Perception

& Individual Decision

Making
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Attractive or Ugly Woman?

An Ambiguous Figure ????

A mans face????

Introduction:
Perception is one of the oldest fields in psychology. The word "perception" comes from the Latin words perceptio, percipio which means :receiving, collecting and action of taking possession with the mind or senses. Individuals behave in a given manner based not on the way their external environment actually is, but rather on what they see or believe it to be. Peoples behavior is based on their perception of what reality is, not on reality itself.
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What Is Perception, and Why Is It Important?

Peoples 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.
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Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

Factors That Influence Perception

E X H I B I T 51 58

Person Perception: Making Judgments About Others

Attribution Theory

When individuals observe behavior, they attempt to determine whether it is internally or externally caused.

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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Attribution Theory

E X H I B I T 52 510

What is attribution theory?

Attribution theory aids in perceptual

interpretation by focusing on how people attempt to:

Understand the causes of a certain

event. Assess responsibility for the outcomes of the event. Evaluate the personal qualities of the people involved in the event.
Organizational Behavior 11

 Our perception and judgment of others is significantly influenced by our assumptions of the other persons internal state. - When individuals observe behavior, they attempt to determine whether it is internally or externally caused. Internal causes -are under that persons control .i.e.
Late coming because of weekend party and sleeping till late

External causes are not person forced to act in that way .i.e. Late due to Accident

Causation judged through: Distinctiveness -Shows different behaviors in different situations. Consensus - Response is the same as others in a given situation. Consistency - Responds in the same way over time.
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Causes of Behavior
Internal factors Personal characteristics that cause behavior (e.g., ability, effort) External factors Environmental characteristics that cause behavior (e.g., task difficulty, good/bad luck) Organizational Behavior

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Elements of Attribution Theory

Organizational Behavior

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Kelleys Theory of Attribution

Distinctiveness is determined by comparing a persons behavior on one task/situation with his or her behavior on other tasks /situations.
Low- Internal High- External

Tasks/ /situations
Poor working condition

Tasks/ /situations
Good working condition

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Kelleys Attribution Model

Consensus Involves the comparison of an individuals behavior with that of his or her peers Low- Internal High- External

People

People
Organizational Behavior

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Kelleys Theory of Attribution

Consistency is determined by judging if the individuals performance on a given task is consistent over time.
Low- External High Internal

Time
Organizational Behavior

Time
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How Kelleys Model Works

External Attribution High consensus High distinctiveness Low consistency Internal Attribution Low consensus Low distinctiveness Organizational Behavior

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Distinctiveness Does this person behave differently in in different situations

Consensus Do other people Behave in the Same manner?

Consistency Does this person behave in this same manner at other times ?

YES Low Distinctiveness NO High Distinctiveness

No Low Consensus Yes High Consensus

Yes High Consistency No Low Consistency

Internal Attribution Externa l Attribut ion

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.

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Errors and Biases in Attributions (contd)

Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.

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Frequently Used Shortcuts in Judging Others

Selective Perception People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

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Frequently Used Shortcuts in Judging Others

Halo Effect Drawing a general impression about an individual on the basis of a single characteristic

Contrast Effects Evaluation of a persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.

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Frequently Used Shortcuts in Judging Others

Projection
Attributing ones own characteristics to other people.

Stereotyping
Judging someone on the basis of ones perception of the group to which that person belongs.

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Specific Applications in Organizations

Employment Interview
Perceptual biases of raters affect the accuracy of interviewers judgments of applicants.

Performance Expectations Self-fulfilling prophecy (pygmalion effect): The lower or

higher performance of employees reflects preconceived leader expectations about employee capabilities.

Ethnic Profiling
A form of stereotyping in which a group of individuals is singled outtypically on the basis of race or ethnicityfor intensive inquiry, scrutinizing, or investigation. 525

Specific Applications in Organizations (contd)

Performance Evaluations
Appraisals are often the subjective (judgmental) perceptions of appraisers of another employees job performance.

Employee Effort
Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

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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.

Perception of the decision maker

Outcomes
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Assumptions of the Rational Decision-Making Model

Rational DecisionMaking Model Describes how individuals should behave in order to maximize some outcome.

Model Assumptions
Problem clarity Known options Clear preferences Constant preferences No time or cost constraints Maximum payoff
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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.

E X H I B I T 53 529

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.

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How Are Decisions Actually Made in Organizations (contd)

How/Why problems are identified
Visibility over importance of problem
Attention-catching, high profile problems Desire to solve problems

Self-interest (if problem concerns decision maker)

Alternative Development
Satisficing: seeking the first alternative that solves problem. Engaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect.
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Common Biases and Errors

Overconfidence Bias
Believing too much in our own decision competencies.

Anchoring Bias
Fixating on early, first received information.

Confirmation Bias
Using only the facts that support our decision.

Availability Bias
Using information that is most readily at hand.

Winners Curse
Winning participants in an auction typically pay too much for the winning item.

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Common Biases and Errors

Escalation of Commitment
Increasing commitment to a previous decision in spite of negative information.

Randomness Error
Trying to create meaning out of random events by falling prey to a false sense of control or superstitions.

Risk Aversion - The tendency to prefer a sure thing over a risky outcome. Hindsight Bias
Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known.
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Ethics in Decision Making

Ethical Decision Criteria
Utilitarianism
Seeking the greatest good for the greatest number.

Rights
Respecting and protecting basic rights of individuals such as whistleblowers. Falsely

Justice
Imposing and enforcing rules fairly and impartially.

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The Three Components of Creativity

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.
E X H I B I T 54
Source: T.M. Amabile, Motivating Creativity in Organizations, California Management Review, Fall 1997, p. 43.

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