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Topic 6
• Explain how two people can see the same thing and
interpret it differently.
• List three determinants of attribution.
• Describe how shortcuts can assist in or distort our
judgment of others.
• Explain specific perception applications in
organization.
• Identify ways to reduce bias and errors.
• Outline the six steps in the rational decision-making
model.
• Describe the actions of a bounded decision maker.
• Identify the conditions in which individuals are most
likely to use intuition in decision making.
• Define heuristics and explain how they bias
decisions.
• Contrast group decision making techniques.
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.
An attribution theory in which people
make causal inferences to explain why
other people and ourselves behave in a
certain way. It is concerned with both
social perception and self-perception
Fundamental
Attribution error
Self-serving bias
Selective perception
Halo effect
Contrast effect
Projection
Stereotyping
A self-serving bias is the common habit of a
person taking credit for positive events or
outcomes, but blaming outside factors for
negative events. This can be affected by age,
culture, clinical diagnosis, and more. It tends to
occur widely across populations.
For example:
A student gets a good grade on a test and tells
herself that she studied hard or is good at the
material. She gets a bad grade on another test
and says the teacher doesn’t like her or the test
was unfair.
Selective perception is a very common
cognitive distortion that affects your
perception. It makes you see, listen, or
focus your attention on a stimulus
based on your expectations, without
taking into account the rest of the
information.
For example: when you’re waiting for
someone and you think you know which
direction they’ll be coming from.
A type of cognitive bias in which an overall
positive impression of a person influences how
their individual traits or behaviors are perceived.
The effect is called "halo" because the positive
impression acts like a halo, casting a positive
light on everything about the person.
For example, if someone is perceived as
attractive, they may also be seen as intelligent,
kind, and capable, even if there is no evidence to
support these assumptions. The halo effect can
lead to inaccurate judgments and perceptions of
individuals, as well as unfairly favorable or
unfavorable treatment based on initial
impressions.
A psychological defense mechanism in which
an individual attributes their own
unacceptable thoughts, feelings, or
motivations onto someone else. It's a way of
avoiding self-awareness or self-discovery of
unpleasant or unacceptable aspects of
oneself by projecting them onto others.
For example, if a person is feeling insecure
about their own abilities, they may project
their insecurity onto others by criticizing their
abilities. This can lead to conflict and
miscommunication in relationships, as well as
an inaccurate perception of others and self.
The process of making assumptions
about a group of people based on
limited information or characteristics,
such as race, ethnicity, gender,
nationality, or other group membership.
These assumptions often involve
oversimplification, generalization, and a
lack of individual consideration.
• Employment Interview
• Performance
Expectation
• Ethnic profiling
• Performance
Evaluations
• Employee Effort
Perceptual biases of assessors or
interviewers will affect the accuracy of
interviewers’ judgments of the job
applicants. In the four to five minutes
interview, the interviewers will make
decision to hire or not to hire the job
candidates.
Performance Expectations is founded
on the idea of a self-fulfilling prophecy
(Pygmalion effect): An employee's
performance either meets or exceeds
the expectations of the boss on their
potential.
Self-fulfilling prophecy is a phenomenon where a
person's expectations of someone or something
influences their behavior in such a way that it leads to
fulfilling the expectation. The Pygmalion effect is a
specific example of a self-fulfilling prophecy, where
high expectations lead to improved performance.
Performance Evaluations and performance
appraisals are often being influenced based
on the subjective (judgmental) perceptions
of appraisers by comparing an individual
job performance and another employee’s
job performance.
For example, a female employee may be
evaluated more harshly than a male
employee for the same actions, even
though their performance is the same.
An assessment of individual’s high or low
effort is a subjective judgment subjected
to perceptual distortion and bias of the
perceiver.
Focus on goals
Look for
information that
disconfirms beliefs
Don’t try to create
meaning out of
random events
Increase options
We need to focus on clear and
objective goals. Clear and objective
goals make decision making easier.
Looking for information that disconfirms
beliefs can help us in making decisions.
Overtly considering ways we could be
wrong challenges our tendencies to
think we’re smarter than we actually
are.
We have to teach ourselves to
increase a lot of alternatives. The
number and diversity of alternatives
generated increases the chance of
finding an outstanding decision.
DECISION
MAKING
Decision Making
—
Perception influence the
following:
•
•
•
How individuals make decision is largely
influenced by their perceptions. Decision
making occurs as a reaction to a problem.
Every decision requires us to interpret and
evaluate information, someone's problem
can be someone else's satisfaction.
The link between perception
and decision making
Rational Decision-Making
model
Scenario
Activity Time
’
The Steps in Rational
Decision-Making Model
Define or identify the problem.
A problem is a discrepancy between
an existing and a desired state of
affairs.
Example:
We know that you want to buy
a new car.
Identify the decision
criteria.
Decision criteria are criteria or
factors that define what is
relevant in a decision.
Example:
You need to identify the criteria
of buying a new car.
The Steps in Rational
Decision-Making Model
Allocate weights to the
criteria.
Assign a weight to each of the
items in order to give each item
accurate priority in the decision.
Example:
You need to decide how important
each factor is to your decision.
Develop the alternatives.
Identify or list all of the possible
alternatives that could resolve the
problem.
Example:
You need to generate all
alternatives about your options.
The Steps in Rational
Decision-Making Model
Evaluate and analyze the
alternatives.
Rating each alternative on each
criterion by looking at the
strengths and weaknesses.
Example:
You need to use this information
to evaluate each alternative
against the criteria you have
established.
Select the best alternative.
Choose the best alternative that
rank the highest score.
Example:
You choose the best alternative.
The Steps in Rational
Decision-Making Model
Implement the best alternative.
Putting the decision into action and
putting commitment into the decision.
Example:
You would go out and buy your
new car.
Evaluation of decision
effectiveness.
Do evaluation after sale service of
your car.
Example:
If you purchase a car and have
nothing but problems with it, you
will be less likely to consider the
same make and model when
purchasing a car the next time.
Assumptions of the
Rational Decision-Making
model
Problem clarity Known options
Assumptions of the
Rational Decision-Making
model
Clear preferences Constant preferences
Assumptions of the
Rational Decision-Making
model
No time or cost
constraints
Maximum payoff
How are
people
actually made
decision?
Bounded rationality
–
Example
Mrs. Antle has to make a decision. However, it’s a bit like looking for a
needle in a haystack. There is so much information that needs to be
compiled to even start to come to a satisfactory decision.
In such a situation, it is virtually impossible for any CEO to make an
optimal decision. They have to first compile useful information, but they
may be unaware of other information that may, in fact, be useful. Perhaps
something an average worker knows that would greatly improve
operations.
Example
Limited search for
criteria and alternatives
– refers to familiar
criteria and easily
found alternatives.
Limited review of
alternatives – focus
alternatives by looking
at similar alternatives
to those already in
effect.
Satisficing – selecting
the first alternative
that is “good
enough”.
3 steps of Decision
Making in Bounded
Rationality
Intuitive
Decision
Making
Overconfidence
Bias
Biases and Errors in
decision making
Confirmation Bias
Biases and Errors in decision
making
Availability Bias
Biases and Errors in decision
making
Anchoring Bias
Biases and Errors in decision
making
’
’
Escalation of
Commitment
Biases and Errors in
decision making
Hindsight Bias
Biases and Errors in decision
making
Randomness Error
Biases and Errors in decision
making
Winner’s Curse
Biases and Errors in decision
making
GROUP DECISION
MAKING
The Strengths and
weaknesses of group
decision making
Strengths Weaknesses
•
•
•
•
•
•
•
Groupthink
Group shift
Group decision
making
techniques
Interacting group
the most commonly used format for
decision-making groups. Typically, a
leader presents a problem and the
group discusses i t; there is no
prearranged structural format and
group members are permitted to
interact in any manner. Decisions are
often based on a majority rule
vote.
Brainstorming
This technique includes a group of
people, mostly between five and ten
in number, sitting around a table,
producing ideas in the form of free
association. The main focus is on
generation of ideas and not on
evaluation of these ideas.
Nominal group
technique
This technique is similar to
brainstorming except that this
approach is more structured. It
motivates individual creativity. Members
form the group for namesake and
operate independently, originate ideas
for solving the problem on their
own, in silence and in writing.
Electronic meeting
A type of nominal group technique
in which participants are linked by
computer such as a video conference
through google meet, zoom, WebEx
and Microsoft teams.
The steps of Nominal
Group technique
•
•
•
•
Thank you

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MGT2023 TOPIC 6 PERCEPTION AND DECISION MAKING.pptx

  • 2. • Explain how two people can see the same thing and interpret it differently. • List three determinants of attribution. • Describe how shortcuts can assist in or distort our judgment of others. • Explain specific perception applications in organization. • Identify ways to reduce bias and errors. • Outline the six steps in the rational decision-making model. • Describe the actions of a bounded decision maker. • Identify the conditions in which individuals are most likely to use intuition in decision making. • Define heuristics and explain how they bias decisions. • Contrast group decision making techniques.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7. A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
  • 8. • 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.
  • 9.
  • 10.
  • 11. An attribution theory in which people make causal inferences to explain why other people and ourselves behave in a certain way. It is concerned with both social perception and self-perception
  • 12.
  • 13.
  • 14. Fundamental Attribution error Self-serving bias Selective perception Halo effect Contrast effect Projection Stereotyping
  • 15.
  • 16.
  • 17.
  • 18. A self-serving bias is the common habit of a person taking credit for positive events or outcomes, but blaming outside factors for negative events. This can be affected by age, culture, clinical diagnosis, and more. It tends to occur widely across populations. For example: A student gets a good grade on a test and tells herself that she studied hard or is good at the material. She gets a bad grade on another test and says the teacher doesn’t like her or the test was unfair.
  • 19.
  • 20. Selective perception is a very common cognitive distortion that affects your perception. It makes you see, listen, or focus your attention on a stimulus based on your expectations, without taking into account the rest of the information. For example: when you’re waiting for someone and you think you know which direction they’ll be coming from.
  • 21.
  • 22. A type of cognitive bias in which an overall positive impression of a person influences how their individual traits or behaviors are perceived. The effect is called "halo" because the positive impression acts like a halo, casting a positive light on everything about the person. For example, if someone is perceived as attractive, they may also be seen as intelligent, kind, and capable, even if there is no evidence to support these assumptions. The halo effect can lead to inaccurate judgments and perceptions of individuals, as well as unfairly favorable or unfavorable treatment based on initial impressions.
  • 23.
  • 24. A psychological defense mechanism in which an individual attributes their own unacceptable thoughts, feelings, or motivations onto someone else. It's a way of avoiding self-awareness or self-discovery of unpleasant or unacceptable aspects of oneself by projecting them onto others. For example, if a person is feeling insecure about their own abilities, they may project their insecurity onto others by criticizing their abilities. This can lead to conflict and miscommunication in relationships, as well as an inaccurate perception of others and self.
  • 25. The process of making assumptions about a group of people based on limited information or characteristics, such as race, ethnicity, gender, nationality, or other group membership. These assumptions often involve oversimplification, generalization, and a lack of individual consideration.
  • 26.
  • 27. • Employment Interview • Performance Expectation • Ethnic profiling • Performance Evaluations • Employee Effort
  • 28. Perceptual biases of assessors or interviewers will affect the accuracy of interviewers’ judgments of the job applicants. In the four to five minutes interview, the interviewers will make decision to hire or not to hire the job candidates.
  • 29. Performance Expectations is founded on the idea of a self-fulfilling prophecy (Pygmalion effect): An employee's performance either meets or exceeds the expectations of the boss on their potential. Self-fulfilling prophecy is a phenomenon where a person's expectations of someone or something influences their behavior in such a way that it leads to fulfilling the expectation. The Pygmalion effect is a specific example of a self-fulfilling prophecy, where high expectations lead to improved performance.
  • 30.
  • 31. Performance Evaluations and performance appraisals are often being influenced based on the subjective (judgmental) perceptions of appraisers by comparing an individual job performance and another employee’s job performance. For example, a female employee may be evaluated more harshly than a male employee for the same actions, even though their performance is the same.
  • 32. An assessment of individual’s high or low effort is a subjective judgment subjected to perceptual distortion and bias of the perceiver.
  • 33. Focus on goals Look for information that disconfirms beliefs Don’t try to create meaning out of random events Increase options
  • 34. We need to focus on clear and objective goals. Clear and objective goals make decision making easier.
  • 35. Looking for information that disconfirms beliefs can help us in making decisions. Overtly considering ways we could be wrong challenges our tendencies to think we’re smarter than we actually are.
  • 36.
  • 37. We have to teach ourselves to increase a lot of alternatives. The number and diversity of alternatives generated increases the chance of finding an outstanding decision.
  • 41. How individuals make decision is largely influenced by their perceptions. Decision making occurs as a reaction to a problem. Every decision requires us to interpret and evaluate information, someone's problem can be someone else's satisfaction.
  • 42. The link between perception and decision making
  • 44.
  • 46. The Steps in Rational Decision-Making Model Define or identify the problem. A problem is a discrepancy between an existing and a desired state of affairs. Example: We know that you want to buy a new car. Identify the decision criteria. Decision criteria are criteria or factors that define what is relevant in a decision. Example: You need to identify the criteria of buying a new car.
  • 47. The Steps in Rational Decision-Making Model Allocate weights to the criteria. Assign a weight to each of the items in order to give each item accurate priority in the decision. Example: You need to decide how important each factor is to your decision. Develop the alternatives. Identify or list all of the possible alternatives that could resolve the problem. Example: You need to generate all alternatives about your options.
  • 48. The Steps in Rational Decision-Making Model Evaluate and analyze the alternatives. Rating each alternative on each criterion by looking at the strengths and weaknesses. Example: You need to use this information to evaluate each alternative against the criteria you have established. Select the best alternative. Choose the best alternative that rank the highest score. Example: You choose the best alternative.
  • 49. The Steps in Rational Decision-Making Model Implement the best alternative. Putting the decision into action and putting commitment into the decision. Example: You would go out and buy your new car. Evaluation of decision effectiveness. Do evaluation after sale service of your car. Example: If you purchase a car and have nothing but problems with it, you will be less likely to consider the same make and model when purchasing a car the next time.
  • 50. Assumptions of the Rational Decision-Making model Problem clarity Known options
  • 51. Assumptions of the Rational Decision-Making model Clear preferences Constant preferences
  • 52. Assumptions of the Rational Decision-Making model No time or cost constraints Maximum payoff
  • 55. Example Mrs. Antle has to make a decision. However, it’s a bit like looking for a needle in a haystack. There is so much information that needs to be compiled to even start to come to a satisfactory decision. In such a situation, it is virtually impossible for any CEO to make an optimal decision. They have to first compile useful information, but they may be unaware of other information that may, in fact, be useful. Perhaps something an average worker knows that would greatly improve operations.
  • 57. Limited search for criteria and alternatives – refers to familiar criteria and easily found alternatives. Limited review of alternatives – focus alternatives by looking at similar alternatives to those already in effect. Satisficing – selecting the first alternative that is “good enough”. 3 steps of Decision Making in Bounded Rationality
  • 60. Confirmation Bias Biases and Errors in decision making
  • 61. Availability Bias Biases and Errors in decision making
  • 62. Anchoring Bias Biases and Errors in decision making ’ ’
  • 63. Escalation of Commitment Biases and Errors in decision making
  • 64. Hindsight Bias Biases and Errors in decision making
  • 65. Randomness Error Biases and Errors in decision making
  • 66. Winner’s Curse Biases and Errors in decision making
  • 68. The Strengths and weaknesses of group decision making Strengths Weaknesses • • • • • • •
  • 69.
  • 73. Interacting group the most commonly used format for decision-making groups. Typically, a leader presents a problem and the group discusses i t; there is no prearranged structural format and group members are permitted to interact in any manner. Decisions are often based on a majority rule vote. Brainstorming This technique includes a group of people, mostly between five and ten in number, sitting around a table, producing ideas in the form of free association. The main focus is on generation of ideas and not on evaluation of these ideas.
  • 74. Nominal group technique This technique is similar to brainstorming except that this approach is more structured. It motivates individual creativity. Members form the group for namesake and operate independently, originate ideas for solving the problem on their own, in silence and in writing. Electronic meeting A type of nominal group technique in which participants are linked by computer such as a video conference through google meet, zoom, WebEx and Microsoft teams.
  • 75. The steps of Nominal Group technique • • • •
  • 76.