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Lecture 7 - Organizational Behaviour - Percetion Hand-Out
Lecture 7 - Organizational Behaviour - Percetion Hand-Out
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3.0 How do we perceive things? Physical objects? And interpreting meaning of events and things? Social
Perception and physical perception.
4.0 What is Perception? (1) Perception is a process by which individuals organize and interpret their sensory
impressions in order to give meaning to their environment (Robbins and Judge, 2009).
(2) Perception is our sensory experience of the world around us and involves both the recognition of
environmental stimuli and actions in response to these stimuli. Perception not only creates our experience of
the world around us; it allows us to act within our environment.
(3) Perception is the process of creating meanings from environmental stimuli which is powered by one’s
thinking and feelings about any phenomenon (Gayle, O., 2009).
So what?
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.
It is our perception of a situation that determines our behavior. In other words, what we see and
believe determines our bahviour in a given situation.
There are several realities happening within one reality.
For example, a company spent 1 million dollars on improving the working conditions for its employees.
Whilst, a few employees perceived this as good, some thought their job was still lousy. As such, the latter
group of employees behaved accordingly, that is, their actions have nothing to do with the fact that the
company spent this money but their perception of the situation.
The Bible puts it like this, ―As a man or woman thinketh in their heart so is he/she.
The Movie “Vantage Point” (political action thriller) provides an excellent demonstration of how
perception can be different based on what you perceive at anytime.
5.0 Why is perception important to the study Organizational Behaviour?
Remember we say individuals come to an organization with various abilities, beliefs and from different
backgrounds. Perception is simply another difference in individuals. Therefore, it is important because
people’s behaviour is based on their perception of their environment. Thus, as a manager, you would
want to know how your peers view their jobs; how they perceive the organization as this affects
absenteeism, turnover, productivity, job satisfaction as well as the way they make decisions on the
organizations’ behalf.
Factors influencing Perception – Have you ever wondered why two people
working at the same workplace but different views of the job? Most of us have.
This is because we perceive things differently.
3.1 The perceiver – attitudes, motives, interests, experience
and expectation.
3.2 The situation – (the context) time, work setting,
social setting – you might hear some people say,
“if it were in the day I could understand, but in the night, that is gross”
3.3 The target – novelty, size, motion, background,
proximity, similarity, heat, sound
6.0 Person’s perception and how we make judgement of other people
Factors that Influence Perception
6.1 When we observe people we are always trying to explain/clarify what was the reason for the
person’s action. As such, our judgment and perception will be influenced to a great deal by the
assumptions we make about their internal capacity.
6.2 Attribution theory - When individuals observe behavior, they attempt to determine whether it is
internally or externally caused. Internally meaning individuals have control over their actions and
externally meaning, the person has little or no control.
6.3 For every behaviour we judge, we judge it differently based on what meaning/s we put to that
behaviour. Hence, Attribution theory states that when we assess people’s behaviour, we try to
see if it was internally or externally caused. We make the determination based on three (3) factors
as follows; (High and Low)
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Distinctiveness: Here we want to find out if an individual shows different behaviors in
different situations (from task to task). If an employee hands in quality work all the time, then,
we would make the attribution internally (low). High distinctiveness would mean that the person
seems to perform extremely better/worst at this task than your normal performance expectation
of them.
Consensus: response is the same as others to same situation – if all students behave the same
way to a challenge, then we would say it was a high consensus and therefore it was externally
attributed and vice versa.
Consistency: This is about looking if there is consistency in people’s action over time. If you
arrive late for class/work one time, it is not viewed the same way as being late many times. Thus,
the latter scenario [being late several times] will be seen as internally attributed.
Attribution Theory
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Individual Decision Making
7.0 The Link Between Perceptions and Individual Decision Making
Problem -A perceived discrepancy between the current state of affairs and a desired state
Decisions - Choices made from among alternatives developed from data perceived as relevant.
Individuals in organizations make decisions; they make choices from among two or more alternatives.
Managers determine their organization’s goals, the products and services to offer and where to get capital
to finance projects etc. Non-managerial employees also make decisions including whether or not to come
to work on any given day, how much effort to put forward once at work, and whether or not to comply
with a request made by their manager/s.
The above-mentioned point highlights the importance of understanding how employees perceive things
as it influences how they make decisions as well as the outcome of those decisions. Every decision
requires interpretation and evaluation of information. The perceptions of the decision maker will address
these two issues.
8.0 Assumptions of 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.
9.0 Improving Creativity in Decision Making
Creativity - The ability to produce novel and useful ideas.
Three-Component Model of Creativity - Proposition that individual creativity requires expertise,
creative-thinking skills, and intrinsic task motivation.
10.0 How Are Decisions Actually Made in Organizations?
Bounded Rationality - Individuals make decisions by constructing simplified models that extract the
essential features from problems without capturing all their complexity.
11.0 Common Biases and Errors
Overconfidence Bias - Believing too much in our own ability to make good decisions.
Anchoring Bias - Using early, first received information as the basis for making subsequent judgments.
Confirmation Bias - Using only the facts that support our decision
Availability Bias - Using information that is most readily at hand. (Recent; Vivid )
Representative Bias - ―Mixing apples with oranges‖; Assessing the likelihood of an occurrence by trying
to match it with a preexisting category using only the facts that support our decision.
12. Intuitive Decision Making - An unconscious process created out of distilled experience.
– Conditions Favoring Intuitive Decision Making - A high level of uncertainty exists; There is
little precedent to draw on; Variables are less scientifically predictable; ―Facts‖ are limited; Facts
don’t clearly point the way; Analytical data are of little use; Several plausible alternative solutions
exist; Time is limited and pressing for the right decision
13. Individual Differences in Decision Making
Personality - Aspects of conscientiousness and escalation of commitment.
Self Esteem - High self serving bias
Gender - Women tend to analyze decisions more than men.
14. Organizational Constraints on Decision Makers
Performance Evaluation - Evaluation criteria influence the choice of actions.
Reward Systems - Decision makers make action choices that are favored by the organization.
Formal Regulations - Organizational rules and policies limit the alternative choices of decision makers.
System-imposed Time Constraints - Organizations require decisions by specific deadlines.
Historical Precedents - Past decisions influence current decisions.
15. Ethical Decision Criteria
– Utilitarianism - Seeking the greatest good for the greatest number.
– Rights - Respecting and protecting basic rights of individuals such as whistleblowers.
– Justice - Imposing and enforcing rules fairly and impartially.
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