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ORGANIZATIONAL BEHAVIOR

ORGANIZATIONAL BEHAVIOR

S T E P H E N P. R O B B I N S

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

E L E V E N T H E D I T I O N

W W W . P R E N H A L L . C O M / R O B B I N S

W W W . P R E N H A L L . C O M / R O B B I N S

© 2005 Prentice Hall Inc. All rights reserved.

© 2005 Prentice Hall Inc.

All rights reserved. PowerPoint Presentation by Charlie Cook

PowerPoint Presentation by Charlie Cook

Perception and Individual Decision Making Pertemuan 3

Muhammad Arief

(2)

What Is Perception, and Why Is It Important?

What Is Perception, and Why Is It Important?

People’s behavior is

People’s behavior is

based on their

based on their

perception of what

perception of what

reality is, not on

reality is, not on

reality itself.

reality itself.

The world as it is

The world as it is

perceived is the world

perceived is the world

that is behaviorally

that is behaviorally

important.

important.

People’s behavior is

People’s behavior is

based on their

based on their

perception of what

perception of what

reality is, not on

reality is, not on

reality itself.

reality itself.

The world as it is

The world as it is

perceived is the world

perceived is the world

that is behaviorally

that is behaviorally

important.

important.

Perception

A process by which

(3)

Factors That

Influence

Perception

Factors That

Influence

Perception

E X H I B I T 5–1

(4)

Person Perception: Making Judgments About

Others

Person Perception: Making Judgments About

Others

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.

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.

Attribution Theory

(5)

Attribution Theory

Attribution Theory

E X H I B I T 5–2

(6)

Errors and Biases in Attributions

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.

In general, we

tend to blame the

(7)

Errors and Biases in Attributions (cont’d)

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.

Thought: When student gets an “A” on an exam, they often say they

studied hard. But when they don’t do well, how does the self serving bias come into play?

(8)

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Selective Perception

(9)

Frequently Used Shortcuts in Judging Others

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

(10)

Frequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging Others

Projection

Attributing one’s own

characteristics to other

people.

Stereotyping

Judging someone on the

basis of one’s perception of

the group to which that

(11)

Specific Applications in Organizations

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

(12)

Specific Applications in Organizations (cont’d)

Specific Applications in Organizations (cont’d)

Performance Evaluations

– Appraisals are often the subjective (judgmental)

(13)

The Link Between Perceptions and Individual

Decision Making

The Link Between Perceptions and Individual

Decision Making

Perception

of the

decision

maker

Perception

of the

decision

maker

Outcomes

Problem

A

perceived

discrepancy

between the current state of

affairs and a desired state.

Decisions

(14)

Assumptions of the Rational Decision-Making

Model

Assumptions of the Rational Decision-Making

Model

Model Assumptions

Problem clarity

Known options

Clear preferences

Constant

preferences

No time or cost

constraints

Maximum payoff

Model Assumptions

Problem clarity

Known options

Clear preferences

Constant

preferences

No time or cost

constraints

Maximum payoff

Rational

Decision-Making Model

Describes how

(15)

Steps in the Rational Decision-Making Model

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

(16)

The Three Components of Creativity

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

E X H I B I T 5–4

(17)

How Are Decisions Actually Made in

Organizations?

How Are Decisions Actually Made in

Organizations?

Bounded Rationality

(18)

How Are Decisions Actually Made in

Organizations? (cont’d)

How Are Decisions Actually Made in

Organizations? (cont’d)

How/Why problems are Identified

– Visibility over importance of problem

• Attention-catching, high profile problems

• Desire to “solve problems”

– Self-interest (if problem concerns decision maker)

Alternative Development

– Satisficing: seeking the first alternative that solves problem.

– Engaging in incremental rather than unique problem solving through successive limited comparison of

(19)

Common Biases and Errors

Common Biases and Errors

Overconfidence Bias

– Believing too much in our own ability to make good decisions.

Anchoring Bias

– Using early, first received information as the basis for making subsequent judgments.

Confirmation Bias

(20)

Common Biases and Errors

Common Biases and Errors

Availability Bias

– Using information that is most readily at hand. • Recent

• Vivid

Representative Bias

– “Mixing apples with oranges”

– Assessing the likelihood of an occurrence by trying to match it with a preexisting category using only the facts that

support our decision.

Winner’s Curse

– Highest bidder pays too much

(21)

Common Biases and Errors

Common Biases and Errors

Escalation of Commitment

– In spite of new negative information, commitment actually increases!

Randomness Error

– Creating meaning out of random events

Hindsight Bias

– Looking back, once the outcome has occurred, and

(22)

Intuition

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

(23)

Individual Differences in Decision Making

Individual Differences in Decision Making

Source: A.J. Rowe and J.D. Boulgarides, Managerial Decision Making, (Upper Saddle River, NJ: Prentice Hall, 1992), p. 29.

Personality

 Aspects of conscientiousness and escalation of commitment.

Self Esteem High self serving bias

Gender

(24)

Organizational Constraints on Decision Makers

Organizational Constraints on Decision Makers

Performance Evaluation

– Evaluation criteria influence the choice of actions.

Reward Systems

– Decision makers make action choices that are favored by the organization.

Formal Regulations

– Organizational rules and policies limit the alternative choices of decision makers.

System-imposed Time Constraints

– Organizations require decisions by specific deadlines.

Historical Precedents

(25)

Cultural Differences in Decision Making

Cultural Differences in Decision Making

Problems selected

Time orientation

Importance of logic and rationality

(26)

Ethics in Decision Making

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

(27)

Ethics in Decision Making

Ethics in Decision Making

Ethics and National Culture

– There are no global ethical standards.

– The ethical principles of global organizations that

(28)

Ways to Improve Decision Making

Ways to Improve Decision Making

1. Analyze the situation and adjust your decision

making style to fit the situation.

2. Be aware of biases and try to limit their impact.

3. Combine rational analysis with intuition to

increase decision-making effectiveness.

4. Don’t assume that your specific decision style is

appropriate to every situation.

(29)

Toward Reducing Bias and Errors

Toward Reducing Bias and Errors

Focus on goals.

– Clear goals make decision making easier and help to eliminate options inconsistent with your interests.

Look for information that disconfirms beliefs.

– Overtly considering ways we could be wrong

challenges our tendencies to think we’re smarter than we actually are.

Don’t try to create meaning out of random events.

– Don’t attempt to create meaning out of coincidence.

Increase your options.

– The number and diversity of alternatives generated increases the chance of finding an outstanding one.

E X H I B I T 5–5

E X H I B I T 5–5

(30)

It’s your little sister’s senior Prom night, and she notices

that everyone is wearing the same dress she has on!

Which perceptual shortcut may be occurring?

Escalation of commitment

Escalation of commitment

Representative bias

Representative bias

Availability Bias

Availability Bias

Hindsight Bias

Hindsight Bias

(31)

It’s your little sister’s senior Prom night, and she notices that

everyone is wearing the same dress she has on! Which

perceptual shortcut may be occurring?

Chapter Check-Up: Perception

Escalation of commitment Escalation of commitment Representative biasRepresentative bias

Availability Bias Availability Bias

Hindsight BiasHindsight Bias

Discuss with your neighbor what the answer would be if your sister came home and said “I just knew that everyone would buy

(32)

If all of these perceptual shortcuts happen unconsciously, how can we keep the stereotypes we have from interfering with the way we work in group projects? Identify two specific things you could do to help prevent stereotypes from inhibiting effective group relationships. Discuss with a neighbor.

(33)

Michael has just discovered he is double registered for two classes

at the same time and must make a decision about which one to

take this semester. He considers the professor teaching this

semester, the time of the class, and the classes his friends are

taking. He then considers his options for when he can take each

class again, as well as the costs and benefits for taking each this

semester versus later next year. He then makes his decision.

Michael has just engaged in what?

(34)

In making his decision, Michael forgot

to consider the implications of the

color of paint in the room where each

class was being offered. Given that

room color can influence mood, which

can influence performance, why didn’t

Michael consider it?

(35)

Michael engaged in the

rational decision making model,

and didn’t consider the paint color

of the rooms because he operates

under the confines of

bounded rationality.

(36)

Chapter Checkup: What biases

might have affected Martha

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