individual decision making

perception

how people interpret stimuli to make meaning

perceptual selectivity

choosing which stimuli to pay attention to and which to ignore

external influences

objects around you that grab your attention

internal influences

what your brain guides you to look for

internal influence - response salience

focus on what is relevant to your personal needs/goals

internal influence - response disposition

focus on things that you are already familiar with

perceptual organization

how we assign meaning to stimuli

barriers to accurate social perception

• stereotyping

• selective perception

• perceptual defense

stereotyping

assigning attributes based on group membership (ex. age, race, gender)

selective perception

filtering focus on what aligns with your beliefs (bias)

perceptual defense

distorting or ignoring threating information

attribution theory

explains how people assign causes to events/behaviors

based on perception, not always true

kelley’s attribution model (KAM)

a method of finding out why someone did something?

three components of KAM

• consensus

• consistency

• distinctiveness

KAM: consensus

do others behave similarly?

• yes → probably external causes

• no → probably internal causes

KAM: consistency

does this person always act this way?

• yes → probably internal causes

• no → probably external causes

KAM: distinctiveness

do they act this way only in this situation or in other situations too?

• only this situation → probably external causes

• other situations too → probably internal causes

attribution biases

• fundamental attribution error

• self-serving bias

fundamental attribution error

overemphasis on internal causes

self-serving bias

overemphasis on internal causes if its something good

overemphasis on external causes if its something bad

perception steps

1. exposure

2. selectivity

3. organization

4. interpretation

managerial decision making

thinking through options and choosing one

decision making system

how your brain processes decisions

reactive/reflective systems

fast, automatic, “gut-instinct”

good for quick decisions, emergencies, or familiar decisions

reflective systems

slow, logical reasoning

good for high-stakes, complex, or new decisions

emotional intelligence

ability to recognize, understand, and manage your own emotions and others’ emotions

components of emotional intelligence

• self-awareness

• self-regulation

• empathy

• social skills

programmed decisions

routine, repetitive, use shortcuts

easy to teach and automate

nonprogrammed decisions

new, complex

require judgment, creativity, and analysis

decision quality depends on…

understanding of the situation and willingness to adjust when needed

difference between what’s “correct” and what’s “ethical”

correct → best for achieving company objectives

ethical → doing what’s morally right

steps of decision making

1. recognize that a decision needs to be made

2. come up with alternatives

3. analyze

4. choose

5. implement

6. observe