Perception and Decision-Making

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Questions and Answers

Which of the following best describes perception?

  • A complex neurological response to external stimuli with no interpretive component.
  • A cognitive process of organizing and interpreting sensory impressions to give meaning to the environment. (correct)
  • A random selection of sensory data.
  • An inherent, unchangeable understanding of the world.

An individual's personality is not a factor influencing perception.

False (B)

According to the factors that influence perception, what is the role of 'context'?

Context refers to the situation, location, light, heat, or any situational factors that impact perception.

__________ is the process of making judgments about others or the perception people form about each other.

<p>Person perception</p> Signup and view all the answers

Match the components of Attribution Theory with their descriptions:

<p>Distinctiveness = Whether an individual displays different behaviors in different situations. Consensus = Whether the action is done individually or in a group under similar circumstances. Consistency = The frequency of the action done over time.</p> Signup and view all the answers

What does Attribution Theory primarily attempt to determine about an individual's behavior?

<p>Whether it is caused by internal or external factors. (A)</p> Signup and view all the answers

High consistency always leads to an external attribution of behavior.

<p>False (B)</p> Signup and view all the answers

In Attribution Theory, how does high consensus affect the attribution of behavior?

<p>High consensus leads to an external attribution of behavior.</p> Signup and view all the answers

The __________ is the tendency to overestimate personal causes of others' behavior and underestimate the impact of situational factors.

<p>Fundamental Attribution Error</p> Signup and view all the answers

Match the following attribution errors to their descriptions:

<p>Fundamental Attribution Error = Overestimating individual causes and underestimating situational causes when evaluating others' behavior. Self-Serving Bias = Attributing personal success to internal factors and personal failure to external factors.</p> Signup and view all the answers

What is self-serving bias?

<p>The tendency to attribute personal successes to internal factors and personal failures to external factors. (B)</p> Signup and view all the answers

Perception plays no role in individual decision making.

<p>False (B)</p> Signup and view all the answers

How is perception related to the recognition of a 'problem' in the context of decision making?

<p>Whether something is recognized as a 'problem' depends on how it is perceived, which significantly influences subsequent decisions.</p> Signup and view all the answers

In the context of decision making, a problem is often described as a __________ issue because its identification depends on individual interpretation.

<p>perceptual</p> Signup and view all the answers

Match the following decision-making models with their descriptions:

<p>Rational Decision Making = A model that assumes the decision maker has complete information and selects the option with the highest utility. Bounded Rationality = A process of making decisions by constructing simplified models that extract the essential features from problems. Intuitive Decision Making = An unconscious process created out of distilled experiences.</p> Signup and view all the answers

A decision maker who identifies all relevant options in an unbiased manner and chooses the option with the highest utility is using which model?

<p>Rational decision making. (D)</p> Signup and view all the answers

Bounded rationality requires a decision-maker to have complete information about all possible options.

<p>False (B)</p> Signup and view all the answers

What is the primary difference between 'rational decision making' and 'bounded rationality'?

<p>Rational decision making assumes complete information and optimization, while bounded rationality acknowledges limitations and aims for a satisfactory solution.</p> Signup and view all the answers

Unlike rational decision making, bounded rationality aims to __________ rather than optimize.

<p>satisfice</p> Signup and view all the answers

What are the steps in rational decision making?

<p>Define the problem, identify the decision criteria, allocate weights, develop alternatives, evaluate alternatives, select the best alternative. (D)</p> Signup and view all the answers

Intuitive decision making relies primarily on analytical data and logical reasoning.

<p>False (B)</p> Signup and view all the answers

What is the main characteristic of intuitive decision making?

<p>It's an unconscious process created out of distilled experiences.</p> Signup and view all the answers

__________ decision making is characterized as an unconscious process created out of distilled experiences.

<p>Intuitive</p> Signup and view all the answers

Match the following biases with their definitions:

<p>Overconfidence Bias = Having excessive confidence in one’s abilities and judgments. Anchoring Bias = Fixating on initial information and failing to adequately adjust for subsequent information. Confirmation Bias = Selectively gathering information that supports existing views.</p> Signup and view all the answers

What is the 'overconfidence bias' in decision making?

<p>The tendency to be overconfident about one's own abilities and the abilities of others. (B)</p> Signup and view all the answers

Anchoring bias occurs when a decision-maker gives too little weight to the initial information received.

<p>False (B)</p> Signup and view all the answers

What does 'anchoring bias' refer to in decision-making processes?

<p>It refers to the tendency to fixate on initial information, which then inadequately adjusts for subsequent information.</p> Signup and view all the answers

The __________ is the tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information.

<p>anchoring bias</p> Signup and view all the answers

Selectively gathering information that supports existing views is an example of which bias:

<p>Confirmation bias. (B)</p> Signup and view all the answers

Escalation of commitment is reduced when clear evidence suggests that a decision is correct.

<p>False (B)</p> Signup and view all the answers

What is escalation of commitment in decision making?

<p>It is the tendency in staying with a decision despite clear evidence that it is wrong.</p> Signup and view all the answers

__________ is the tendency in staying with a decision despite clear evidence that it is wrong.

<p>Escalation of commitment</p> Signup and view all the answers

Which of the following biases involves selectively gathering information that supports pre-existing views?

<p>Confirmation bias (A)</p> Signup and view all the answers

Rational decision-making involves constructing simplified models to extract the essential features from the situation.

<p>False (B)</p> Signup and view all the answers

In the steps of rational decision making, what follows the identification of decision criteria?

<p>Allocating weights to the criteria is the step that follows identifying the decision criteria.</p> Signup and view all the answers

The rational decision-making model is a model that assumes that the decision maker has __________.

<p>complete information</p> Signup and view all the answers

In Attribution Theory, a behavior is attributed to internal causes when:

<p>Distinctiveness is low, consensus is low, and consistency is high. (C)</p> Signup and view all the answers

The final step of the rational decision-making model is to develop alternatives.

<p>False (B)</p> Signup and view all the answers

Provide a few examples of common errors and biases in decisions.

<p>Anchoring bias, overconfidence bias, confirmation bias, and escalation of commitment are examples of common errors and biases in decisions.</p> Signup and view all the answers

In the rational decision making model, __________ weights to the criteria comes after identifying decision criteria.

<p>allocating</p> Signup and view all the answers

Flashcards

What is Perception?

A process by which we organize and interpret sensory impressions to give meaning to our environment.

Perceiver

Your interpretation is influenced by attitudes, personality, experience, motives, and expectations.

Target (in perception)

Background influences perception in interpreting the object and the target.

Context (in perception)

Refers to the situation, location, light, heat, or situational factors during perception.

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Person Perception

Making judgments about others or the perceptions people form about each other.

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Attribution Theory

An attempt to determine whether an individual's behavior is internally or externally caused.

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Internally Caused Behaviors

Behavior believed to be under the personal control of another individual.

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Externally Caused Behaviors

Behavior that is imagined as the situation or environmental factors that forced the individual to act in a certain way.

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Distinctiveness

Refers to whether an individual displays different behaviors in different situations.

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Consensus

Refers to whether the behavior is done individually or by a group in a similar situation.

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Consistency

Refers to the frequency of the action done over time.

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Fundamental Attribution Error

Overestimating personal causes for other's behavior while underestimating situational causes.

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Self-Serving Bias

Attributing personal success to internal factors and personal failure to external factors.

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Rational Decision Making

The model that assumes the decision maker has complete information and is able to identify all relevant options in an unbiased manner, and chooses the option with the highest utility.

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Step 1 in Rational Decision Making

Define the problem.

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Step 2 in Rational Decision Making

Identify the decision criteria.

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Step 3 in Rational Decision Making

Allocate weights to the criteria.

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Step 4 in Rational Decision Making

Develop the alternatives.

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Step 5 in Rational Decision Making

Evaluate the alternatives.

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Step 6 in Rational Decision Making

Select the best alternative.

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Bounded Rationality

A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

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Intuitive Decision Making

An unconscious process created out of distilled experiences.

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Overconfidence Bias

A tendency to be overconfident about abilities and the abilities of others.

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Anchoring Bias

A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information.

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Escalation of Commitment

The tendency in staying with a decision despite clear evidence that it is wrong.

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Confirmation Bias

The tendency for people to selectively gather information that supports our existing views.

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Study Notes

  • Perception and individual decision-making are key elements in understanding organizational behavior.

Perception Defined

  • Perception is a process used to organize and interpret sensory impressions to make sense of the environment.
  • Individual perceptions shape their reality.

Factors Influencing Perception

  • Perceiver: Personal characteristics such as attitudes, personality, experience, motives, and expectations affect interpretation.
  • Target: Background and characteristics of the object influence perception.
  • Context: Situational factors like location, light, and heat play a role.

Person Perception

  • Person perception involves making judgments about others and forming perceptions of individuals.

Attribution Theory (AT)

  • Attribution Theory seeks to determine if behavior is internally or externally caused.
  • Internally caused behaviors are believed to be under the individual's control.
  • Externally caused behaviors are attributed to situational forces.

Factors Determining Attribution

  • Distinctiveness: Refers to whether an individual displays different behaviors indifferent situations.
  • Consensus: Refers to whether the action is done individually or by a group under a similar situation.
  • Consistency: Refers to the frequency of the action over time.

Frequent Attribution Errors

  • Fundamental Attribution Error: Overestimating personal causes and underestimating situational causes when evaluating others' behavior.
  • Self-Serving Bias: Attributing personal success to internal factors and failures to external factors.
  • Perception influences the decision-making process as it frames how problems are understood.
  • The perception of a problem directly impacts the subsequent decision-making process.

Models of Decision Making

  • Rational Decision Making: assumes decision-makers have complete information, can identify all options without bias, and choose the option with the highest utility.
  • Bounded Rationality: Constructing simplified models to extract the essential features from problems without capturing all their complexity
  • Intuitive Decision Making: An unconscious process created out of distilled experiences

Steps in Rational Decision Making

  • Define the problem.
  • Identify decision criteria.
  • Allocate weights to the criteria.
  • Develop alternatives.
  • Evaluate the alternatives.
  • Select the best alternative.
  • Rational decision-making is objective, logical, value-maximizing, and well-defined.
  • It has a disadvantage of being time-consuming and involving more people.
  • Bounded Rationality takes a process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity therefore "We Satisfice".

Common Biases and Errors

  • Overconfidence Bias: Tendency to be overconfident about one's abilities and the abilities of others.
  • Anchoring Bias: Fixating on initial information, failing to adequately adjust for subsequent information.
  • Confirmation Bias: Selectively gathering information that supports existing views.
  • Escalation of Commitment: The tendency to stick with a decision despite clear evidence that it is wrong.

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