Perception and Individual
Decision Making
Prentice Hall, 2001
Chapter 5
1
Factors That
Influence Perception
Target
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Perceiver
Chapter 5
Situation
2
Observation
Interpretation
Attribution
of Cause
High
External
Low
Internal
High
External
Low
Internal
High
External
Low
Internal
Distinctiveness
Attribution
Theory and
Individual
Consensus
Behavior
Consistency
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Chapter 5
3
Frequently Used Shortcuts
When Judging Others
Selective
Perception
Contrast
Effect
Stereotyping
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Chapter 5
Halo Effect
Projection
4
Specific Applications in
Organizations
• Employment interview
• Performance expectations
• Performance evaluation
• Employee effort
• Employee loyalty
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Chapter 5
5
Rational Model of
Decision Making
TECH
Set Decision
Criteria
Problem
Identify and
Define Problem
Criteria
Weight
the Criteria
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A1
A2
+
A1
A1
A2
A2
A3
Choice
A4
Make Optimal
Decision
An
Develop
Alternatives
Chapter 5
An
An
Evaluate
Alternatives
6
Assumptions of the Model
One:
Four:
Problem Clarity
Constant Preferences
Two:
Five:
Known Options
No Constraints
Three:
Six:
Clear Preferences
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Maximum Payoff
Chapter 5
7
The Three Components of Creativity
Expertise
Creativity
Task
Motivation
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Creativity
Skills
Chapter 5
8
A Model of Bounded Rationality
Ascertain
the Need
for a Decision
Identify a
Limited Set
of Alternatives
Select
Criteria
Compare
Alternatives
Against Criteria
Simplify
the Problem
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Expand
Search for
Alternatives
No
Chapter 5
Select the
First “Good
Enough” Choice
A “Satisficing”
Alternative
Exists
Yes
9
Intuitive Decision Making

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
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Chapter 5
10
Two Important
Decision-Making Phases
Problem
Identification
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Alternative
Development
Chapter 5
11
Decision-Making Styles
Tolerance for Ambiguity
High
Analytic
Conceptual
Directive
Behavioral
Low
Rational
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Way of Thinking
Chapter 5
Intuitive
12
Performance
Evaluation
Reward
System
Organizational
Constraints
Programmed
Routines
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Historical
Precedents
Chapter 5
13
Time
Orientation
The Value of
Rationality
Cultural
Differences
Groups or
Individuals
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Problem
Identification
Chapter 5
14
Ethics in Decision-Making
Rights
Utilitarian
Justice
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Chapter 5
15