ORB Chapter 5 1

ORGANIZATIONAL BEHAVIOR

Chapter 5 Perception &

Individual Decision Making

ORB Chapter 5 2

Perception

• 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.

ORB Chapter 5 3

Factors Influencing Perception

• The Perceiver

• The Object or Target

• The situation

ORB Chapter 5 4

Factors thatInfluence

Perception

E X H I T 5–1E X H I T 5–1

B I

ORB Chapter 5 5

Person Perception: Making Judgments About Others

Attribution Theory

When individuals observe behavior, they attempt to determine whether it is internally or externally caused.

ORB Chapter 5 6

Attribution Theory

• Attribution Theory has been proposed to develop explanations of the ways in which we judge people differently, depending upon what

meaning we attribute to a given situation.

• When we observe the behavior, we attempt to determine whether it was externally or internally caused.

– Internally caused behaviors believed to be under the personal control of an individual

– Externally caused behavior is seen as having been forced into the behavior by the situation.

ORB Chapter 5 7

Attribution Theory

• Internal or external causation depends upon largely on three factors :

– Distinctiveness: whether an individual displays different behaviors in different situations.

– Consensus: If everyone who faces a similar situation responds in the same way, the behavior shows consensus.

– Consistency: Does the person responds in the same way over time.

ORB Chapter 5 8

Attribution Theory

E X H I B I T 5–2E X H I B I T 5–2

ORB Chapter 5 9

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 behavior of others

In general, we tend to blame the person first, not the situation.

In general, we tend to blame the person first, not the situation.

ORB Chapter 5 10

Errors and Biases in Attributions

Self-Serving Bias

The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors

Thought: When students get an “A” on an exam, they often say they studied hard. But when they don’t do well, how does the self-serving bias come into play?

Thought: When students get an “A” on an exam, they often say they studied hard. But when they don’t do well, how does the self-serving bias come into play?

ORB Chapter 5 11

Frequently Used Shortcuts in Judging Others

Selective Perception

People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

ORB Chapter 5 12

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

Frequently Used Shortcuts in Judging Others

ORB Chapter 5 13

Frequently 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

ORB Chapter 5 14

Specific 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.

ORB Chapter 5 15

Specific Applications in Organizations

• 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

• Performance Evaluations– Appraisals are often the subjective (judgmental) perceptions

of appraisers of another employee’s job performance.

ORB Chapter 5 16

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

ORB Chapter 5 17

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

ORB Chapter 5 18

Steps 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

ORB Chapter 5 19

Intuition

• 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

ORB Chapter 5 20

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

ORB Chapter 5 21

Ethics 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.