ROBBINS CHAPTER-5Perception and Decision MakingSlide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13NotesENM/MSC 582 SWEENEY 1ROBBINS CHAPTER-ROBBINS CHAPTER-55DR. PATRICK J. SWEENEYDR. PATRICK J. SWEENEYENM/MSC 582 SWEENEY 2Perception and Decision MakingPerception and Decision MakingPERCEPTION IS REALITYPERCEPTION IS REALITYPerception controls the behavioral worldPerception controls the behavioral worldThe perceiverThe perceiver……the devious think others are the devious think others are deviousdevious: : understand the perceiverunderstand the perceiver: : most will most will see what they wish to seesee what they wish to seeThe target…consider the backgroundThe target…consider the backgroundThe situation…out of place draws attentionThe situation…out of place draws attentionENM/MSC 582 SWEENEY 3•The PerceiverThe Perceiver–Get into his/her headGet into his/her head–Understand his/her background, values, etc.Understand his/her background, values, etc.–Devious will consider you devious……Devious will consider you devious……•The TargetThe Target–You will see what you expectYou will see what you expect**–BackgroundBackground–Motorcycles, with lights on…invisible.Motorcycles, with lights on…invisible.•The Situation…is it out of place?The Situation…is it out of place?•Fig. Fig. 5-15-1Perception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 4•The PerceiverThe Perceiver–Get into his/her headGet into his/her head–Understand his/her background, values, etc.Understand his/her background, values, etc.–Devious will consider you devious……Devious will consider you devious……•The TargetThe Target–You will see what you expectYou will see what you expect**–BackgroundBackground–Motorcycles, with lights on…invisible.Motorcycles, with lights on…invisible.•The Situation…is it out of place?The Situation…is it out of place?•Perception Fig. Perception Fig. 5-35-3Perception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 5•JUDGING OTHERSJUDGING OTHERS–Attribution Theory, Fig. Attribution Theory, Fig. 5-35-3•Internal/external (applies to the following)Internal/external (applies to the following)Distinctiveness…situational (lazy/ambitious)Distinctiveness…situational (lazy/ambitious)Consensus…everyone does itConsensus…everyone does itConsistency…does it every timeConsistency…does it every timeFundamental attribution error…Fundamental attribution error…overestimating internal factorsoverestimating internal factorsSelf-serving … Self-serving … good is to our credit good is to our credit andand bad is their fault bad is their fault Perception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 6•JUDGING OTHERSJUDGING OTHERS–ShortcutsShortcutsSelective perception…seeing what we want Selective perception…seeing what we want to see, hi visible characteristics, biases to see, hi visible characteristics, biases (sales/engr/mgt)(sales/engr/mgt)Halo effectHalo effect…single characteristic judgment…single characteristic judgmentContrast…based on those aroundContrast…based on those aroundProjection…they are all just like meProjection…they are all just like meStereotyping…based on group (race, ball Stereotyping…based on group (race, ball players)players)Perception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 7•JUDGING OTHERSJUDGING OTHERS–Corporate applicationsCorporate applicationsEmployment interview…we don’t do too well, Employment interview…we don’t do too well, the the FIRST 5 MINUTESFIRST 5 MINUTES…critical, critical, critical…critical, critical, criticalPerformance expectations…self-fulfilling, we Performance expectations…self-fulfilling, we get what we expect get what we expect Performance evaluations…perception of Performance evaluations…perception of specific characteristics rulesspecific characteristics rulesEmployee effort…may be most importantEmployee effort…may be most importantEmployee loyalty…critical, Employee loyalty…critical, you must be loyalyou must be loyalPerception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 8•PERCEPTION AND DECISION MAKINGPERCEPTION AND DECISION MAKINGPerception rulesPerception rulesLibyan airliner & Israeli generalLibyan airliner & Israeli general**•Rational decision making…scientificRational decision making…scientific•Creative decision making, Fig. Creative decision making, Fig. 5-55-5–Experience, motivation, creative skillsExperience, motivation, creative skills**•Real decision makingReal decision makingFire captain arriving at a fireFire captain arriving at a fireFighter pilots in air to air combatFighter pilots in air to air combatYour decisionsYour decisionsPerception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 9•REAL DECISION MAKINGREAL DECISION MAKINGExperts do much better than novices Experts do much better than novices !!!!!!!!!!Bounded rationalityBounded rationalityIntuitionIntuitionProblem identificationProblem identificationAlternative developmentAlternative developmentMaking choices - Making choices - Available heuristicAvailable heuristicRepresentative heuristicRepresentative heuristicEscalation of commitmentEscalation of commitmentPerception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 10•Individual differences…style, Fig. Individual differences…style, Fig. 5-65-6•Org constraintsOrg constraintsPerformance evaluationPerformance evaluationReward systemReward systemRegulations, rules, policiesRegulations, rules, policiesTime constraintsTime constraintsHistorical precedentsHistorical precedentsCultural in orgs and countriesCultural in orgs and countriesPerception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY 11•MAKING JUDGMENTS OF OTHERSMAKING JUDGMENTS OF OTHERS•Attribution theoryAttribution theoryInternal and external controlInternal and external controlDistinctiveness…different from time to timeDistinctiveness…different from time to timeConsistency over timeConsistency over time•ShortcutsShortcutsPerception and Decision MakingPerception and Decision MakingENM/MSC 582 SWEENEY