Welcome To A Session on Perception and Individual Decision Making 2011

Dr.D.Bhattacharjee
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What is perception?
Perception is the process by which individuals select, organize, store, and interpret the sensory impression into a meaningful and coherent picture. Perception, as defined by Stephen P. Robbins, is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. It is a complex cognitive process that yields a unique picture of the world, a picture that may be quite different from reality. The perceptual world of the manager is quite different from the perceptual world of the subordinate, and both may be different from reality. The world as it is perceived is the world that is behaviorally important.

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What is meant by perceptual process?

The perceptual process may be defined as a complicated interaction of selection, organization, and interpretation. Although perception depends largely on the senses for raw data, the cognitive process may filter, modify, or completely change the data The perceptual process adds to , and subtracts from, the real sensory world.

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What is meant by sensation?

Sensation refers to elementary behavior that is determined by physiological functioning. The five senses ( vision, hearing, touch, smell, and taste) are constantly bombarded by numerous stimuli that are both outside and inside the body.

What are outside and inside stimuli?

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What are outside and inside stimuli?

Let us examine what are these.

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Outside stimuli
The outside stimuli include light waves, sound waves, mechanical energy of pressure, and chemical energy objects that one can smell and taste.

Inside stimuli Inside stimuli include energy generated by muscles, food passing through the digestive system, and glands secreting behaviorinfluencing hormones.
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Difference between Sensation and Perception

Perception is more complex and much broader than sensation. Although perception depends largely upon the senses for raw data, the cognitive process may filter, modify, or completely change data e.g. seeing tree. The perceptual process overcomes the sensual process and the person sees the object stationary. The perceptual process adds to, and subtracts from, the real sensory world.

Continued.
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The following are some organizational examples

The purchasing agent buys a part that she thinks is best, nor the part the engineer says is the best. A subordinates answer to a question is based on what he heard the boss say, not what the boss actually said. The worker may be viewed by one supervisor a very good worker and by another supervisor as a very poor worker. The same widget may be viewed by the inspector to be of high quality and by a customer to be of low quality.

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What are the sub-processes of perception?

The sub-processes of perception include confrontation, registration, interpretation, and feedback which leads to behavior which has consequence. Perception begins when a person is confronted with a stimulus or situation that is present. In addition to the situation-person interaction they are the internal cognitive processes of registration, interpretation, and feedback.

Continued.
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Sub-processes of Perception
During the registration phenomenon, the physiological (sensory and neural) mechanisms are affected; the physiological ability to hear and see will affect perception. The other psychological processes will affect the interpretation of a situation. For example, in an organization, employees interpretation of a situation is largely dependent upon their learning and motivation and their personality. An example would be the kinesthetic feedback ( sensory impressions from muscles) that helps manufacturing workers perceive the speed materials moving by them in the production process. An example of psychological feedback that may influence an employees perception is the supervisors raised eyebrow or a change in voice inflection. Continued.
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Confrontation
E l

v - Sensual - Stimulation Physical Environment - Office - Factory floor - Research lab - Store - limate Socio-cultural Environment -Management styles -Values - iscrimination

of specific Stimulation ( e.g. supervisor or new)

Registration of Stimulation ( e.g. sensory & neural organism)

Interpretation of the stimulus (e.g. motivation, learning, and personality)

Feedback for Clarification (e.g. kinesthetic or psychological)

Behavior (e.g. overt such as rushing off or covert such as an attitude)

Consequence ( e.g., reinforcement punishment or some organizational outcome )

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Dr.D.Bhattacharjee

What is perceptual selectivity?

Perceptual selectivity refers to the process of selecting one or more stimuli at a given time out of numerous stimuli. Numerous stimuli are constantly confronting everyone. With all this stimulation impinging upon people, how and why do they select out only a very few stimuli at a given time ? Part of the answer can be found in the principles of selectivity.

What are the Factors Affecting Perceptual selectivity

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Factors Affecting Perceptual selectivity

The main factors affecting perceptual selectivity may be classified into two groups: External attention factors Internal attention factors.

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External Attention Factors Affecting Perceptual Selectivity

Intensity Size Contrast epetition otion, No e ty ami iarity.

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External Attention Factors

Intensity: The intensity principle of attention states that the more intense the stimulus, the more likely it is to be perceived. Size: It says that the larger the object, the more likely it will be perceived. Contrast: It states that external stimuli which stand out against the background or which are not what people are expecting will receive their attention.

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External Attention Factors

Repetition: The repetition principle states that a repeated external stimulus is more attention-getting than a single one. Motion: It says that people will pay more attention to moving objects in their field of vision than they will to stationery objects. Novelty and familiarity: It states that either a novel or familiar external situation can serve as an attention getter.

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What are internal set factors?

An internal refers to an internal form of attention-getting, which is based on the individuals complex psychological makeup.
People will select out stimuli or situations from the environment that appeal to, and are compatible with, their learning, motivation, and personality.
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TU N O TH TH NGIN

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Factors influencing perception How do we explain that individuals may look at the same thing yet perceive it differently? A number of factors operate to shape and sometimes distort perception.
These factors can reside in the perceiver, in the object or target being perceived, or in the context of the situation in which the perception is made.

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actors that Inf uence Perception

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Factors in the perceiver

When an individual looks at a target and attempts to interpret what he or she sees, that interpretation is heavily influenced by personal characteristics of the individual perceiver. Attitudes Motives Interests Experience Expectations Self-concept Personality

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Characteristics in the target being observed can affect what is perceived

Factors in the Target Novelty Motion Sounds Size Background Proximity

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Factors in the Situation

The context in which a person sees objects or events is important. Elements in the surrounding environment influence our perceptions. Time Work Setting Social Setting
Selection Organization

Stereotyping Halo Projection

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Person Perception: Making Judgments About Others

Attribution Theory Attribution theory has been proposed to de e op exp anations of the ways in which an indi idua judges peop e different y, depending on what meaning he attributes to a gi en beha ior. Attribution theory aims at determining whether an individuals behavior is internally or externally caused.

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Person Perception: Making Judgments About Others

Attribution is how people explain the cause of anothers or their own behavior. It is the process by which people draw conclusions about the factors that influence, or make sense of, one anothers behavior.

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What is social perception?

Social perception is directly concerned with how one individual perceives other individuals: how one gets to know others. The knowledge of how one individual perceives other individuals determines the success status of self presentation or impression management

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Social Perception
In socia perception, there are two types of attribution that peop e make: Dispositiona attributions Situationa attributions. Dispositional attributions attribute persons behavior to internal factors such as personality traits, motivation, or ability. Situational attributions ascribe a persons behavior to external factors such as equipment or social influence from others.
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Social Perception
Whi e obser ing an indi idua s beha ior, peop e make an attempt to determine whether it is interna y or externa y caused. Internally caused behaviors are those that are be ie ed to be under the persona contro of the indi idua . Externally caused behavior is seen as resulting from outside causes.

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ements of Attribution Theory

Dr.D.Bhattacharjee 8/27/2011Dr.D.Bhattacha rjee

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Determination of if the behavior is caused internally

Determination of whether the behavior is internally or externally caused depends largely on three factors: Distinctiveness Consensus Consistency

Continued
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Determination of if the behavior is caused internally

Distinctiveness: It refers to whether an individual displays different behaviors in different situations. Consensus: If anyone who is faced with a similar situation responds in the same way, the behavior shows consensus. Consistency: If a person responds the same way over time, one finds consistency in a persons action.

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What shortcuts do people frequently use in making judgments about others ?

Selective Perception: People selectively interpret what they see based on their interests, background, experience, and attitudes. Hallow Effect: Drawing a general impression about an individual based on a single characteristic (such as intelligence, sociability, or appearance). Contrast Effects: Evaluation of a persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Projection: Attributing ones own characteristics to other people.
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What shortcuts do people frequently use in making judgments about others ?

Stereotyping: Stereotyping is the tendency to perceive another person ( hence social perception ) as belonging to a single class or category. Profiling: Profiling is a form of stereotyping in which a group of individuals is singled out, typically on the basis of race or ethnicity, for intensive enquiry, scrutiny, or investigation. For example, profiling people of Arab decent was done in the USA since 9/11.

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The stereotyping process

Develop categories and assign traits Assign person to category based on observable info Assign categorys traits to the person Professors are absent-minded

Our instructor is a professor Our instructor is absent-minded

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How Accurate are stereotypes?

Some accuracy, but a so distortion and error Traits dont describe e eryone in the group We screen out inconsistent information Stereotypes are ess accurate when: Litt e interaction with peop e in that group xperience conf ict with members of that group Stereotypes enhance our own socia identity

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Specific applications of shortcuts in organizations

- Employee Interview
- Performance Expectations/Pygmalion effect - Ethnic profiling - Performance Evaluation

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The Link Between Perception and Individual Decision Making

Individuals in organizations make decisions. The decision making refers to the process of making choices from among two or more alternatives. Decision making occurs as a reaction to a problem In this context, a problem refers to a discrepancy between some current state of affairs and some desired state.

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How should decisions be made?

The Rational Decision-Making Process
The premise is that the best decision maker is rationa . He or she makes consistent, a ue maximizing choices within specified constraints. These choices are made fo owing a six step rationa decision making mode .

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The Rational Decision-Making Process

The assumptions of the rational decision-making model are the same as those that underlie the concept of rationality. Rationality refers to choices that are consistent and value maximizing.

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The main assumptions of the rational decision making model

Problem clarity Known options-all options are known Clear preferences Constant preferences No time or cost constraints Maximum payoff

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What are the steps in the rationa decision making mode ?

Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative

What is meant by a decision criterion? Let us cite an example.

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Example:
Decision criteria, in case of admission, include cost, availability of financial aid, admission requirements, status or reputation, size, geographical location, curricula offering, male-female ratio, quality of social life, and physical attractions of the campus.

Continued..........

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How can one improve creativity in decisionmaking?

Gi en that most peop e ha e the capacity to be at east somewhat creati e, what can indi idua s and organizations do to stimu ate emp oyee creati ity? The best answer to this question ies in the three component mode of creati ity. Based on the extensi e body of research, this mode proposes that indi idua creati ity essentia y requires expertise, creativethinking skills, and intrinsic task motivation.

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How are decisions actually made in organizations?

Because the capacity of the human mind for formu ating and so ing comp ex prob ems is far too sma to meet the requirements for fu rationa ity, indi idua s operate within the confines of bounded rationa ity. They construct simp ified mode s that extract the essentia features from prob ems without capturing a their comp exity.

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Alternative Decision-Making Models

Rational decision making

Bounded rationality The Intuitive Model

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What is the essence of the satisficing model or bounded rationality?

The essence of the satisficing mode is that, when faced with comp ex prob ems, decision makers respond by reducing the prob ems to a e e at which they can be readi y understood. This is because the information processing capabi ity of human beings makes it impossib e to assimi ate and understand a the information necessary to optimize. Because the human mind cannot formu ate and so e comp ex prob ems with fu rationa ity, peop e operate within the confines of bounded rationa ity. They construct simp ified mode s that extract the essentia features from prob ems without capturing a their comp exity. Then they beha e rationa y within the imits of the simp e mode .
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What is the essence of the intuitive model?

Intuiti e decision making is a nononscious process created from disti ed experience. Its defining qua ities are that it occurs outside conscious thought; it re ies on ho istic associations, inks between disparate pieces of information; its fast; and its affecti e y charged, meaning that it usua y engages the emotions.

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What is the essence of the intuitive model?

Intuiti e decision making is a nonconscious process created from disti ed experience. Its defining qua ities are that it occurs outside conscious thought; it re ies on ho istic associations, or inks between disparate pieces of information; its fast; and its affecti e y charged meaning that it actua y engages the emotion. Intuition does is not rationa , but doesnt necessari y make it wrong. Intuition doesnt necessari y operate in opposition to rationa ana ysis; rather, the two can comp ement each other.
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What are the current issues in decision making?

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What are the current issues in decision making?

Impro ing ethica decision making How decision making sty es ary in different countries The tendency of peop e to continue to commit resources to a pre ious decision in spite of e idence that the origina decision was a mistake

How can one impro e perceptua accuracy?

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Impro ing Perceptua Accuracy

Diversity Initiatives Know Yourself Empathize With Others

Improving Perceptual Accuracy

Compare Perceptions With Others

Postpone Impression Formation

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What are some of the common biases and errors in decision making?

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What are some of the common biases and errors in decision making?
Overconfidence bias : Those indi idua s whose inte ectua and interpersona abi ities are weakest are most ike y to o erestimate their performance and abi ity. Anchoring bias: The anchoring bias is a tendency to fixate on initia information and fai to adequate y adjust for subsequent information.

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What are some of the common biases and errors in decision making?
Confirmation bias: The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments. Peop e tend to accept at face a ue information that confirms their preconcei ed iews , whi e they are critica and skeptica of information that cha enges their iews. Availability bias: This refers to the tendency for peop e to base their judgments on information that is readi y a ai ab e to them. Ch5_54 tendency

What are some of the common biases and errors in decision making?
Escalation of commitment: This refers to an increased commitment to a pre ious decision in site of negati e decision. Randomness error: This refers to the tendency of indi idua s to be ie e that they can predict the outcome of random e ents. But the truth is that the wor d wi a ways contain random e ents.

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What are some of the common biases and errors in decision making?
Winners curse: This refers to a decision making dictum which argues that the winning participants in an auction typica y pay too much for the winning item. Hindsight bias : The tendency to be ie e fa se y, after an outcome of an e ent is actua y known , that one wou d ha e accurate y predicted that outcome is ca ed a hindsight bias.
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What are the measures that help reduce biases and errors?
Focus on goals: C ear goa s make decision making easier and he p e iminate options that are inconsistent with ones interest. Looking for information that disconfirms ones beliefs: One of the most effecti e means for counteracting o erconfidence and the confirmation and hindsight biases is to acti e y ook for information that contradicts ones be iefs and assumptions.
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What are the measures that help reduce biases and errors?
Avoiding creating meaning out of random events: One shou d accept that there are e ents in ife that are outside ones contro . It is not desirab e to create meaning out of coincidence. Increasing options: The more a ternati es one can generate , and the more di erse those a ternati es, the greater the chance of of finding an outstanding one.

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What are the inf uences of indi idua differences, organizationa constraints and cu ture on decision making? Persona ity
Conscientiousness may effect esca ation of commitment
Achie ement stri ers are ike y to increase commitment Dutifu peop e are ess ike to ha e this bias

Se f steem
High se f esteem peop e are susceptib e to se f ser ing bias
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What are the inf uences of indi idua differences, organizationa constraints and cu ture on decision making?
Gender

Women ana yze decisions more than men rumination Women are twice as ike y to de e op depression Differences de e op ear y

8/27/2011Dr.D.Bhattacha rights 2009 Prentice-Hall Inc. All rjee reserved.

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What are the inf uences of indi idua differences, organizationa constraints and cu ture on decision making? Performance

a uation

anageria e a uation criteria inf uence actions anagers wi make the decision with the greatest persona payoff for them

eward Systems

orma

egu ations

Limit the a ternati e choices of decision makers

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What are the inf uences of indi idua differences, organizationa constraints and cu ture on decision making? System imposed Time Constraints
estrict abi ity to gather or e a uate information

Historica Precedents
Past decisions inf uence current decisions

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What are the criteria used in making ethical decision making?

The Utilitarian Criterion: The essence of the uti itarian criterion is that decisions are made so e y on the basis of their outcomes or consequences. The goa of uti itarianism is to pro ide the greatest good for the greatest number. Rights Criterion: This ca s an indi idua to make decisions consistent with fundamenta iberties and pri i eges, as set forth in documents such as the Constitution of the Peop es epub ic of Bang adesh. Justice Criterion: This requires indi idua s to impose and enforce ru es fair y and impartia y so that there is an equitab e distribution of benefits and costs.
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What is creati ity?

Creati ity refers to the abi ity to produce no e and usefu ideas that are different from whats been done before but are appropriate to the prob em or opportunity presented. Who has the greatest creati e potentia ? Those who score high in Openness to Experience Peop e who are inte igent, independent, se f confident, risk taking, ha e an interna ocus of contro , to erant of ambiguity, ow need for structure, and who perse ere in the face of frustration

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What is the three component mode of creati ity ?

Proposition that indi idua creati ity resu ts from a mixture of three components
xpertise is the foundation Creati e Thinking Ski s are the persona ity characteristics associated with creati ity Intrinsic Task oti ation is the desire to do the job because of its characteristics

Intrinsic Task oti ation

xpertise

Creati e Thinking Ski s

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G oba Imp ications

Attributions There are cu tura differences in the ways peop e attribute cause to obser ed beha ior Decision aking No research on the topic: assumption of no difference Based on our awareness of cu tura differences in traits that affect decision making, this assumption is suspect
Dr.D.Bhattacharjee

G oba Imp ications

thics No g oba ethica standards exist Asian countries tend not to see ethica issues in b ack and white but as shades of gray G oba companies need g oba standards for managers

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Thank you for Attending the Session

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