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Chapter 6 : Perception and Individual Decision Making - Coggle Diagram
Chapter 6 : Perception and Individual Decision Making
Factors that Influence Perception
Perceiver:
Interpretation depends on personal characteristics of perceiver
Attitudes
Motives
Interest
Experience
Expectations
Target :
Characteristics of target
Novelty
Motion
Sounds
Size
Background
Proximity
Similarity
Situation:
Surrounding Environment
Time
Work Setting
Social Setting
Attribution Theory:
An attempt to explain the ways we judge people differently, depending on the meaning we attribute to a behaviour, such as determining whether an individual’s behaviour is internally or externally caused
Determination factors
Distinctiveness
Displays different behaviours in different situations
consensus
Occurs if everyone who is faced with a similar situation responds in the same way
consistency
Consistency in a person’s actions
Errors and Biases
Fundamental attribution error
Underestimate influence of external factors
Overestimate influence of internal factors
Self-serving bias
Relate own successes to internal factor
Common shortcut in judging others
Selective perception
Any characteristics that makes an object stand out will increase the probability to be perceived
Halo effect
Positive general impression
Horns effect
Negative general impression
Contrast effect
Evaluation of a person’s characteristics that is affected by
comparisons with other people recently encountered who rank higher or lower on the same characteristics
Stereotyping
Judging someone based on one’s perception of the group to which that person belongs
Applications of Shortcuts in Organizations
Employment interview
Interviewers make perceptual judgments that are often inaccurate
Performance Expectations
People attempt to validate their perceptions of reality even when faulty
Self-fulfilling prophecy:
A situation in which an individual’s behavior is determined by
others’ expectations, even if untrue.
Performance Evaluation
Dependent upon perceptual process
Social media
Shortcut evaluations lead to bias decision making
Potential Remedies
AI-assisted performance assessments
Link between a perception and Decision Making
Decisions:
Choices made from among two or more opportunities
Problems:
A discrepancy between the current state and some desired state.
One person’s problem is another satisfactory state of affairs
Rational Model of Decision Making Versus Bounded Rationality and Intuition
Approaches in Decision Makings
Rational Decision-Making Model
1, define problem
Identify the decision criteria
Allocate weights to criteria
Develop alternatives
Evaluate alternatives
Select best alternative
The decision maker:
Has complete information
Able to identify all relevant options in an unbiased matter
Chooses option with highest utility
Bounded Rationality
A simplified process of making decisions by perceiving and interpreting the essential features of problems without capturing their complexity
Intractable problem
A problem that may change entirely or become irrelevant before finishing the process
Satisfice
seek solutions that are satisfactory and sufficient.
Intuition
occurs outside conscious thought; relies on holistic associations, or links between disparate pieces of information, engages the emotions.
not rational, not necessarily wrong, nor does it always contradict rational analysis
Common Biases and Errors in Decision Making
Overconfidence Bias
individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability
Anchoring Bias
fixating on initial information as a starting point and failing to adequately adjust for subsequent information.
Confirmation Bias
Seek out information that reaffirms past choices, and discount information that contradicts past judgments
Availability Bias
base judgments on information that is readily available.
Escalation of Commitment
staying with a decision even when there is clear evidence that it’s wrong
Randomness Error
believe we can predict the outcome of random events.
Risk Aversion
prefer a sure thing instead of a risky outcome.
Hindsight Bias
to believe falsely that one has accurately predicted the outcome of an event, after that outcome is actually known.
Outcome Bias
Judge the quality of a decision based on the desirability or believability of its outcome
Individual Differences, Organizational Constraints, and Decision Making
Individual Differences
Personality
Intuition
Riskier Decision
Self-esteem
self-serving biases
Narcissism
overconfidence, overclaiming and self-serving biases
Gender
Intellectual Ability
Cultural Differences
Organizational Constraints
Performance Evaluation Systems
Reward Systems
Formal Regulations
Time Constraints
Historical Precedents
Decision-Making in Times of Crisis
Ethics in Decision Making
Three Ethical Decision Criteria
Utilitarianism
decisions are made solely on the basis of their outcomes or consequences
Whistleblowers
Individuals who report unethical practices by their employer to outisders
Deonance
Ethical decisions are made because you "ought to" in order to be consistent with moral norms, principles, standard, rules or laws
Behavioral Ethics
an area of study that analyzes how people behave when confronted with ethical dilemmas
Lying
undermines all efforts toward sound decision making
cannot make good decisions when facts are misrepresented and people give false motives for their behaviors
Three-Stage Model of Creativity
Creative Behavior
Problem Formulation
Information Gathering
Idea Generation
Idea Evaluation
Causes
Creative Potential
Intelligence and creativity
Personality and Creativity
Expertise and creativity
Ethics and creativity
Creative Environment
rewards and recognizes creative work
Job characteristics
Creative Outcomes
Novelty
Usefullness