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PERCEPTIONS AND INDIVIDUAL DECISION MAKING, Decision Making - Coggle…
PERCEPTIONS AND INDIVIDUAL DECISION MAKING
Individual Differences in Decision making
Organizational
Constrants
Formal Regulations: Limit the alternative choices of decision makers
System-Imposed Time Constraints: Restrict ability to gather or evaluate information
Reward Systems: Managers will make the decision with the greatest personal payoff for them
Historical Precedents: Past decisions influence current decisions
Performance Evaluation:
Managerial evaluation criteria influence actions
Ethics in Decision Making
Utilitarianism:
Seeking the greatest good for the greatest number
Dominant method for businesspeople
Decisions made based solely on the outcome
Rights
Decisions consistent with fundamental liberties and privileges
Respecting and protecting basic rights of individuals such as whistleblower
Justice
Imposing and enforcing rules fairly and impartially
Equitable distribution of benefits and costs
8 Common Biases and Errors in Decision Making
Escalation of Commitment
Availability Bias
Confirmation Bias
Anchoring Bias
Overconfidence Bias
Randomness Error
Risk Aversion
Highsight Bias
Creativity
Definition
The ability to produce
novel
and
useful
ideas
Three components model
Creative-thinking Skills
: the personality characteristics associated with creativity
Intrinsic Task Motivation
: the desire to do the job because of its characteristics
Expertise
: the foundation
Perceptions and Individual Decision Making
Decisions
: Choices made from among alternatives developed from data
Perception Linkage
: All elements of problem identification and the decision-making process are influenced by perception.
Problems must be recognized
Data must be selected and evaluated
Problem
: A perceived discrepancy between the current state of affairs and a desired state
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 person's characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics
Profilling
: A form of stereotyping in which members of a group are singled out for intense scrutiny based on a single, often racial, trait
Selective Perception
: People selectively interpret what they see on the basis of their interests, background, experience, and attitudes
Perception
Definition
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
Factors that influence perception
Factors in the perceiver
Motives
Interests
Attiudes
Experience
Expectations
Factors in the situation
Time
Work setting
Social setting
Factors in the target
Sounds
Background
Motion
Proximity
Size
Novelty
Similarity
Attribution Theory: Judging Others
Three determining factors
Consensus
Consistency
Distincitveness
Definition
An attempt to determine whether an individual’s behavior is internally or externally caused.
Errors and Biases in Attributions
Self - Serving Bias
Fundamental Attribution Error
Decision Making
Cultural differences
Personality
Self-Esteem
Conscientiousness may effect escalation of commitment
Gender
Mental Ability