should consider perception and how to manage it effectively.

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    This chapter discusses perception and individual decision making. It explains that perception is how individuals interpret and organize their sensory impressions to make meaning of their environment, and behavior is based on one's perceived reality rather than objective reality. It also outlines several biases and errors that influence perception and decision making, such as the fundamental attribution error, self-serving bias, and confirmation bias. The chapter emphasizes that managers should consider perception and how to manage it effectively.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    12 views12 pages

    Perceptions and DM

    Uploaded by

    Malik Noraiz
    This chapter discusses perception and individual decision making. It explains that perception is how individuals interpret and organize their sensory impressions to make meaning of their environment, and behavior is based on one's perceived reality rather than objective reality. It also outlines several biases and errors that influence perception and decision making, such as the fundamental attribution error, self-serving bias, and confirmation bias. The chapter emphasizes that managers should consider perception and how to manage it effectively.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 12

    Robbins & Judge

    Organizational Behavior

    Chapter 5: Perception and Individual Decision Making

    5-1
    What is Perception?
    • A process by which individuals organize and
    interpret their sensory impressions in order to
    give meaning to their environment.
    • 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.
    • For factors that influence perception – see
    Exhibit 6-1

    5-2
    5-3
    Attribution Theory: Judging
    Others
     Our perception and judgment of others are significantly
    influenced by our assumptions of the other people’s
    internal states.
     When individuals observe behavior, they attempt to
    determine whether it is internally or externally caused.
    o Internal causes are under that person’s control.
    o External causes are not – person forced to act in that
    way.
     Causation judged through:
     Distinctiveness
    o Shows different behaviors in different situations.
     Consensus
    o Response is the same as others to same situation.
     Consistency
    5-4
    o Responds in the same way over time.
    Attribution Theory

    © 2009 Prentice-Hall Inc. All rights reserved. 5-5


    Errors 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
    – We blame people first, not the situation
    • Self-Serving Bias
    – The tendency for individuals to attribute their own
    successes to internal factors while putting the blame for
    failures on external factors
    – It is “our” success but “their” failure

    5-6
    Frequently 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

    5-7
    Another Shortcut:
    Stereotyping
    Judging someone on the basis of one’s perception of
    the group to which that person belongs – a prevalent
    and often useful, if not always accurate, generalization

    5-8
    Specific Shortcut Applications
    in Organizations
     Employment Interviews
     Perceptual biases of raters affect the accuracy of
    interviewers’ judgments of applicants.
     Formed in a single glance – 1/10 of a second!
     Performance Expectations
     Self-fulfilling prophecy (Pygmalion effect): The lower or
    higher performance of employees reflects preconceived
    leader expectations about employee capabilities.
     Performance Evaluations
     Appraisals are often the subjective (judgmental)
    perceptions of appraisers of another employee’s job
    performance.
    5-9

     Critical impact on employees.


    Common Biases and Errors in
    Decision-Making
    • Overconfidence Bias
    – Believing too much in our own ability to make good decisions –
    especially when outside of own expertise
    • Anchoring Bias
    – Using early, first received information as the basis for making
    subsequent judgments
    • Confirmation Bias
    – Selecting and using only facts that support our decision
    • Availability Bias
    – Emphasizing information that is most readily at hand
    • Recent
    • Vivid
    5-10
    More Common Decision-
    Making Errors
     Escalation of Commitment
     Increasing commitment to a decision in spite of
    evidence that it is wrong – especially if responsible for
    the decision!
     Randomness Error
     Creating meaning out of random events - superstitions
     Winner’s Curse
     Highest bidder pays too much due to value
    overestimation
     Likelihood increases with the number of people in
    auction
     Hindsight Bias
     After an outcome is already known, believing it could
    have been accurately predicted beforehand

    5-11
    Summary and Managerial
    Implications
    • Perception:
    – People act based on how they view their world
    – What exists is not as important as what is believed
    – Managers must also manage perception

    • Individual Decision Making


    – Most use bounded rationality: they satisfice
    – Combine traditional methods with intuition and creativity
    for better decisions
    • Analyze the situation and adjust to culture and organizational
    reward criteria
    • Be aware of, and minimize, biases
    5-12

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