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Chapter 6 Perception and Individual Decision Making

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Vy Tran Linh
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11 views

Chapter 6 Perception and Individual Decision Making

Uploaded by

Vy Tran Linh
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 6: Perception and

Individual Decision Making


After studying this chapter,
you should be able to:
1. Define perception, and explain the factors that
influence it.
2. Identify the shortcuts individuals use in making
judgments about others.
3. Explain the link between perception and decision
making.
4. List and explain the common decision biases or
errors.
5. Contrast the three ethical decision criteria.
6. Define creativity, and discuss the three-component
model of creativity. 6-2
Perception
 Perception: A process by which
individuals organize and interpret
their sensory impressions in
order to give meaning to their
environment
 The world as it is perceived is
the world that is behaviorally
important

6-3
Factors Influencing Perception

6-4
Person Perception: Attribution
Theory

 Attribution Theory: Suggests that


perceivers try to “attribute” the observed
behavior to a type of cause:
 Internal – behavior is believed to be under
the personal control of the individual
 External – the person is forced into the
behavior by outside events/causes

6-5
Determinants of Attribution

 Distinctiveness – whether an individual


displays different behaviors in different
situations (the uniqueness of the act)
 Consensus – does everyone who faces a
similar situation respond in the same way as
the individual did
 Consistency – does the person respond the
same way over time

6-6
Attribution Errors
 Fundamental attribution error:
Tendency to underestimate the
influence of external factors and
overestimate that of internal factors
 Self-Serving Bias: Occurs when
individuals overestimate their own
(internal) influence on successes and overestimate the
external influences on their failures
 The basic process of attribution applies
across cultures, but Western cultures tend to
be more individualist, while Asian cultures 6-7

are more group-oriented


Shortcuts Used
in Judging Others

 Selective Perception: A perceptual filtering process


based on interests, background, and attitude
 May allow observers to draw unwarranted
conclusions from an ambiguous situation
 Halo Effect: Drawing a general impression based on a
single characteristic such intelligence, skillful
 Contrast Effects: Our reaction is influenced by others
we have recently encountered (the context of the
observation) - comparison
 Stereotyping: Judging someone on the basis of the
perception of the group to which they belong
6-8
The Link Between Perception and
Decision Making
 Decision making occurs as a reaction to a
perceived problem
 Perception influences:
 Awareness that a problem exists
 The interpretation and evaluation of
information
 Bias of analysis
and conclusions

6-9
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

 This model is seldom actually used: it’s more of a goal


than a practical method 6-10
Bounded Rationality

 The limited information-processing capability of


human beings makes it impossible to assimilate
and understand all the information necessary
to optimize
 People seek solutions that are satisfactory and
sufficient, rather than optimal (they “satisfice”)
 Bounded rationality is constructing simplified
models that extract the essential features from
problems without capturing all their complexity
6-11
Intuitive Decision Making

 Intuitive decision making : A


non-conscious process created
out of distilled experience
 Increases with experience
 Can be a powerful complement
to rational analysis in decision
making

6-12
Common Biases and Errors
 Overconfidence Bias
As managers and employees become more knowledgeable
about an issue, the less likely they are to display
overconfidence
 Anchoring Bias
A tendency to fixate on initial information and fail to
adequately adjust for subsequent information
 Confirmation Bias
Seeking out information that reaffirms our past choices
and discounting information that contradicts past
judgments 6-13
Common Biases and Errors
 Randomness Error
Believing that we can predict the outcome of random events
 Availability Bias
Basing judgments on information that is readily available
 Escalation of Commitment
Staying with a decision even when there is clear evidence that it
is wrong
 Risk Aversion
Preferring a sure thing over a risky outcome
 Hindsight Bias
Believing falsely that we could have predicted the outcome of an
event after that outcome is already known 6-14
Ethical Frameworks
for Decision Making
 Utilitarian
Provide the greatest good for the
greatest number
 Rights
Make decisions consistent with
fundamental liberties and
privileges
 Justice
Impose and enforce rules fairly
and impartially so that there is
equal distribution of benefits and
costs 6-15
Creativity in
Decision Making

 Creativity: The ability to


produce novel and useful
ideas
 Helps people to:
 See problems others can’t see
 Better understand the problem
 Identify all viable alternatives
 Identify alternatives that aren’t
readily apparent
6-16
Three-Component Model
of Creativity

6-17
International Differences

 Ethics
 No global ethical standards exist
 Need organizational-level guidance
 Establish ethical principles to follow
that are modified to reflect local
cultural norms

6-18

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