ORGANIZATIONAL BEHAVIOR

WWW.PRENHALL.COM/ROBBINS
OBJECTIVES
After studying chapter five and
listening to my lecture,you should be
able to:

1. Explain how two people can see the same

thing and interpret it differently.
2. List three determinants of attribution.
LEARNING

3. Describe how shortcuts can assist in or

distort our judgment of others.
4. Explain how perception affects the decision-
making process.
5. Outline the six steps in the rational decision-
making model.
O B J E C T I V E S (cont’d)
Outline continues:

6. Describe the action of a boundedly rational

decision maker.
7. Identify the conditions in which individuals
are most likely to use intuition in decision
making.
LEARNING

8. Describe four styles of decision making.

9. Define heuristics and explain how they bias
decisions.
10. Contrast the three ethical decision criteria.
What
What Is
Is Perception,
Perception, and
and Why
Why Is
Is ItIt Important?
Important?

••People’s
People’s behavior
behavior isis
based
based on on their
their
perception
perception of of what
what
reality
reality is,is, not
not on
on
reality
reality itself.
itself.
••The
The world
world as as itit isis
perceived
perceived isis thethe worldworld
that
that isis behaviorally
behaviorally
important.
important.
 Factors
FactorsThat
That
Influence
Influence
Perception
Perception

EXHIBIT 5-1
Person
Person Perception:
Perception: Making
Making Judgments
Judgments About
About
Others
Others

Distinctiveness:
Distinctiveness:shows
showsdifferent
differentbehaviors
behaviorsinindifferent
differentsituations.
situations.
Consensus:
Consensus:response
responseisisthe
thesame
sameasasothers
otherstotosame
samesituation.
situation.
Consistency:
Consistency:responds
respondsininthe
thesame
sameway
wayover
overtime.
time.
Attribution
AttributionTheory
Theory EXHIBIT 5-2
Errors
Errors and
and Biases
Biases in
in Attributions
Attributions
Errors
Errors and
and Biases
Biases in
in Attributions
Attributions (cont’d)
(cont’d)
Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others
Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others
Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others
Specific
Specific Applications
Applications in
in Organizations
Organizations
 Employment Interview
– Perceptual biases 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.
 Performance Evaluations
– Appraisals are subjective perceptions of performance.
 Employee Effort
– Assessment of individual effort is a subjective
judgment subject to perceptual distortion and bias.
The
The Link
Link Between
Between Perceptions
Perceptions and
and Individual
Individual
Decision
Decision Making
Making

Perceptions
Perceptions
of
ofthe
the
decision
decision
maker
maker

Outcomes
Assumptions
Assumptions of
of the
the Rational
Rational Decision-Making
Decision-Making
Model
Model

1.
1. Problem
Problemclarity
clarity
2.
2. Known
Knownoptions
options
3.
3. Clear
Clearpreferences
preferences
4.
4. Constant
Constant
preferences
preferences
5.
5. No
Notime
timeor
orcost
cost
constraints
constraints
6.
6. Maximum
Maximumpayoff
payoff
Steps
Steps in
in the
the Rational
Rational Decision-Making
Decision-Making Model
Model

EXHIBIT 5-3
The
The Three
Three Components
Components of
of Creativity
Creativity

EXHIBIT 5-4
How
How Are
Are Decisions
Decisions Actually
Actually Made
Made in
in
Organizations
Organizations
How
How Are
Are Decisions
Decisions Actually
Actually Made
Made in
in
Organizations
Organizations (cont’d)
(cont’d)
 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.
Making
Making Choices
Choices
Making
Making Choices
Choices
Decision-Style
Decision-Style Model
Model

EXHIBIT 5-5
Organizational
Organizational Constraints
Constraints on
on Decision
Decision Makers
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.
Cultural
Cultural Differences
Differences in
in Decision
Decision Making
Making
 Problems selected
 Time orientation
 Importance of logic and rationality
 Belief in the ability of people to solve problems
 Preference for collect decision making
Ethics
Ethics in
in Decision
Decision Making
Making
 Ethical Decision Criteria
– Utilitarianism
• Seeking the greatest good for the greatest number.
– Rights
• Respecting and protecting basic rights of
individuals.
– Justice
• Imposing and enforcing rules fairly and impartially.
Ethics
Ethics in
in Decision
Decision Making
Making
 Ethics and National Culture
– There are no global ethical standards.
– The ethical principles of global organizations that
reflect and respect local cultural norms are necessary
for high standards and consistent practices.