Organizational Behavior 18th Edition Chapter 6 PDF

Organizational Behavior Eighteenth Edition Chapter 6 Perception and Individual Decision Making Copyright © 2019, 2017, 2015, 2013 Pears...

Organizational Behavior Eighteenth Edition Chapter 6 Perception and Individual Decision Making Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Learning Objectives 6.1 Explain the factors that influence perception. 6.2 Describe attribution theory. 6.3 Explain the link between perception and decision making. 6.4 Contrast the rational model of decision making with bounded rationality and intuition. 6.5 Explain how individual differences and organizational constraints affect decision making. 6.6 Contrast the three ethical decision criteria. 6.7 Describe the three-stage model of creativity. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain the Factors That Influence Perception (1 of 2) Perception is a process by which individuals organize and interpret their sensory impressions to give meaning to their environment. It is important to the study of OB because people’s behaviors are based on their perception of what reality is, not on reality itself. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain the Factors That Influence Perception (2 of 2) Exhibit 6-1 Factors That Influence Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (1 of 10) Attribution theory suggests that when we observe an individual’s behavior, we attempt to determine whether it was internally or externally caused. Determination depends on three factors: – Distinctiveness – Consensus – Consistency Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  6 Female ordered Waiter: Smiles laughs and gives a very positive 1. Trained ,kind hearted, loves his job 2. flirting 3.lady is really good and attractive Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (2 of 10) Clarification of the differences between internal and external causation – Internally caused – those that are believed to be under the personal control of the individual. – Externally caused – resulting from outside causes. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (3 of 10) Exhibit 6-2 Attribution Theory Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Olny srmat poelpe can raed tihs. I cdnuol't blveiee taht I cluod aulaclty uesdnatnrd what I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it deosn't mttaer in waht oredr the ltteers in a wrod are, the olny iprmoatnt tihng is taht the frist and lsat ltteer be in the rghit pclae. The rset can be a taotl mses and you can sitll raed it wouthit a porbelm. Tihs is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the wrod as a wlohe. Amzanig huh? And I awlyas tghuhot slpeling was ipmorantt! Count every ' F ' in the following text: FINISHED FILES ARE THE RESULT OF YEARS OF SCIENTIFIC STUDY COMBINED WITH THE EXPERIENCE OF YEARS... M-Male F-Female N-no Difference 1. Aggressive 2. Dominant 3.Excitable in a major Crisis 4.Home oriented 5. High mechanical aptitude 6. Feelings easily hurt 7. Never cries 8.Strong need for security 9. Indifferent to other’s approval 10. Likes maths and science 11. Emotional 12. Has difficulty making decisions. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (4 of 10) Fundamental attribution error – We have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. Self-serving bias – Individuals attribute their own successes to internal factors. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (5 of 10) Common Shortcuts in Judging Others – Selective perception  Any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived.  Since we can’t observe everything going on around us, we engage in selective perception. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (6 of 10) Halo effect – The halo effect occurs when we draw a general impression based on a single characteristic. Contrast effects – We do not evaluate a person in isolation. – Our reaction to one person is influenced by other persons we have recently encountered. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (7 of 10) Stereotyping – Judging someone based on one’s perception of the group to which that person belongs.  We have to monitor ourselves to make sure we’re not unfairly applying a stereotype in our evaluations and decisions. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (8 of 10) Applications of Shortcuts in Organizations – Employment Interview  Evidence indicates that interviewers make perceptual judgments that are often inaccurate. – Interviewers generally draw early impressions that become very quickly entrenched. – Studies indicate that most interviewers’ decisions change very little after the first four or five minutes of the interview. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (9 of 10) Performance Expectations – Evidence demonstrates that people will attempt to validate their perceptions of reality, even when those perceptions are faulty.  Self-fulfilling prophecy, or the Pygmalion effect, characterizes the fact that people’s expectations determine their behavior. – Expectations become reality. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain Attribution Theory (10 of 10) Performance Evaluation – An employee’s performance appraisal is very much dependent upon the perceptual process.  Many jobs are evaluated in subjective terms.  Subjective measures are problematic because of selective perception, contrast effects, halo effects, and so on. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Explain the Link Between Perception and Decision Making Individuals make decisions – choosing from two or more alternatives. Decision making occurs as a reaction to a problem. – There is a discrepancy between some current state of affairs and some desired state, requiring consideration of alternative courses of action.  One person’s problem is another’s satisfactory state of affairs. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  22 Shortcuts in judging others Selective Perception : People selectively interpret what they see on the basis of their interests, background, experience and attitudes. Halo Effect : Drawing a general impressions about an individual on the basis of a single charecteristics. Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  23 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  24 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Perceptual Errors Attribution Theory Selective Perception Halo Effect Contrast Effects Projection Stereotyping Chapter 2, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 2-25 Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All©Rights Copyright Reserved. 2007 Pearson Education Canada Why Do Perceptions and Judgment Matter? Self-Fulfilling Prophecy – A concept that proposes a person will behave in ways consistent with how he or she is perceived by others. Chapter 2, Nancy Langton and Stephen P. Robbins, Fundamentals of Organizational Behaviour, Third Canadian Edition 2-26 Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All©Rights Copyright Reserved. 2007 Pearson Education Canada  27 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  28 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  29 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  30 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  31 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.  32 Organizational Behavior / Perception Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (1 of 12) Exhibit 6-3 Steps in the Rational Decision-Making Model 1. Define the problem. 2. Identify the decision criteria. 3. Allocate weights to the criteria. 4. Develop the alternatives. 5. Evaluate the alternatives. 6. Select the best alternative. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (2 of 12) Assumptions of the Rational Model – The decision maker…  Has complete information.  Is able to identify all the relevant options in an unbiased manner.  Chooses the option with the highest utility. Most decisions in the real world don’t follow the rational model. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (3 of 12) Bounded Rationality – Most people respond to a complex problem by reducing it to a level at which it can be readily understood.  People satisfice – they seek solutions that are satisfactory and sufficient. – Individuals operate within the confines of bounded rationality.  They construct simplified models that extract the essential features. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (4 of 12) How does bounded rationality work? – Once a problem is identified, the search for criteria and options begins.  A limited list of the more conspicuous choices is identified.  The decision maker then reviews the list, looking for a solution that is “good enough.” Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (5 of 12) Intuition – Intuitive decision making occurs outside conscious thought; it relies on holistic associations, or links between disparate pieces of information, is fast, and is affectively charged, meaning it usually engages the emotions. – The key is neither to abandon nor rely solely on intuition, but to supplement it with evidence and good judgment. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (6 of 12) Exhibit 6-4 Reducing Biases and Errors Focus on Goals. Without goals, you can’t be rational, you don’t know what information you need, you don’t know which information is relevant and which is irrelevant, you’ll find it difficult to choose between alternatives, and you’re far more likely to experience regret over the choices you make. Clear goals make decision making easier and help you eliminate options that are inconsistent with your interests. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (7 of 12) [Exhibit 6-4 Continued] Look for Information That Disconfirms Your Beliefs. One of the most effective means for counteracting overconfidence and the confirmation and hindsight biases is to actively look for information that contradicts your beliefs and assumptions. When we overtly consider various ways we could be wrong, we challenge our tendencies to think we’re smarter than we actually are. Don’t Try to Create Meaning out of Random Events. The educated mind has been trained to look for cause-and-effect relationships. When something happens, we ask why. And when we can’t find reasons, we often invent them. You have to accept that there are events in life that are outside your control. Ask yourself if patterns can be meaningfully explained or whether they are merely coincidence. Don’t attempt to create meaning out of coincidence. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (8 of 12) [Exhibit 6-4 Continued] Increase Your Options. No matter how many options you’ve identified, your final choice can be no better than the best of the option set you’ve selected. This argues for increasing your decision alternatives and for using creativity in developing a wide range of diverse choices. The more alternatives you can generate, and the more diverse those alternatives, the greater your chance of finding an outstanding one. Source: Based on S. P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control of Your Life (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), 164–68. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (9 of 12) 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. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (10 of 12) Confirmation Bias: type of selective perception. – Seek out information that reaffirms past choices, and discount information that contradicts past judgments. Availability Bias: tendency for people to base judgments on information that is readily available. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (11 of 12) Escalation of Commitment: staying with a decision even when there is clear evidence that it’s wrong. – Likely to occur when individuals view themselves as responsible for the outcome. Randomness Error: our tendency to believe we can predict the outcome of random events. – Decision making becomes impaired when we try to create meaning out of random events. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Rational Model of Decision Making vs. Bounded Rationality and Intuition (12 of 12) Risk Aversion: the tendency to prefer a sure thing instead of a risky outcome. – Ambitious people with power that can be taken away appear to be especially risk averse. – People will more likely engage in risk-seeking behavior for negative outcomes, and risk-averse behavior for positive outcomes, when under stress. Hindsight Bias: the tendency to believe falsely that one has accurately predicted the outcome of an event, after that outcome is actually known. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Individual Differences, Organizational Constraints, and Decision Making (1 of 2) Individual Differences – Personality  Conscientiousness  High self-esteem – Gender  Rumination – Mental Ability – Cultural Differences Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Individual Differences, Organizational Constraints, and Decision Making (2 of 2) Organizational Constraints – Performance Evaluation Systems – Reward Systems – Formal Regulations – System-Imposed Time Constraints – Historical Precedents Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Contrast the Three Ethical Decision Criteria (1 of 3) Utilitarianism: decisions are made solely on the basis of their outcomes or consequences. Focus on rights: calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights. – Protects whistle-blowers. Impose and enforce rules fairly and impartially to ensure justice or an equitable distribution of benefits and costs. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Contrast the Three Ethical Decision Criteria (2 of 3) Behavioral ethics: an area of study that analyzes how people behave when confronted with ethical dilemmas. – Individuals do not always follow ethical standards promulgated by their organizations, and we sometimes violate our own standards. – There are ways to increase ethical decision making in organizations. – Consider cultural differences. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Contrast the Three Ethical Decision Criteria (3 of 3) Lying – One of the top unethical activities we may indulge in daily. – It undermines all efforts toward sound decision making. Managers—and organizations—simply cannot make good decisions when facts are misrepresented and people give false motives for their behaviors. Lying is a big ethical problem as well. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Describe the Three-Stage Model of Creativity (1 of 2) Creativity is the ability to produce novel and useful ideas. – These are ideas that are different from what has been done before, but that are also appropriate to the problem. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Describe the Three-Stage Model of Creativity (2 of 2) Exhibit 6-5 Three-Stage Model of Creativity in Organizations Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Implications for Managers (1 of 3) Behavior follows perception, so to influence behavior at work, assess how people perceive their work. Often behaviors we find puzzling can be explained by understanding the initiating perceptions. Make better decisions by recognizing perceptual biases and decision-making errors we tend to commit. Learning about these problems doesn’t always prevent us from making mistakes, but it does help. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Implications for Managers (2 of 3) Adjust your decision-making approach to the national culture you’re operating in and to the criteria your organization values. If you’re in a country that doesn’t value rationality, don’t feel compelled to follow the rational decision-making model or to try to make your decisions appear rational. Adjust your decision approach to ensure compatibility with the organizational culture. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Implications for Managers (3 of 3) Combine rational analysis with intuition. These are not conflicting approaches to decision making. By using both, you can improve your decision making effectiveness. Try to enhance your creativity. Actively look for novel solutions to problems, attempt to see problems in new ways, use analogies, and hire creative talent. Try to remove work and organizational barriers that might impede your creativity. Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved. Copyright Copyright © 2019, 2017, 2015, 2013 Pearson Education, Inc. All Rights Reserved.