1. Perception
A process by which individuals organized and interpret their sensory impressions in order to give meaning to their environment.

2. Attribution theory
When individuals observe behavior , they attempt to determine whether it is internally or externally caused.

3. Fundamental attribution error
The tendency to underestimate the influence of external factors and overstimate the influence of internal factors when making judgments about the behavior of others.
Self-serving
The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures one external factors.

4. Selective perception
People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.

5. Contrast effects
Evaluations of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.

6. Projection
Attributing one’s own characteristics to other people.

7. Stereotyping
Judging someone on the basis of one’s perception of the group to which that persons belongs.

8. Self-fulfilling prophecy
When one person inaccurately perceives a second person and the resulting expectations cause the second person to behave in ways consistent with original perception.

9. Whistle-blowers
Individuals who report unethical practices by their employer to outsiders.
Decisions
The choices made from among two or more alternatives
Problem
A discrepancy between some current state of affairs and some desired states.

10. Rational Refers to choices that are consistent and value maximizing
Rational decision making model
A decision-making model that describbes how individuals should behave in order tto maximize some outcomes.

11. Creativity
The ability to produce novel and useful ideas.

12. Three-component model of creativity
Proposes that individual creativity requires expertise, creative-thinking skills, and intrinsic task motivation.

13. Bonded rationality
Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

14. Intuitive decision making
An unconscious process created out of distilled experience.

15. Heuristics
Judgmental shortcusts in decision making.

16. Availability heuristic
The tendency for people to base their judgments on information that is readily available to them.

17. Representative heuristic
Assessing the likelihood of an occurrence b drawing analogies and seeing identical situations in which they don’t exist.
Utilitarianism
Decisions are made so as to provide the greatest good for the greatest number.

18. Escalation of commitment
An increased commitment to a previous decision in spite of negative information
Firs,t analyze the situation
Second be aware of biases
Third combine retinal analysis with intuition
Fourth don’t assume that your specific decision style is appropriate for every fectiveness