1. ORGANIZATIONAL BEHAVIOR S T E P H E N P. R O B B I N S W W W. P R E N H A L L. C O M / R O B B I N S T E N T H E D I T I O N © 2003 Prentice Hall Inc. All rights reserved. PowerPoint Presentation by Charlie Cook

2. © 2003 Prentice Hall Inc. All rights reserved.5–25–2 AFTER STUDYING THIS CHAPTER, 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. 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. L E A R N I N G O B J E C T I V E S

3. © 2003 Prentice Hall Inc. All rights reserved.5–35–3 AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO: 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. 9.Define heuristics and explain how they bias decisions. 10.Contrast the three ethical decision criteria. L E A R N I N G O B J E C T I V E S (cont’d)

4. © 2003 Prentice Hall Inc. All rights reserved.5–45–4 What Is Perception, and Why Is It Important? People’s behavior is based on their perception of what reality is, not on reality itself.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.The world as it is perceived is the world that is behaviorally important. People’s behavior is based on their perception of what reality is, not on reality itself.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.The world as it is perceived is the world that is behaviorally important.

5. © 2003 Prentice Hall Inc. All rights reserved.5–55–5 Factors That Influence Perception E X H I B I T 5-1

6. © 2003 Prentice Hall Inc. All rights reserved.5–65–6 Person Perception: Making Judgments About Others 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. 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.

7. © 2003 Prentice Hall Inc. All rights reserved.5–75–7 Attribution Theory E X H I B I T 5-2

8. © 2003 Prentice Hall Inc. All rights reserved.5–85–8 Errors and Biases in Attributions

9. © 2003 Prentice Hall Inc. All rights reserved.5–95–9 Errors and Biases in Attributions (cont’d)

10. © 2003 Prentice Hall Inc. All rights reserved.5–10 Frequently Used Shortcuts in Judging Others

11. © 2003 Prentice Hall Inc. All rights reserved.5–11 Frequently Used Shortcuts in Judging Others

12. © 2003 Prentice Hall Inc. All rights reserved.5–12 Frequently Used Shortcuts in Judging Others

13. © 2003 Prentice Hall Inc. All rights reserved.5–13 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.

14. © 2003 Prentice Hall Inc. All rights reserved.5–14 The Link Between Perceptions and Individual Decision Making Perceptions of the decision maker Outcomes

15. © 2003 Prentice Hall Inc. All rights reserved.5–15 Assumptions of the Rational Decision-Making Model 1.Problem clarity 2.Known options 3.Clear preferences 4.Constant preferences 5.No time or cost constraints 6.Maximum payoff 1.Problem clarity 2.Known options 3.Clear preferences 4.Constant preferences 5.No time or cost constraints 6.Maximum payoff

16. © 2003 Prentice Hall Inc. All rights reserved.5–16 Steps in the Rational Decision-Making Model E X H I B I T 5-3

17. © 2003 Prentice Hall Inc. All rights reserved.5–17 The Three Components of Creativity E X H I B I T 5-4

18. © 2003 Prentice Hall Inc. All rights reserved.5–18 How Are Decisions Actually Made in Organizations

19. © 2003 Prentice Hall Inc. All rights reserved.5–19 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.

20. © 2003 Prentice Hall Inc. All rights reserved.5–20 Making Choices

21. © 2003 Prentice Hall Inc. All rights reserved.5–21 Making Choices

22. © 2003 Prentice Hall Inc. All rights reserved.5–22 Decision-Style Model E X H I B I T 5-5

23. © 2003 Prentice Hall Inc. All rights reserved.5–23 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.

24. © 2003 Prentice Hall Inc. All rights reserved.5–24 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

25. © 2003 Prentice Hall Inc. All rights reserved.5–25 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.

26. © 2003 Prentice Hall Inc. All rights reserved.5–26 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.