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MGCR 222 (39)


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Management Core
MGCR 222
Patricia Hewlin

Ch5: PERCEPTION & INDIVIDUAL DECISION MAKING PERCEPTION  What is perception? o A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment o Pb: our perception ≠ reality  Factors that influence perception o Perceiver  Attitudes, personality, motives, interests, past experiences, expectations… o Target o Situation  Location, light, heat… PERSON PERCEPTIONG: MAKING JUDGEMENTS  Attribution theory o Attempts to explain the ways in which we judge ppl ≠ depending on the meaning we attribute to a given behavior o 2 types of behaviors  Internally caused behaviors  Those we believe to be under personal control of the individual  Externally caused behaviors  What we imagine the situation forced the individual to do o 3 factors  Distinctiveness  Whether an individual display ≠ behaviors in ≠ situations  Consensus  Consistency o Fundamental attribution error  Errors or biases distort attributions o Self serving bias  Putting blame on external factors  Attributing successes to internal factors  Common shortcuts in judging others o Selective perception  To “speed read” others  Risk: inaccurate portrait o Halo effect  A general impression about an individual on the basis of a single characteristic o Contrast effects  Influenced by the ppl encountered before o Stereotyping  Judging someone on the basis of our perception of the group to which he belongs  Based on gender, age, race, religion, ethnicity… THE LINK BTW PERCEPTION & INDIVIDUAL DECISION MAKING  Decision o Choice from among 2 or more alternatives o As a reaction to a problem  Perceptual distortions DECISION MAKING IN ORG The Rational Model, Bounded Rationality & Intuition  Rational decision making o 6 steps  Define the pb  Identify the decision criteria  Allocate weights to the criteria  Develop the alternatives  Evaluate the alternatives  Select the best alternative o Assumptions  Decision maker = complete info  In an unbiased manner  Choice of the option with the highest utility  Bounded rationality o Simplified models that extract the essential features from pb without capturing all their complexity o Pb: takes time, NRJ, money  Intuition o Unconscious process created from distilled experience o Outside of conscious thoughts  Relies on holistic associations  Fast, affectively charged  Irrational Common Biases & Errors in Decision Making  Overconfidence bias o To be far too optimistic o Individuals with weakest intellectual/in
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