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This chapter explores the concept of perception, a vital process by which individuals interpret sensory impressions to make sense of their environment. It emphasizes that behavior is often based on perceived realities rather than objective truths. Key factors influencing perception include the perceiver, the target, and situational context. The discussion covers biases such as the fundamental attribution error and self-serving bias, as well as practical applications in organizational settings, including interviews and performance evaluations. It concludes with strategies for managers to enhance decision-making.
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What is Perception and Why is it Important? • Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. • It’s important because people’s behavior is based on their perception of what reality is, not on reality itself.
Factors • The Perceiver – attitudes, motives, interests, experiences, expectations • The Target – novelty, motions, sounds, size, background, proximity, similarity • The Situation – time, work setting, social situation
Attribution Theory Fundamental Attribution Error • The tendency to… • Underestimate the influence of external factors (outside of a person’s control) • Overestimate the influence of internal (what you can control) factors When making judgments about the behavior of others.
Attributions Self-Serving Bias • The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.
Sample “Shortcuts” Selective Perception • People selectively interpret what they see on the basis of their interest, background, experience, and attitudes. Halo Effect • Drawing a general impression about an individual on the basis of a single characteristic. Contrast Effects • Comparisons with other people recently encountered who rank higher or lower on the same characteristics. Projection • Attributing one’s own characteristics to other people
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 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.
Assumptions of the Rational Decision-Making Model • Problem clarity • Known options • Clear preferences • Constant preferences • No time or cost constraints • Maximum payoff
So, how are decisions actually made in organizations? • Bounded Rationality Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. • Intuitive Decision Making Intuition = an unconscious process created out of distilled experience.
“Problems? What Problems?” • How and why are some problems identified? • Visibility over importance of problem • Attention-catching, high profile problems • Desire to “solve problems” • Self-interest (if problem concerns decision maker!) • Alternative Development • “Good enough”: seeking the first alternative that solves problem.
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.
Summary and Implications for Managers • Perception - Individuals behave based on what they see or believe reality to be. - Evidence suggests that what individuals perceive from their work situation will influence their productivity more than will the situation itself. - Absenteeism, turnover, and job satisfaction are also reactions to the individual’s perceptions.
Summary (continued) • Individual Decision Making - Individuals think and reason before they act. - Under some decision situations, people follow the rational decision- making model. However, this doesn’t happen very often… So, what can managers do to improve their decision making? - Analyze the situation. - Be aware of biases. - Combine rational analysis with intuition. - Don’t assume that your specific decision style is appropriate for every job. - Use creativity-stimulation techniques when possible.
