1 What is perception, and what factors influence our perception?

Ans: Perception is a process by which individuals select, organize and

interpret the information in order to give meaning to their environment.
People’s behavior is based on the perception of what reality is, not on reality
itself. Sometimes what we perceive can be different from reality. For
example, all employees in a firm may view it as a great place to work,
favorable working conditions, responsible management, excellent benefits,
but most of us know, it is unusual to find such agreement.

Factors that Influence Perception

A number of factors operate to shape and sometimes distort perception.
These factors can reside in perceiver, or target, being perceived; or in the
context of the situation in which the perception is made. Let look at the
figure in next slides to better understand this
Factors that Influence Perception

Factors that Influence Perception

When you look at a target to interpret what you see, your interpretation is
influenced by your personal characteristics such as attitudes, personality,
motives, interest, past experience, expectation. For example, if you expect
young people to be lazy, you may perceive them as such, regardless of their
actual traits.
Characteristics of the target we observe can affect what we perceive. Loud
people are more likely to be noticed in a group than quiet ones.

Context is also important. The time at which we see an object or event can
influence our attention. For example at a nightclub on Saturday night. You
may no notice a young guest dressed in a modern way. Yet that same person
wear that same modern dress for your Monday morning management class
would certainly catch you attention. Nor the perceiver change not the target
but situation is different

2 What is attribution theory? What are the three determinants of

attribution? What are its implications for explaining organizational
behaviour?

Ans:Attribution theory is a psychological framework that seeks to

understand how individuals interpret and explain the causes of behavior. It
explores how people attribute the behavior of others or themselves to either
internal factors (personal characteristics, abilities, or intentions) or external
factors (situational factors or circumstances).
Three Determinants of Attribution

According to attribution theory, there are three main determinants that

influence how individuals attribute behavior:
1.​Consensus: Consensus refers to the extent to which other people
behave similarly in a given situation. If multiple people exhibit the
same behavior, there is high consensus. If only one person behaves in a
particular way, there is low consensus. High consensus suggests that
 the behavior is influenced by external factors, while low consensus
suggests that the behavior is influenced by internal factors.
2.​Distinctiveness: Distinctiveness refers to the extent to which an
individual's behavior varies across different situations. If an individual
behaves differently in different situations, there is high distinctiveness.
If the behavior is consistent across situations, there is low
distinctiveness. High distinctiveness suggests that the behavior is
influenced by external factors, while low distinctiveness suggests that
the behavior is influenced by internal factors.
3.​Consistency: Consistency refers to the extent to which an individual's
behavior is consistent over time. If the behavior is consistent over time,
there is high consistency. If the behavior varies over time, there is low
consistency. High consistency suggests that the behavior is influenced
by internal factors, while low consistency suggests that the behavior is
influenced by external factors.
Implications for Explaining Organizational Behavior

Attribution theory has several implications for explaining organizational

behavior:
1.​Performance Evaluation: Attribution theory suggests that managers
and supervisors should consider the situational factors that may have
influenced an employee's performance. By recognizing the impact of
external factors, such as resources or task difficulty, managers can
provide fairer evaluations and avoid unfairly attributing success or
failure solely to individual abilities.
2.​Motivation and Rewards: Attribution theory highlights the
importance of recognizing and rewarding employees for their efforts
and achievements. By acknowledging and attributing success to
internal factors, such as effort or skill, organizations can enhance
employee motivation and job satisfaction.
3.​Conflict Resolution: Understanding attribution processes can help
resolve conflicts in the workplace. By encouraging individuals to
 consider alternative explanations for behavior and promoting open
communication, organizations can reduce misunderstandings and
promote more effective conflict resolution.
In summary, attribution theory provides insights into how individuals
interpret and explain behavior. By considering consensus, distinctiveness, and
consistency, we can better understand the factors that influence attributions
and their implications for organizational behavior.
Alternative answer:

Attribution theory tries to explain the ways in which we judge people

differently, it suggest that when we observe an individual’s behavior, we
attempt to determine whether it was internally or external caused.

That determination, however depends largely on three factors: (1)

distinctiveness, (2) consensus, (3) consistency. First lets clarify the
difference between internal and external causation.

Difference between internal and external causation

Internal caused behaviors are those which are under the personal control of
the individual. External caused behavior is what the situation forced the
individual to do.

If one employee is late for work, you might attribute that to his partying till
late night and then oversleeping. This is an internal attribution. But if you
attribute his arriving late to an automobile accident that tied up traffic, then
you are making external attribution.

(1 Distinctiveness

Distinctive refer whether an individual show display different behavior in

different situation. The employee who came late at work, is also the one
about other colleagues complains that blows off commitment. We want to
know is whether this behavior is usual. If employee show different behavior
in different situation then his/her behavior is external attribution, but if it is
not, we will probably judge the behavior to be internal.

(2) Consensus (harmony)

If everyone face similar situation responds in the same way, we can say
behavior show consensus.The behavior of our tardy (late) employee meets
this criteria, if all employees who took the same route to work were also
late.From an attribution perspective, if consensus is high, you would
probably give an external attribution to the employee’s tardiness (lateness).

(3) Consistency

Finally, an observer looks for consistency in a person’s actions. Does the

person the same way over time. If person come 10 minutes late in 1 or 2 days
in a month wouldn’t be perceived consistency. If employee is consistence in
getting office late then it is mostly to be consider internal attribution.

Figure in next slides summarizes the whole concept

Q3 What shortcuts do people frequently use in making
judgement about others?

Common shortcut on Judging Others

Selective Perception
People selectively interpret what they see on the basis of their interests,
background, experience, and attitudes.
Hallo Effect
Drawing a general impression about an individual on the basis of a single
characteristic.
Contrast Effect
The contrast effect is when something is seen alongside something else and
the difference between the two items is very obvious.Projection

Attributing one’s own characteristics to other person. A common example is

a cheating spouse who suspects their partner is being unfaithful

Stereotypes

Judging someone on the basis of one’s perception of the group to which that
person belong. In simple words believe unfairly that all people of with
particular characteristics are same.
Q4 What is the link between perception and decision making?
How does one affect the other

Link Between Perception and Decision Making

Decision
A choice from two or more alternative is decision.

Manger at all levels make decisions. Top level make decisions about
organization’s goal, middle and lower level managers make decisions about
production, product quality, pay raises etc.

Individual decision making is thus an important part of organizational

behavior. But the way individuals make decisions and the quality of their
choices are largely influenced by their perceptions..

Problem
Decision making occurs as a reaction to a problem. That is, a discrepancy
exists between the current state of affairs and some desired state, requiring us
to consider alternative courses of action. If your car breaks down and you
rely on it to get to work, you have a problem that requires a decision on your
part.

Perception and Decision

Every decision requires us to interpret and evaluate information. We typically
receive data from multiple sources and need to screen, process, and interpret
them. Which data are relevant to the decision, and which are not?

Our perceptions will answer that question. We also need to develop

alternatives and evaluate their strengths and weaknesses.

Again, our perceptual process will affect the final outcome

Q5 What is the rational model of decision making? How is it

different from bounded rationality the intuition?
Ans:
Everyone in the organization makes decisions, but decision making is
particularly important to managers. It is part of all four managerial functions
that is why managers when plan, organize, lead and control are called
“decision making”.
Manager make dozen of decisions in routine such as which employee will
work, what information is needed in report etc. There are three perspectives
on how managers make decisions.

Rational Decision Making

A type of decision making in which choices are logical and consistent and
maximize value. We assume that manager’s decision making will be rational,
but decision of Nokia Company of not using android is an example of not
making decision rationally. ​

Steps in the Rational Decision-Making Model

1. Define the problem.
2. Identify the decision criteria.
3. Allocate weights to the criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.

Bounded Rationality
More realistic approach to describe how managers make decision is the
concept of bounded rationality. Which says that manager make decision
rationally but are limited (bounded) by their ability to process information.

They can’t analyze all information on all alternatives , managers satisfies

rather than maximize. Because the human mind cannot formulate and solve
complex problems with full rationality, we operate within the confines of
bounded rationality .​

Intuition
Intuition decision making is making decision on the basis of experience,
feeling and judgment. While intuition isn’t rational, it isn’t necessarily
wrong. Nor does it always contradict rational analysis; rather, the two can
complement each other.

Researchers say, managers use five different aspect of intuitions in decision

making.
1.​ Experience-Based Decision
2.​ Affect-Initiated Decision
3.​ Cognitive-Based Decision
4.​ Subconscious Mental Processing
5.​ Value or Ethics Based Decision

​ ​

Q6 What are some of the common decision biases or errors that people
make?

Common Biases (unfairness) and Errors in

Decision Making
Decision makers engage in bounded rationality, but they also allow systematic
biases and errors to creep (grow) into their judgments. To minimize effort and
avoid difficult, people tend to rely too heavily on experience, gut feelings, and
convenient rules of thumb. These shortcuts can be helpful However, they can also
distort rationality.

Let's discuss the most common biases in decision making.​

1 Overconfidence Biases
When decision makers tend to think they know more than they do or hold
unrealistically positive views of themselves and their performance, they’re
exhibiting the overconfidence bias.

2 The Anchoring Effect

The anchoring effect describes how decision makers fixate on initial information as
a starting point and then, once set, fail to adequately (‫ )مناسب‬adjust for subsequent
(later) information. First impressions, ideas, and estimates carry more weight
relative to information received later.

3 Selective Perception Bias

When decision makers selectively organize and interpret events based on their
biased perceptions, they’re using the selective perception bias.

4 Confirmation Bias

Decision makers who seek out information that reaffirms (confirm the validity)
their past choices and discount information that contradicts (go against) past
judgments exhibit the confirmation bias.

5 The Availability Error

The availability bias happens when decision makers tend to remember events that
are the most recent and vivid (clear) in their memory. The result? It distorts their
ability to recall events in an objective manner and results in distorted judgments
and probability estimates.

6 Escalation (seriousness) of Commitment

Another distortion that creeps into decisions is a tendency to escalate commitment.

Escalation of commitment refers to staying with a decision even when there is
clear evidence it’s wrong. Consider a friend who has been dating someone for
several years. Although he admits things aren’t going too well, he says he is still
going to marry her. His justification: “I have a lot invested in the relationship!

7 Randomness (Unpredictability) Error

Most of us like to think we have some control over our world and our destiny. Our
tendency to believe we can predict the outcome of random events is the
randomness error .

8 Risk Aversion

The tendency to prefer a sure gain of a moderate amount over a riskier outcome,
even if the riskier outcome might have a higher expected payoff

Q7 what are the influences of individual differences,organizational

constraints,and culture on decision making?.

Individual Differences:

●​ Personality: People with different personalities make decisions differently.

Achievement-oriented individuals may overcommit or avoid failure, even
when it's not ideal, while dutiful people focus more on doing what's best for
the organization. High self-esteem individuals are prone to self-serving bias,
taking credit for successes and blaming others for failures.
●​ Gender: Research shows women tend to analyze decisions more than men,
often engaging in rumination (overthinking) and reflecting more on
problems. This tendency is more significant in young adulthood and
decreases with age.
●​ Mental Ability: Individuals with higher mental ability can process
information faster, solve problems more accurately, and are generally better
 at making decisions with fewer errors.
●​ Cultural background greatly influences decision-making, affecting aspects
like problem selection, analysis depth, and decision-making style. For
example, cultures differ in time orientation, with U.S. managers making
quick decisions while those in Egypt take more time. Rationality is highly
valued in the U.S., while in Iran, it's less important. The U.S. focuses on
problem-solving, while countries like Thailand may accept situations as they
are. Additionally, decision-making in Japan is more group-oriented,
emphasizing consensus, unlike in the U.S. where decisions are often
individual. However, more research is needed to fully understand these
cultural differences in decision-making.

Organizational Constraints:

●​ Performance Evaluations: Managers' decisions are strongly influenced by

performance evaluation criteria. Their actions tend to align with the
expectations set by these assessments.
●​ Reward Systems: Reward systems guide decision-makers toward choices
that benefit them personally, encouraging decisions that lead to personal
rewards.
●​ Formal Regulations: Organizations often impose rules and procedures that
standardize behavior, which can limit flexibility in decision-making.
●​ Time Constraints: Deadlines imposed by organizations force managers to
make quicker decisions in order to stay competitive and meet customer
demands. Most important decisions come with set deadlines.
 ●​ Historical Precedents: Past decisions heavily influence current ones. For
example, a company's budget is often based on the previous year's budget,
making it difficult to break from established pattern

Q8 Are Unethical decisions more a function of an individual decision

maker or the decision maker’s work environment ? Explain.

Unethical decisions can stem from both the individual decision-maker

and the work environment, with each playing a significant role.

●​ Individual Decision Maker: A person’s personality, values, and

morals heavily influence their choices. Some individuals might
make unethical decisions due to personal flaws like greed, a lack of
empathy, or a desire to avoid responsibility. These individuals may
disregard ethical considerations in favor of self-interest.
●​ Work Environment: The work environment also greatly impacts
decision-making. Organizational pressures, such as intense
competition, high expectations, or incentives that reward success at
any cost, can push individuals to act unethically. A workplace
 culture that tolerates or even encourages unethical behavior can
normalize such decisions, influencing otherwise ethical individuals
to make poor choices.

In many cases, it is a combination of both personal factors and the work

environment that leads to unethical decisions. If a person is placed in a
high-pressure or unethical work environment, even someone with strong
moral values may be swayed to make unethical choices. Therefore, both
individual characteristics and the organizational context should be
considered when analyzing unethical decision-making.

Q9 What is creativity , and what is the three-component model of

creativity?

Creativity is the ability to generate novel and useful ideas that are different from
previous solutions but are appropriate to the problem at hand. It involves thinking
in ways that break free from conventional patterns, allowing individuals to come
up with new approaches or perspectives.

The Three-Component Model of Creativity suggests that individual creativity

depends on three key factors:

1.​ Expertise: This is the foundational knowledge, skills, and experience in a

specific field. The more expertise a person has, the greater their potential for
creativity, as they have a deeper understanding of the domain and can make
more informed, creative contributions.
2.​ Creative-thinking skills: These include personality traits that support
creativity, the ability to use analogies, and the capability to view problems
 from different angles. Creative thinkers can spot patterns, think divergently,
and approach familiar issues in new ways.
3.​ Intrinsic task motivation: This refers to the internal drive or passion to
engage in a task because it is interesting, satisfying, or personally rewarding.
Motivation helps individuals fully commit to their work and leverage both
their expertise and creative skills to generate innovative solutions.

Together, these three components—expertise, creative-thinking skills, and intrinsic

motivation—are essential for fostering creativity. High levels of each component
lead to more creative outcomes.

Three Ethical Decision Criteria

Three Ethical Decision Criteria in organizational decision-making are:

1.​ Utilitarian Criterion: This suggests that decisions should be made

based on their outcomes, aiming for the greatest good for the greatest
number. It dominates business decision-making and aligns with goals
such as efficiency, productivity, and high profits. However, it can
neglect the rights of individuals, especially minority groups.
2.​ Focus on Rights: This criterion emphasizes respecting and protecting
fundamental rights and liberties, such as privacy, free speech, and due
process. It ensures individuals’ rights are protected, such as
whistle-blowers' right to expose unethical practices. While it safeguards
personal freedoms, it can create legal barriers that hinder efficiency and
 productivity.
3.​ Justice Criterion: This calls for fair and impartial rule enforcement to
ensure a just distribution of benefits and costs. It's often favored by
unions, and emphasizes fairness in pay, layoff decisions, and benefits.
While it helps protect underrepresented individuals, it can encourage
entitlement, which may reduce risk-taking and innovation.

Each of these criteria has its benefits and drawbacks:

●​ Utilitarianism encourages efficiency but can harm individual rights.

●​ Focus on rights protects personal freedoms but might hinder
productivity.
●​ Justice promotes fairness but can limit flexibility in decision-making.

Global organizations must adapt these ethical standards to different cultural

contexts. For example, ethical guidelines in the West are typically more
clear-cut, while in places like Asia, ethical standards may be more
ambiguous. Understanding and modifying these criteria to fit the cultural
norms of countries like India and China is essential for maintaining consistent
ethical standards globally.

Sir quesitons

IS creativity change employer behaviour?

Yes, creativity can change employer behavior in several ways. When

employers encourage and foster creativity in their organizations, it can lead to
shifts in how decisions are made, how problems are solved, and how
employees are managed and motivated. Here are a few ways creativity can
influence employer behavior:

1.​ Openness to Innovation: Employers who value creativity tend to be

more open to new ideas, solutions, and approaches. This can lead them
to adopt innovative business practices, products, and services, which
could drive growth and competitiveness.
2.​ Problem-Solving Focus: Creative employers are more likely to seek
out unconventional solutions to problems. This can result in different
strategies for addressing challenges, promoting adaptability and agility
in a rapidly changing business environment.
3.​ Support for Employees: Employers who encourage creativity may
shift from a controlling management style to one that emphasizes
autonomy, freedom, and empowerment. They create an environment
where employees feel more motivated to express new ideas, leading to
greater employee engagement and satisfaction.
4.​ Rewarding Innovation: Creative employers often implement
recognition and reward systems that highlight creative contributions,
encouraging a culture of continuous improvement and creative
problem-solving across teams.

In summary, creativity can cause employers to become more flexible,

innovative, and employee-oriented, leading to significant behavioral changes
that benefit the organization as a whole.