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Human Behavior Organization
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ORGANIZATIONAL BEHAVIORS T E P H E N P. R O B B I N S
E L E V E N T H E D I T I O N
W W W . P R E N H A L L . C O M / R O B B I N S© 2005 Prentice Hall Inc. All rights reserved.© 2005 Prentice Hall Inc. All rights reserved.
PowerPoint Presentation by Charlie Cook
PowerPoint Presentation by Charlie Cook
Chapter 5Chapter 5
Perception and Individual Decision Making
TWELFTH EDITION
© 2005 Prentice Hall Inc. All rights reserved. 5–2
What Is Perception, and Why Is It Important?What Is Perception, and Why Is It Important?
•People’s behavior is based on their perception of what reality is, not on reality itself.
•The world as it is perceived is the world that is behaviorally important.
•People’s behavior is based on their perception of what reality is, not on reality itself.
•The world as it is perceived is the world that is behaviorally important.
Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
© 2005 Prentice Hall Inc. All rights reserved. 5–3
Factors ThatInfluence
Perception
Factors ThatInfluence
Perception
E X H I B I T 5–1E X H I B I T 5–1
© 2005 Prentice Hall Inc. All rights reserved. 5–4
Person Perception: Making Judgments About Others
Person Perception: Making Judgments About Others
Distinctiveness: shows different behaviors in different situations.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
Distinctiveness: shows different behaviors in different situations.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
Attribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally caused.
© 2005 Prentice Hall Inc. All rights reserved. 5–5
Attribution TheoryAttribution TheoryE X H I B I T 5–2
E X H I B I T 5–2
© 2005 Prentice Hall Inc. All rights reserved. 5–6
Errors and Biases in AttributionsErrors 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 behavior of others.
© 2005 Prentice Hall Inc. All rights reserved. 5–7
Errors and Biases in Attributions (cont’d)Errors and Biases in Attributions (cont’d)
Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.
© 2005 Prentice Hall Inc. All rights reserved. 5–8
Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others
Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
© 2005 Prentice Hall Inc. All rights reserved. 5–9
Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others
Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic
Contrast Effects
Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.
© 2005 Prentice Hall Inc. All rights reserved. 5–10
Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others
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.
© 2005 Prentice Hall Inc. All rights reserved. 5–11
Specific Applications in OrganizationsSpecific Applications in Organizations
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, scrutinizing, or investigation.
© 2005 Prentice Hall Inc. All rights reserved. 5–12
Specific Applications in Organizations (cont’d)Specific Applications in Organizations (cont’d)
Performance Evaluations– Appraisals are often the subjective (judgmental)
perceptions of appraisers of another employee’s job performance.
Employee Effort– Assessment of individual effort is a subjective
judgment subject to perceptual distortion and bias.
© 2005 Prentice Hall Inc. All rights reserved. 5–13
The Link Between Perceptions and Individual Decision Making
The Link Between Perceptions 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.
© 2005 Prentice Hall Inc. All rights reserved. 5–14
Assumptions of the Rational Decision-Making Model
Assumptions of the Rational Decision-Making Model
Model Assumptions
• Problem clarity
• Known options
• Clear preferences
• Constant preferences
• No time or cost constraints
• Maximum payoff
Model Assumptions
• Problem clarity
• Known options
• Clear preferences
• Constant preferences
• No time or cost constraints
• Maximum payoff
Rational Decision-Making Model
Describes how individuals should behave in order to maximize some outcome.
© 2005 Prentice Hall Inc. All rights reserved. 5–15
Steps in the Rational Decision-Making ModelSteps 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.
E X H I B I T 5–3E X H I B I T 5–3
© 2005 Prentice Hall Inc. All rights reserved. 5–16
The Three Components of CreativityThe Three Components of Creativity
Creativity
The ability to produce novel and useful ideas.
Three-Component Model of Creativity
Proposition that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation.
E X H I B I T 5–4E X H I B I T 5–4
Source: T.M. Amabile, “Motivating Creativity in Organizations,” California Management Review, Fall 1997, p. 43.
© 2005 Prentice Hall Inc. All rights reserved. 5–17
How Are Decisions Actually Made in Organizations
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.
© 2005 Prentice Hall Inc. All rights reserved. 5–18
How Are Decisions Actually Made in Organizations (cont’d)
How Are Decisions Actually Made in Organizations (cont’d)
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.
© 2005 Prentice Hall Inc. All rights reserved. 5–19
Common Biases and ErrorsCommon Biases and Errors
Overconfidence Bias– Believing too much in our own decision
competencies. Anchoring Bias
– Fixating on early, first received information.– Ex.
Confirmation Bias– Using only the facts that support our decision.
Availability Bias– Using information that is most readily at hand.
Representative Bias– Assessing the likelihood of an occurrence by
trying to match it with a preexisting category.
© 2005 Prentice Hall Inc. All rights reserved. 5–20
Common Biases and ErrorsCommon Biases and Errors
Escalation of Commitment– Increasing commitment to a previous decision in
spite of negative information. Ex casino player Randomness Error
– Trying to create meaning out of random events by falling prey to a false sense of control or superstitions.
Ex. I wear my lucky tie to important meetings Hindsight Bias
– Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known. Ex.”I knew it all along.” Prophecy after the fact.
© 2005 Prentice Hall Inc. All rights reserved. 5–21
IntuitionIntuition
Intuitive Decision Making– An unconscious process created out of distilled
experience. Conditions Favoring Intuitive Decision Making
– A high level of uncertainty exists– There is little precedent to draw on– Variables are less scientifically predictable– “Facts” are limited– Facts don’t clearly point the way– Analytical data are of little use– Several plausible alternative solutions exist– Time is limited and pressing for the right
decision
© 2005 Prentice Hall Inc. All rights reserved. 5–22
Individual Differences in Decision MakingIndividual Differences in Decision Making
Personality Aspects of conscientiousness and escalation of
commitment. Self Esteem High self serving bias Gender
Women tend to analyze decisions more than men.
Rumination – to reflect at length Women are affected by events in others’
lives more Women base their self esteem and well-being
on what others think of them. Parents encourage the expression of sadness
and anxiety on girls more than boys.
© 2005 Prentice Hall Inc. All rights reserved. 5–23
Organizational Constraints on Decision MakersOrganizational Constraints on Decision 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– Past decisions influence current decisions.
© 2005 Prentice Hall Inc. All rights reserved. 5–24
Cultural Differences in Decision MakingCultural Differences in Decision Making
Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems Preference for collect decision making
© 2005 Prentice Hall Inc. All rights reserved. 5–25
Ethics in Decision MakingEthics 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.
© 2005 Prentice Hall Inc. All rights reserved. 5–26
Ethics in Decision MakingEthics in Decision 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.
© 2005 Prentice Hall Inc. All rights reserved. 5–27
Ways to Improve Decision MakingWays to Improve Decision Making
1. Analyze the situation and adjust your decision making style to fit the situation.
2. Be aware of biases and try to limit their impact.
3. Combine rational analysis with intuition to increase decision-making effectiveness.
4. Don’t assume that your specific decision style is appropriate to every situation.
5. Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies.
© 2005 Prentice Hall Inc. All rights reserved. 5–28
Toward Reducing Bias and ErrorsToward Reducing Bias 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 increases the chance of finding an outstanding one.
E X H I B I T 5–6E X H I B I T 5–6Source: S.P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control
of Your Life (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), pp. 164–68.