June 7, 2022

Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other th

Initial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.

Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Also, provide a graduate-level response to each of the following questions:

Explain how stereotyping can cause problems for some managers when making ethical decisions. Provide an example.

[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words – do not provide quotes!] [Your initial post should be at least 250+ words and in APA format (including Times New Roman with font size 12 and double spaced).

Book:

Robbins, S. P., & Judge, T. (2022). Essentials of Organizational Behavior. Student Value Edition. Pearson 15th Edition.

Chapter6.PerceptionandIndividualDecisionMaking.pptx

Essentials of Organizational Behavior

Fifteenth Edition

Chapter 6

Perception and Individual Decision Making

Learning Objectives

6.1 Explain the factors that influence perception.

6.2 Describe attribution theory.

6.3 Explain the link between perception and decision making.

6.4 Contrast the rational model of decision making with bounded rationality and intuition.

6.5 Explain how individual differences and organizational constraints affect decision making.

6.6 Contrast the three ethical decision criteria.

6.7 Describe the three-stage model of creativity.

What is Perception? Learning Objective 6.1

Perception: a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment

The world as it is perceived is the world that is behaviorally important

Perception is the way people organize the massive amounts of information they receive into patterns that give it meaning. People will use their perceptions of reality, not reality itself, to decide how to behave.

Factors that Influence Perception

Factors the influence perception include

The perceiver: your personal characteristics

The target: characteristics of the target

The context: situational factors

There are many factors that influence people’s perceptions. The factors are either in the perceiver, such as attitudes, personality, and experience; in the situation, such as social setting and time; or characteristics of the target.

Person Perception: Making Judgments About Others Learning Objective 6.2

Person perceptions: perceptions we form about each other

Attribution Theory: an attempt to explain the ways we judge people differently, depending on the meaning we attribute to a behavior

Internal and External Causation

The attribution theory helps us to understand our perceptions about others. Research has shown that our perceptions about others are based upon the assumptions we make about them. The attribution theory says that when we observe behavior we try to determine if it is internally or externally driven. If it is internally driven, then it is under the person’s control, whereas external causes are not under the individual’s control, but forced by the situation.

Distinctiveness, Consensus, and Consistency

Distinctiveness – whether an individual displays different behaviors in different situations

Consensus – does everyone who faces a similar situation respond in the same way as the individual did?

Consistency – does the person respond the same way over time?

We can use three factors to help us decide if behavior is internally or externally controlled: distinctiveness, consensus, consistency. Distinctiveness shows different behaviors in different situations. Consensus looks at the response and compares it to others in the same situation to see if it is consistent with the behaviors of others. Consistency looks to see if the response is the same over time.

Attribution Theory (Exhibit 6-1)

This chart looks at the elements of the attribution theory and helps us to make the connection between external or internal driven factors.

Long Description:

The details are as follows:

Distinctiveness: High External; Low Internal.

Consensus: High External; Low Internal.

Consistency: High Internal; Low External.

Errors and Biases

Fundamental attribution error:

Tendency to underestimate the influence of external factors and overestimate the influence of internal factors

Self-serving bias: occurs when individuals overestimate their own (internal) influence on successes and overestimate the external influences on their failures

Cultural differences exist

There are errors and biases in the attributions we make. First, we often tend to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others. This is called the fundamental attribution error. The next common error is the self-serving bias. This bias exists when individuals attribute their own successes to internal factors and blame external factors when they don’t have success.

Culture plays a role in the attributions people make. Collectivist cultures tend to make external attributions more frequently than internal attributions.

Common Shortcuts in Judging Others (1 of 2)

Selective Perception: selectively interpret based on interests, background, and attitude

Halo and Horns Effects: drawing a general impression based on a single characteristic

There are some frequently used shortcuts in judging others. These can result in significant distortions.

Selective perception is the tendency to selectively interpret what one sees based on one’s interests, background, experience, and attitudes.

The halo effect is the tendency to draw a positive general impression about an individual based on a single characteristic. The horns effect is the tendency to draw on negative general impressions about an individual based on a single characteristic.

Common Shortcuts in Judging Others (2 of 2)

Contrast Effects: our reaction is influenced by others we have recently encountered (the context of the observation)

Stereotyping: judging someone on the basis of the perception of the group to which they belong

Threat of technological unemployment: AI taking over jobs

Contrast effects occur when we are making judgments about an individual and comparing them to other individuals we have recently encountered.

Stereotyping is when we judge someone on the basis of perception of the group to which he or she belongs.

The threat of technological unemployment is the concern of artificial intelligence taking over jobs.

The Link Between Perception and Decision Making Learning Objective 6.3

Decision making occurs as a reaction to a perceived problem

Discrepancy between the current state and a desired state

Decisions: choices from among two or more alternatives

In organizational behavior we are concerned with how decisions are made and perceptions play a significant role in that process. Often decision making occurs as a reaction to a problem or a perceived discrepancy between the way things are and the way we would like them to be. A decision is then made based on various alternatives that have been developed from the data collected. Every decision requires us to interpret and evaluate information. Perception influences this entire process from problem recognition to data selection to alternative chosen.

There is no agreement among individuals of a problem.

Decision Making in Organizations Learning Objective 6.4

Approaches to decision making

Rational decision making

Bounded rationality

Intuition

OB improves the way we make decisions in organizations by addressing both perceptual and decision-making errors.

In OB, there are generally accepted approaches to decision making:

Rational decision making, bounded rationality, and intuition.

Rational Decision-Making Model

Rational decision-making model

Define the problem

Identify the decision criteria

Allocate weights to the criteria

Develop the alternatives

Evaluate the alternatives

Select the best alternative

While business schools typically train students to follow rational decision-making models, they don’t always describe how decisions are made.

The steps of the rational decision-making model are outlined in this slide. Although this is a good model, it is more of a goal than a practical method.

This model assumes the decision maker has complete information, can identify all relevant options without bias, and chooses the option with the highest utility.

Bounded Rationality

The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize

People seek solutions that are satisfactory and sufficient, rather than optimal (they “satisfice”)

Bounded rationality is constructing simplified models that extract the essential features from problems without capturing all their complexity

The second model, bounded reality, represents more of the real world where it seeks solutions that are the best given the information that is available. Basically, bounded rationality constructs simplified models that identify the essential features from problems without getting into all their complexity.

Intuition

Intuitive decision making: a non-conscious process created out of distilled experience

Least rational decision-making model

Affectively charged

Can be a powerful complement to rational analysis in decision making

The third decision-making model is based on intuition. This is perhaps the least rational way of making decisions. This is the non-conscious process that occurs as a result of experiences that result in quick decisions.

This model relies on links between disparate pieces of information, is fast, and is affectively charged (engages emotions). While experts suggest decisions should not be made based on intuition, it can be used to develop hunches; then test with objective, rational analysis.

Common Biases and Errors in Decision Making (1 of 2)

Overconfidence Bias: a tendency to be overconfident about our own abilities or the abilities of others

Anchoring Bias: a tendency to fixate on initial information and fail to adequately adjust for subsequent information

Confirmation Bias: seeking out information that reaffirms our past choices and discounting information that contradicts past judgments

Availability Bias: basing judgments on readily available information

Systematic biases and errors can creep into the judgments of decision makers. There are many biases and errors that occur in the decision-making process. The overconfidence bias is when an individual believes too much in their own ability to make good decisions. As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence. The anchoring bias is when an individual makes decisions based on the information received first and not on the new information received. The confirmation bias occurs when, during the decision-making process, the individual uses only facts that support the decision. Availability bias involves emphasizing information that is more readily at hand – information that is recent and vivid.

Common Biases and Errors in Decision Making (2 of 2)

Escalation of Commitment: staying with a decision even when there is clear evidence that it is wrong

Randomness Error: our tendency to believe we can predict the outcome of random events

Risk Aversion: preferring a sure gain of a moderate amount over a riskier outcome

Hindsight Bias: believing falsely that we could have predicted the outcome of an event after that outcome is already known

Some additional decision-making errors include escalation of commitment which occurs when there is an increasing commitment to a decision in spite of evidence that it is the wrong decision. The randomness error refers to our tendency to think we can predict the outcome of random events. We can turn imaginary patterns into superstitions. Risk aversion is when the decision maker has a tendency to prefer a sure gain of a moderate amount over a riskier outcome. The hindsight bias occurs after an outcome is already known and then believing it could have been accurately predicted beforehand.

Influences on Decision Making: Individual Differences & Organizational Constraints Learning Objective 6.5

Individual differences

Personality

Gender

General mental ability

Cultural differences

Many factors, such as individual differences and organizational constraints, influence the way people make decisions and the degree to which they are susceptible to errors and biases. There are many individual differences, including those based on personality, gender, general mental ability, and cultural differences, that influence decision making and create deviations from the rational model defined earlier.

Several personality traits are related to taking on decision-making strategies or to experiencing errors or biases during decision making. Employees differ in the extent to which they trust their intuitions. Employees who are less closed-minded tend to be less prone toward selective perception or the confirmation bias. Narcissists are prone to overconfidence. Dutiful people are less likely to escalate their commitment.

When the situation is not stressful, decision making by men and women is about equal in quality. In stressful situations, men make riskier decisions. People with higher GMA can process information more quickly, solve problems more accurately, and learn faster.

The cultural background of a decision maker influences the selection of problems, the depth of analysis, the importance placed on logic and rationality, and whether decisions should be made autocratically.

Organizational Constraints on Decision Making

Performance evaluation systems

Reward systems

Formal regulations

System-imposed time constraints

Historical precedents

Decision making in times of crisis

Organizations can constrain decision makers, creating deviations from the rational model. Managers shape their decisions on performance evaluations, reward systems, and formal regulations.

Almost all important decisions come with explicit deadlines. Such conditions often make it difficult, if not impossible, for managers to gather all information before making a final choice, thus harming decision performance.

Decisions are not made in a vacuum; they have context. They also base decisions on system-imposed time constraints and historical precedents.

Choices made today are largely a result of choices made over years.

Decision makers are particularly susceptible to biases and distortion during times of crisis. These decisions are also more likely to be emotionally charged and intuitive. Perceptions of justice are incredibly important during times of crisis, influencing employee attitudes and customer reactions.

All these factors may influence the decisions that are made.

Ethics in Decision Making (1 of 2) Learning Objective 6.6

Three Ethical Decision Criteria

Utilitarianism

Provide the greatest good for the greatest number

Rights

Make decisions consistent with fundamental liberties and privileges

Justice

Impose and enforce rules fairly and impartially so that there is equal distribution of benefits and costs

Ethical considerations should play a role in decision making. There are three ways to frame ethical decisions. The first is utilitarianism, where the decisions are based on the outcome of the solution. The outcome is analyzed based on seeking the greatest good for the greatest number of people and is the dominant method for businesspeople. The second criterion is rights, where decisions are based on fundamental liberties and privileges in an attempt to protect the basic rights of individuals. The final criterion is justice, where the decision imposes rules in a fair and impartial manner and equitably distributes benefits and costs.

Ethics in Decision Making (2 of 2)

Choosing between criteria

Behavioral ethics

Analyzing how people actually behave when confronted with ethical dilemmas

Lying

Deadly to decision making

Satisfying individual rights and social justice creates far more ambiguities than utilitarian effects on efficiency and profits. The ethical decision-making process itself is complex, and the traditional perspective of viewing these criteria as completely separate is giving way to one that views them as interrelated and contingent upon whether decisions are made about the self or judging others’ behaviors.

Researchers have been exploring the field of behavioral ethics which looks at how people behave when they are confronted with ethical dilemmas. Studies show that we don’t always follow the ethical standards promoted by our organizations and sometimes also violate our own standards. Our ethical behavior varies widely from one situation to the next. The importance of culture to ethical decisions is stressed.

Lying is deadly to decision making. Managers and employees cannot make good decisions when facts are misrepresented and people give false motives for their behaviors. Lying is a big ethical problem as well.

Creativity and Innovation in Organizations Learning Objective 6.7

Creativity: the ability to produce novel and useful ideas

Helps people:

See problems others can’t see

Better fully understand problems

Sometimes a decision maker needs creativity – the ability to produce novel and useful ideas. Novel ideas are different from what has been done before but are appropriate for the problem. Creativity allows the decision maker to appraise and understand problems fully, including seeing problems others cannot see.

Three-Stage Model of Creativity in Organizations (Exhibit 6-4)

The core of the model is creative behavior, which has both causes (predictors of creative behavior) and effects (outcomes of creative behavior).

Long Description:

Details are as below:

Causes of creative behavior: Creative potential and creative environment.

Creative behavior: Sequence is problem formulation, information gathering, idea generation, and idea evaluation.

Creative outcomes (Innovation): Novelty and usefulness.

Creative Behavior

Steps:

Problem formulation: identify a problem or opportunity that requires a solution as yet unknown

Information gathering: possible solutions incubate in an individual’s mind

Idea generation: develop possible solutions from relevant information and knowledge

Idea evaluation: evaluate potential solutions and identify the best one

Creative behavior occurs in four steps, each of which leads to the next. Problem formulation, information gathering, idea generation, and idea evaluation.

Creative behavior begins with problem formulation. In this step, a problem or opportunity that requires a solution as yet unknown is identified. The second step is information gathering. Here the possible solutions incubate in an individual’s mind. In the third step of idea generation, possible solutions are generated from relevant information and knowledge. And in the fourth step of idea evaluation, potential solutions are evaluated and the best one is identified.

Causes of Creative Behavior

Creative potential:

Intelligence and creativity

Personality and creativity

Expertise and creativity

Ethics and creativity

Creative environment

Motivation

Rewards and recognition

Jobs with clear innovative expectations

The causes of creativity in the three-stage model of creative potential and creative environment. Most people have some of the characteristics shared by exceptionally creative people. The more of these characteristics we have, the higher our creative potential. Smart people tend to be more creative because they are better at solving problems. Creative people also tend to be open to experience, have proactive personalities, self-confidence, a tolerance for ambiguity, and a willingness to take risks. Expertise is the foundation for creativity. Ethics and creativity are not clear in their correlation – in fact, people who cheat may actually be more creative. If you aren’t motivated to be creative, it is unlikely you will be.

Creative potential by itself is not enough. We need to be in an environment where creative potential can be realized. Perhaps most important is motivation. Intrinsic motivation correlates strongly with creative outcomes. Environments should foster employees’ motivations to be creative. It’s valuable to work in an environment that rewards and recognizes creative work. The organization should foster the free flow of ideas and freedom from excessive rules. Jobs that are complex, autonomous, and have clear role expectations for innovation are related to innovative behavior.

Creative Outcomes (Innovation)

Creative outcomes: ideas or solutions judged to be novel and useful by relevant stakeholders

Off-the-wall solutions are creative only if they help solve the problem. That is, “ideas are useless unless used.”

Creative ideas do not implement themselves; translating them into creative outcomes is a social process that requires utilizing other concepts addressed in the text.

Implications for Managers

Behavior follows perception, so to influence behavior at work, assess how people perceive their work.

Make better decisions by recognizing perceptual biases and decision-making errors we tend to commit.

Adjust your decision-making approach to the national culture you’re operating in and to the criteria your organization values.

Combine rational analysis with intuition.

Try to enhance your creativity.

Discussion Questions

The characteristics of the target can affect what we perceive. While some of these assumptions we make about surface characteristics are harmful, some can be beneficial to the target. Discuss the role of artificial intelligence in this process.

Individuals are not skilled at detecting lying. And since lying can be deadly to decision making, how can organizations create environments that are not conducive to lying?

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Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other th

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