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OBJECTIVES LEARNING

At the end of the lecture you should be able to:

1. Explain how two people can see the same thing and interpret it differently. 2. List three determinants of attribution. 3. Describe how shortcuts can assist in or distort our judgment of others. 4. Explain how perception affects the decisionmaking process. 5. Outline the six steps in the rational decisionmaking model.

O B J E C T I V E S (contd) LEARNING

Outline continues:

6. Describe the action of a boundedly rational decision maker. 7. Identify the conditions in which individuals are most likely to use intuition in decision making. 8. Describe four styles of decision making. 9. Define heuristics and explain how they bias decisions. 10. Contrast the three ethical decision criteria.

What Is Perception, and Why Is It Important? Peoples behavior is Peoples behavior is based on their based on their perception of what perception of what reality is, not on reality is, not on reality itself. reality itself. The world as it is The world as it is perceived is the world perceived is the world that is behaviorally that is behaviorally important. important.

Meaning of perception
Process by which an individual selects, organizes and interprets stimuli into a meaningful and coherent picture of the environment in which he lives Complex process and differs from one person to another Some organizations perceive that aggressive and dominating culture and the maintenance of conformity of all employees to certain beliefs and values is essential for success Other organizations perceive that cooperation, team culture and preservation of individual identities is crucial for their success

Sensation vs Perception
Sensation deals with the basic behavior of an individual caused by physiological functions Reaction to external stimuli like light and sound, mechanical pressure, taste of food and smell of chemicals Perception is more complex, an individual takes in the raw data through his senses, refines, modifies, or completely alters it by cognitive process

Perceptual Selectivity
People constantly encounter various stimuli like noise of people talking, the sound of the air conditioner, noise of vehicles are sensed Sometimes, the stimuli are so subtle that people are not conscious that he is exposed to that stimulus subliminal perception Principles of perceptual selectivity helps to understand the process of selection and reasons for such selection depends on external attention factors and internal set factors

External attention factors

Intensity
Intensity of the external stimulus like a bright light, a strong odor, or a loud noise is more likely to be noticed than a dim light, a weak odor or a soft sound TV commercials gain attention of the customers

Size
The larger object is more likely to be noticed than a smaller object - big supermarket/small grocery store, full page advertisement/ classifieds

Contrast
The stimuli contradict most with the background or the expectations of people receive maximum background

Find the letter C below:

OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOCOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO

External Attention Factors

Repetition
More number of times the stimulus is repeated, the more it is likely to be noticed. Organizations use repeated advertising to promote consumer goods like soap, cool drinks and biscuits.

Novelty and Familiarity

New objects in a familiar situation or familiar objects in a new situation draw the attention of the perceiver. During job rotation, an employee if shifted to a new job will provide his maximum attention but the organization is the same

Motion
People give more attention to moving objects than to stationery objects. Workers generally pay more attention to objects moving on the conveyor belt than a stationery machine operating beside them

Internal Set Factors

Learning and perception

Learning creates expectancies in individuals and encourages them to perceive things in a particular way. The expectancies created in individuals influence their perception and their behavior. What people see and hear is influenced by their expectancies Learning leads to substantial individual differences Different people in an organization may attribute low production levels to different reasons. Production manager obsolete technology or machinery Personnel manager lack of training given to workers General Manager Lack of effective planning, organizing, planning and controlling Workers to be a form of revenge against the supervisor The personnel may perceive a situation in entirely different ways

Spelling is not important!

I cdnuolt blveiee that I cluod aulaclty uesdnatnrd what I was rdanieg. The phaonmneal pweor of the hmuan mnid, aoccdrnig to a rscheearch at Cmabrigde Uinervtisy, it dseno't mtaetr in what oerdr the ltteres in a word are, the olny iproamtnt tihng is that the frsit and last ltteer be in the rghit pclae. The rset can be a taotl mses and you can still raed it whotuit a pboerlm. This is bcuseae the huamn mnid deos not raed ervey lteter by istlef, but the word as a wlohe. Azanmig huh? Yaeh and I awlyas tghuhot slpeling was ipmorantt! If you can raed this forwrad it

Motivation and perception

Primary motives like hunger and thirst influence the perception of the individual Persons who work for power, achievement are more attentive to the situations which provide him an opportunity to attain them

Personality and perception

Young managers senior managers resist change, rely on paperwork, delay decisions Senior managers fail to maintain records, make hasty decisions Women discriminated against promotion Men diminishing their employment and career opportunities

Factors That Influence Perception

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Perceiver
A persons attitudes, motives, interests, past experiences and expectations affect his perception If many companies in the industry have announced lay-offs and the employees come to know that an emergency meeting is being called for they may associate with they being laid-off A person with personal problems finds it difficult to concentrate in his work varied perceptions Individual perceptions are influenced by expectations as well. In a garment store with Fixed price tag, customers usually do not try to bargain, perceiving they are getting it at the right price Villains and policemen are always thought to be ruthless and unkind while nurses, teachers are perceived to be caring, gentle

Target
People who are tall, handsome or attractive are the most noticed even in a crowd A target is sometimes perceived in a group
If two employees leave the company at the same time, the others may try to find a common reason, but the truth may be different If a sudden increase in productivity is seen after the new joining of a Production Manager, the management perceives that it was achieved because of the Production Manager but it may be due to change of technology also People perceive lawyers as liars, young army officers as active and tribal people as innocent

Situation
A person wearing a track suit and entering a gym might not attract attention whereas if he enters an office he might be reprimanded for lack of dress sense Time, location, climate and a persons state of mind and other situational factors influence perception

Social Perception
How an individual perceives other individuals A study of how an individual gets to know other individuals Research findings show that certain characteristics of the perceiver and perceived play a role in influencing social perception
Individual understands his personality, easier to understand others accurately Individual who is scheming and manipulative perceives others also in the same way An individual who has a high self-esteem is more likely to perceive favorable aspects in others as well How an individual perceives others is based on many skills

Social Perception
Certain characteristics of the person being perceived also play a role in influencing social perception
Status of the individual and the role played by the individual in the organization Status of the person being perceived greatly influences the perception of the perceiver Visible traits of the person may often tend to prejudice the perceiver

Primary factors that affet social perception are related to psychological processes such as attributions made by people, stereotyping and the halo effect

Person Perception: Making Judgments About Others

Distinctiveness: shows different behaviors in different situations. Distinctiveness: shows different behaviors in different situations. Consensus: response is the same as others to same situation. Consensus: response is the same as others to same situation. Consistency: responds in the same way over time. Consistency: responds in the same way over time.

Attribution Theory

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Errors and Biases in Attributions

Errors and Biases in Attributions (contd)

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Specific Applications in Organizations

Employment Interview
Perceptual biases 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.

Performance Evaluations
Appraisals are subjective perceptions of performance.

Employee Effort
Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

The Link Between Perceptions and Individual Decision Making

Perceptions Perceptions of the of the decision decision maker maker

Outcomes

Assumptions of the Rational Decision-Making Model

1. 1. 2. 2. 3. 3. 4. 4.

Problem clarity Problem clarity Known options Known options Clear preferences Clear preferences Constant preferences Constant preferences

5. No time or cost 5. No time or cost constraints constraints 6. Maximum payoff 6. Maximum payoff

Steps in the Rational Decision-Making Model

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The Three Components of Creativity

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How Are Decisions Actually Made in Organizations

How Are Decisions Actually Made in Organizations (contd)

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.

Making Choices

Making Choices

Decision-Style Model

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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.

Cultural 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

Ethics in Decision Making

Ethical Decision Criteria
Utilitarianism
Seeking the greatest good for the greatest number.

Rights
Respecting and protecting basic rights of individuals.

Justice
Imposing and enforcing rules fairly and impartially.

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.