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Perception
Peoples 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.
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
Employment Interview
Perceptual biases affect the accuracy of interviewers judgments of applicants. Self-fulfilling prophecy (Pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities. Profiling: A form of stereotyping in which a group of individuals are singled out for intensive inquiry, scrutinizing, or investigation. Appraisals are subjective perceptions of performance.
Performance Expectations
Ethnic Profiling
Performance Evaluations
Outcomes
Assumptions Problem clarity Known options Clear preferences Constant preferences No time or cost constraints Maximum payoff
8.
With a high level of uncertainty. With a little precedents to draw on. When variables are less scientifically predictable. When facts are limited. When facts do not clearly point the way. When analytical data are of little use. When there are several plausible solutions from which to choose, with good arguments for each. When time is limited and there is pressure to come up with the right decision.
Visibility over importance of problem Attention-catching, high profile problems Desire to solve problems Self-interest (if problem concerns decision maker) 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.
Alternative Development
confirmation bias
The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments.
anchoring bias
A tendency to fixate on initial information, from which we then fail to adequately adjust for subsequent information.
availability bias
The tendency for people to base their judgments on information that is readily available to them.
randomness error
The tendency of individuals to believe that they can predict the outcome of random events.
escalation of commitment
An increased commitment to a previous decision in spite of negative information.
hindsight bias
The tendency for us to believe falsely that weve have accurately predicted the outcome of an event, even after the outcome is actually known.
Individual Differences
Personality
Conscientiousness
Achievement-striving people are more likely to escalate their commitment. Also, they are more susceptible to the hindsight bias. Dutiful people are less likely to escalate. High self-esteem people highly use the self-serving bias to maintain their self-esteem.
Self-esteem
Gender
Women analyze decisions more than men do. Women engage more in rumination (problem overthinking).
Organizational Constraints
Performance Evaluation
Evaluation criteria influence the choice of actions. Decision makers make action choices that are favored by the organization. Organizational rules and policies limit the alternative choices of decision makers.
Reward Systems
Formal Regulations
Historical Precedents
Cultural Differences
Problems selected Time orientation Importance of logic and rationality Belief in the ability of people to solve problems Preference for collective decision making
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.