Chapter 5 Perception & Individual Decision Making

ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
WWW.PRENHALL.COM/ROBBINS
T
2003 Prentice Hall Inc. All rights reserved.
PowerPoint Presentation by Charlie Cook
OBJECTIVES
LEARNING
AFTER STUDYING THIS CHAPTER,

YOU SHOULD BE ABLE TO:
1. Explain how two people can see the same
thing and interpret it differently.
2. List three determinants of attribution.
3. Describe how shortcuts can assist in or
distort our judgment of others.
4. Explain how perception affects the decisionmaking process.
5. Outline the six steps in the rational decisionmaking model.
2003 Prentice Hall Inc.
All rights reserved.
52
O B J E C T I V E S (contd)
LEARNING
AFTER STUDYING THIS CHAPTER,

YOU SHOULD BE ABLE TO:
6. Describe the action of a boundedly rational
decision maker.
7. Identify the conditions in which individuals
are most likely to use intuition in decision
making.
8. Describe four styles of decision making.
9. Define heuristics and explain how they bias
decisions.
10. Contrast the three ethical decision criteria.
53
What
What Is
Is Perception,
Perception, and
and Why
Why Is
Is ItIt Important?
Important?
Peoples
Peoplesbehavior
behavior isis
based
based on
on their
their
perception
perception of
of what
what
reality
reality is,
is, not
not on
on
reality
reality itself.
itself.
The
The world
world as
as itit isis
perceived
perceived isis the
the world
world
that
that isis behaviorally
behaviorally
important.
important.
54
Factors
FactorsThat
That
Influence
Influence
Perception
Perception
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Prentice Hall Inc.
EXHIBIT
55
Person
Person Perception:
Perception: Making
Making Judgments
Judgments About
About
Others
Others
Distinctiveness:
Distinctiveness:shows
showsdifferent
differentbehaviors
behaviorsinindifferent
differentsituations.
situations.
Consensus:
Consensus:response
responseisisthe
thesame
sameas
asothers
otherstotosame
samesituation.
situation.
Consistency:
Consistency:responds
respondsininthe
thesame
sameway
wayover
overtime.
time.

56
Attribution
Theory
Attribution
Theory
2003 Prentice
Hall Inc.
EXHIBIT
5-2
57
Errors
Errors and
and Biases
Biases in
in Attributions
Attributions

58
Errors
Errors and
and Biases
Biases in
in Attributions
Attributions (contd)
(contd)

59
Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others

510
Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others

511
Frequently
Frequently Used
Used Shortcuts
Shortcuts in
in Judging
Judging Others
Others

512
Specific
Specific Applications
Applications in
in Organizations
Organizations
Employment Interview
Perceptual biases affect the accuracy of
interviewers judgments of applicants.
Performance Expectations
Self-fulfilling prophecy (pygmalion effect): The lower
or higher performance of employees reflects
preconceived leader expectations about employee
capabilities.
Performance Evaluations
Appraisals are subjective perceptions of
performance.
Employee Effort
Assessment of individual effort is a subjective
judgment
subject
to perceptual distortion and bias.
2003
Prentice
Hall Inc.
513
The
The Link
Link Between
Between Perceptions
Perceptions and
and Individual
Individual
Decision
Decision Making
Making
Perceptions
Perceptions
of
ofthe
the
decision
decision
maker
maker
Outcomes
514
Assumptions
Assumptions of
of the
the Rational
Rational Decision-Making
Decision-Making
Model
Model
1.
1.
2.
2.
Problem
Problemclarity
clarity
Known
Knownoptions
options
3.
3.
4.
4.
Clear
Clearpreferences
preferences
Constant
Constant
preferences
preferences
No
Notime
timeor
orcost
cost
constraints
constraints
Maximum
Maximumpayoff
payoff
5.
5.
6.
6.
515
Steps
Steps in
in the
the Rational
Rational Decision-Making
Decision-Making Model
Model

EXHIBIT
5-3
516
The
The Three
Three Components
Components of
of Creativity
Creativity

EXHIBIT
5-4
517
How
HowAre
Are Decisions
Decisions Actually
Actually Made
Made in
in
Organizations
Organizations

518
How
HowAre
Are Decisions
Decisions Actually
Actually Made
Made in
in
Organizations
Organizations (contd)
(contd)
How/Why problems are identified
Visibility over importance of problem
Attention-catching, high profile problems
Desire to solve problems
Self-interest (if problem concerns decision maker)
Alternative Development
Satisficing: seeking the first alternative that
solves problem.
Engaging in incremental rather than unique
problem solving through successive limited
comparison of alternatives to the current
alternative
in effect.
2003
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Inc.
519
Making
Making Choices
Choices

520
Making
Making Choices
Choices

521
Decision-Style
Decision-Style Model
Model

EXHIBIT
5-5
522
Organizational
Organizational Constraints
Constraints on
on Decision
Decision Makers
Makers
Performance Evaluation
Evaluation criteria influence the choice of actions.
Reward Systems
Decision makers make action choices that are
favored by the organization.
Formal Regulations
Organizational rules and policies limit the
alternative choices of decision makers.
System-imposed Time Constraints

Organizations require decisions by specific
deadlines.
Historical Precedents
PastPrentice
decisions
current decisions.
2003
Hallinfluence
Inc.
523
Cultural
Cultural Differences
Differences in
in Decision
Decision Making
Making
Problems selected
Time orientation
Importance of logic and rationality
Belief in the ability of people to solve problems
Preference for collect decision making

524
Ethics
Ethics in
in Decision
Decision Making
Making
Ethical Decision Criteria
Utilitarianism
Seeking the greatest good for the greatest number.
Rights
Respecting and protecting basic rights of
individuals.
Justice
Imposing and enforcing rules fairly and impartially.

525
Ethics
Ethics in
in Decision
Decision Making
Making
Ethics and National Culture
There are no global ethical standards.
The ethical principles of global organizations
that reflect and respect local cultural norms are
necessary for high standards and consistent
practices.

526

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ORGANIZATIONAL BEHAVIOR

2003 Prentice Hall Inc. All rights reserved.

PowerPoint Presentation by Charlie Cook

AFTER STUDYING THIS CHAPTER,

AFTER STUDYING THIS CHAPTER,

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

All rights reserved.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

Self-interest (if problem concerns decision maker)

All rights reserved.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

System-imposed Time Constraints

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

2003 Prentice Hall Inc.

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