ORGANIZATIONAL BEHAVIOR

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OBJECTIVES
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.
LEARNING

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.
O B J E C T I V E S (cont’d)
Outline continues:

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.
LEARNING

9. Define heuristics and explain how they bias

decisions.
10. Contrast the three ethical decision criteria.
What Is Perception, and Why Is It Important?

••People’s
People’s behavior
behavior isis
based
based on on their
their
perception
perception of of what
what
reality
reality is,is, not
not on
on
reality
reality itself.
itself.
••The
The world
world as as itit isis
perceived
perceived isis thethe worldworld
that
that isis behaviorally
behaviorally
important.
important.
 Factors That
Influence
Perception

EXHIBIT 5-1
Person Perception: Making Judgments About
Others

Distinctiveness:
Distinctiveness:shows
showsdifferent
differentbehaviors
behaviorsinindifferent
differentsituations.
situations.
Consensus:
Consensus:response
responseisisthe
thesame
sameasasothers
otherstotosame
samesituation.
situation.
Consistency:
Consistency:responds
respondsininthe
thesame
sameway
wayover
overtime.
time.
Attribution Theory EXHIBIT 5-2
Errors and Biases in Attributions
Errors and Biases in Attributions (cont’d)
Frequently Used Shortcuts in Judging Others
Frequently Used Shortcuts in Judging Others
Frequently Used Shortcuts in Judging Others
Specific 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

Perceptions
Perceptions
of
ofthe
the
decision
decision
maker
maker

Outcomes
Assumptions of the Rational Decision-Making
Model

1.
1. Problem
Problemclarity
clarity
2.
2. Known
Knownoptions
options
3.
3. Clear
Clearpreferences
preferences
4.
4. Constant
Constant
preferences
preferences
5.
5. No
Notime
timeor
orcost
cost
constraints
constraints
6.
6. Maximum
Maximumpayoff
payoff
Steps in the Rational Decision-Making Model

EXHIBIT 5-3
The Three Components of Creativity

EXHIBIT 5-4
How Are Decisions Actually Made in
Organizations
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 Choices
Making Choices
Decision-Style Model

EXHIBIT 5-5
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
– Past decisions influence current decisions.
Cultural 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 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 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.