Perception & Individual Decision Making

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What Is Perception?

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

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Factors That Influence Perception

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A number of factors operate to shape and sometimes distort perception. These factors can reside in the perceiver; in the object, or target, being perceived; or in the context of the situation in which the perception is made

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Attribution Theory

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An attempt to determine whether an individual’s behavior is internally or externally caused

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Internally caused behaviors

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hose we believe to be under the personal control of the individual.

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Externally caused behavior

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is what we imagine the situation forced the individual to do

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three determining factors of external of internal behavior

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Distinctiveness
Consensus
Consistency

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fundamental attribution error

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The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others.

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self-serving bias

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The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors.

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Selective Perception

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The tendency to selectively interpret what one sees on the basis of one’s interests, background, experience, and attitudes.

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halo effect

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The tendency to draw a general impression about an individual on the basis of a single characteristic.

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Stereotype

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Judging someone on the basis of one’s perception of the group to which that person belongs.

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self-fulfilling prophecy

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A situation in which a person inaccurately perceives a second person, and the resulting expectations cause the second person to behave in ways consistent with the original perception

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decisions

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choices from among two or more alternatives

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problem

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A discrepancy between the current state of affairs and some desired state.

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rational decision-making model

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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

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rational

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Characterized by making consistent, value-maximizing choices within specified constraints.

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bounded rationality

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A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

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intuitive decision making

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An unconscious process created out of distilled experience.

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distort rationality

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experience,
impulses,
gut feelings
convenient rules of thumb

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anchoring bias

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A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information.

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confirmation bias

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The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments.

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utilitarianism

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A system in which decisions are made to provide the greatest good for the greatest number

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whistle-blowers

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Individuals who report unethical practices by their employer to outsiders.

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creativity

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The ability to produce novel and useful ideas.

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three-component model of creativity

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The proposition that individual creativity requires expertise, creative thinking skills, and intrinsic task motivation.

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Perception

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Individuals base their behavior not on the way their external environment actually is but rather on what they see or believe it to be.

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Medium

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is NOT a factor that influences perception

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Escalation of commitment

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is an increased commitment to a previous decision in spite of negative information

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Personality

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is NOT an organizational constraint on decision-making

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Distinctiveness

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refers to whether an individual displays different behaviors in different situations

What we want to know is whether this behavior is unusual. If it is, we are likely to give it an external attribution

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consensus

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If everyone who faces a similar situation responds in the same way

From an attribution perspective, if consensus is high, you would probably give an external attribution

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consistency

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Does the person respond the same way over time

The more consistent the behavior, the more we are inclined to attribute it to internal causes.

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Contrast Effects

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Evaluation of a person’s characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics

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availability bias

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is our tendency to base judgments on information readily available