MAN 337 Chapter Notes - Chapter 3: Fundamental Attribution Error, Selective Perception, Bounded Rationality

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4 Jan 2017
1. Chapter 3: Perception and Individual Decision Making
a. Perception: process by which individuals organize and interpret their sensory impression in order
to gie eaig to their eiroet; it’s iportat eause people ase their ehaiors o
perception of reality, not actual reality
i. Factors that influence perception:
1. Perceiver: personal characteristics affect how you judge/perceive something
2. Target: characteristics of the people/thing we observe
a. i.e. Loud or attractive people are more noticeable
3. Situation: the context in which we see objects (i.e. time, place)
b. Person perception
i. Attribution theory: he e osere a idiidual’s ehaior, e attept to deterie
whether it was internally or externally caused
1. Internally caused: behaviors under our personal control
2. Externally caused: behaviors that are a result of outside causes
3. Three factors that determine internal/external causes:
a. Distinctiveness: whether a person behaves differently in different
i. High: external; low: internal
b. Consensus: if everyone who faces a similar situation responds in the
same way
i. High: external; low: internal
c. Consistency: does the person respond the same way over time
i. High: internal; low: external
4. Fundamental attribution error: the tendency to underestimate the influence of
external factors and overestimate the influence of internal or personal factors
5. Self-serving bias: tendency to attribute their own successes to internal factors
while blaming failure on external factors
ii. Frequently used shortcuts in judging others
1. Selective perception: the fact that humans only take in certain stimuli
a. It allos us to speed-read others, ut ot ithout iaura
b. We see what we want to be
c. i.e. we only notice cars that are our own
2. Halo effect: when a general impression about an individual is made on the basis
of a single characteristic such as intelligence, sociability, or appearance
3. Contrast effects: the fat that e do’t ealuate people i isolatio; our
reaction to a person is influenced by other people we have recently
4. Stereotyping: when we judge based on perception of the group the person is
associated with
a. Geeralizatios siplif the ople orld; it’s less diffiult to deal
with an unmanageable number of stimuli if heuristics or stereotypes
are used
c. The link between perception and individual decision making
i. People make decisions in response to a problem (discrepancy that exists between the
current state of affairs and desired state)
ii. Oe perso’s prole is aother perso’s satisfator state of affairs i.e. ou s
iii. Each decision requires interpretation and evaluation
d. Decision making in organizations
i. Rational decision making model (decisions based on value-optimizing options):
1. Steps:
a. Define the problem
b. Identify the decision criteria
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