Chapter 5
Perception and
Individual Decision
Making
ORGANIZATIONAL BEHAVIOR
S T E P H E N P. R O B B I N S
E L E V E N T H E D I T I O N
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All rights reserved. Presentation
by Charlie Cook
What Is Perception, and Why Is It Important?
Perception
A process by which •People’s behavior is
individuals organize and based on their
interpret their sensory perception of what
impressions in order to reality is, not on
give meaning to their
reality itself.
environment.
•The world as it is
perceived is the world
that is behaviorally
important.
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Factors That
Influence
Perception
E X H I B I T 5–1
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Person Perception: Making Judgments About
Others
Attribution Theory
When individuals observe
behavior, they attempt to
determine whether it is
internally or externally
caused.
Distinctiveness: shows different behaviors in different situations.
Consensus: response is the same as others to same situation.
Consistency: responds in the same way over time.
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Attribution Theory
E X H I B I T 5–2
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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.
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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
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.
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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.
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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
between the current state of
affairs and a desired state. Perception
of the
decision
Decisions maker
Choices made from among
alternatives developed from
data perceived as relevant.
Outcomes
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Assumptions of the Rational Decision-Making
Model
Rational Decision-
Model Assumptions
Making Model
• Problem clarity
Describes how
individuals should • Known options
behave in order to • Clear preferences
maximize some • Constant
outcome. preferences
• No time or cost
constraints
• Maximum 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.
E X H I B I T 5–3
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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.
E X H I B I T 5–4
Source: T.M. Amabile, “Motivating Creativity in Organizations,” California Management Review, Fall 1997, p. 43.
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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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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 E X H I B I T 5–5
Making, (Upper Saddle River, NJ: Prentice Hall, 1992), p. 29.
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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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