Organizational Behavior
Robbins & Judge
Chapter 5
Perception and Individual Decision Making
Summary of Lecture 27
- Ability
- Learning Theories
- Attitude
- Components of attitude
- Relationship between attitude and behavior
- Job satisfaction and other job attitudes
- Main causes of job satisfaction
- Employees responses to job dissatisfaction
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Learning Objectives
- What is perception?
- Determinants of attribution
- Shortcuts in judgment
- Perception and decision making
- Steps in rational decision making
- Bounded rationality
- Decision biases or errors
- Intuition and decision making
- Ethical decision
- Normative decision model
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
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Perception
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Perception
“Perception is a process by which individuals
organize and interpret their sensory impressions
in order to give meaning to their environment”
- Perception is the process through which people select,
organize, and interpret information.
- Individual behavior is based on perception of reality not on
reality
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Process of Perception
Attention &
Selection
Organization
Classification
Personal
Meanings
Interpretation
Beliefs &Values
Behavior
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Perception
Factors Influencing Perception:
1.) Perceiver
2.) The Perceived
3.) Situation
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Factors that Influence
Perception
Factors in the situation
Time
Work setting
Social setting
Factors in the perceiver
Attitudes
Motives
Interests
Experience
Expectation
PERCEPTION
Factors in the target
Novelty
Motion
Sounds
Size
Background
Proximity
Similarity
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Organization
• Classification
– Figure and Ground Differentiation
• Figure
The Dominant feature being perceived.
• Ground
The Surrounding, the compelling Stimuli.
• Perceptual Closure
The mind’s tendency it fill in missing data when it receives
incomplete information.
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Interpretation
• We add meanings to data take in by our past learning
experience as well as our current beliefs, assumptions,
attitudes, and values; all influence the meaning we add to
what we take in.
• Combined, they form our individual frame of reference,
which is mental filter through which perceptions are
interpreted and evaluated.
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Person Perception
Making Judgments
About Others
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Observation
Interpretation
Attribution of
cause
Attribution Theory
Attribution process is a perceptual process whereby we
interpret the causes of behavior in terms of the person
(internal attributions) or the situation (external attributions).
Two Types of Causes:
1) Internal (internally caused behaviors are believed to be
under control)
2) External (behaviors resulting from outside causes or out of
control)
Absence
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Internal: Sleeping, late night party: External: Road
accident
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Factors of the Attribution Theory
1) Distinctiveness (whether person display different
behaviors based on situation
2) Consensus (if everyone in given situation behaves
in similar way)
3) Consistency (observer look for consistency in
action)
EXAMPLE: Arriving late in meeting
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
External attributions
Low
Consistency
High
High
Distinctiveness
High
consensus
Low
Low
Internal attributions
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Fundamental Attribution Error
When judge behaviors of others we often underestimate the
influence of external factors and overestimate influence of
personal of internal factors
EXAMPLE: Poor performance of salesperson is believed to
be due to laziness and incompetence
Individuals also tend to attribute success to internal factor
such as hard work, intelligence and effort
Individuals tend to attribute failure to external factors.
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Self Serving Bias
• A perceptual error whereby people tend to attribute their
own success to internal factors and their failures to
external factors
EXAMPLE: Iraq War
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Self-Fulfilling Prophecy
A phenomenon in which an observer’s expectations of
someone causes that person to act in a way that is
consistent with the observer’s expectations.
Errors or biases distort attributions are universal?
No Culture play its role: Japanese Managers
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Self-Fulfilling Prophecy Cycle
Supervisor forms
expectations about
employee
Employee’s behavior becomes
consistent with a supervisor’s
expectations
Expectations affect
supervisor's behavior
toward employee
Supervisor’s behavior
affect employees ability
and performance
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Shortcuts in Judging Others
1) Selective Perception
2) Halo Effect
3) Contrast Effects
4) Projection
5) Stereotyping
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Shortcuts in Judging Others
• Selective Perception
The tendency to focus on those attributes of people and
situations that fit our frame of reference.
–
Example: Notice Car like you
Why we use selective perception?
- We can not analyze or assimilate all information
- We select information based on our interests, experience,
attitude and background
• Halo Effect
The tendency to overrate a person based on
20 a single trait.
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Shortcuts in Judging Others
-
Halo Effect: The tendency to overrate a person based
on a single trait.
- For Example: judging bases on intelligence, sociability,
communication and appearance
- Example: Judging teacher on its ability to deliver or style
- Contrast Error: Our reaction to person is influenced by
other persons recently encountered.
- We don’t evaluate person in isolation
- Example: Selection Interview
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Shortcuts in Judging Others
Projection
-Attributing one's own characteristics while judging other
-Easy to judge if we assume other similar to us
-If you are honest assume that others are also the same
-Fail to recognize individual differences
Stereotyping
-Judging others based on our perception of the group
-A rigid and biased perception of a person, group, object, or
situation.
-A process of using a few observable characteristics to
assign people to preconceived social category or group
-Process of generalization make us to decide fast
(simplifying complex world)
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-Perception about Muslims after 9/11
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Stereotyping Process
Model
Develop social categories &
assign traits to them
Person is identified with a social
category based on observable
information
Assign social category’s cluster
of traits to the person
Example
Athletes are energetic
and hardworking. Best
salesman
This person is a athlete
This person is hard
working hence good
salesman
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Specific Applications of Short cuts in Organizations
1) Employment Interview
2) Performance Expectations
(Self Fulfilling Prophecy or Pygmalion effect)
3) Ethnic Profiling (increase in after 9/11)
4) Performance Evaluation
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
4
Performance Appraisal Errors
S.
No.
Performance Appraisal Error
Description
1
Leniency Error
Extreme rating either on high or low
side
2
Similarity Error
Bias appraisal because of personal
affiliation
3
Recency Error
Recent behavior evaluation instead of
entire performance appraisal period
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Contrast Error
Rating in comparison to other
members
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Central Tendency Error
Average rating for all employees
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Spill-Over Effect
Past performance or standing dominate
recent evaluation
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Hallo Error
One characteristic or aspect of
performance dominate entire
performance appraisal rating
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Perceptual Error
The previous held believe of
perception influence appraisal
Link between Perception and
Individual Decision Making
- In organization individuals make decisions (choice between
two or more alternatives)
- Decision making often occur in response to problem
- Decision require interpretation and evaluation
information and alternatives solutions/course of actions
- Quality of decision influenced by their perception
- Problem definition varies from person to person
EXAMPLE: Quarterly Sales data
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
of
Rational Decision Making
The Rational Model
1) Define problem
2) Identify the decision criteria
3) Allocate weight to the criteria
4) Develop the alternatives
5) Evaluate the alternatives
6) Select the best alternative
Assumptions
1) Problem clarity
2) Known options
4) Constant preferences
3) clear preferences
5) no time or cost constraints
6) Maximum payoff
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
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How decisions are made in organizations?
1) Bounded rationality: Limited capacity of individual to
observe, understand and interpret all information hence try
to find satisfactory or sufficient solutions
Common Biases and Errors
1) Overconfidence bias
2) Anchoring bias
3) Confirmation bias
4) Availability bias
5) Representative bias
6) Escalation of commitment
7) Randomness error
8) Winner's Curse
9) Hindsight bias
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
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Intuitive Decision Making
- “Intuitive decision making can be defined as unconscious
process created out of distilled experience”
- Expert based on his experience draw information form past
patterns and apply them to current problem to make quick
decision
When People make Intuitive Decision?
1 High level of uncertainty
2 Little precedent to draw
3 Variables are less scientifically predicted
4 Facts are limited
5 Facts don point the way
6 Analytical data are of little use
7 Several plausible alternatives 8
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
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Time is limited
Decision Making
1 Individual Differences
I) Personality
ii) Gender
2) Organizational Constraints
I) Performance evaluation
ii) Reward system
iii) Formal regulations
iv) System imposed time constraints
v) Historical precedents
3) Cultural Differences
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Creativity in Decision Making
Creative Potential
Figure: Components of Creativity
Expertise
Creative
skills
Task
Motivation
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Creativity in Decision Making
- Traits of Creativity: Openness to experience, intelligence,
independence, self confidence, risk taking, internal locus of control,
perseverance in frustration and tolerance for ambiguity
1 Expertise (knowledge, skills, and experience)
2 Creative thinking skills (analogies, apply idea from one context to
other
3 Intrinsic Task Motivation(work with interest and joy, love their work)
- Other important thing is presence of creativity driven culture
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Ethics in Decision Making
1 Utilitarian Criterion (interest of the organization or stakeholders)
2 Focus on Rights of individuals
3 Justice
- National Culture: No universal principle in this business world,
What is right in America may be wrong in China
- There are some issues where agreement otherwise few Grey
areas influence criteria of ethics
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Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
The Normative Decision Model
Decision Styles
-
Focus on matching leadership decision making style
and situation
-
Styles are assumed to be learnable
-
Decision style depends on
Quality requirement of decision
Likelihood of commitment from employees
Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning
The Normative
Decision Model
1 Decide
- Leader makes decision with little or no subordinate input
2 Consult Individually
- Input from subordinates but leader makes decision
©Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning
The Normative Decision Model
Decision Styles
3 Consult Group
- Consensus building
- Leader shares decision making with group
5 Facilitate: Helps define problems
- Leader seeking participation and concurrence without
pushing own ideas
6 Delegate
- Leader gives total decision making authority to
employees
Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning
Deciding Appropriate Leadership
Style
1.
2.
3.
4.
1
Decision
Significance
2 Importance of
Commitment
3 Leader
1.
5
2.
3.
6
7
Expertise
4 Likelihood of
Commitment
Lussier, R. and Achau, C. (2007): Effective Leadership, 3rd Edition, South-Western, Cangage Learning
Group Support for
Objectives
Group Expertise
Team Competence
Managerial Implication
- Individuals behave based on their perception of environment
and situation
- Absenteeism, job turn over, and job satisfaction behaviors are
influenced by perception of individuals
- Individuals satisfaction and dissatisfaction level about work
conditions, job, policies and structures are based on
perception
- Reducing Errors or Biases
1) Focus on goal
2) Analyze information that disconfirms your
beliefs 3) Don't try to create meaning out/from random events
4) Increase your options 5) Ask from yourself: Are you
committing biases
- Enhance your decision quality by
- Analyzing the situation - Adjust your style based on situation
and culture – Be aware of biases - Use creativity (out of the box
thinking) – Use intuition with rationality
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
Discussion Questions
Discussion Question 1: How perception influence behavior?
Discussion Question 2: What are few shortcuts in
judgment?
Discussion Question 3: What is relationship between
perception and decision making?
Discussion Question 4: What is bounded rationality?
Discussion Question 5: What is intuition?
Discussion Question 6: What is your view point on ethical
decision criteria?
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Summary
- What is perception?
- Determinants of attribution
- Shortcuts in judgment
- Perception and decision making
- Steps in rational decision making
- Bounded rationality
- Decision biases or errors
- Intuition and decision making
- Ethical decision
- Normative decision model
Robbins and Judge (2008): Organizational Behavior, Pearson, Prentice Hall
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