Perception

and
Individual Decision Making
TWELFTH EDITION
What Is Perception, and Why Is It
Important?
Why is perception
important in the study
of OB?
Its simply because
Peoples behavior is
based on their
perception of what
reality is, not on
reality itself.
Perception
A process by which
individuals organize and
interpret their sensory
impressions in order to
give meaning to their
environment.
However what one
perceives can be
completely different
from the objective reality
Factors Influencing Perception
Perceiver
Target
Situation

When an individual looks at a target and attempts to interpret
what he or she sees, that interpretation is heavily influenced
by personal characteristics of the individual perceiver


Perceptual Process
The perceptual process begins when environmental stimuli
are received through our senses. Most stimuli are screened
out; the rest are organized and interpreted based on various
information processing activities.

Perceptual selection is the process by which people filter out
most stimuli so that they can deal with the most important
ones.

External Factors Affecting Perceptual
Process
Size: The larger the size of an external factor, the more likely it
is to be perceived
Intensity: The more intense an external factor, the more likely
it is to be perceived
Motion: Movement also tends to receive more attention
Repetition: A repeated factor is more likely to be perceived
than a single factor




Internal Factors Affecting Perceptual
Process
Personality: It affects what and how people perceive

Learning: Based on past experience

Motivation: Most urgent needs can influence perception




Errors in Perceptual Interpretation
Judgemental Errors
Similarity Error
Contrast Error
Overweighting Negative Information
Perceptual Errors
Perceptual Defense
Stereotyping
Halo Effect or Horn Effect
Projection
Expectancy Effects



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.
Attribution Theory
Attribution Theory has been proposed o develop explanations of
the ways in which we judge people differently
When individuals observe behavior, they attempt to determine
whether it is internally or externally caused.
Attribution Theory
Attributional Tendencies
Fundamental Attribution Bias : The tendency to
underestimate the influence of external factors and
overestimate the influence of internal factors while
making judgement
Self Serving Bias: The tendency to attribute their
own success to internal factors while putting the
blame for failures on external factors



Specific Applications in Organizations
Employment Interview
Performance Expectations
Performance Evaluations
Employee Effort


The Link Between Perceptions
and Individual Decision Making
Perception of
the decision
maker
Outcomes
Problem
A perceived discrepancy
between the current state of
affairs and a desired state.
Decisions
Choices made from among
alternatives developed from
data perceived as relevant.
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.
Organizational 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.
Public
Arena
Open
Blind (spot)
Hidden
Avoided
Personal
Unknown
Unconscious
JOHARI Window
KNOWN TO ME UNKNOWN TO ME
KNOWN
TO
OTHERS
UNKNOWN
TO
OTHERS
Public
Arena
Open
Blind (spot)
Hidden
Avoided
Personal
Unknown
Unconscious
Self-Disclose
KNOWN TO ME UNKNOWN TO ME
KNOWN
TO
OTHERS
UNKNOWN
TO
OTHERS
Public
Arena
Open
Blind (spot)
Hidden
Avoided
Personal
Unknown
Unconscious
When You Solicit Feedback
KNOWN TO ME UNKNOWN TO ME
KNOWN
TO
OTHERS
UNKNOWN
TO
OTHERS
Basic Motivation
Concepts
Performance Dimensions
Defining Motivation
Key Elements
1. Intensity: how hard a person tries
2. Direction: toward beneficial goal
3. Persistence: how long a person tries
Motivation
The processes that account for an individuals intensity,
direction, and persistence of effort toward attaining a goal.
Maslows Hierarchy of Needs
Hierarchy of Needs Theory (Maslow)
Hierarchy of Needs Theory
There is a hierarchy of five needs
physiological, safety, social, esteem,
and self-actualization; as each need
is substantially satisfied, the next
need becomes dominant.
Self-Actualization
The drive to become what one is capable of becoming.
Theory X and Theory Y (Douglas
McGregor)
Theory X
Assumes that employees dislike
work, lack ambition, avoid
responsibility, and must be
directed and coerced to perform.
Theory Y
Assumes that employees like work,
seek responsibility, are capable of
making decisions, and exercise self-
direction and self-control when
committed to a goal.
Theory X and Theory Y (Douglas
McGregor)
Under Theory X, the four assumptions held by managers are:
Employees inherently dislike work, and, whenever possible, will
attempt to avoid it.
Since employees dislike work , they must be coerced, or
threatened with punishment to achieve goals
Employees will avoid responsibilities and seek formal direction
whenever possible
Most worker place security above all factors
Theory X and Theory Y (Douglas
McGregor)
Under Theory Y, the four assumptions held by managers are:
Employees can view work as being as natural as rest or play
People will exercise self-direction and self-control if they are
committed to the objectives
The average person can learn to accept, even seek responsibility
The ability to make innovative decisions is widely dispersed
throughout the population and is not necessarily the sole
province of those in top management positions.
ERG Theory (Clayton Alderfer)
Core Needs
Existence: provision of
basic material
requirements.
Relatedness: desire for
relationships.
Growth: desire for
personal development.
Concepts:
More than one need can be
operative at the same time.
If a higher-level need cannot
be fulfilled, the desire to
satisfy a lower-level need
increases.
ERG Theory
There are three groups of core needs: existence,
relatedness, and growth.
David McClellands Theory of Needs
nAch
nPow
nAff
Need for Achievement
The drive to excel, to strive
to succeed, striving for
personal achievement
Need for Affiliation
The desire for friendly and
close interpersonal
relationships.
Need for Power
The need to make others
behave in a way that they
would not have behaved
otherwise.
Contrasting Views of Satisfaction and
Dissatisfaction
Two-Factor Theory
(Frederick Herzberg)
Two-Factor (Motivation-Hygiene) Theory
Intrinsic factors are related to job satisfaction, while extrinsic
factors are associated with dissatisfaction.
Hygiene Factors
Factorssuch as company
policy and administration,
supervision, and salarythat,
when adequate in a job,
placate workers. When factors
are adequate, people will not
be dissatisfied.
Motivators
Factorssuch as Advancements,
recognition, achievements,
growth, challenging work are
related to Job satisfaction and
factors which motivates people
for high performance.
Two-Factor Theory - Criticism
(Frederick Herzberg)
Herzberg simply looked at satisfaction
and dissatisfaction and not its
relationship with productivity or
performance.
Equity theory
Person compares their outcome/input ratio with others
outcome/input ratio.

Inputs refers to the characteristics which individual bring with
them to the job

Outcomes refers to what person gets from job in terms of pay,
promotions benefits and so on.

Inequity is defined as the perception that persons outcome/input
ratio is not equal to others outcome/input ratio

Negative Inequity Under rewarded
Positive Inequity Over rewarded
Equity Theory (contd)
Distributive Justice
Perceived fairness of the amount
and allocation of rewards among
individuals.
Procedural Justice
The perceived fairness of
the process to determine
the distribution of rewards.
Expectancy Theory
Expectancy Theory (Victor Vroom)
The strength of a tendency to act in a certain way depends
on the strength of an expectation that the act will be
followed by a given outcome and on the attractiveness of
that outcome to the individual.
Expectancy Theory Relationships
EffortPerformance Relationship
The probability that exerting a given amount of effort
will lead to performance.

PerformanceReward Relationship
The belief that performing at a particular level will
lead to the attainment of a desired outcome.

RewardsPersonal Goals Relationship
The degree to which organizational rewards satisfy
an individuals goals or needs and the attractiveness
of potential rewards for the individual.
Expectancy Theory Relationships
EffortPerformance Relationship
If I Give maximum effort , will it be recognised in my
performance appraisal?

PerformanceReward Relationship
If I get a good appraisal, will it lead to
Organisational Rewards?

RewardsPersonal Goals Relationship
If I am rewarded, are the rewards ones that I find
personally attractive?
Managing
Group
Dynamics
Doubts & Apprehension???
Team
Members???
Job or Role???
I think I could do
it Myself!!!
Wow!!!! Nice
that I have to do
less work
May be I can
just be free and
Let others do
the task
Defining and Classifying Groups
Group(s)
Two or more people who interact and influence each other, are
mutually accountable for achieving common goals associated
with organisational objectives.
Formal Group
A designated work group
defined by the
organizations structure.
Informal Group
A group that is neither
formally structured now
organizationally determined;
appears in response to the
need for social contact.
Stages of Group Development
Stage 1: Forming

Awareness
Commitment
Acceptance
Stage 2: Storming

Conflict
Clarification
Belongingness
Stages of Group Development
Stage 3: Norming

Co-operation
Involvement
Support
Stage 4: Performing

Productivity
Achievement
Pride
Stages of Group Development
Stage 5: Adjourning

Disintegrates

Group Processes
Group Norms:
Develop common expectations called norms
Reinforce the behaviour of the people and
Prevent dysfunctional behaviour
Increases predictability of the members behaviour

Types of norms
Formal Norms
Informal Norms
Group Processes
Characteristics of Norms:
They are acceptable to majority of the members
of the group
Focal point of the norm is group behaviour
Tolerance of the deviation from the norms varies
to a great extent among the members of the
group
The norms facilitates the process of management
of the group
Sometimes, the conformity to norms is dependant
upon the individual status within the group

Group Roles
Group Role is defined as a set of recurring
behaviour that is expected from a member by
other in a group

Task Roles
Maintenance Roles
Personal Roles
Task Roles
Initiator: Giving New Ideas
Information: Try to collect more
information and clarification
Opinion Seeker: Taking opinions &
suggestions from others
Information Giver: Passing on
information to other people,
relating ones own experience
Elaborator: Elaborating on issues
for Clarification
Summarizer: Putting together
related ideas and paraphrasing
Maintenance Roles
Encourager: Praise and Recognition
Gatekeeper: Giving chance to other
members to make their contribution
Standard Setter: Reminder to the
group not to defy the standards
Follower: Accepting the ideas
generated
Expresser: Trying to express the
feelings of the group members
Tension Reliever: Helping people drain
off their negative feelings and creating
jest & excitement
Personal Roles
Aggressor: Blaming, showing
anger, humiliating
Blocker: Rejecting other peoples
ideas, Arguing
Competitor: Gaining Favouritism,
importance
Sympathy Seeker: Trying to seek
sympathy
Indifferent: Being indifferent and
passive, whispering to other
people in case of rejection of ones
ideas
Constraints in Group Roles
Role Ambiguity: When people are uncertain
about their duties, responsibilities and
authorities

Role Conflict: Role conflict arises when an
individuals performance of one role is made
difficult by performance of another role

Group Cohesiveness
When there is high level of agreement among group members
with regard to values and beliefs, cohesiveness is likely to exist
in groups

Sources of Cohesiveness
Similarity in attitude and goal
Successful attainment of goal
Size
Charismatic leader
Threats
Rewards


Relationship Between Group
Cohesiveness, Performance Norms,
and Productivity

Medium
Productivity

High Productivity


Low
Productivity

Low
Productivity
P
e
r
f
o
r
m
a
n
c
e

N
o
r
m
s

High
Low
High
Cohesiveness
Common Threats to Group Effectiveness
Opportune time to speak

Evaluation Apprehension

Groupthink value consensus at the price of decision quality

Risky Shift
Cautious Shift

Social Loafing


Group
Polarization
Group Size
Performance
Group Decision Making
Strengths
More complete
information
Increased diversity of
views
Higher quality of
decisions (more
accuracy)
Increased acceptance of
solutions
Weaknesses
More time consuming
(slower)
Increased pressure to
conform
Domination by one or a
few members
Ambiguous
responsibility