Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Perception and Individual Decision Making
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.
Factors that Influence Perception
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Attribution Theory: Judging Others
Our perception and judgment of others is significantly influenced by our assumptions of the other
person’s internal state.

When individuals observe behavior, they attempt to determine whether it is
internally or externally caused.
 Internal causes are under that person’s control
 External causes are not – person forced to act in that way
Causation judged through:

Distinctiveness
 Shows different behaviors in different situations.

Consensus
 Response is the same as others to same situation.

Consistency
 Responds in the same way

Elements of Attribution Theory
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
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
Frequently Used Shortcuts in Judging Others

Selective Perception


Halo Effect


People selectively interpret what they see on the basis of their interests, background,
experience, and attitudes
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
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
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

Profiling

A form of stereotyping in which members of a group are singled out for intense
scrutiny based on a single, often racial, trait.
Specific Shortcut Applications in Organizations


Employment Interview

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

Critical impact on employees
Perceptions and Individual Decision Making

Problem


Decisions


A perceived discrepancy between the current state of affairs and a desired state
Choices made from among alternatives developed from data
Perception Linkage:

All elements of problem identification and the decision making process are
influenced by perception.

Problems must be recognized

Data must be selected and evaluated
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Decision-Making Models in Organizations


Rational Decision-Making

The “perfect world” model: assumes complete information, all options known, and
maximum payoff.

Six step decision-making process
Bounded Reality


The “real world” model: seeks satisfactory and sufficient solutions from limited data
and alternatives
Intuition

A non-conscious process created from distilled experience that results in quick
decisions

Relies on holistic associations

Affectively charged – engaging the emotions
Common Biases and Errors in Decision-Making

Overconfidence Bias


Anchoring Bias


Emphasizing information that is most readily at hand

Recent

Vivid
Escalation of Commitment


Selecting and using only facts that support our decision
Availability Bias


Using early, first received information as the basis for making subsequent judgments
Confirmation Bias


Believing too much in our own ability to make good decisions – especially when
outside of own expertise
Increasing commitment to a decision in spite of evidence that it is wrong –
especially if responsible for the decision!
Randomness Error
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007



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
Individual Differences in Decision-Making
Personality


Conscientiousness may effect escalation of commitment

Achievement-strivers are likely to increase commitment

Dutiful people are less like to have this bias
Self-Esteem

High self-esteem people are susceptible to self-serving bias
Gender
•
Women analyze decisions more than men – rumination
•
Women are twice as likely to develop depression
•
Differences develop early
Organizational Constraints

Performance Evaluation


Reward Systems


Managers will make the decision with the greatest personal payoff for them
Formal Regulations


Managerial evaluation criteria influence actions
Limit the alternative choices of decision makers
System-imposed Time Constraints
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007


Restrict ability to gather or evaluate information
Historical Precedents

Past decisions influence current decisions
Ethics in Decision Making

Ethical Decision Criteria



Utilitarianism

Decisions made based solely on the outcome

Seeking the greatest good for the greatest number

Dominant method for businesspeople
Rights

Decisions consistent with fundamental liberties and privileges

Respecting and protecting basic rights of individuals such as whistleblowers
Justice

Imposing and enforcing rules fairly and impartially

Equitable distribution of benefits and costs
Ethical Decision-Making Criteria Assessed



Utilitarianism

Pro: Promotes efficiency and productivity

Con: Can ignore individual rights, especially minorities
Rights

Pro: Protects individuals from harm; preserves rights

Con: Creates an overly legalistic work environment
Justice

Pro: Protects the interests of weaker members

Con: Encourages a sense of entitlement
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Summary


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
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Communication
 The transference and understanding of meaning

Communication Functions
 Control member behavior
 Foster motivation for what is to be done
 Provide a release for emotional expression
 Provide information needed to make decisions

Communication Process
 The steps between a source and a receiver that result in the transference and
understanding of meaning
Key Parts of Communication Process

The Sender – initiates message

Encoding – translating thought to message

The Message – what is communicated

The Channel – the medium the message travels through

Decoding – the receiver’s action in making sense of the message

The Receiver – person who gets the message

Noise – things that interfere with the message

Feedback – a return message regarding the initial communication
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Communication Channels

Channel
 The medium selected by the sender through which the message travels to the
receiver

Types of Channels
 Formal Channels
 Are established by the organization and transmit messages that are related
to the professional activities of members
 Informal Channels
 Used to transmit personal or social messages in the organization. These
informal channels are spontaneous and emerge as a response to individual
choices
Direction of Communication
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Interpersonal Communication

Oral Communication
 Advantages: Speed and feedback
 Disadvantage: Distortion of the message

Written Communication
 Advantages: Tangible and verifiable
 Disadvantages: Time-consuming and lacks feedback

Nonverbal Communication
 Advantages: Supports other communications and provides observable expression of
emotions and feelings
 Disadvantage: Misperception of body language or gestures can influence receiver’s
interpretation of message

Nonverbal Communication

Body Movement
 Unconscious motions that provide meaning
 Shows extent of interest in another and relative perceived status differences

Intonations and Voice Emphasis
 The way something is said can change meaning

Facial Expressions
 Show emotion

Physical Distance between Sender and Receiver
 Depends on cultural norms
 Can express interest or status
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Three Common Formal Small-Group Networks

Chain:
 Rigidly follows the chain of command

Wheel:
 Relies on a central figure to act as the conduit for all communication
 Team with a strong leader

All Channel:
 All group members communicate actively with each other
 Self-managed teams
Small Group Network Effectiveness

Small group effectiveness depends on the desired outcome variable
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
The Grapevine

Three Main Grapevine Characteristics
1. Informal, not controlled by management
2. Perceived by most employees as being more believable and reliable than formal
communications
3. Largely used to serve the self-interests of those who use it

Results from:
1. Desire for information about important situations
2. Ambiguous conditions
3. Conditions that cause anxiety

Insightful to managers

Serves employee’s social needs
Reducing Rumors
1. Announce timetables for making important decisions
2. Explain decisions and behaviors that may appear inconsistent or secretive
3. Emphasize the downside, as well as the upside, of current decisions and future plans
4. Openly discuss worst-case possibilities—they are almost never as anxiety-provoking as the
unspoken fantasy
Source: Adapted from L. Hirschhorn, “Managing Rumors,” in L. Hirschhorn (ed.), Cutting Back (San
Francisco: Jossey-Bass, 1983), pp. 54–56
Electronic Communications: E-mail

E-mail
 Advantages: quickly written, sent, and stored; low cost for distribution
 Disadvantages:
 Messages are easily and commonly misinterpreted
 Not appropriate for sending negative messages
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
 Overused and overloading readers
 Removes inhibitions and can cause emotional responses and flaming
 Difficult to “get” emotional state understood – emoticons
 Non-private: e-mail is often monitored and may be forwarded to anyone
Electronic Comms: Instant/Text Messaging
Forms of “real time” communication of short messages that often use portable communication
devices.
 Explosive growth in business use
 Fast and inexpensive means of communication
 Can be intrusive and distracting
 Easily “hacked” with weak security
 Can be seen as too informal

Instant Messaging
 Immediate e-mail sent to receiver’s desktop or device

Text Messages
 Short messages typically sent to cell phones or other handheld devices
Electronic Comms: Networking Software

Linked systems organically spread throughout the nation and world that can be accessed by
a PC

Includes:
 Social networks like MySpace® and Facebook®
 Professional networks like Zoominfo® and Ziggs®
 Corporate networks such as IBM’s BluePages®

Key Points:
 These are public spaces – anyone can see what you post
 Can be used for job application screening
 Avoid “over stimulating” your contacts
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
Electronic Comms: Blogs and Videoconferencing

Blogs: websites about a single person (or entity) that are typically updated daily.
 A popular, but potentially dangerous activity:
 Employees may post harmful information
 Such comments may be cause for dismissal
 No First Amendment rights protection
 Can be against company policy to post in a blog during company time and on
company equipment/connections
 Videoconferencing: uses live audio and video Internet streaming to create
virtual meetings.
 Now uses inexpensive webcams and laptops in place of formal videoconferencing
rooms
Knowledge Management

The process of organizing and distributing an organization’s collective wisdom so the right
information gets to the right people at the right time

Important because:
 Intellectual assets are as critical as physical assets.
 When individuals leave, their knowledge and experience goes with them.
 A KM system reduces redundancy and makes the organization more efficient.
 Requires an organizational culture that values sharing of information
Choice of Communication Channel

The model of “media richness” helps explain an individual’s choice of communication
channel
 Channels vary in their capacity to convey information

A “rich” channel is one that can:
 Handle multiple cues simultaneously
 Facilitate rapid feedback
 Be very personal
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007

Choice depends on whether the message is routine

High-performing managers tend to be very media-sensitive
Media Richness Model
Source: Based on R.H. Lengel and D.L. Daft, “The Selection of Communication Media as an Executive
Skill,” Academy of Management Executive, August 1988, pp. 225–32; and R.L. Daft and R.H. Lengel,
“Organizational Information Requirements, Media Richness, and Structural Design,” Managerial
Science, May 1996, pp. 554–72. Reproduced from R.L. Daft and R.A. Noe, Organizational Behavior
(Fort Worth, TX: Harcourt, 2001), p. 311.
Barriers to Effective Communication

Filtering
 A sender’s manipulation of information so that it will be seen more favorably by the
receiver

Selective Perception
 People selectively interpret what they see on the basis of their interests, background,
experience, and attitudes

Information Overload
 A condition in which information inflow exceeds an individual’s processing capacity

Emotions
 How a receiver feels at the time a message is received will influence how the
message is interpreted
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007

Language
 Words have different meanings to different people

Communication Apprehension
 Undue tension and anxiety about oral communication, written communication, or
both

Gender Differences
 Men tend to talk to emphasize status while women talk to create connections
Politically Correct “PC” Communication

Communication so concerned with being inoffensive that meaning and simplicity are lost or
free expression is hampered

Certain words do stereotype, intimidate, and insult
 In a highly diverse workforce this is problematic:
 “Garbage” becomes “post-consumer waste materials”
 “Quotas” become “educational equity”
 “Women” become “people of gender”
 Such non-standard sanitizing of potentially offensive words can reduce the clarity of
messages
Global Implications

Cross-cultural factors increase communication difficulties

Cultural Barriers:
 Semantics: some words aren’t translatable
 Word Connotations: some words imply multiple meanings beyond their definitions
 Tone Differences: the acceptable level of formality of language
 Perception Differences: language affects worldview

Cultural Context:
 The importance of social context to meaning
 Low-context cultures (like the US) rely on words for meaning
Organizational Behavior (9th Edition) 9th edition
Stephen P. Robbins (Author), Timothy A. Judge (Author) , Publisher (Pearson) 2007
 High-context cultures gain meaning from the whole situation
Body Language Issues
All of these common U.S. hand signs are offensive somewhere in the world.
A Cultural Guide

To reduce your chance of making a faux pas in another culture, err on the side of caution by:
 Assuming differences until similarity is proven
 Emphasizing description rather than interpretation or evaluation
 Practicing empathy in communication
 Treating your interpretations as a working hypothesis
Summary

The less employees are uncertain, the greater their satisfaction; good communication
reduces uncertainty!

Communication is improved by:
 Choosing the correct channel
 Being a good listener
 Using feedback

Potential for misunderstanding in electronic communication is higher than for traditional
modes

There are many barriers to international communication that must be overcome