•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 individuals organize and interpret their sensory impressions in order to give meaning to their environment.

3

Perception What is Perception?

How we view and interpret the events and situations in the world about us.

Why is it Important?Because people’s behavior is based on their

perception of what reality is, not on reality itself.

4

What is the perceptual process?Stages of the perceptual process.1- Picking up some external stimuli 2- Screening, when we only acknowledge the

stimuli we choose to acknowledge

3- Some interpretation and categorization of these stimuli, possibly based on previous

experience or on our upbringing.

Example

1. You hear that your team has lost a game.2. You screen this information in a negative

manner, assuming something is wrong with the team rather than it has just had a bad day or was unlucky.

3. You interpret this information on the basis of previous experience and decide it is a further example of bad team management.

5–6

7

Selective Perception

Selectively interpret the target basing on own interests, background, experience, and attitudes.

Halo effect

The perceiver’s pick upon a particular attribute of the perceived to determine their overall perception.

8

Contrast EffectsThe perceiver’s perceptions of others distort the perceiver’s perception of a target.

ProjectionAttribute own characteristics to others. (take homogeneity for granted)

StereotypingJudge someone on the basis of the perception of the group to which they belong instead of their own characteristics.

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

When individuals observe behavior, they attempt to determine whether it is internally or externally caused.

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

Self-Serving Bias

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

Selective Perception

People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

Halo Effect

Drawing a general impression about an individual on the basis of a single characteristic

Contrast Effects

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

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 person belongs.

Specific Applications in Organizations

Employment InterviewPerceptual 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 ProfilingA form of stereotyping in which a group of

individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation.

Specific Applications in Organizations (cont’d)

Performance EvaluationsAppraisals are often the subjective

(judgmental) perceptions of appraisers of another employee’s job performance.

Employee EffortAssessment of individual effort is a subjective

judgment subject to perceptual distortion and bias.

Perception of the

decision maker

Perception of the

decision maker

Outcomes

ProblemA perceived discrepancy between the current state of affairs and a desired state.

DecisionsChoices made from among alternatives developed from data perceived as relevant.

19

Decision MakingDefinition: The process by which

members of an organization choose a specific course of action to respond to both problems and opportunities.

The Decision-Making Process Rational Model of Decision Making Bounded Rationality Implicit Favorite Model Intuitive Model

20

Rational Model of Decision MakingAssumptions: the decision maker has all the

necessary information and will choose the best possible solution or response.

Steps: 1.Ascertain the need for decision-

disparity 2. Identify the decision criteria 3.Allocate weight to the criteria

4.Develop,evaluate the alternatives 5.Select the best

21

Assumptions of the Rational Model

Problem clarity. Known options. Clear preferences. Constant preferences. No time or cost constraints. People choose maximum payoff.

Bounded Rationality

Bounded Rationality: People’s ability to reason is constrained by the limitations of the human mind itself. If a problem is too complicated people simplify it and use satisficing

Satisficing: Searching for and choosing the first acceptable response or solution, not necessarily the best possible one.

Intuitive Modelan unconscious process created out of

distilled experience.intuition is often based on accumulated

experiences which allow one to recognize patterns.

Main problem: since the criteria are not open to examination, intuition is often strongly influenced by perceptual biases.

Intuitive Decision Making most common under

conditions of High uncertainty levels Little precedent Hard to predictable variables Limited facts Unclear sense of direction Analytical data is of little use Several plausible alternatives Time constraints

High uncertainty levels Little precedent Hard to predictable variables Limited facts Unclear sense of direction Analytical data is of little use Several plausible alternatives Time constraints