Perception

Perception

We don’t see things as they are, we see things

as we are.
- A Nin
Objectives
How two people can see the same thing
and interpret it differently.
Three determinants of attribution.
How shortcuts can assist in or distort our
judgment of others.
How perception affects the decision-
making process.
Six steps in the rational decision-making
model.
Definitions
“Perception is the process of receiving information about and making
sense of the world around us.”
- Steven Mc Shane and Marry Ann Von Glinow

“Perception is a process by which individuals organize and interpret

their sensory impressions in order to give meaning to their
environment.”
- Stephen P. Robbins
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Insert Figure 4.1 here

Perception
A process by which individuals organize and interpret their
sensory impressions in order to give meaning to their
environment.
• 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 act based on how they view their world
What exists is not as important as what is believed
Managers must also manage perception
 Perceptual Process
Environmental Stimuli

Feeling Hearing Seeing Smelling Tasting

Selective attention

Perceptual Organization and Interpretation

Emotions and Behaviour

Factors

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Factors
What is seen and interpreted is influenced by the
perceiver
Characteristics of the target affect what we perceive.
Loud and silent
The context or situation in which we see objects and
evens influence
Perception is the reality
 Factors Influencing Perception
Factors in the Factors in the Factors in the
Situation Perceiver Target
Time Attitudes Sound
Work setting Motives Size
Social setting Interests Background
Experience Proximity
Expectations

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 Attribution Theory
 When individuals observe behavior, they attempt to determine
whether it is internally or externally caused.
 Internal : Behaviors that are under the control of the individual and
responsibility
 External: Behaviors which are influenced by the external circumstance

Three factors that determine the behavior are

 Distinctiveness
 Shows different behaviors in different situations. Coming late, if
not usual attribute internal reason for such behavior
 Consensus
 If every one who faces the same situation gives the same
response…..
 Consistency
 Responds in the same way over time.
Attribution Theory
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Insert Figure 4.3 here

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.

© 2005 Prentice Hall Inc. All rights reserved. 5–14

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Attributional Biases
Fundamental attribution error - The tendency
to overattribute behavior to internal rather than
external causes.
Actor-observer effect - The tendency to attribute
the behavior of others to internal causes and to
attribute one’s own behavior to external causes.
Self-serving attribution - The tendency to take
credit for successes and avoid blame for failures.
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.

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Frequently Used Shortcuts in Judging Others
Selective Perception
People selectively interpret what they see on the
basis of their interests, background, experience,
and attitudes.

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Frequently Used Shortcuts in Judging Others
Halo Effect
Drawing a general impression
about an individual on the
basis of a single characteristic
HP Carly Fiorina
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.
Evaluation is not done in isolation but in comparison 5–18
 Frequently Used Shortcuts in
Judging Others
Projection Stereotyping

Attributing one’s own Judging someone on the

characteristics to other basis of one’s perception of
people. the group to which that
person belongs.

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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.
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. 5–20
 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.

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The Link Between Perceptions and Individual
Decision Making
Problem
A perceived discrepancy Perception
Perceptionof
of
between the current state of the
thedecision
decision
affairs and a desired state. maker
maker

Decisions
Choices made from among
alternatives developed from
data perceived as relevant. Outcomes

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Assumptions of the Rational Decision-Making
Model

Model
ModelAssumptions
Assumptions
Rational Decision-
Making Model •• Problem
Problemclarity
clarity
Describes how •• Known
Knownoptions
options
individuals should •• Clear
Clearpreferences
preferences
behave in order to •• Constant
maximize some Constantpreferences
preferences
•• No
Notime
timeor
orcost
outcome. cost
constraints
constraints
•• Maximum
Maximumpayoff
payoff
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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.
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 The 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.
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Source: T.M. Amabile, “Motivating Creativity in Organizations,” California Management Review, Fall 1997, p. 43. 5–4
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 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.

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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.

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Common Biases and Errors
Overconfidence Bias
Believing too much in our own decision
competencies.
Anchoring Bias
Fixating on early, first received information.
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.
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Common Biases and Errors
Escalation of Commitment
Increasing commitment to a previous decision in spite
of negative information.
Randomness Error
Trying to create meaning out of random events by
falling prey to a false sense of control or superstitions.
Hindsight Bias
Falsely believing to have accurately predicted the
outcome of an event, after that outcome is actually
known.

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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
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Decision-Style Model

Source: A.J. Rowe and J.D. Boulgarides, Managerial Decision Making,

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(Upper Saddle River, NJ: Prentice Hall, 1992), p. 29. 5–5
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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.

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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

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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.

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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.

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Ways 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.

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Toward 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.
Source: S.P. Robbins, Decide & Conquer: Making Winning Decisions and Taking Control of
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Your Life (Upper Saddle River, NJ: Financial Times/Prentice Hall, 2004), pp. 164–68. 5–6
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Organizational

Constraints
Performance Evaluation
Managerial evaluation criteria influence actions
Reward Systems
Managers will make the decision with the
greatest personal payoff for them
Formal Regulations
Limit the alternative choices of decision makers
System-imposed Time Constraints
Restrict ability to gather or evaluate
information
Historical Precedents
Past decisions influence current decisions

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