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