Robbins: Organizational Behavior
PERCEPTION AND INDIVIDUAL DECISION MAKING
LEARNING OBJECTIVES After studying this chapter, students should be able to: 1. 2. 3. ". $. &. '. *. +. 1,. Explain how two people can see the same thing and interpret it differently List the three determinants of attribution escribe how shortcuts can assist in or distort our !udgment of others Explain how perception affects the decision ma#ing process %utline the six steps in the rational decision ma#ing model escribe the actions of the boundedly rational decision ma#er (dentify the conditions in which indi)iduals are most li#ely to use intuition in decision ma#ing escribe four styles of decision ma#ing efine heuristics, and explain how they bias decisions -ontrast the three ethical decision criteria
CHAPTER OVERVIEW Perception (ndi)iduals beha)e in a gi)en manner based not on the way their external en)ironment actually is but, rather, on what they see or belie)e it to be. An organi.ation may spend millions of dollars to create a pleasant wor# en)ironment for its employees. /owe)er, in spite of these expenditures, if an employee belie)es that his or her !ob is lousy, that employee will beha)e accordingly. (t is the employee0s perception of a situation that becomes the basis for his or her beha)ior. 1he employee who percei)es his2her super)isor as a hurdle reducer who helps him2her do a better !ob and the employee who sees the same super)isor as 3big brother, closely monitoring e)ery motion, to ensure that ( #eep wor#ing4 will differ in their beha)ioral responses to their super)isor. 1he difference has nothing to do with the reality of the super)isor0s actions5 the difference in employee beha)ior is due to different perceptions. 1he e)idence suggests that what indi)iduals percei)e from their wor# situation will influence their producti)ity more than will the situation itself. 6hether or not a !ob is actually interesting or challenging is irrele)ant. 6hether or not a manager successfully plans and organi.es the wor# of his or her employees and actually helps them to structure their wor# more efficiently and effecti)ely is far less important than how employees percei)e the manager0s efforts. 7imilarly, issues li#e fair pay for wor# performed, the )alidity of performance appraisals, and the ade8uacy of wor#ing conditions are not !udged by employees in a way that assures common perceptions, nor can we be assured that indi)iduals will interpret conditions about their !obs in a fa)orable light. 1herefore, to be able to influence producti)ity, it is necessary to assess how wor#ers percei)e their !obs. Absenteeism, turno)er, and !ob satisfaction are also reactions to the indi)idual0s perceptions. issatisfaction with wor#ing conditions or the belief that there is a lac# of promotion opportunities in the organi.ation are !udgments based on attempts to ma#e some meaning out of one0s !ob. 1he employee0s conclusion that a !ob is good or bad is an interpretation. 9anagers must spend time understanding how each indi)idual interprets reality and, where there is a significant difference between what is seen and what exists, try to eliminate the distortions. :ailure to deal with the differences when indi)iduals percei)e the !ob in negati)e terms will result in increased absenteeism and turno)er and lower !ob satisfaction. Indi id!"# Deci$ion M"%in& (ndi)iduals thin# and reason before they act. (t is because of this that an understanding of how people ma#e decisions can be helpful for explaining and predicting their beha)ior. ;nder some recent decision situations, people follow the rational decision<ma#ing model. =ut for most people, and most non<routine decisions, this is probably more the exception than the rule. :ew important decisions are simple or unambiguous enough for the rational model0s assumptions to apply, so we find indi)iduals loo#ing for solutions that satisfice rather than optimi.e, in!ecting biases and pre!udices into the decision process, and relying on intuition. 1
Robbins: Organizational Behavior
>i)en the e)idence we ha)e described on how decisions are actually made in organi.ations, what can managers do to impro)e their decision<ma#ing? 6e offer fi)e suggestions. :irst, analy.e the situation. Ad!ust your decision ma#ing style to the national culture you are operating in and to the criteria your organi.ation e)aluates and rewards. :or instance, if you are in a country that does not )alue rationality, do not feel compelled to follow the rational decision ma#ing model or e)en to try to ma#e your decisions appear rational. 7imilarly, organi.ations differ in terms of the importance they place on ris#, the use of groups, and the li#e. Ad!ust your decision style to ensure it is compatible with the organi.ation0s culture. 7econd, be aware of biases. 6e all bring biases to the decisions we ma#e. (f you understand the biases influencing your !udgment, you can begin to change the way you ma#e decisions to reduce those biases. 1hird, combine rational analysis with intuition. 1hese are not conflicting approaches to decision ma#ing. =y using both, you can actually impro)e your decision<ma#ing effecti)eness. As you gain managerial experience, you should feel increasingly confident in imposing your intuiti)e processes on top of your rational analysis. :ourth, do not assume that your specific decision style is appropriate for e)ery !ob. @ust as organi.ations differ, so do !obs within organi.ations. And your effecti)eness as a decision ma#er will increase if you match your decision style to the re8uirements of the !ob. :or instance, if your decision<ma#ing style is directi)e, you will be more effecti)e wor#ing with people whose !obs re8uire 8uic# action. 1his style would match well with managing stoc#bro#ers. An analytic style, on the other hand, would wor# well managing accountants, mar#et researchers, or financial analysts. :inally, try to enhance your creati)ity. %)ertly loo# for no)el solutions to problems, attempt to see problems in new ways, and use analogies. Additionally, try to remo)e wor# and organi.ational barriers that might impede your creati)ity.
WEB E'ERCISES At the end of each chapter of this instructor0s manual, you will find suggested exercises and ideas for researching the 666 on %= topics. 1he exercises 3Exploring %= 1opics on the 6eb4 are set up so that you can simply photocopy the pages, distribute them to your class, and ma#e assignments accordingly. Aou may want to assign the exercises as an out<of<class acti)ity or as lab acti)ities with your class. 6ithin the lecture notes the graphic will note that there is a 666 acti)ity to support this material.
The chapter opens introducing Bob Lutz currently with General Motors !n the "#$%s he was president o& Chrysler when it was highly criticized as 'brain dead() 'technologically dated() and &or building cars that were 'uninspiring ) *uring a +oy ride in his Ford,-ade Cobra Roadster he had an idea( which lead to a decision that changed the public.s perception o& Chrysler &orever /se the new ten,cylinder engine in develop-ent &or a new *odge truc0 and put it into a sports car -odel 1e -et with critics &ro- within the co-pany( but he was unwavering in his resolve The result was the *odge 2iper Ma0ing decisions is an i-portant part o& everyday organizational li&e( and do not always care&ully &ollow a &or-ulated process as we see in this e3a-ple &ro- Mr Lutz
Robbins: Organizational Behavior CHAPTER OUTLINE 6hat (s Berception, and 6hy (s (t (mportant? De(inition: Berception is a process by which indi)iduals organi.e and interpret their sensory impressions in order to gi)e meaning to their en)ironment. 4otes:
6hy is this important to the study of %=? • =ecause people0s beha)ior is based on their perception of what reality is, not on reality itself.
Factors !n&luencing 6erception
1. :actors that shape Cand can distort perceptionD: • • • Bercei)er 1arget 7ituation
2. 6hen an indi)idual loo#s at a target and attempts to interpret what he or she sees, that interpretation is hea)ily influenced by personal characteristics of the indi)idual percei)er. 3. 1he more rele)ant personal characteristics affecting perception of the percei)er are attitudes, moti)es, interests, past experiences, and expectations. ". -haracteristics of the target can also affect what is being percei)ed. 1his would include attracti)eness, gregariousness, and our tendency to group similar things together. :or example, members of a group with clearly distinguishable features or color are often percei)ed as ali#e in other, unrelated characteristics as well. $. 1he context in which we see ob!ects or e)ents also influences our attention. 1his could include time, heat, light, or other situational factors. Berson Berception: 9a#ing @udgments about %thers 5 5ttribution Theory 783hibit 9,:; 4otes:
1. %ur perceptions of people differ from our perceptions of inanimate ob!ects.
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6e ma#e inferences about the actions of people that we do not ma#e about inanimate ob!ects. Eonli)ing ob!ects are sub!ect to the laws of nature. Beople ha)e beliefs, moti)es, or intentions.
2. %ur perception and !udgment of a person0s actions are influenced by these assumptions.
you would be expected to gi)e an external attribution to the employee0s tardiness. oes the person respond the same way o)er time? 1he more consistent the beha)ior. :undamental Attribution Error
1here is substantial e)idence that we ha)e a tendency to underestimate the influence of external factors and o)erestimate the influence of internal or personal factors. whereas if other employees who too# the same route made it to wor# on time. 1his is called the 3self<ser)ing bias4 and suggests that feedbac# pro)ided to employees will be distorted by recipients. contrary to the self<ser)ing bias. -larification of the differences between internal and external causation: (nternally caused beha)iors are those that are belie)ed to be under the personal control of the indi)idual. Attribution theory suggests that when we obser)e an indi)idual0s beha)ior. it will probably be !udged as internal. 1hat determination depends largely on three factors: 4otes:
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istincti)eness -onsensus -onsistency
". Attribution theory was de)eloped largely based on experiments with Americans and 6estern Europeans.
&. Consensus occurs if e)eryone who is faced with a similar situation responds in the same way.
$. (f this action is not unusual.
. they tended to accept responsibility for group failure. 6hat we want to #now is whether the obser)ed beha)ior is unusual. *istinctiveness refers to whether an indi)idual displays different beha)iors in different situations. 1here is also a tendency for indi)iduals to attribute their own successes to internal factors such as ability or effort while putting the blame for failure on external factors such as luc#. Are these errors or biases that distort attribution uni)ersal across different cultures? 6hile there is no definiti)e answer there is some preliminary e)idence that indicates cultural differences:
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Forean managers found that.
*. 1he Forean study suggests caution in ma#ing attribution theory predictions in non<6estern societies. Externally caused beha)ior is seen as resulting from outside causes5 that is. (f consensus is high. < Consistency in a person0s actions.Robbins: Organizational Behavior 3. your conclusion as to causation would be internal. the obser)er is li#ely to gi)e the beha)ior an external attribution. the person is seen as ha)ing been forced into the beha)ior by the situation.
(f it is. we attempt to determine whether it was internally or externally caused. the more the obser)er is inclined to attribute it to internal causes. especially in countries with strong collecti)ist traditions.
c. 1he results along with other results of the study.ation and acti)ities of a steel company. 6e use a number of shortcuts when we !udge others. industrious. 7tudents may gi)e prominence to a single trait such as enthusiasm and allow their entire e)aluation to be tainted by how they !udge the instructor on that one trait. 7electi)e Berception
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Any characteristic that ma#es a person. A group0s perception of organi. a. 2. ob!ect. 1he experiment showed that sub!ects were allowing a single trait to influence their o)erall impression of the person being !udged. we can draw unwarranted conclusions from an ambiguous situation.
. b. (t is impossible for us to assimilate e)erything we seeGonly certain stimuli can be ta#en in. determined. and were as#ed to e)aluate the person to whom those traits applied. b.Robbins: Organizational Behavior B Fre=uently /sed >hortcuts in ?udging Others 4otes:
1. 1his phenomenon fre8uently occurs when students appraise their classroom instructor. 6hen the word 3warm4 was substituted with 3cold4 the sub!ects changed their e)aluation of the person. Hesearch suggests that it is li#ely to be most extreme when the traits to be percei)ed are ambiguous in beha)ioral terms.ing when they can result in significant distortions. An understanding of these shortcuts can be helpful toward recogni. and when the percei)er is !udging traits with which he or she has had limited experience. but not without the ris# of drawing an inaccurate picture. d. /alo Effect
1he halo effect occurs when we draw a general impression on the basis of a single characteristic: a. s#illful. led the researchers to conclude that the participants percei)ed aspects of a situation that were specifically related to the acti)ities and goals of the unit to which they were attached. when the traits ha)e moral o)ertones. practical. and warm. c. earborn and 7imon performed a perceptual study in which 23 business executi)es read a comprehensi)e case describing the organi. 3. A classic example: a. 7electi)ity wor#s as a shortcut in !udging other people by allowing us to 3speed<read4 others. or e)ent stand out will increase the probability that it will be percei)ed. =ecause we see what we want to see.ational acti)ities is selecti)ely altered to align with the )ested interests they represent. 7ub!ects were gi)en a list of traits such as intelligent.
1he reality of the halo effect was confirmed in a classic study.
E1EH B%(E1: @hen 1iring 8-ployees 8-phasize the 6ositive found in the text and at the end of these chapter notes. %ur reaction to one person is influenced by other persons we ha)e recently encountered.ation is not without ad)antages.Robbins: Organizational Behavior B Fre=uently /sed >hortcuts in ?udging Others 7cont . (n addition. C >peci&ic 5pplications in Organizations 4otes:
. and e)en weight. if people expect to see these stereotypes. 7tudies indicate that most inter)iewers0 decisions change )ery little after the first four or fi)e minutes of the inter)iew. they compromise their ability to respond to indi)idual differences. A suggestion for a class exercise follows. 7tereotypingG!udging someone on the basis of our perception of the group to which he or she belongs >enerali. that is what they will percei)e. 1he problem. whether or not they are accurate.
$. =ecause inter)iews usually ha)e so little consistent structure and inter)iewers )ary in terms of what they are loo#ing for in a candidate. agreement among inter)iewers is often poor. (nter)iewers generally draw early impressions that become )ery 8uic#ly entrenched. :rom a perceptual standpoint. 1his tendency to attribute one0s own characteristics to other peopleGwhich is called pro!ectionGcan distort perceptions made about others. is when we inaccurately stereotype. :or example. (n organi.ations. 1hey tend to see people as more homogeneous than they really are. we fre8uently hear comments that represent stereotypes based on gender. ifferent inter)iewers see different things in the same candidate and thus arri)e at different conclusions about the applicant. Employment (nter)iew
E)idence indicates that inter)iewers ma#e perceptual !udgments that are often inaccurate. and it permits us to maintain consistency. ethnicity. !udgments of the same candidate can )ary widely. Bro!ection • •
&. -ontrast Effects 4otes:
6e do not e)aluate a person in isolation. istortions in any gi)en candidate0s e)aluation can occur as a result of his or her place in the inter)iew schedule. 7tereotyping • •
In$tr!ctor Note) At this point in the lecture you may want to introduce the B%(E1G-%. 6hen managers engage in pro!ection. an inter)iew situation in which one sees a pool of !ob applicants can distort perception. of course. age. (t ius a means of simplifying a complex world. race.
$ soldiers in the (sraeli efense :orces who were ta#ing a fifteen<wee# combat command course.
3. normal potential. 4otes:
1he Lin# between Berception and (ndi)idual ecision 9a#ing 1. or where to locate a new manufacturing plant. what the e)aluator percei)es to be good or bad employee characteristics or beha)iors will significantly influence the outcome of the appraisal.
". 2.ations ma#e decisions5 they ma#e choices from among two or more alternati)es. (nstructors got better results from the high potential group because they expected it confirming the effect of a self< fulfilling prophecy. e)en when those perceptions are faulty. select new employees. 9iddle< and lower<le)el managers determine production schedules. 7elf<fulfilling prophecy or Bygmalion effect characteri. what products or ser)ices to offer.
. 1o the degree that managers use sub!ecti)e measures in appraising employees. by definition. Expectations become reality. Eon<managerial employees also ma#e decisions including whether or not to come to wor# on any gi)en day.Robbins: Organizational Behavior C >peci&ic 5pplications in Organizations 7cont .ations in recent years ha)e been empowering their non<managerial employees with !ob<related decision<ma#ing authority that historically was reser)ed for managers. Employee Effort
An indi)idual0s future in an organi. and decide how pay raises are to be allocated. A study was underta#en with 1.ation is usually not dependent on performance alone. many !obs are e)aluated in sub!ecti)e terms. and whether or not to comply with a re8uest made by the boss.es the fact that people0s expectations determine their beha)ior. how best to finance operations. An assessment of an indi)idual0s effort is a sub!ecti)e !udgment susceptible to perceptual distortions and bias. (ndi)iduals in organi. Berformance Expectations 4otes:
E)idence demonstrates that people will attempt to )alidate their perceptions of reality. A number of organi.
1op managers determine their organi. !udgmental.ation0s goals. how much effort to put forward once at wor#. Berformance E)aluation
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An employee0s performance appraisal is )ery much dependent on the perceptual process. Although the appraisal can be ob!ecti)e. 7oldiers were randomly di)ided and identified as ha)ing high potential. and potential not #nown. 7ub!ecti)e measures are.
&. re8uiring consideration of alternati)e courses of action. >tep C: 1he final step is to compute the optimal decision:
E)aluating each alternati)e against the weighted criteria and selecting the alternati)e with the highest total score.e and e)aluate each alternati)e 1he strengths and wea#nesses of each alternati)e become e)ident as they are compared with the criteria and weights established in the second and third steps. E)ery decision re8uires interpretation and e)aluation of information. 9any poor decisions can be traced to the decision ma#er o)erloo#ing a problem or defining the wrong problem. /e or she ma#es consistent.
*.Robbins: Organizational Behavior 1he Lin# between Berception and (ndi)idual ecision 9a#ing 2. 8
. >tep 9: Hating each alternati)e on each criterion.
-ritically analy.ing decision ma#er is rational. 1he optimi. Any factors not identified in this step are considered irrele)ant to the decision ma#er.
3. >tep A: 6eight the pre)iously identified criteria in order to gi)e them the correct priority in the decision.ing choices within specified constraints. )alue< maximi. and similar personal preferences.
1he decision ma#er determines what is rele)ant in ma#ing the decision.A 3. 6hich data are rele)ant to the decision and which are not? Alternati)es will be de)eloped. )alues. 4otes:
1here is a discrepancy between some current state of affairs and some desired state. >tep B: >enerate possible alternati)es that could succeed in resol)ing the problem. ecision<ma#ing occurs as a reaction to a problem.
". 1his brings in the decision ma#er0s interests. ecisions =e 9ade? 4otes:
/ow 7hould 5
The Rational *ecision.
$. '. 2. >tep ": efining the problem
A problem is a discrepancy between an existing and a desired state of affairs. >tep :: (dentify the decision criteria important to sol)ing the problem. and the strengths and wea#nesses of each will need to be e)aluated. 1he Hational 9odelGsix steps listed in 83hibit 9. 1he perceptions of the decision ma#er will address these two issues.Ma0ing 6rocess
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ata are typically recei)ed from multiple sources. 1he awareness that a problem exists and that a decision needs to be made is a perceptual issue.
Robbins: Organizational Behavior
1his model proposes that indi)idual
creati)ity essentially re8uires expertise. Creative thin0ing s0ills. and about sixty percent were somewhat creati)e. Beople differ in their inherent creati)ity. satisfying. exciting.
1. and similar expertise in their field of endea)or. (t determines the extent to which indi)iduals fully engage their expertise and creati)e s#ills.
2.payo&& 1he rational decision ma#er will choose the alternati)e that yields the highest percei)ed )alue. 1hese are ideas that are different from what has been done before. 1he potential for creati)ity is enhanced when indi)iduals ha)e abilities.
83pertise is the foundation for all creati)e wor#. as well as the talent to see the familiar in a different light. Ma3i-u. Beople ha)e to get out of the psychological ruts most of us get into and learn how to thin# about a problem in di)ergent ways. Constant pre&erences 7pecific decision criteria are constant and the weights assigned to them are stable o)er time. 1his encompasses personality characteristics associated with creati)ity.Ma0ing 6rocess 7cont .clarity 1he decision ma#er is assumed to ha)e complete information regarding the decision situation. 7>ee 83hibit 9. in)ol)ing. or personally challenging.Robbins: Organizational Behavior 5 The Rational *ecision. (t is assumed the decision ma#er is aware of all the possible conse8uences of each alternati)e.
. !ntrinsic tas0 -otivation 1he desire to wor# on something because it0s interesting. 1hree<component model of creati)ity. Dnown options. creati)e<thin#ing s#ills.
!-proving Creativity in *ecision Ma0ing
De(inition) -reati)ity is the ability to produce no)el and useful ideas.
3. -reati)e Botential • •
9ost people ha)e creati)e potential. 1his turns creati)ity potential into actual creati)e ideas. the ability to use analogies. proficiencies. #nowledge. and intrinsic tas# moti)ation. Clear pre&erences -riteria and alternati)es can be ran#ed and weighted to reflect their importance. Assumptions of the 9odel 4otes:
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6roble. but that are also appropriate to the problem or opportunity presented.B . • •
A study of lifetime creati)ity of "&1 men and women found that fewer than one percent were exceptionally creati)e. +. 4o ti-e or cost constraints 1he rational decision ma#er can obtain full information about criteria and alternati)es because it is assumed that there are no time or cost constraints. 1en percent were highly creati)e.
(ndi)iduals operate within the confines of bounded rationality.
ecision ma#ers generally ma#e limited use of their creati)ity.
1his is because the limited information<processing capability of human beings ma#es it impossible to assimilate and understand all the information necessary to optimi.Robbins: Organizational Behavior /ow Are ecisions Actually 9ade in %rgani. 1he first alternati)e that meets the 3good enough4 criterion ends the search.ations rational? 4otes:
6hen decision ma#ers are faced with a simple problem ha)ing few alternati)e courses of action. and they will represent familiar criteria and pre)iously tried<and<true solutions.e. %nce this limited set of alternati)es is identified. the decision ma#er will begin re)iewing it. 1hey construct simplified models that extract the essential features. 6hen faced with a complex problem. 9ost decisions in the real world do not follow the rational model. 1he decision ma#er will begin with alternati)es that differ only in a relati)ely small degree from the choice currently in effect.
1. the satisficing choice will be the first acceptable one the decision ma#er encounters.
1he order in which alternati)es are considered is critical in determining which alternati)e is selected. Alternati)es that depart the least from the status 8uo are the most li#ely to be selected. and when the cost of searching out and e)aluating alternati)es is low.
. the search for criteria and alternati)es begins. /ow does bounded rationality wor#?
%nce a problem is identified. -hoices tend to be confined to the neighborhood of the problem symptom and to the neighborhood of the current alternati)e. 1he decision ma#er will identify a limited list made up of the more conspicuous choices. which are easy to find. tend to be highly )isible. b.
2. a. Are decision ma#ers in organi. Beople satis&iceGthey see# solutions that are satisfactory and sufficient. the rational model is fairly accurate. 3.ations? 1. most people respond by reducing the problem to a le)el at which it can be readily understood.
2. Assuming that a problem has more than one potential solution.
1he result is that the intuiti)e decision ma#er can decide rapidly with what appears to be )ery limited information. with good arguments for each h. and other cultures where rational analysis is the appro)ed way of ma#ing decisionsG to ac#nowledge they are using it. and there is pressure to come up with the right decision
Although intuiti)e decision ma#ing has gained in respectability. 2. f. don0t expect peopleGespecially in Eorth America. A suggestion for a class exercise follows the introduction of the material below. c. d. (ntuiti)e decision<ma#ing has recently come out of the closet and into some respectability. g. 6hat is intuiti)e decision ma#ing?
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(t is an unconscious process created out of distilled experience. b.e the pattern in a situation and draw upon pre)iously learned information associated with that pattern to 8uic#ly arri)e at a decision choice.
1he expert0s experience allows him or her to recogni. when a high le)el of uncertainty exists when there is little precedent to draw on when )ariables are less scientifically predictable when 3facts4 are limited when facts do not clearly point the way to go when analytical data are of little use when there are se)eral plausible alternati)e solutions to choose from.
In$tr!ctor Note) At this point in the lecture you may want to introduce the %= (E 1/E EE67: Fire&ighters /se !ntuition to Ma0e the Right Choices box found in the text. refer students to the -A7E (E-( EE1: ?ohn 4eill at /nipart for another )iewpointGthis time from the -E% perspecti)e.
. (t operates in complement with rational analysis.Robbins: Organizational Behavior B !ntuition 4otes:
1. 7ome belie)e it is a personality trait that a limited number of people are born with. Eight conditions when people are most li#ely to use intuiti)e decision ma#ing: a. e. A summary of the case and 8uestions can be found at the end of this chapter. Hational analysis is considered more socially desirable in these cultures. 7ome consider it a form of extrasensory power or sixth sense. >reat =ritain. when time is limited. 1he purpose of the exercise is to help students better understand how intuition and experience are lin#ed. Hesearch on chess playing pro)ides an excellent example of how intuition wor#s. %nce you ha)e completed the exercise.
and the flames briefly subsided. 7econd.ation and one that is important to the decision ma#er. or something else? C:or example.D 6hat resources do you thin# you used when ma#ing that decision? 3. Jeteran firefighters ha)e accumulated a storehouse of experiences and they subconsciously categori. %hio.ltimately. or both? 2. the li)ing<room floor ca)ed in.!denti&ication
1. a reaction.ations.ation. 36hat0s Aour (ntuition?4 Fast Co-pany. !et<fighter pilots. the rising heat made the room extremely hotGtoo hot for such a seemingly small fire. 1he formal rules of decision<ma#ing are almost incidental. @ust as the crew reached the street.
C#"$$ E*erci$e) -onduct as a K L A for the entire class: 1. intuition is all about perception. etc. Also.. 2+. during a sports match. Another clue that this was not !ust a small #itchen fire was that the sounds it emitted were strangely 8uiet.. the commander was gripped by an uneasy feeling. they blasted water onto the smo#e and flames that appeared to be consuming the #itchen. 1he following illustrates how that recognition process wor#s. Experienced people whose !obs re8uire 8uic# decisionsGfirefighters.. As the firefighters retreated and regrouped. A -le)eland. when buying a car.. fire commander and his crew encountered a fire at the bac# of a house. =reen.
>ource: =ased on =. 6hy?
Jisible problems are more li#ely to catch a decision ma#er0s attention. pp. 6hen faced with selecting a problem important to the decision ma#er or important to the organi. so it was unaffected by the firefighters0 attac#. 6hat is intuition? 6as the commander using intuition or utili. selecting a roommate. self<interest tends to win out. 7eptember 2. . 1hey loo# for cues or patterns in situations that direct them to ta#e one action o)er another.e fires according to how they should react to them. 1he commander was intuiti)ely sensing that the floor was muffling the roar of the flames that were raging below. built on years of experience. 1he decision ma#er0s self interest also plays a part. but the fire roared bac# and continued to burn.D 6hy or why not? /a)e you made a decision recently that you could ha)e done better had you used a formal decision ma#ing process?
6roble. /e ordered e)eryone to lea)e. 76A1 team membersGsee a different world than no)ices in those same !obs do. etc. 7tanding in the li)ing room. (f a decision ma#er faces a conflict between selecting a problem that is important to the organi.I3. 1he commander led his hose team into the building. and intuition begins with recognition.ing his experience and training. /a)e there been times when you needed to ma#e a decision 8uic#ly? 6as it intuition.Robbins: Organizational Behavior
OB IN THE NEWS I Fire&ighters /se !ntuition to Ma0e the Right Choices o fire commanders use the rational model to ma#e life<and<death decisions? Eo. 9uch of the fire was burning underneath the li)ing<room floor. intensi)e<care nurses. self interest tends to win out. a)oiding hitting another car. 1hey rely on their intuition. but then they flared up again with an e)en greater intensity.ing basement. and what they see tells them what they should do.. o you use a decision ma#ing process when ma#ing a 3big4 decision in your life? C:or example. Broblems that are )isible tend to ha)e a higher probability of being selected than ones that are important. /ad the men stayed in the house. 1he men doused the fire again. /ot fires are loud. they would ha)e plunged into a bla. 6hy did the commander gi)e the order to lea)e? =ecause the fire0s beha)ior did not match his expectations. remember we are concerned with decision ma#ing in organi. 13
In$tr!ctor Note) At this point in the lecture you may want to introduce the 1EA9 EMEH-(7E: Biases in *ecision Ma0ing box found in the text and at the end of these chapter notes. ecision ma#ers ma#e successi)e limited comparisons. many more people suffer from fear of flying than fear of dri)ing in a car. Another bias is the tendency to escalate commitment to a failing course of action. A)ailability heuristic
1he availability heuristic is 3the tendency for people to base their !udgments on information that is readily a)ailable to them. An organi. 14
. 1he picture that emerges is one of a decision ma#er who ta#es small steps toward his or her ob!ecti)e.ations: a. Hepresentati)e heuristic
1o assess the li#elihood of an occurrence by trying to match it with a preexisting category. 7ince decision ma#ers see# a satisficing solution. (mplications for the organi. there is a minimal use of creati)ity in the search for alternati)es. Efforts tend to be confined to the neighborhood of the current alternati)e. :ore example.4 E)ents that e)o#e emotions. (t has been well documented that indi)iduals escalate commitment to a failing course of action when they )iew themsel)es as responsible for the failure. 9anagers might be reluctant to change a failed course of action to appear consistent. 1he purpose of the exercise is to help students better understand what their own decision ma#ing biases might be. 2.
1here are two common categories of heuristicsGa)ailability and representati)eness. managers fre8uently predict the performance of a new product by relating it to a pre)ious product0s success.
".Robbins: Organizational Behavior * 5lternative *evelop-ent 4otes:
1. b. (n order to a)oid information o)erload. Escalation of commitment
Escalation of commitment is an increased commitment to a pre)ious decision in spite of negati)e information. 8 Ma0ing Choices
1.ation can suffer large losses when a manager continues to in)est in a failed plan !ust to pro)e his or her original decision was correct. -onsistency is a characteristic often associated with effecti)e leaders.
2. decision ma#ers rely on heuristics or !udgmental shortcuts in decision ma#ing. or that ha)e occurred more recently tend to be more a)ailable in our memory. that are particularly )i)id. Each creates biases in !udgment. E)idence indicates that decision<ma#ing is incremental rather than comprehensi)e.
3. Beople differ along two dimensions. -oncerned with the achie)ement of peers and subordinates and are recepti)e to suggestions from others. ecisions are made with minimal information and with few alternati)es assessed.Ma0ing >tyles 4otes:
1.Robbins: Organizational Behavior F !ndividual *i&&erences: *ecision. 2. 1end to be )ery broad in their outloo# and consider many alternati)es b.es decision ma#ers who wor# well with others b. 9ost managers ha)e characteristics that fall into more than one. 1ries to a)oid conflict and see#s acceptance
$.e ambiguity. lower<le)el managers. and top executi)es tend to score highest in the analytic style.
". form four styles of decision ma#ing. Analytic a. =est characteri. diagrammed.
=usiness students. :ocusing on decision styles can be useful for helping you to understand how two e8ually intelligent people. can differ in the ways they approach decisions and the final choices they ma#e. d. Efficient and logical c. relying hea)ily on meetings for communicating c. 7>ee 83hibit 9. -haracteri. 1he first is their way of thin#ing. esire for more information and consideration of more alternati)es c.ed as careful decision ma#ers with the ability to adapt to or cope with new situations -onceptual a.
irecti)e: a. and they are )ery good at finding creati)e solutions to problems.
• • • •
7ome people are logical and rational. 1hey percei)e things as a whole. 1heir focus is long range. 9a#e decisions fast and focus on the short<run. Low tolerance for ambiguity and see# rationality b. with access to the same information. >reater tolerance for ambiguity b. 1hey process information serially. 1hese two dimensions. 7ome people are intuiti)e and creati)e.9 . Hesearch on decision styles has identified four different indi)idual approaches to ma#ing decisions. (t is best to thin# in terms of a manager0s dominant style and his or her bac#up styles. %thers are able to process many thoughts at the same time. 1he other dimension is a person0s tolerance for ambiguity 7ome people ha)e a high need to minimi.
and other formali. differ in terms of time orientation.ational decisions should be made autocratically by an indi)idual manager or collecti)ely in groups 2. 1his happens due to policies.ations create rules. 6e need to recogni. depth of analysis c.ed as points in a stream of decisions. Berformance e)aluation
9anagers are strongly influenced in their decision ma#ing by the criteria by which they are e)aluated. the importance placed on logic and rationality d. -ultures.
. the importance of rationality. 1heir performance in decision ma#ing will reflect expectation.e that the cultural bac#ground of the decision ma#er can ha)e significant influence on:
a. 1he organi. for example.e of any gi)en year0s budget is last year0s budget. 4otes:
1. regulations. selection of problems
b. Brogrammed routines
All but the smallest of organi. etc. 7ystem<imposed time constraints
• • •
%rgani.ations are able to get indi)iduals to achie)e high le)els of performance without paying for the years of experience. their belief in the ability of people to sol)e problems. ecisions must be made 8uic#ly in order to stay ahead of the competition and #eep customers satisfied.e the beha)ior of their members. (t is common #nowledge that the largest determining factor of the si. policies. 2. procedures. and preference for collecti)e decision ma#ing.ed regulations in order to standardi.Robbins: Organizational Behavior G Organizational Constraints 4otes:
1. organi. Almost all important decisions come with explicit deadlines. ecisions made in the past are ghosts which continually haunt current choices.ation0s reward system influences decision ma#ers by suggesting to them what choices are preferable in terms of personal payoff. 1he rational model ma#es no ac#nowledgment of cultural differences. /istorical Brecedents
ecisions ha)e a context. Heward systems
$.ation itself constrains decision ma#ers.
".ations impose deadlines on decisions.
&. =y programming decisions. whether organi. time constraints.
3. (ndi)idual decisions are more accurately characteri.
1his )iew tends to dominate business decision ma#ing. ecision ma#ing by @apanese managers is much more group<oriented than in the .tilitarianism a. Bromotes efficiency and producti)ity b. 1here is an e8uitable distribution of benefits and costs.
$. :ocus on !usticeGre8uires indi)iduals to impose and enforce rules fairly and impartially.Robbins: Organizational Behavior
Chapter Five 4otes:
7ome cultures emphasi. such as the right to pri)acy. and to due process. Brotects indi)iduals from in!ury and is consistent with freedom and pri)acy b. inno)ation. (t can result in ignoring the rights of some indi)iduals. (t can encourage a sense of entitlement that reduces ris# ta#ing. .ational decision ma#ing.
. (ncreased concern in society about indi)idual rights and social !ustice suggests the need for managers to de)elop ethical standards based solely on non< utilitarian criteria. 9any critics of business decision ma#ers argue that this perspecti)e needs to change. Hights a.
An emphasis on rights means respecting and protecting the basic rights of indi)iduals. Brotects the interests of the underrepresented and less powerful b.tilitarian criterionGdecisions are made solely on the basis of their outcomes
3. :ocus on rightsGcalls on indi)iduals to ma#e decisions consistent with
fundamental liberties and pri)ileges as set forth in documents such as the =ill of Hights. (t can create an o)erly legalistic wor# en)ironment that hinders producti)ity and efficiency. ecision ma#ers tend to feel safe and comfortable when they use utilitarianism. @ustice a. Ad)antages and liabilities of these three criteria:
. 1he goal of utilitarianism is to pro)ide the greatest good for the greatest number.ation. while others focus on accepting situations as they are.e sol)ing problems. 5 Three 8thical *ecision Criteria
2. to free speech.
3. and producti)ity. particularly those with minority representation in the organi. ecision 9a#ing?
6hat about Ethics in
Ethical considerations should be an important criterion in organi. ".nited 7tates. c.
Eo one will #now if ( #eep it. /a)e the student teams switch cards with another team. =rea# students into teams and as# them write a short scenario around the e)ent listed.ational norms. %r. 1he purpose of the exercise is to help students better understand what their reactions might be when faced with )arious ethical decisions. the e)aluating and rewarding of means as well as ends. unpaid o)ertime. 1he essential issue that this statement addresses is whether ethical beha)ior is more a function of the indi)idual or the situational context. a written code of ethics. As a class. management. 1he e)idence indicates that people with high ethical principles will follow them in spite of what others do or the dictates of organi. =y see#ing out people with integrity and strong ethical principles.t *o /nethical Things) box found in the text Cand belowD. etc. unethical practices can be further minimi. business tra)el to Las Jegas.4 %r. As# them to loo# at it from se)eral different perspecti)es: the employee. transfer to (ndia. lunch with )endor. but when an indi)idual0s ethical and moral de)elopment are not of the highest le)el. discuss what they learned when faced with these situations. co<wor#ers. %f course.ations or situations in which there are strong pressures to conform. e)en in organi.ed by pro)iding indi)iduals with a supporti)e wor# climate.t *o /nethical Things) 1his statement is mostly true. A suggested class exercise follows within the boxed text. and customers. 1his is true e)en when those cultures encourage 8uestionable practices. :or example: 3( recei)ed a refund from the health insurer for twice the amount ( was expecting. and the perspecti)es and decision process they underwent. and a culture that encourages indi)iduals to openly challenge 8uestionable practices.Robbins: Organizational Behavior
In$tr!ctor Note) At this point in the lecture you may want to introduce the E1/(-AL (LE99A EMEH-(7E: Five 8thical *ecisions: @hat @ould Eou *oF found in the text and at the end of these chapter notes. Beople with high ethical standards are less li#ely to engage in unethical practices.
. C#"$$ e*erci$e) 1. positi)e management role models. A suggestion for a class exercise follows the introduction of the material. 2. =ecause ethical people essentially a)oid unethical practices. he or she is more li#ely to be influenced by strong cultures. o different perspecti)es create a different outcome for the decision? 6ho carries the most weight when the final decision is made? C(s it self<ser)ing or for the greater good?D ". double insurance refund.
M+TH OR SCIENCE. 3hey they fired meGthey don0t remember (0)e got their laptop<<(0m #eeping itN 3 3. ( 8uitN. the organi.4 which might lead to an emotional response or the possibility of ma#ing an decision Chopefully in an ethical mannerND. 1his would include clear !ob descriptions. I 38thical 6eople *on. Brior to class prepare 3 x $ index cards with )arious 3e)ents.ation increases the li#elihood that employees will act ethically. managers should be encouraged to screen !ob candidates Cthrough testing and bac#ground in)estigationsD to determine their ethical standards. you may want to introduce the 9A1/ %H 7-(EE-E: '8thical 6eople *on. :or example the cards should ha)e the statements li#e: Aou are firedN. 1he team should now come to a decision as how they would resol)e the CnewD situation.
Robbins: Organizational Behavior B 8thics and 4ational Culture 4otes:
1. :ew issues are blac#<and<white there5 most are gray. Co-bine rational analysis with intuition: . 6hat can managers do to impro)e their decision ma#ing?
1. 2. the criteria the organi. 7hould a 6estern business professional pay a bribe to secure business if it is an accepted part of that country0s culture? A manager of a large .7. 7he fired him. Be aware o& biases: .sing both can impro)e decision ma#ing effecti)eness. only to learn later that the employee had been summarily executed. 1here are no global ethical standards.. Realize that no speci&ic decision style is appropriate &or every +ob: %rgani.
.nderstanding how they influence !udgment can help to reduce their impact. 4otes:
!ndividual *ecision Ma0ing rather than optimi. 6hile ethical standards may seem ambiguous in the 6est. -ontrasts between Asia and the 6est illustrate:
=ribery is commonplace in countries such as -hina.ations differ.e. company operating in -hina caught an employee stealing. 9ost people do not follow the rational decision<ma#ing modelGbut satisfice
2. criteria defining right and wrong are actually much clearer in the 6est than in Asia.ation e)aluates and rewards. 9atching decision style to the situation is the most effecti)e strategy. =e aware of these fi)e strategies: • • • •
5nalyze the situation: Ad!ust to national culture. as do !obs. turned him o)er to the local authorities.
1ow are our perceptions o& our own actions di&&erent &ro.ing decision ma#er is rational.ation is not without ad)antages. 1here is also a tendency for indi)iduals to attribute their own successes to internal factors. /e2she ma#es consistent. 1his is the fundamental attribution error. we attempt to determine whether it was internally or externally caused. =ecause inter)iews usually ha)e so little consistent structure and inter)iewers )ary in terms of what they are loo#ing for in a candidate. Give so-e positive results o& using shortcuts when +udging others An$/er I 1hey sa)e us time and they help us process o)erloads of information effecti)ely. but the drawbac#s may out weigh such ad)antages. whether they are accurate or not. 1hat determination depends largely on three factors: distincti)eness. 1here is substantial e)idence that we ha)e a tendency to underestimate the influence of external factors and o)erestimate the influence of internal or personal factors. Berformance expectationsGE)idence demonstrates that people will attempt to )alidate their perceptions of reality. 7electi)ity wor#s as a shortcut in !udging other people by allowing us to 3speed<read4 others. and it permits us to maintain consistency. consensus.-a0ing -odelF /nder what conditions is it applicableF An$/er I 1he optimi. • -ompute the optimal decision. :rom a perceptual standpoint.OR REVIEW "
*e&ine perception An$/er I Berception is a process by which indi)iduals organi.ation is usually not dependent on performance alone. of course.our perceptions o& the actions o& othersF An$/er I %ne of the more interesting findings from attribution theory is that there are errors or biases that distort attributions. such as ability or effort. • >enerate possible alternati)es that could succeed in resol)ing the problem. if people expect to see these stereotypes. )alue<maximi. 1ow does selectivity a&&ect perceptionF Give an e3a-ple o& how selectivity can create perceptual distortion An$/er 0 7electi)e perceptionGAny characteristic that ma#es a person. ob!ect. • efine the problem. (t is impossible for us to assimilate e)erything we seeGonly certain stimuli can be ta#en in. @hat is the rational decision. is when we inaccurately stereotype. e)en when those perceptions are faulty. • (dentify the decision criteria important to sol)ing the problem. @hat is stereotypingF Give an e3a-ple o& how stereotyping can create perceptual distortion An$/er I 7tereotypingG!udging someone on the basis of our perception of the group to which he or she belongs. and select the alternati)e with the highest total score. we can draw unwarranted conclusions from an ambiguous situation.e and interpret their sensory impressions in order to gi)e meaning to their en)ironment. Berformance e)aluationGAn employee0s performance appraisal is )ery much dependent on the perceptual process. @hat is attribution theoryF @hat are its i-plications &or e3plaining organizational behaviorF An$/er I Attribution theory suggests that when we obser)e an indi)idual0s beha)ior. Employee effortGAn indi)idual0s future in an organi. >enerali.ing choices within specified constraints. 1his is the self< ser)ing bias and suggests that feedbac# pro)ided to employees will be distorted by recipients. not on reality itself. • E)aluate each alternati)e against the weighted criteria.Robbins: Organizational Behavior -UESTIONS . and consistency. 1he Hational 9odelGsix steps listed in Exhibit $<". • 6eight the pre)iously identified criteria in order to gi)e them the correct priority in the decision. Employment inter)iewGE)idence indicates that inter)iewers ma#e perceptual !udgments that are often inaccurate. An assessment of an indi)idual0s effort is a sub!ecti)e !udgment susceptible to perceptual distortions and bias. Berception is important in the study of %= because people0s beha)ior is based on their perception of what reality is.e and e)aluate each alternati)e. 6hat one percei)es can be substantially different from ob!ecti)e reality. %ne of the problems of stereotypes is that they are widespread. or e)ent stand out will increase the probability that it will be percei)ed. !udgments of the same candidate can )ary widely. but not without the ris# of drawing an inaccurate picture. =ecause we see what we want to see. 20
. 1he problem. (t is a means of simplifying a complex world. • -ritically analy. that is what they will percei)e. while putting the blame for failure on external factors such as luc#.
e the pattern in a situation and draw upon pre)iously learned information associated with that pattern to 8uic#ly arri)e at a decision choice. 1he result is that the intuiti)e decision ma#er can decide rapidly with what appears to be )ery limited information. it parallels earlier 8uestions whether heredity or en)ironment shape personality. "D -onstant preferencesG6hen specific decision criteria are constant and the weights assigned to them are stable o)er time. (ndi)idual decisions are more accurately characteri.ational constraints: Berformance e)aluation • 9anagers are strongly influenced in their decision ma#ing by the criteria by which they are e)aluated.
.ed as points in a stream of decisions.s wor0 environ-entF 83plain An$/er I 1his is an opinion 8uestion. Brogrammed routines • =y programming decisions. 2D Eot #nowing all the optionsG(t is assumed the decision ma#er is aware of all the possible conse8uences of each alternati)e. • 9anagers bloc#ing negati)e information Heward systems • 1he organi.e of any gi)en year0s budget is last year0s budget.ations are able to get indi)iduals to achie)e high le)els of performance without paying for the years of experience.ation0s reward system influences decision ma#ers by suggesting to them what choices are preferable in terms of personal payoff. • ecisions must be made 8uic#ly in order to stay ahead of the competition and #eep customers satisfied. &D 6hen there is no maximum payoff alternati)eG1he rational decision ma#er will choose the alternati)e that yields the highest percei)ed )alue. • (t is common #nowledge that the largest determining factor of the si.
@hat role does intuition play in e&&ective decision -a0ingF An$/er 0 (ntuiti)e decision ma#ing has recently come out of the closet and into some respectability.Robbins: Organizational Behavior $
*escribe organizational &actors that -ight constrain decision -a0ers An$/er I 1D 1he lac# of problem clarityG1he decision ma#er is assumed to ha)e complete information regarding the decision situation. • ecisions made in the past are ghosts which continually haunt current choices. • Almost all important decisions come with explicit deadlines. Eight conditions when people are most li#ely to use intuiti)e decision ma#ing: • 6hen a high le)el of uncertainty exists • 6hen there is little precedent to draw on • 6hen )ariables are less scientifically predictable • 6hen 3facts4 are limited • 6hen facts do not clearly point the way to go • 6hen analytical data are of little use • 6hen there are se)eral plausible alternati)e solutions to choose from. $D (f there are important time or cost constraintsG1he rational decision ma#er can obtain full information about criteria and alternati)es because it is assumed that there are no time or cost constraints. 6e define intuiti)e decision ma#ing as an unconscious process created out of distilled experience. organi. 1he expert0s experience allows him or her to recogni. %ther organi. with good arguments for each • 6hen time is limited and there is pressure to come up with the right decision
"% 5re unethical decisions -ore a &unction o& the individual decision -a0er or the decision -a0er. /istorical precedents • ecisions ha)e a context.ations impose deadlines on decisions. (n many ways. 7ystem<imposed time constraints • %rgani. (t operates in complement with rational analysis. 3D Eot being able to ma#e clear preferencesG-riteria and alternati)es can be ran#ed and weighted to reflect their importance.
1he more rele)ant personal characteristics affecting perception are attitudes. and consistency.OR CRITICAL THINKING "
1ow -ight the di&&erences in e3periences o& students and instructors a&&ect their perceptions o& students. the person is seen as ha)ing been forced into the beha)ior by the situation.Robbins: Organizational Behavior -UESTIONS . and expectations. the rational model is fairly accurate. As interests narrow one0s focus. istincti)eness refers to whether an indi)idual displays different beha)iors in different situations. ecision ma#ers generally ma#e limited use of their creati)ity. • (f it is.ing decision ma#er is rational. Aou percei)e those things to which you can relate. . 1hat determination depends largely on three factors: distincti)eness. -hoices tend to be confined to the neighborhood of the problem symptom and to the neighborhood of the current alternati)e. (f e)eryone who is faced with a similar situation responds in the same way. clarification of the differences between internal and external causation • (nternally caused beha)iors are those that are belie)ed to be under the personal control of the indi)idual • Externally caused beha)ior is seen as resulting from outside causes5 that is. -onsistency in a person0s actions. 6hen faced with a complex problem.e the pattern in a situation and draw upon pre)iously learned information associated with that pattern to 8uic#ly arri)e at a decision choice.s -anager will use to &or. /e or she ma#es consistent. past experiences. we can say the beha)ior shows consensus. expectations can distort your perceptions in that you will see what you expect to see. but they need to understand bounded rationality and the role of intuition in decision<ma#ing.poor onesF Relate your answer to the si3. • efine the problemG9any poor decisions can be traced to the decision ma#er o)erloo#ing a problem or defining the wrong problem. so do one0s past experiences. 6hen decision ma#ers are faced with a simple problem ha)ing few alternati)e courses of action.
. step rational -odel An$/er I 1he optimi. :irst. interests. you would be expected to gi)e an external attribution to the employee0s tardiness. most people respond by reducing the problem to a le)el at which it can be readily understoodGbounded rationality. • (f this action is not unusual. (ntuiti)e decision ma#ing as an unconscious process created out of distilled experienceGit operates in complement with rational analysis. )alue<maximi. 1he expert0s experience allows him or her to recogni.nsatisfied needs or moti)es stimulate indi)iduals and may exert a strong influence on their perceptions.
'For the -ost part( individual decision -a0ing in organizations is an irrational process ) *o you agree or disagreeF *iscuss An$/er I 7tudents may argue either side. and when the cost of searching out and e)aluating alternati)es is low. @hat &actors do you thin0 di&&erentiate good decision -a0ers &ro. consensus. the more the obser)er is inclined to attribute it to internal causes.s +ob per&or-ance An$/er I Attribution theory suggests that when we obser)e an indi)idual0s beha)ior. it will probably be !udged as internal. moti)es. • (f consensus is high. • 6hat we want to #now is whether the obser)ed beha)ior is unusual. the obser)er is li#ely to gi)e the beha)ior an external attribution. 1he capacity of the human mind for formulating and sol)ing complex problems is far too small to meet the re8uirements for full rationality.es the #ey elements in attribution theory.ing choices within specified constraints. 1he rational modelGsix steps listed in Exhibit $<". 1he result is that the intuiti)e decision ma#er can decide rapidly with what appears to be )ery limited information. whereas if other employees who too# the same route made it to wor# on time.+udg-ents about this e-ployee. :inally. that interpretation is hea)ily influenced by personal characteristics of the indi)idual percei)er. your conclusion as to causation would be internal. written wor0 and class co--entsF An$/er I 6hen an indi)idual loo#s at a target and attempts to interpret what he or she sees. Exhibit $<3 summari. we attempt to determine whether it was internally or externally caused. 5n e-ployee does an unsatis&actory +ob on an assigned pro+ect 83plain the attribution process that this person. oes the person respond the same way o)er time? • 1he more consistent the beha)ior.
ation and about the specific !ob. As a result.ation when they come face<to<face with the negati)es in the !ob. 9 1ave you ever increased your co--it-ent to a &ailed course o& actionF !& so( analyze the &ollow. perform basic mathematical calculations. and telecommunications specialist. that is a ris# managers ha)e to ta#e. As in dealing with any salesperson. in 23
. 1hese unrealistic expectations often lead to premature resignations. they are forced to put a positi)e 3spin4 on their descriptions of their organi.e the positi)e with !ob candidates is that this is what the competition is doing. a number of things happen that ha)e potentially negati)e effects on the organi. )alues. computer<repair specialist. write. maintenance mechanic. to get people to !oin their organi. Employees who feel they were tric#ed or misled during the hiring process are unli#ely to be satisfied wor#ers. any employer who presents !obs realistically to applicantsGthat is. :irst. • -ompute the optimal decision. the absence of negati)e information builds unrealistic expectations.ations and the !obs they see# to fill.e the positi)e.e and e)aluate each alternati)e. 9anagers will also find it harder to get 8ualified people to fill entry<le)el. 1here may be no shortage of physical bodies. managers who treat the recruiting and hiring of candidates as if the applicants must be sold on the !ob and exposed to only positi)e aspects set themsel)es up to ha)e a wor#force that is dissatisfied and prone to high turno)er. 1his means presenting the !ob and the organi. new hires are prone to become disillusioned and less committed to the organi. e)en if it means failing to mention the negati)e aspects in the !ob. 1hrough the foreseeable future. and similar personal preferences. 7econd. minimum<wage !obs. :irst.ation. a set of expectations about the organi. (t has been well<documented that indi)iduals escalate commitment to a failing course of action when they )iew themsel)es as responsible for the failure. • 6eight the pre)iously identified criteria in order to gi)e them the correct priority in the decision.Robbins: Organizational Behavior Chapter Five • (dentify the decision criteria important to sol)ing the problem. Any factors not identified in this step are considered irrele)ant to the decision ma#er. Another reason management is forced to emphasi. physical therapist. during the selection process. 1o increase !ob satisfaction among employees and reduce turno)er. 1here is a growing gap between the s#ills wor#ers ha)e and the s#ills employers re8uire.ation in the most fa)orable light possible. 1hird.ation and about the specific !ob he or she hopes to be offered. openly pro)ides the negati)e aspects of a !ob along with the positi)eGris#s losing many of the most desirable candidates. nurse. 7tudents0 analysis will )ary with their experience. managers will find it increasingly difficult to get 8ualified people who can fill !obs such as legal secretary. 6hen the information an applicant recei)es is excessi)ely inflated. • >enerate possible alternati)es that could succeed in resol)ing the problem. there is a dwindling supply of 8ualified applicants for many !ob )acancies5 and second. E)ery applicant ac8uires. -orporate layoffs ha)e recei)ed a lot of attention in recent years. software programmer. 1hey ha)e to emphasi. applicants should be gi)en a realistic !ob pre)iewGpro)ided both unfa)orable and fa)orable informationGbefore an offer is made. COUNTERPOINT Hegardless of labor<mar#et conditions. mismatched applicants who will probably become dissatisfied with the !ob and soon 8uit are less li#ely to select themsel)es out of the search process. %ther employers also face a limited applicant pool. (n this competiti)e en)ironment. so managers need to sell !obs to the limited pool of applicants. en)ironmental engineer. and ha)e the proper wor# habits to effecti)ely perform these !obs is not so easy.e the positi)e when discussing a !ob with a prospecti)e candidate? 1hey ha)e no choice. it is the !ob applicant0s responsibility to follow the dictum caveat e-ptorGlet the buyer beware. • -ritically analy. 6hile there is a real ris# of setting unrealistic expectations about the organi. :or example. but finding indi)iduals who can read. 1his brings in the decision ma#er0s interests.up decision to increase your co--it-ent( and e3plain why you behaved as you did An$/er 0 Escalation of commitment is an increased commitment to a pre)ious decision in spite of negati)e information. social wor#er. this approach is necessary to meet the competition. accountant. 6hy should managers emphasi.
POINT1COUNTERPOINT 0 @hen 1iring 8-ployees( 8-phasize the 6ositive POINT /iring new employees re8uires managers to become salespeople. 6hat has often been o)erloo#ed in this process is the growing shortage of 8ualified applicants for literally millions of !obs.ations.
or that erratic fluctuations in wor#loads create considerable stress on employees during rush periods.
. the candidate might be told that there are limited opportunities to tal# with co< wor#ers during wor# hours.Robbins: Organizational Behavior Chapter Five addition to positi)e comments.
$. 3. 1he result is fewer unexpected resignations by new employees. • >roup A: =. 1he following ten corporations were ran#ed by Fortune maga. 6hich of the following causes more deaths in the . ". 9aytag. &. etc. 7tudents often choose this group because of the a)ailable heuristicGthe companies are better #nown. "1$I1'. 1he best student in my introductory 9=A class this past semester writes poetry and is rather shy and small in stature. 2... 9. pp. =y what percentage C1. /ow are they the same or different? 6hy are they different? 6hat are the implications?
2. $.Robbins: Organizational Behavior
Hesearch indicates that applicants who ha)e been gi)en a realistic !ob pre)iew hold lower and more realistic expectations about the !ob they will be doing and are better prepared for coping with the !ob and its frustrating elements. =efore doing this exercise.1 billion. . as# students how they 3#now4 these things. but it may be a marriage that both parties will 8uic#ly regret. first<hand experience. A.R. 3Hesearch on Employee Hecruitment: 7o 9any 7tudies. As# students if any ha)e first<hand #nowledge of one of these professions.. 2. • %ne cautionG o not put anything down you are not willing to ha)e the ean or a parent read. but this represents a)ailable heuristic because of the emphasis in the media on car accidents.nited 1echnologies.. 9attel.
C#"$$ E*erci$e) 1. .ations listed CA or =D had the larger total sales )olume? An$/er 0 >roup = had the larger total.4 o)erloo#ing that psychology ma!ors outnumber -hinese studies ma!ors $. 1wice as many as from motor )ehicle accidents. =reaugh and 9.4 5cade-y o& Manage-ent ?ournal. 3.:1. >roup A had combined sales of Q22. largest .nited 7tates each year? An$/er 0 7tomach cancer.5 and @. 1. 7how it to colleagues for their input and to help tone it down or up Odepending P. (ngram 9icro.7M a. • 9a#e copies to hand out in class.ine to be among the $. >oodrich. ecember 1++*. how he2she uses his2her time. with combined sales of Q12'.ation.ational %utcomes: A 9eta<Analysis. • Aou may ha)e to encourage participation5 students may feel somewhat intimidated describing your !ob to you. 2&. )ol. 25
. >roup = has $ times the sales but is less well #nown and is comprised of industrial firms. C1hey can be found in the text. /and out your H@B5 ha)e students compare it with theirs.R. &'3I+. 3.nited 7tates< based firms according to sales )olume for 1++*. List on the board what students thin# a professor does. Bresenting only the positi)e aspects of a !ob to a recruit may initially entice him or her to !oin the organi. =rainstorm with the students about a realistic !ob pre)iew for being a college professor teaching business. etc.. no.. Bhillips.& billion. /a)e students answer each of the following problems on their own.4 ?ournal o& Manage-ent. Kua#er %ats • >roup =: -onagra.
>ource: (nformation in this argument comes from @.R. =efore handing our your H@B. 6hich group of fi)e organi. 9ost students would offer 3-hinese studies. or ?D do you thin# the higher group0s sales exceeded the lower group? An$/er 0 $. Hemember that retaining 8ualified people is as critical as hiring them in the first place. '.
TEAM E'ERCISE 0 Biases in *ecision Ma0ing 7tep 1.R. sit down and write out a realistic !ob pre)iew for your position. 6hat was the student0s undergraduate ma!or: -hinese studies or psychology? An$/er I (llustrates representati)e heuristic.D 1. 3Effects of Healistic @ob Bre)iews on 9ultiple %rgani. /ershey :oods. 7tar#e. pp. Enron. 7o 9any Hemaining Kuestions. obser)ation.:.
P Eighty<se)en percent chose 3b4G'$ percent chance. 6hich would you choose? a. and a 2.Robbins: Organizational Behavior ".. percent loss is much greater. An *. A 2$R chance of winning Q1. ?udg-ent in Managerial *ecision Ma0ing( 3rd ed. 7tep 3: Aour instructor will gi)e you the correct answers to each problem.P 1his is the same 8uestion as number fi)e.R chance of losing nothing. ". and a 2$R chance of losing nothing.. &. Answer found in instructions abo)e. b. $. 3. 6hich would you choose? An$/er 0 O1he percentage of responses come from the author0s experience. and 13 percent chose 3a4Ga sure loss. 6hich would you choose? a. =a.. 2.P (n a test. 1his demonstrates our tendency to be ris#<see#ing concerning losses and negati)ely framed 8uestions... 6hich would you choose? An$/er 0 O1he percentage of responses come from the author0s experience.erman. 6hich would you choose? a. 1he percentages are not important but the general pattern in your class is. A sure loss of Q3. (n all li#elihood. if they calculate the percentages. A '$R chance of losing Q1. 6hich would you choose? An$/er I O1he percentage of responses come from the author0s experience.. A sure loss of Q'$. $.R chance of losing Q".. Explain why you chose the answers that you did. A sure gain of Q2"..
O1hese problems are based on examples pro)ided in 9.. Eow discuss the accuracy of your decisions..P
. 1he percentages aren0t important but the general pattern in your class is. Answer found in instructions abo)e. CEew Aor#: 6iley. 1++"D. (n all li#elihood. *" percent of students chose 3b4Ga sure gain. the biases e)ident in the decisions you reached. and a '$R chance of winning nothing. your class will parallel the author0s experience.. 7ixteen percent chose 3a4Ga 2$ percent chance. (n all li#elihood. -ompare your answers. and how you might impro)e your decision ma#ing to ma#e it more accurate. b. your class will parallel the author0s experience.
7tep 2: =rea# into groups of three<to<fi)e. b. your class will parallel the author0s experience. &. but the amounts will probably shift students to choosing 3a4Gthe sure loss because 3b4Gthe *. 1his exemplifies our tendency to be ris#<a)erse concerning gains and positi)ely framed 8uestions.. Te"c2in& note$ 1. 1he percentages aren0t important but the general pattern in your class is./. Answer found in instructions abo)e.
6ould you: o nothing? >o directly to an executi)e to report the incident before tal#ing about it with the offender? -onfront the indi)idual before ta#ing action? 9a#e contact with the indi)idual with the goal of persuading that person to return the money? An$/er 0 7ee S1 abo)e. one company is doing !ust fineG. 1$I2. for some reason. 27
. 3. at the youthful age of 2+. 31orn between /alo and /orns.4 !ndustry @ee0( 9arch 1$. Aou do not need receipts for these expensesG the company will ta#e your word. (n 1+'". /ow much would you re8uest for your meal reimbursements? An$/er 0 7ee S1 abo)e.nipart di)ision of =ritish Leyland C=LD.Robbins: Organizational Behavior ETHICAL DILEMMA EXERCISE – Five 8thical *ecisions: @hat @ould Eou *oF
Assume you are a middle manager in a company with about a thousand employees. Hesearch shows. Aour company policy on reimbursement for meals while tra)eling on company business is that you will be repaid for your out<of<poc#et costs. 6hat would you do? An$/er 0 7ee S1 abo)e.4 but you ha)e the discretion to authori. not to exceed Q&.e such expenditure. Aou ha)e disco)ered that one of your closest friends at wor# has stolen a large sum of money from the company. who is part of a small planning team in which you are a member. 6hat would you do? An$/er I 7tudents0 responses will )ary significantly. • (mpact on peopleG6ho are the #ey sta#eholders? 6hat is the potential for harm to them? • %rgani. /e immediately began to ruffle feathers of conser)ati)e =L executi)es by de)eloping inno)ati)e mar#eting campaigns and focusing company attention on the parts business Cin contrast to its cars and truc#sD.P
CASE INCIDENT 0 @ohn Eeill at . from your company with absolute certainty that you would not be detected or caught. suggest the students analy.. 9ost of your colleagues put in reimbursement re8uests in the range of Q"$ to Q$. Aou are negotiating a contract with a potentially )ery large customer whose representati)e has hinted that you could almost certainly be assured of getting his business if you ga)e him and his wife an all<expense<paid cruise to the -aribbean. Altany.ational systemsG(n what way does the organi.ation0s way of doing business. • -hoiceG6hat alternati)es do they ha)e? /ow much ris# do they face in doing the ethical thing? 2. 6ould you do it? An$/er 0 7ee S1 abo)e. Aou ha)e noticed that his wor# has not been up to standard lately and is hurting your team0s performance. @ohn Eeill. Another executi)e. 6hen tra)eling... a day. 1wo suggestions for discussing these 8uestions: :irst.. 1his 2.nited Fingdom0s automobile industry struggle. ". /ow would you respond to each of the following situations? 1.H. fre8uently has the smell of alcohol on his breath.e the 8uestion based on the following criteria. Aou ha)e the opportunity to steal Q1.nipart 6hile most part suppliers for the . O7e)eral of these scenarios are based on .3 billion<euro company has done well largely because of the decisions made by its -E%.nipart. do not show shoc# at the lac# of ethicality of the students. business students ha)e far lower ethicality than practicing managers. a day. 1++3.. regardless of what their actual expenses are.. 7econd. $. policies and procedures contribute to the ethical conflict. Aou #now the representati)e0s employer wouldn0t appro)e of such a 3payoff. you tend to eat at fast<food places and rarely spend in excess of Q1$ a day. pp. @ohn Eeill was made managing director of the . 1he point of these 8uestions is to help the students de)elop their ethical framewor#s. 1his executi)e happens to be the son<in<law of the company0s owner and is held in )ery high regard by the owner.
and began promoting the di)ision0s parts on tele)ision. created a retail shop program.
. altered the pac#aging.Robbins: Organizational Behavior Chapter Five /e increased the di)ision0s mar#eting budget six<fold.
'&I'*. -!e$tion$ " '?ohn 4eill is not s-artG he is +ust luc0y ) *o you agree or disagreeF 83plain 7tudents0 answers will )ary.nipart has become a highly recogni.nipart0s profits. 7ince he ignored the critics and mo)ed ahead anywayGit could ha)e 8uite possibly been intuition. 7ibillin. (t was not enthusiastic about . Almost from the beginning. 3because today0s mar#et share was smaller than yesterday0s.Robbins: Organizational Behavior
/is 3parts first4 pitch did not go down well with his bosses. (n response. %ctober 2.
. . .nipart the biggest automoti)e parts distributor in the ..ation as a whole. one of .ation. espite Eeill0s success since the buy<out.nipart0s fortunes tied singularly to Ho)er. Contrast the -a+or strategic decisions at /nipart and British Leyland . /e was the head of the parts operation and which was where his performance was being e)aluated. (nstead. (n 1+*'. 1ypically manager0s will focus their decisions based on what will bring the most benefits to him or her. (n 1+*'. Broducing and selling automoti)e parts is still the company0s main acti)ity but it also runs a successful warehouse. 7o the parts business would go down unless we did something dramatically different. losing mar#et share e)ery year. /ad he been charged with the entire =L operation. sales to Ho)er represented +. it appears Eeill0s intuition also may ha)e played a part.nipart saw itself as a )iable business apart from =L. pp. a logistics business.$ million euro management buyout of .. he had expertise in auto manufacturing business and #new that tying all the . /is willingness to ta#e a ris# and follow his 3hunch4 paid off for the organi. Eeill has expanded .nipart faces tough times ahead.nipart0s direction and as a result missed an opportunity.. howe)er.nipart became independent. he may ha)e had a different focus which could ha)e benefited =L more substantially. .nipart from =L.nited Fingdom. Eeill is also di)ersifying beyond . 1oday. *o you thin0 ?ohn 4eill would have been e=ually success&ul i&( bac0 in "#$<( he had been -ade head o& BLF 83plain Kuite possibly. =L continued to follow its plan despite shrin#ing mar#et share. percent of its business. who saw it as an attac# on the )iability of =L itself. auto industry suffers from massi)e o)ercapacity.4 8uroBusiness. (t focused its mar#eting and sales on parts and became strong enough to split from =L and begin offering its ser)ices to other =ritish auto manufactures.4 Eeill recalls. but it was too late for =L0s top management to do much about it. Eo longer are . 36e #new the future would be worse. /e then immediately began ta#ing actions that would allow . Luc# may )ery well ha)e been a part of the outcome.able consumer brand in the .nipart0s automoti)e parts roots. Eeill had created a )iable business. espite his youth.nipart would commit to creating a strong consumer brand built around replacement parts. 1he .nipart0s most profitable current businesses is running @aguar0s entire parts operation on a fee basis.. and has created an (nternet trading platform. (ntensi)e downward pricing pressure on suppliers is li#ely to eat away at . 1his ac8uisition ma#es .nipart independent from =L. Hubython and A. (t has also di)ersified into a range of other businesses. *id intuition play a role in 4eill. while the rest of the company Cwhich later became part of the Ho)er >roupD labored along. Eeill en)isioned ma#ing .nited Fingdom. /e negotiated a *+.nipart to stand on its own two feet.F.
>ource: =ased on 1.nipart0s logistic business by paying 2+2 million euros for auto parts distributor Bartco.nipart0s fortunes to one manufacture could put you at ris#. not necessarily the organi.s decisionsF *iscuss (t appears so since the scenario does not discuss any other decision process that he may ha)e gone through. (n fact. 31he Heality 9an. he did !ust that. (t is now down to 3 percent. /is ideas were not initially met with enthusiasm. especially on the e<commerce front. when .4 1hat 3something4 was to mo)e away from pro)iding original parts for Ho)er.
com www. -hoose three or four techni8ues and write a short !ournal entry or paragraph comparing them.org2cd2pdf2p. 6rite a paragraph or two on what you belie)e are the similarities in reasons are between these two groups.au2Tca)eman2-reati)e21echni8ues2 and read how to impro)e your creati)ity.email. stereotyping and culture.google.
/ow can you impro)e your creati)ity? 1here are many strategies and most of the funN >o to: http:22members.mapnp.2.
*. decision ma#ing and culture.1.mit. 6rite a two page paper on the topic of your choice.com2spirit2decisions.*2Au1.Robbins: Organizational Behavior
Exploring OB Topics on the World Wide Web
7earch Engines are our na)igational tool to explore the 666. -onduct a web search on one of the topics from this chapter combined with the word culture. ethics and culture.htmS7napshot and http:22www.org2press2releases2+*. A comprehensi)e guide to many topics confronting managers can be found at http:22www.
2. /uitt on this topic at http:22chiron.lycos. %nce you ha)e read the paper write a one page reaction paper on what you learned and how you thin# your personality influences the way you ma#e decisions.12*.
3. =e sure to address how culture relates to the topic you chose.com www.excite. Are you creati)e? 1a#e a creati)ity test to see how you compare to others. (n particular loo# at the pages on the myths and benefits of managing ethics in the wor#place.>. =ring both paragraphs to class for discussion. >o to http:22www.edu29(1E-72Entry2morris .o. 6rite a paragraph or two about what you learned from this page.com www.
. 6rite about this also. 1a#e one techni8ue and apply it to a 8uestion or decision you are in the process of ma#ing. :or example.7 Army0s surgeon general http:22www. Are college students different than employees when it comes to ethics? >o to www.com
1.edu2whuitt2files2prbsmbti.htm .com www. oes this information explain how we as humans can explain anything? %b)iously.com.loo#smart.be2eng2index.hotbot. Earlier we learned about personality indicators.htm . 6rite three ma!or ideas you learned from reading this page and bring them to class for further discussion.
5.com www.hooah"health.cocd. >o to a paper written by 6.pdf to ma#e a comparison of why employees and students say they sometimes beha)e in unethical ways.html .org2library2ethics2ethxgde.goto. 1he -enter for the e)elopment of -reati)e 1hin#ing has a short test.shrm..
4. there are accurate attributions and errors in attributions that we ma#e e)eryday. :or a 3spirited4 o)er)iew of decision ma#ing and intuition go to the following web site sponsored by the .
7.)aldosta. =ring your short story to class so that we can share them with the class. Also loo# at the roles and responsibilities of managing ethics in the wor#place. 7ome commonly used search engines are: www.icce2. Learn more about Attribution 1heory at http:22cognet. Head more about ethics in the wor#place. 6hat role does our personality ha)e in our ability to problem sol)e and ma#e decisions.