ORGANIZATIONAL BEHAVIOR

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

After studying chapter five and listening to my lecture,you should be able to:

1. Explain how two people can see the same thing and interpret it differently.

2. List three determinants of attribution.

3. Describe how shortcuts can assist in or distort our judgment of others.

4. Explain how perception affects the decision-making process.

5. Outline the six steps in the rational decision-making model.

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6. Describe the action of a boundedly rational decision maker.

7. Identify the conditions in which individuals are most likely to use intuition in decision making.

8. Describe four styles of decision making.

9. Define heuristics and explain how they bias decisions.

10. Contrast the three ethical decision criteria.

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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.

Factors ThatInfluence

Perception

Factors ThatInfluence

Perception

E X H I B I T 5-1

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 TheoryAttribution TheoryE X H I B I T 5-2

Errors and Biases in AttributionsErrors and Biases in Attributions

Errors and Biases in Attributions (cont’d)Errors and Biases in Attributions (cont’d)

Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others

Frequently Used Shortcuts in Judging OthersFrequently Used Shortcuts in Judging Others

Specific Applications in OrganizationsSpecific Applications in Organizations

Employment Interview– Perceptual biases 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.

Performance Evaluations– Appraisals are subjective perceptions of

performance. Employee Effort

– Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

The Link Between Perceptions and Individual Decision Making

The Link Between Perceptions and Individual Decision Making

Perceptions of the

decision maker

Perceptions of the

decision maker

Outcomes

Assumptions of the Rational Decision-Making Model

Assumptions of the Rational Decision-Making Model

1. Problem clarity

2. Known options

3. Clear preferences

4. Constant preferences

5. No time or cost constraints

6. Maximum payoff

1. Problem clarity

2. Known options

3. Clear preferences

4. Constant preferences

5. No time or cost constraints

6. Maximum payoff

Steps in the Rational Decision-Making ModelSteps in the Rational Decision-Making Model

E X H I B I T 5-3

The Three Components of CreativityThe Three Components of Creativity

E X H I B I T 5-4

How Are Decisions Actually Made in Organizations

How Are Decisions Actually Made in Organizations

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 alternatives to the current alternative in effect.

Making ChoicesMaking Choices

Making ChoicesMaking Choices

Decision-Style ModelDecision-Style Model

E X H I B I T 5-5

Organizational Constraints on Decision MakersOrganizational 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

– Past decisions influence current decisions.

Cultural Differences in Decision MakingCultural Differences in Decision Making

Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems Preference for collect decision making

Ethics in Decision MakingEthics in Decision Making

Ethical Decision Criteria– Utilitarianism

• Seeking the greatest good for the greatest number.

– Rights• Respecting and protecting basic rights of

individuals.

– Justice• Imposing and enforcing rules fairly and impartially.

Ethics in Decision MakingEthics in Decision Making

Ethics and National Culture– There are no global ethical standards.– The ethical principles of global organizations

that reflect and respect local cultural norms are necessary for high standards and consistent practices.