After studying this topic,

OBJECTIVES
Managerial
you should be able to:
Communication, Decision- 1. Explain how two people can see the
Making and Problem same thing and interpret it differently.
Outline the difference between the
Solving 2.

LEARNING
rational decision-making model, bounded
rationality and satisficing decision-
Topic 7 making.
3. Describe the importance of a political
perspective in decision-making.
Dr Suzanne Young
4. Discuss the communication process.
5. Discuss conflict and how it can be
overcome.

Reading Perception
| Form groups of 2.
| Robbins and Judge 2009 Chapter 5,
11, 14 and 15 | Write down your perceptions of
partner.
| Exchange perceptions with partner.

| How were these perceptions made?

| Were there any differences between

perceptions and your view of
yourself?
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 What Is Perception, and Why Is It
Perception Important?
Perception
A process by which
| www.scientificpsychic.com/graphics
individuals organize and
interpret their sensory
impressions in order to
give meaning to their
environment.
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• People’
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.

Factors
That
Person Perception: Making Judgments
Influence About Others
Perception Attribution Theory
When individuals observe
behavior, they attempt to
determine whether it is
internally or externally
caused.

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.
E X H I B I T 5–1

2
 Errors and Biases in Attributions
Fundamental Attribution Error
The tendency to underestimate
the influence of external factors
and overestimate the influence
of internal factors when making
judgments about the behavior
of others.
Self-Serving Bias
The tendency for individuals to attribute
their own successes to internal factors
Attribution while putting the blame for failures on
external factors.
Theory E X H I B I T 5–2
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Frequently Used Shortcuts in Frequently Used Shortcuts in

Judging Others Judging Others
Selective Perception Halo Effect

People selectively interpret what they see on the Drawing a general impression
about an individual on the
basis of their interests, background, experience,
and attitudes. basis of a single characteristic

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

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 Steps in the Rational Decision- How Are Decisions Actually Made
Making Model in Organizations
Describes how individuals should behave Bounded Rationality
in order to maximize some outcome.
Individuals make decisions by constructing
1. Define the problem. simplified models that extract the essential
2. Identify the decision criteria. features from problems without capturing
all their complexity.
3. Allocate weights to the criteria.
4. Develop the alternatives.
5. Evaluate the alternatives.
6. Select the best alternative.
• You are to purchase a car. What are the steps to conduct
in the purchase using this model? E X H I B I T 5–3

How Are Decisions Actually Made in

Organizations (cont’d) A Definition of Power
| How/Why problems are identified
z Visibility over importance of problem Power
• Attention-catching, high profile problems
• Desire to “solve problems” A capacity that A has to influence
z Self-interest (if problem concerns decision maker) the behavior of B so that B acts in
Alternative Development
accordance with A’s wishes.
| B
z Satisficing: seeking the first alternative that solves problem. A
z Engaging in incremental rather than unique problem solving
through successive limited comparison of alternatives to the
current alternative in effect. Dependency
| Overconfidence Bias
z Believing too much in our own decision competencies. B’s relationship to A when
| Anchoring Bias A possesses something
z Fixating on early, first received information. that B requires.
| Confirmation Bias
z Using only the facts that support our decision.
| Availability Bias
z Using information that is most readily at hand.
| Escalation of Commitment
z Increasing commitment to a previous decision in spite of negative
information.

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 Bases of Power: Formal Power
Bases of Power: Formal Power
(cont’d)
Formal Power Legitimate Power
Is established by an individual’s position in an The power a person receives as a result
organization; conveys the ability to coerce or of his or her position in the formal
reward, from formal authority, or from control of hierarchy of an organization.
information.
Information Power
Coercive Power
A power base dependent on fear. Power that comes from
access to and control
Reward Power over information.
Compliance achieved based on
the ability to distribute rewards
that others view as valuable

Bases of Power: Personal Power Transitions in Conflict Thought

Expert Power Traditional View of Conflict
Influence based on special The belief that all conflict is harmful and must be
skills or knowledge. avoided.
Charismatic Power
An extension of referent power Causes:
stemming from an individual’s
personality and interpersonal style. • Poor communication
• Lack of openness
• Failure to respond to
employee needs

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 Transitions in Conflict Thought Dimensions of Conflict-
(cont’d)
Human Relations View of Conflict
Handling Intentions
The belief that conflict is a natural and inevitable
outcome in any group.

Interactionist View of Conflict

The belief that conflict is not only
a positive force in a group but that
it is absolutely necessary for a
group to perform effectively.

Source: K. Thomas, “Conflict and Negotiation Processes in Organizations,” in M.D. Dunnette

and L.M. Hough (eds.), Handbook of Industrial and Organizational Psychology, 2nd ed., vol. 3 E X H I B I T 14–2
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(Palo Alto, CA: Consulting Psychologists Press, 1992), p. 668. With permission.

Factors That
Influence The Communication Process
Model
Political
Behaviors

Communication Process
The steps between a source and a
receiver that result in the transference
and understanding of meaning.
E X H I B I T 13–4 E X H I B I T 10–1

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 Intonations: It’s the Way You Say
Direction of Communication It!
Change your tone and you change your meaning:
Placement of the emphasis What it means
Why don’t I take you to dinner tonight? I was going to take someone else.
Why don’t I take you to dinner tonight? Instead of the guy you were going with.
Downward
Why don’t I take you to dinner tonight? I’m trying to find a reason why I
shouldn’t take you.
Why don’t I take you to dinner tonight? Do you have a problem with me?
Lateral
Why don’t I take you to dinner tonight? Instead of going on your own.
Why don’t I take you to dinner tonight? Instead of lunch tomorrow.
Why don’t I take you to dinner tonight? Not tomorrow night.
Upward

Source: Based on M. Kiely, “When ‘No’ Means ‘Yes,’ ” Marketing, October 1993, pp. 7–9. Reproduced in A. Huczynski E X H I B I T 10–2
and D. Buchanan, Organizational Behaviour, 4th ed. (Essex, England: Pearson Education, 2001), p. 194.

Information Richness of
Choice of Communication Channel Communication Channels
Channel Richness
The amount of information that can be transmitted
during a communication episode.

Low channel richness High channel richness

Characteristics of Rich Channels
1. Handle multiple cues simultaneously.
2. Facilitate rapid feedback.
3. Are very personal in context.
Routine Nonroutine

Source: Based on R.H. Lengel and D.L. Daft, “The Selection of Communication Media as an Executive Skill,”
Academy of Management Executive, August 1988, pp. 225–32; and R.L. Daft and R.H. Lengel, “Organizational
Information Requirements, Media Richness, and Structural Design,” Managerial Science, May 1996, pp. 554–72. E X H I B I T 10–7
Reproduced from R.L. Daft and R.A. Noe, Organizational Behavior (Fort Worth, TX: Harcourt, 2001), p. 311.

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 Barriers to Effective Communication Barriers to Effective Communication
Emotions Filtering
How a receiver feels at the time a message is received A sender’s manipulation of information so that it will
will influence how the message is interpreted. be seen more favorably by the receiver.

Language Selective Perception

Words have different meanings People selectively interpret what they see on the
to different people. basis of their interests, background, experience, and
attitudes.
Communication Apprehension
Information Overload
Undue tension and anxiety about oral
communication, written communication, or both. A condition in which information inflow exceeds an
individual’s processing capacity.
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