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Chapter X

Perception and

Individual Decision

Making

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What is the perceptual process?

Perception.

The process by which people select, organize,

interpret, retrieve, and respond to information.

Perceptual information is gathered from:

Sight.

Hearing.

Touch.

Taste.

Smell. 2

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Person Perception: Making Judgments

About Others

Distinctiveness: shows different behaviors in

different situations.Consensus: response is the same as others to samesituation.

Consistency: responds in the same way over time. 4

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Errors and Biases in Attributions

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Errors and Biases in Attributions

(contd)

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Common shortcuts in judging others

Selective Perception

Halo effect

Stereo typing

Contrast effect

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Common Shortcuts in Judging Others

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Common Shortcuts in Judging Others

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Common Shortcuts in Judging Others

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Specific Applications of shortcuts in

Organizations

Employment Interview Perceptual biases affect the accuracy of

interviewersjudgments of applicants.

Performance Expectations Self-fulfilling prediction (Pygmalion effect): The

lower or higher performance of employees reflects

preconceived leader expectations about employee

capabilities.

Performance Evaluations

Appraisals are subjective perceptions of

performance. 12

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The Link Between Perceptions and

Individual Decision Making

Perceptions ofthe decision

maker

Outcomes 13

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Common Bias and Errors in Decision

Making

OverconfidenceBiasBelieving too much in our own decision

competencies.

AnchoringBias

Fixating on early, first received information.

ConfirmationBiasUsing only the facts that support our decision.

AvailabilityBias

Using information that is most readily at hand.16

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RepresentativeBiasAssessing the likelihood of an occurrence by

trying to match it with a preexisting category.

EscalationofcommitmentAn increased commitment to a previous decision

in spite of negative information.

RandomnessError

The tendency of individuals to believe that they

can predict the outcome of random events17

Common Bias and Errors in Decision

Making

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Individual Differences on Decision

Making

Personality

Gender

Mental Ability

Cultural Differences

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Ethi i D i i M ki

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Ethics in Decision Making Ethical Decision Criteria

Utilitarianism

Decisions made based solely on the outcome

Seeking the greatest good for the greatest number

Dominant method for businesspeople

Rights

Decisions consistent with fundamental liberties and

privileges

Respecting and protecting basic rights of individualssuch as whistleblowers

Justice

Imposing and enforcing rules fairly and impartially

Equitable distribution of benefits and costs 22

Impro ing Creati it in Decision

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Improving Creativity in Decision

Making

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Creativity

The ability to produce

novel and useful ideas.

Three-Component

Model of Creativity

Proposition that individualcreativity requires expertise,

creative-thinking skills, and

intrinsic task motivation.

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