Upload
jane-griffith
View
220
Download
1
Embed Size (px)
Citation preview
Dr. Fred Mugambi Mwirigi
JKUAT
1
Perception and Individual Decision Making
Topic 3b
Perception and Its Importance
Perception
A process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment. People’s behaviour is based on
their perception of what reality is, not on reality itself.
The world as it is perceived is the world that is behaviourally important.
People’s behaviour is based on their perception of what reality is, not on reality itself.
The world as it is perceived is the world that is behaviourally important.
Wednesday, April 19, 2023 2compiled by Dr. Fred Mugambi
Factors that Influence PerceptionFactors that Influence Perception
Wednesday, April 19, 2023 3compiled by Dr. Fred Mugambi
Attribution Theory Our perceptions of people differ from our
perceptions of inanimate objects. Attribution theory suggests that when we observe an
individual’s behaviour, we attempt to determine whether it was internally or externally caused.
That determination depends largely on three factors: Distinctiveness Consensus Consistency
Attribution Theory Contd. Distinctiveness refers to whether an individual displays
different behaviours in different situations. What we want to know is whether the observed behaviour is unusual.
Consensus occurs if everyone who is faced with a similar situation responds in the same way. For example, if consensus is high, you would be expected to give an external attribution to an employee’s lateness at work, whereas if other employees who took the same route made it to work on time, your conclusion as that causation would be internal.
Consistency in a person’s actions. Does the person respond the same way over time? The more consistent the behaviour, the more the observer is inclined to attribute it to internal causes.
Attribution Theory Contd.
Wednesday, April 19, 2023 6compiled by Dr. Fred Mugambi
Key Errors and Biases in Attributions
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behaviour of others
Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors
Wednesday, April 19, 2023 7compiled by Dr. Fred Mugambi
Frequently Used 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 impression about an individual on the basis of a single characteristic
Contrast Effects
Evaluation of a person’s characteristics based on comparisons with other people recently encountered who rank higher or lower on the same characteristics
Wednesday, April 19, 2023 8compiled by Dr. Fred Mugambi
Frequently Used Shortcuts in Judging Others Contd. Projection Attributing one’s own characteristics to other people Stereotyping Judging someone on the basis of one’s perception of the
group to which that person belongs
Wednesday, April 19, 2023 9compiled by Dr. Fred Mugambi
Specific Applications in Organisations
Employment Interview: Perceptual biases of raters 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.
Ethnic Profiling: A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinising, or investigation
Performance Evaluations: Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance
Wednesday, April 19, 2023 10compiled by Dr. Fred Mugambi
The Link Between Perception and Individual decision Making
Perception of the Decision
Maker
Perception of the Decision
Maker
Outcomes
ProblemA perceived discrepancy between the current state of affairs and a desired state
DecisionsChoices made from among alternatives developed from data perceived as relevant
Assumptions of the Rational Decision Making Model Rational decision-making model
Describes how individuals should behave in order to maximise some outcome Model Assumptions:
Problem clarity Known options Clear preferences Constant preferences No time or cost constraints Maximum payoff
Steps in Rational decision Making Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative.
Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative.
How are Decisions Actually Made in Organizations?
Bounded Rationality Individuals make decisions by constructing
simplified models that extract the essential features from problems without capturing all their complexity.
Common Biases and Errors Overconfidence Bias Anchoring Bias Confirmation Bias Availability Bias Winner’s Curse Randomness Error Hindsight Bias
Intuition Intuitive Decision-Making An unconscious process created out of distilled
experience Conditions Favouring Intuitive Decision Making:
A high level of uncertainty Little precedent to draw on Less scientifically predictable Variables Limited facts Facts that don’t clearly point the way forward Analytical data of little use Existence of several plausible alternative solutions exist Time limitation
Ethics in decision Making Ethical Decision Criteria
Utilitarianism Seeking the greatest good for the greatest
number
Rights Respecting and protecting basic rights of
individuals such as whistleblowers
Justice Imposing and enforcing rules fairly and
impartially
Ways to Improve Decision Making Analyse the situation and adjust your decision-
making style to fit the situation. Be aware of biases and try to limit their impact. Combine rational analysis with intuition to increase
decision-making effectiveness. Don’t assume that your specific decision style is
appropriate to every situation. Enhance personal creativity by looking for novel
solutions or seeing problems in new ways, and using analogies.
Reducing Biases and Errors Focus on goals Clear goals make decision making easier
and help to eliminate options inconsistent with your interests.
Look for information that disconfirms beliefs
Overtly considering ways we could be wrong challenges our tendencies to think we’re smarter than we actually are.
Don’t try to create meaning out of random events.
Don’t attempt to create meaning out of coincidence.
Increase your options
The number and diversity of alternatives generated will increase the chance of finding an outstanding one.
End of Topic Three