PERCEPTIONS AND INDIVIDUAL DECISION MAKING
Individual Differences in Decision making
Organizational
Constrants
Ethics in Decision Making
8 Common Biases and Errors in Decision Making
Creativity
Perceptions and Individual Decision Making
Used Shortcuts in Judging Others
Perception
Attribution Theory: 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
Decision Making
Cultural differences
Personality
Gender
Mental Ability
Self-Esteem
Conscientiousness may effect escalation of commitment
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
Utilitarianism:
Rights
Justice
Seeking the greatest good for the greatest number
Dominant method for businesspeople
Decisions made based solely on the outcome
Decisions consistent with fundamental liberties and privileges
Respecting and protecting basic rights of individuals such as whistleblower
Imposing and enforcing rules fairly and impartially
Equitable distribution of benefits and costs
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.
Problem: A perceived discrepancy between the current state of affairs and a desired state
Problems must be recognized
Data must be selected and evaluated
Three determining factors
Definition
Errors and Biases in Attributions
Consensus
Consistency
Distincitveness
Self - Serving Bias
Fundamental Attribution Error
An attempt to determine whether an individual’s behavior is internally or externally caused.
Escalation of Commitment
Availability Bias
Confirmation Bias
Anchoring Bias
Overconfidence Bias
Randomness Error
Risk Aversion
Highsight Bias
Definition
Factors that influence perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
Factors in the perceiver
Factors in the situation
Factors in the target
Sounds
Motives
Time
Background
Motion
Proximity
Size
Novelty
Similarity
Interests
Attiudes
Experience
Expectations
Work setting
Social setting
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