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Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Slide
8-1
Chapter
Copyri ght 2011 by the McGraw-H il l Companies, Inc. Al l r ights reserved.McGraw-Hill/Irwin
8Learning
and Decision
Making
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Learning Goals
What is learning, and how does it affectdecision making?
What types of knowledge can employees gain
as they learn and build expertise?
What are the methods by which employees
learn in organizations?
What two methods can employees use to makedecisions?
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Learning Goals, Contd
What decision-making problems can prevent
employees from translating their learning into
accurate decisions?
How does learning affect job performance and
organizational commitment?
What steps can organizations take to foster
learning?
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Learning and Decision Making
Learningreflects relatively permanent changes in anemployees knowledge or skill that result fromexperience.The more employees learn, the more they bring to the table
when they come to work.
Decision makingrefers to the process of generatingand choosing from a set of alternatives to solve aproblem.The more knowledge and skills employees possess, the
more likely they are to make accurate and sound decisions. Expertiserefers to the knowledge and skills that
distinguish experts from novices and less experiencedpeople.
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Discussion Questions
What does the term expert mean to you?
What exactly do experts do that novicesdont?
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Types of Knowledge
Explicit knowledgeis the kind of informationyou are likely to think about when you picturesomeone sitting down at a desk to learn.
Relatively easily communicated. Tacit knowledge is what employees can
typically learn only through experience.
Up to 90 percent of the knowledge contained inorganizations occurs in tacit form.
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Characteristics of Explicit and Tacit
Knowledge
Table
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Methods of Learning
We learn through reinforcement (rewards and
punishment), observation, and experience.
Operant conditioning says that we learn by
observing the link between our voluntary behaviorand the consequences that follow it.
Figure8
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Contingencies of Reinforcement
Two contingencies used to increase desiredbehaviors:
Positive reinforcementoccurs when a positive
outcome follows a desired behavior.Most common type of reinforcement
Increased pay, promotion
Negative reinforcementoccurs when an
unwanted outcome is removed following a desiredbehavior.
Perform a task to not get yelled at
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Contingencies of Reinforcement, Contd
Two contingencies used to decrease undesiredbehaviors:
Punishmentoccurs when an unwanted outcome followsan unwanted behavior.Suspension, firing
Extinctionoccurs when there is the removal of aconsequence following an unwanted behavior.Stop laughing at off-color jokes
Positive reinforcement and extinction should be the
most common forms of reinforcement used by
managers to create learning among their employees.
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Contingencies of Reinforcement, Contd
Figure8
-2
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Schedules of Reinforcement
Continuous reinforcementis the simplest
schedule of reinforcement and happens when
a specific consequence follows each and every
occurrence of a desired behavior.
Fixed interval scheduleis whereworkers arerewarded after a certain amount of time, and
the length of time between reinforcementperiods stays the same.
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Variable interval schedulesare designed toreinforce behavior at more random points intime.
Fixed ratio schedulesreinforce behaviors aftera certain number of them have beenexhibited.
Variable ratio schedulesreward people after avarying number of exhibited behaviors.
Schedules of Reinforcement, Contd
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Schedules of Reinforcement
Table
8-2
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Learning Through Observation
Social learning theoryargues that people inorganizations have the ability to learn throughthe observation of others.
Behavioral modeling happens when employeesobserve the actions of others, learn from whatthey observe, and then repeat the observedbehavior.
OB on ScreenHarry Potter and the
Order of the Phoenix
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The Modeling Process
Figure8
-3
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Goal Orientation
Learning orientation- where building competence isdeemed more important than demonstratingcompetence.Enjoy working on new kinds of tasks, even if they fail
during their early experiences.View failure in positive termsas a means of increasing
knowledge and skills in the long run.
Performance-prove orientationfocus ondemonstrating their competence so that others
think favorably of them. Performance-avoid orientationfocus on
demonstrating competence so that others will notthink poorly of them.
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Methods of Decision Making
Programmed decisionsare decisions thatbecome somewhat automatic because a personsknowledge allows him or her to recognize andidentify a situation and the course of action that
needs to be taken.Intuitioncan be described as emotionally charged
judgments that arise through quick, nonconscious,and holistic associations.
Intuitive decision making is perhaps never moreimportant than it is during a crisis.A crisis situationis a changewhether sudden or evolving
that results in an urgent problem that must be addressedimmediately.
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Methods of Decision Making, Contd
When a situation arises that is new, complex and notrecognized, it calls for a nonprogrammed decisiononthe part of the employee.As employees move up the corporate ladder, a larger
percentage of their decisions become less and lessprogrammed.
Rational decision-making modeloffers a step-by-step approach to making decisions that maximizeoutcomes by examining all available alternatives.
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Programmed and
Nonprogrammed
Decisions
Figure8-4
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Discussion Questions
Do you consider yourself a rational decision
maker?
For what types of decisions are youdetermined to be the most rational?
What types of decisions are likely to cause you
to behave irrationally?
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Decision-Making Problems
Limited Information
Bounded rationalityis the notion that decision makerssimply do not have the ability or resources to process allavailable information and alternatives to make an optimal
decision. Satisficingresults when decision makers select the first
acceptable alternative considered.
Faulty Perceptions
Selective perceptionis the tendency for people to seetheir environment only as it affects them and as it isconsistent with their expectations.
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Rational Decision Making vs. Bounded
Rationality
Table
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Decision-Making Problems, Contd
Faulty Perceptions, Contd
Projection biasis the belief that others think, feel,and act the same way they do.
Social identity theoryholds that people identifythemselves by the groups to which they belongand perceive and judge others by their groupmemberships.
Stereotypeoccurs when people makeassumptions about others on the basis of theirmembership in a social group.
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Decision-Making Problems, Contd
When confronted with situations of
uncertainty that require a decision on our
part, we often use heuristicssimple,
efficient, rules of thumb that allow us to makedecisions more easily.
The availability biasis the tendency for people to
base their judgments on information that is easierto recall.
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Decision-
Making
Biases
Table
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Decision-Making Problems, Contd
Faulty Attributions
Thefundamental attribution errorargues that
people have a tendency to judge others behaviors
as due to internal factors.The self-serving biasoccurs when we attribute
our own failures to external factors and our own
successes to internal factors.
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Attribution Process
Consensus: Did others act the same way undersimilar situations?
Distinctiveness: Does this person tend to actdifferently in other circumstances?
Consistency: Does this person always do this whenperforming this task?
An internal attribution will occur if there is lowconsensus, low distinctiveness, and high consistency.
An external attribution will occur if there is highconsensus, high distinctiveness, and low consistency.
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Consensus, Distinctiveness, and
Consistency
Figure8
-5
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Decision-Making Problems, Contd
Escalation of commitmentrefers to the
decision to continue to follow a failing course
of action.
People have a tendency, when presented with a
series of decisions, to escalate their commitment
to previous decisions, even in the face of obvious
failures.
United Airlines baggage handling
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Why Do Some
Employees Learn
to MakeDecisions Better
than Others?
Figure8
-6
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Learning
Learning does influence job performance.
It is moderately correlated with job performance.
Learning is only weakly related to
organizational commitment.
Having higher levels of job knowledge is
associated with slight increases in emotional
attachment to the firm.
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Effects of Learning on Performance and
Commitment
Figure8
-7
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Application: Training
Trainingrepresents a systematic effort by
organizations to facilitate the learning of job-
related knowledge and behavior.
Organizations spent $134.39 billion on employee
learning and development in 2007, or $1,103 per
employee.
Knowledge transferis the transfer of knowledgefrom older, experienced workers to younger
employees.
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Knowledge Transfer
Behavior modeling trainingensures that employees have theability to observe and learn from those in the company withsignificant amounts of tacit knowledge.
Communities of practiceare groups of employees who worktogether and learn from one another by collaborating over an
extended period of time.
Transfer of trainingoccurs when the knowledge, skills, andbehaviors used on the job are maintained by the learner oncetraining ends and generalized to the workplace once the
learner returns to the job. Transfer of training can be fostered if organizations create a climate for
transferan environment that can support the use of new skills.
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Takeaways
Learning is a relatively permanent change in anemployees knowledge or skill that results from
experience. Decision making refers to the process of
generating and choosing from a set of alternatives to
solve a problem. Learning allows employees to makebetter decisions by making those decisions more quickly
and by being able to generate a better set of alternatives.
Employees gain both explicit and tacit knowledge as they
build expertise. Explicit knowledge is easilycommunicated and available to everyone. Tacit
knowledge, however, is something employees can only
learn through experience.
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Takeaways, Contd
Employees learn new knowledge through reinforcement andobservation of others. That learning also depends on whetherthe employees are learning-oriented or performance-oriented.
Programmed decisions are decisions that become somewhatautomatic because a persons knowledge allows him or her torecognize and identify a situation and the course of actionthat needs to be taken. Many task-related decisions made byexperts are programmed decisions. Nonprogrammed
decisions are made when a problem is new, complex, or notrecognized. Ideally, such decisions are made by following thesteps in the rational decision-making model.
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Takeaways, Contd
Employees are less able to translate their learninginto accurate decisions when they struggle withlimited information, faulty perceptions, faultyattributions, and escalation of commitment.
Learning has a moderate positive relationship withjob performance and a weak positive relationshipwith organizational commitment.
Through various forms of training, companies cangive employees more knowledge and a wider array ofexperiences that they can use to make decisions.