CHAPTER 5

• Perception - A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
• Factors influencing perceptions are Situation, Perceiver, Target
• Time - It is associated with situation is one critical factor that affects perception
• Work Setting - With peaceful areas enhances the perceptive ability of an individual.
• Social Setting - Social surrounding related individuals, occasion, culture, etc., impact the perception
• Attitude - a part of an individual that influences what he/she perceives about other or event
• A person's MOTIVE are often plays an important role in determining what he perceives
• EXPERIENCE and knowledge serve as a basis for perception
• EXPECTATION - Individual often sees what they expect to see
• The factors under situation are: TIME, WORK SETTING, and SOCIAL SETTING
• The factors under perceiver are: ATTITUDE, MOTIVES, EXPERIENCE, and EXPECTATION
• NOVELTY - These are more likely to be noticed than the targets observed in the past
• MOTION, SOUND, SIZE - They shape the way we see the target
• BACKGROUND - a target is not looked at in isolation
• PROXIMITY - Objects that are close to each other tend to be perceived together
• SIMILARITY - Similar things need to be grouped together
• Attribution Theory - Suggests that perceivers try to “attribute” the observed behavior to a type of cause
• INTERNAL – behavior is believed to be under the personal control of the individual
• EXTERNAL - The person is forced into the behavior by outside events/causes
• DISTINCTIVENESS – whether an individual displays different behaviors in different situations (the uniqueness of the act)
• CONSENSUS – does everyone who faces a similar situation respond in the same way as the individual did
• CONSISTENCY – does the person respond the same way over time
• Fundamental attribution error - Tendency to underestimate the influence of external factors and overestimate that of internal factors
• Self-Serving Bias - Occurs when individuals overestimate their own (internal) influence on successes and overestimate the external influences on their failures
• Selective perception - A perceptual filtering process based on interests, experience, background, and attitudes
• Projection - The tendency to assign one’s own personal attributes to others
• Stereotyping - Judging someone on the basis of the perception of the group to which they belong
• Halo effect - Drawing a general impression based on a single striking characteristic
• Contrast effects - Our reaction is influenced by others we have recently encountered (the context of the observation)
• Overconfidence bias - As managers and employees become more knowledgeable about an issue, the less likely they are to display overconfidence
• Anchoring bias - A tendency to fixate on initial information and fail to adequately adjust for subsequent information
• Confirmation bias - Seeking out information that reaffirms our past choices and discounting information that contradicts past judgments
• Availability bias - Basing judgments on information that is readily available
• Escalation of commitment - Staying with a decision even when there is clear evidence that it is wrong
• Risk aversion - Preferring a sure thing over a risky outcome
• Hindsight bias - Believing falsely that we could have predicted the outcome of an event after that outcome is already known
• Utilitarianism - Provide the greatest good for the greatest number
• Rights - Make decisions consistent with fundamental liberties and privileges
• Justice - Impose and enforce rules fairly and impartially so that there is equal distribution of benefits and costs
• Creativity - The ability to produce novel and useful ideas