Ch2

Perception is defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their
environment. People's behavior is based on their perception of what reality is, and not on reality itself. What a person perceives can be
substantially different from objective reality.

Our perception of reality can be different from the objective reality. Our perception of reality is affected by our personality, past
experiences, and the context of the situation in which the perception is made. We do not look at targets in isolation

Since the time and situation are the same, the factors that operate to shape perception must be in the perceivers themselves.

Personal characteristics that can affect perception include perceiver attitudes, personality, motives, interests, past experiences, and
expectations.

Characteristics of the target we observe can affect what we perceive. Loud people are more likely to be noticed in a group than quiet
ones. So, too, are extremely attractive or unattractive individuals. Because we don't look at targets in isolation, the relationship of a target to
its background influences our perception of the target.

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

Factors present in a target which may affect perception are novelty, motion, sound, size, background, proximity, and similarity

Factors present in a situation which may affect perception are work setting, social setting, and time.

Factors present in a perceiver which may affect perception are attitudes, motives, interests, experience, and expectations.

People are usually not aware of the factors that influence their view of reality. In fact, people are not even that perceptive about their own
abilities.

People's behavior is based on their perception of what reality is, not on reality itself. The world as it is perceived is the world that is
behaviorally important.

Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally
caused. Determination however, depends largely on three factors, namely, distinctiveness, consensus, and consistency

Internally caused behaviors are those we believe to be under the personal control of the individual.

Externally caused behavior is what we imagine the situation forced the individual to do. For instance, if an employee is late for work, and
you attribute his arriving late to an automobile accident or a flat tire, then you are making an external attribution.

Attribution theory is an attempt to determine whether an individual's behavior is internally or externally caused. We judge people
differently, depending on the meaning we attribute to a given behavior. Attribution theory suggests that when we observe an individual's
behavior, we attempt to determine whether it was internally or externally caused

Distinctiveness is one of three determining factors that contribute to attribution theory perceptions. Distinctiveness refers to whether an
individual displays different behaviors in different situations.

Consistency in a person's actions means that the person responds in the same way to the same situation over a long period of time. For
instance, an employee who has not been late for several months is perceived differently from an employee who is late two or three times a
week. The regularly late employee demonstrates high consistency in tardiness

The less consistent the behavior, the more we are inclined to attribute it to external causes

If everyone who faces a similar situation responds in the same way, we can say the behavior shows consensus. According to the attribution
theory, if a behavior scores high on consensus, we tend to attribute it to external causes

Distinctiveness refers to whether an individual displays different behaviors in different situations. According to the attribution theory, if a
behavior scores low on distinctiveness, we tend to attribute it to internal causes.

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments
about the behavior of others is referred to as the fundamental attribution error.

Individuals and organizations tend to attribute their own successes to internal factors such as ability or effort and place the blame for failure
on external factors such as bad luck or unproductive co-workers. This is known as a self-serving bias.

Self-serving bias places the blame for failure on external factors such as bad luck or unproductive co-workers rather than taking personal
responsibility for the failure

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Any characteristic that makes a person, an object, or an event stand out will increase the probability we will perceive it. Since we can't
observe everything going on about us, we engage in selective perception.

Selective perception allows us to "speed-read" others. Due to selective perception, we are more likely to notice cars like our own.

Because we cannot assimilate all that we observe, we take in bits and pieces. But we don't choose randomly; rather, we select according to our
interests, background, experience, and attitudes. This is known as selective perception.

When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or
appearance, a halo effect is operating. A single trait is allowed to influence the overall impression of the person being judged.

Contrast effect is the 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.

Stereotyping is defined as judging someone on the basis of one's perception of the group to which that person belongs. Relying on this type
of generalization helps a person make decisions quickly.

When people engage in stereotyping, they are judging someone on the basis of their perception of the group to which that person belongs

decision making is thus an important part of organizational behavior. But the way individuals make decisions and the quality of their choices
are largely influenced by their perceptions.

A situation in which a person inaccurately perceives another person and the resulting expectations cause the other person to behave in ways
consistent with the original perception is known as a self-fulfilling prophecy.

Individuals engage in selective perception because it is impossible for them to assimilate everything they see and can take in only certain
stimuli. However, they do not choose randomly. Rather, they select according to their interests, background, experience, and attitudes.

Selective perception allows them to speed-read others, but not without the risk of drawing an inaccurate picture. Seeing what they want to
see, they can draw unwarranted conclusions from an ambiguous situation.

Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally
caused. That determination, however, depends largely on three factors: (1) distinctiveness, (2) consensus, and (3) consistency.
First, distinctiveness refers to whether an individual displays different behaviors in different situations. A behavior high in distinctiveness is
more likely to be given an external attribution.
Second, if everyone who faces a similar situation responds in the same way, we can say the behavior shows consensus. A behavior high in
consensus is more likely to be considered an externally caused behavior.
Third, the more consistent the behavior, the more we are inclined to attribute it to internal causes.

When we make judgments about the behavior of other people, we have a tendency to underestimate the influence of external factors and
overestimate the influence of internal or personal factors. This is called the fundamental attribution error. There is also a tendency for
individuals to attribute their own successes to internal factors, such as ability or effort, while putting the blame for failure on external factors,
such as bad luck or unproductive co-workers. This is called self-serving bias.

The capacity of the human mind for formulating and solving complex problems is far too small to meet the requirements for full rationality.
Thus, individuals operate within the confines of bounded rationality. They construct simplified models that extract the essential features
from problems without capturing all their complexity. Individuals can then behave rationally within the limits of the simple model. Once the
limited set of alternatives is identified, the decision maker will begin reviewing it. But the review will not be comprehensive. Instead, the
decision maker will begin with alternatives that differ only in a relatively small degree from the choice currently in effect. Following along
familiar and well-worn paths, the decision maker proceeds to review alternatives only until he or she identifies an alternative that is good
enough. The first alternative that meets the "good enough" criterion ends the search. Thus, the final solution represents a satisficing choice
rather than an optimum one

The human mind cannot formulate and solve complex problems with full rationality. Thus, they operate within the confines of bounded
rationality.

The process of making decisions by constructing simplified models that extract the essential features from problems without capturing all
their complexity is known as bounded rationality

The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary
to optimize. In addition, many problems likely do not have an optimal solution because they are too complicated to be broken down into the
parameters of the rational decision-making model. Hence, people satisfice, that is, they seek solutions that are satisfactory and sufficient.

Intuitive decision making is an unconscious process created from distilled experience. Intuitive decision making occurs outside conscious
thought, relies on holistic associations, is fast, and engages in emotions.

Intuition refers to an unconscious process created out of distilled experience. It occurs outside conscious thought and relies on holistic
associations, or links between disparate pieces of information. It is fast and is affectively charged, meaning it usually engages the

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Intuition is a highly complex and highly developed form of reasoning that is based on years of experience and learning. The key to using
intuition in decision making is neither to abandon nor to rely solely on intuition, but to supplement it with evidence and good judgment.

Four Styles Of Decision — Making

Directive Style have low tolerance for ambiguity and seek rationality. They are efficient and logical. but their efficiency concerns result in
decision made with minimal information and with few alternative assessed.
Directive Style make decisions fast and they focus on the short run.
The analytic type has a much greater tolerance for ambiguity than do directive decision makers. This leads to the desire for more information
and consideration of more alternatives than is true for directives. Analytical managers would be best characterized as careful decision makers
with the ability to adapt to or cope with new situations.
Conceptual Style tend to be very broad in their outlook and consider many alternatives. Their focus is long range and they are very good at
finding creative solutions to problems.
Behavioural Style characterizes decision makers who work well with others. They’re concerned with the achievement of peers and those
working for them and are receptive to suggestions from others, relying heavily on meetings for communicating. This type of manager tries to
avoid conflict and seeks acceptance

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