Perception and individual decision making

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Chapter Learning Objectives
After studying this chapter, you should be able to:
±Define perception and explain the factors that influence it.
±Explain attribute theory and list the three determinants of
attribution.
±Identify the shortcuts individuals use in making judgments about
others.
±Explain the link between perception and decision making.
±Apply the rational model ofdecision-making and contrast it with
bounded rationality and intuition.
±List and explain the common decision biases or errors.
±Explain how individual differences and organizational constraints
affect decision-making.
±Contrast the three ethical decision criteria.
±Define creativity and discuss the three-component model of
creativity.------------------------------------------------------------------------------------------

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.

Decision-Making Modelsin Organizations
RationalDecision-Making
±The ³perfect world´ model: assumes complete information,
all options known, and maximum payoff.
±Six step decision-making process
Bounded Reality
±The ³real world´ model: seeks satisfactory and sufficient
solutions from limited data and alternatives
Intuition
±A non-conscious process created from distilled experience
that results inquick decisions
‡Relies on holistic associations
‡Affectively charged ± engaging the emotions

Factors that Influence Perception

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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 over time

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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 blamepeople 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 ³our´ success but ³their´ failure
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Frequently Used Shortcuts in Judging Others

SelectivePerception
±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 higheror lower on the same
characteristics

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....
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