Prentice Hall, 2001 Chapter 5 1

Perception and Individual Decision

Making

Prentice Hall, 2001 Chapter 5 2

Factors ThatFactors ThatInfluence PerceptionInfluence Perception

SituationSituationTargetTarget PerceiverPerceiver

Prentice Hall, 2001 Chapter 5 3

Attribution of Cause

InterpretationObservation

Attribution Attribution

Theory andTheory and

IndividualIndividual

BehaviorBehavior

ExternalExternal

ExternalExternal

ExternalExternal

InternalInternal

InternalInternal

InternalInternal

DistinctivenessDistinctiveness

ConsensusConsensus

ConsistencyConsistency

HighHigh

LowLow

HighHigh

LowLow

HighHigh

LowLow

Prentice Hall, 2001 Chapter 5 4

ContrastContrastEffectEffect

ContrastContrastEffectEffect

SelectivePerceptionSelective

Perception

StereotypingStereotyping

Halo EffectHalo Effect

ProjectionProjection

Frequently Used Shortcuts When Judging Others

Prentice Hall, 2001 Chapter 5 5

Specific Applications in Specific Applications in OrganizationsOrganizations

• Employment interview

• Performance expectations

• Performance evaluation

• Employee effort

• Employee loyalty

Prentice Hall, 2001 Chapter 5 6

Rational Model of

Decision Making

Problem

Identify andDefine Problem

DevelopAlternatives

A1

A2

A3

A4

An

EvaluateAlternatives

+

A1 A1

A2 A2

An An

Criteria

Weightthe Criteria

T E C H

Set DecisionCriteria

Choice

Make OptimalDecision

Prentice Hall, 2001 Chapter 5 7

Assumptions of the ModelAssumptions of the ModelAssumptions of the ModelAssumptions of the Model

One:One:

Problem ClarityProblem ClarityOne:One:

Problem ClarityProblem ClarityFour:Four:

Constant PreferencesConstant PreferencesFour:Four:

Constant PreferencesConstant Preferences

Five:Five:

No ConstraintsNo Constraints Five:Five:

No ConstraintsNo Constraints Two:Two:

Known OptionsKnown OptionsTwo:Two:

Known OptionsKnown Options

Three:Three:

Clear PreferencesClear PreferencesThree:Three:

Clear PreferencesClear PreferencesSix:Six:

Maximum PayoffMaximum PayoffSix:Six:

Maximum PayoffMaximum Payoff

Prentice Hall, 2001 Chapter 5 8

The Three Components of The Three Components of Creativity Creativity

Expertise

TaskMotivation

CreativitySkills

Creativity

Prentice Hall, 2001 Chapter 5 9

A Model of Bounded A Model of Bounded RationalityRationality

AscertainAscertainthe Need the Need

for a Decisionfor a Decision

SimplifySimplifythe Problemthe Problem

SelectSelectCriteriaCriteria

Identify aIdentify aLimited Set Limited Set

of Alternativesof Alternatives

CompareCompareAlternativesAlternatives

Against CriteriaAgainst Criteria

ExpandExpandSearch forSearch for

AlternativesAlternatives

Select theSelect theFirst “GoodFirst “Good

Enough” ChoiceEnough” Choice

A “Satisficing”A “Satisficing”AlternativeAlternative

ExistsExists

YesNo

Prentice Hall, 2001 Chapter 5 10

Intuitive Decision Making

High uncertainty levels Little precedent Hard to predictable variables Limited facts Unclear sense of direction Analytical data is of little use Several plausible alternatives Time constraints

Prentice Hall, 2001 Chapter 5 11

AlternativeAlternativeDevelopmentDevelopmentAlternativeAlternative

DevelopmentDevelopmentProblemProblem

IdentificationIdentificationProblemProblem

IdentificationIdentification

Two Important Two Important Decision-Making Decision-Making

PhasesPhases

Two Important Two Important Decision-Making Decision-Making

PhasesPhases

Prentice Hall, 2001 Chapter 5 12

Analytic Conceptual

BehavioralDirective

Rational IntuitiveWay of Thinking

High

Low

To

lera

nce

fo

r A

mb

igu

ity

Decision-Making StylesDecision-Making Styles

Prentice Hall, 2001 Chapter 5 13

Organizational Organizational ConstraintsConstraints

RewardRewardSystemSystem

HistoricalHistoricalPrecedentsPrecedents

ProgrammedProgrammedRoutinesRoutines

PerformancePerformanceEvaluationEvaluation

Prentice Hall, 2001 Chapter 5 14

ProblemProblemIdentificationIdentification

The Value ofThe Value ofRationalityRationality

TimeTimeOrientationOrientation

Groups orGroups orIndividualsIndividuals

CulturalCulturalDifferencesDifferences

Prentice Hall, 2001 Chapter 5 15

Ethics in Decision-Making

Utilitarian Rights

Justice