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Perception, individual decision making and creativity (Organizational…
Perception, individual decision making and creativity
Perception
•A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
•People’s behavior is based on their perception of what reality is, not on reality itself
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Factors influence perception:
- factors in the perceiver (attitudes, motives, interest, experience, expectation)
- factor in the situation (time, work setting, social setting)
- factor in the target (novelty, motion, sounds, size, background, proximity, similarity)
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Decision making biases:
Three “meta-biases” that result in decision biases:
1.Availability shortcut: The tendency to base judgments on the information that is readily available leads to over or underestimation
2.Self-enhancement
3.Illusion of control: The belief that the world can be understood, predicted, and controlled to a greater degree than it actually can
Availability shortcut:
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Anchoring/Primacy bias: The tendency to fixate on initial information and fail to adequately adjust to subsequent information
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Conjunction Fallacy: Conjunction fallacy occurs when it is assumed that multiple specific conditions are more probable than a single general one.
Easily available in memory
- Initial (anchoring / primacy)
- Novel
- Intense (emotional)
- Recent
- Stereotypes(Representativeness Heuristic)
Self enhancement
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Confirmation bias
- The tendency to search for, interpret, and remember information in a way that confirms preconceptions
- This also results in us being more skeptical of information that disconfirms our initial opinion
Escalation of commitment (i.e., sunk cost fallacy)
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Egocentric accounting
- Occurs when people claim more responsibility for themselves for the results of a joint action than an outside observer would credit them
- This bias occurs at work and at home
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Illusion of control
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Overconfidence bias
- Estimate the length of the Eiffel Tower
- Set a lower and upper bound as close as possible, but in such a way that you are 90% sure true answer falls between the lower and upper bound
Victim blaming
- Holding the victims of a crime, an accident, or any type of abusive maltreatment to be entirely or partially responsible for the unfortunate incident
- Also called the “just world” assumption
- Intuition and heuristics both can lead to decision biases
- Knowing about the biases can sometimes help them to be less prevalent
Other biases:
availablity bias: the tendency for people to base their judgements on information that is readily available to them
randomness error: the tendency of idividuals to believe that they can predict the outcome of random events
risk aversion: the tendency to prefer a sure gain of a moderate amount over a riskier outcome, even if the riskier outcome might have higher expected payoff
Hindsight bias: the tendency to believe falsely, after an outcome of an event is acutally known, that one would have accurately predicted that outcome
Individual differences
personality:
- conscientious: affect escalation of commitment
- self-esteem: self-serving bias
Gender:
rumination: refecting at length, women overanalyzing and develop depression
Mental ability
smart people aren't anchoring, over-confidence and escalation of commitment
Cultural difference
differ in time origentation, the importance of rationality, belief in the ability of people to solve problems and preference for collective decision making
- some emphasize solving problem, others focus on accepting situation
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