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1. What are the three main components of attitudes? 2. What are the major job attitudes? In what ways these attitudes are alike? What is unique about each? 3. How do we measure job satisfaction? 4. What outcomes job satisfaction influence? What management should do to handle it? 5. What could be the advantages and disadvantages for using regular attitude surveys to monitor employee job satisfaction.

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Perception and Individual Decision Making

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After studying this chapter, you should be able to:

1. Define perception and explain the factors that influence it. 2. Identify the shortcuts individuals use in making judgments about others. 3. Explain the link between perception and decision making. 4. List and explain the common decision biases or errors. 5. Contrast the three ethical decision criteria. 6. Define creativity and discuss the three-component model of creativity.
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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.
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Factors Influencing Perception

Perceiver Situation Target

Perception
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Factors Influencing Factors in Perceiver Perception Attitudes

Motives Interest Experience Expectations

Factors in Situation Time Work Setting Social Setting

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Factors in Target Novelty Motion Sounds Size Background Proximity 3-6 Similarity

Person Perception: Attribution Theory

Attribution Theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior. Suggests that perceivers try to attribute the observed behavior to a type of cause:
 Internal behavior is believed to be under the personal control of the individual  External the person is forced into the behavior by outside events/causes

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Determinants of Attribution
Distinctiveness whether an individual displays different behaviors in different situations (the uniqueness of the act) 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
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Determination of Attribution

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Attribution Errors
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate that of internal factors.

Self-Serving Bias
Occurs when individuals overestimate their own (internal) influence on successes and overestimate the external influences on their failures.
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Shortcuts Used in Judging Others

Selective Perception a perceptual filtering process based on interests, background, and attitude. May allow observers to draw unwarranted conclusions from an ambiguous situation. Halo Effect drawing a general impression based on a single characteristic. 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.
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The Link Between Perception and Decision Making

Decision making occurs as a reaction to a perceived problem Perception influences:
 Awareness that a problem exists  The interpretation and evaluation of information  Bias of analysis and conclusions

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Rational Decision-Making Model

1. 2. 3. 4. 5. 6. Define the problem. Identify the decision criteria. Allocate weights to the criteria. Develop the alternatives. Evaluate the alternatives. Select the best alternative.

Seldom actually used: more of a goal than a practical method

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Assumptions of the Model

Complete knowledge of the situation All relevant options are known in an unbiased manner The decision-maker seeks the highest utility

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Bounded Rationality
The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize So 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
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Decision Making in Bounded Rationality

Simpler than rational decision making, composed of three steps:
1. Limited search for criteria and alternatives familiar criteria and easily found alternatives 2. Limited review of alternatives focus alternatives, similar to those already in effect 3. Satisficing selecting the first alternative that is good enough
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Intuitive Decision Making

An non-conscious process created out of distilled experience Increases with experience Can be a powerful complement to rational analysis in decision making

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Common Biases and Errors

Overconfidence Bias As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence 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
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Common Biases and Errors

Availability Bias The tendency to base judgments on information that is readily available Escalation of Commitment Staying with a decision even when there is clear evidence that it is wrong Hindsight Bias The tendency to believe falsely that we could have accurately predicted the outcome of an event after that outcome is already known
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Assessment
Why Smart People Make Stupid Decisions?

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Influences on Decision Making

Individual Differences Personality Gender Organizational Constraints on Decision Making Performance evaluations Reward systems Formal regulations Self-imposed time constraints Historical precedents
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Ethical Frameworks for Decision Making

Utilitarian  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
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Creativity in Decision Making

The ability to produce novel and useful ideas Helps people to:
   

Better understand the problem See problems others can t see Identify all viable alternatives Identify alternatives that aren t readily apparent

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Three-Component Model of Creativity

Expertise

CreativeThinking Skills

Intrinsic Task Motivation

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Global Implications
Attributions:


Cross-cultural differences exist collectivist traditions

especially in

Decision Making:


Cultural background of the decision maker can have significant influence on decisions made No global ethical standards exist Need organizational-level guidance
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Ethics:
 

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Implications for Managers

Perception:
 To increase productivity, influence workers perceptions of their jobs

To improve decision making:

1. 2. 3. 4. 5. Analyze the situation Adjust your decision approach Be aware of biases and minimize their impact Combine rational analysis with intuition Try to enhance your creativity
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Keep in Mind
1. People have inherent biases in perception and decision making
Understanding those biases allows for better prediction of behavior Managers must determine when the bias may be counterproductive (Exhibit 5.5)

2. Creativity aids in decision making

Helps to appraise, understand, and identify problems

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