Perception: a process by which individuals organize and interpret their sensory impressions to give meaning to their environment
Attribution Theory: suggests that when we observe an individual’s behavior, we attempt to determine whether to was internally or externally caused
Determination depends on three factors: distinctiveness, consensus, consistency
Internally Caused: those that are believed to be under the personal control of the individual
Externally Caused: resulting from outside causes
Fundamental Attribution Error: we have a tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors
Self-Serving bias: individuals attribute their own success to internal factors
Selective Perception: any characteristic that makes a person, object, or event stand out will increase the probability that it will be perceived
Halo Effect: occurs when we draw a positive general impression based in a single characteristic
Horns Effect: the tendency to draw a negative general impression about an individual based on a single characteristic
Contrast Effects: We do not evaluate a person in isolation; our reaction to one person is influenced by other persons we have already encountered
Stereotyping: judging someone based on one’s perception of the group to which that person belongs
Self-fulfilling Prophecy (Pygmalion effect): characterizes the fact that people’s expectations determine their behavior; expectations become reality
Performance Evaluation: An employee’s performance appraisal is very much dependent upon the perceptual process
Social media: About four in ten organizations use social media or online searches to screen applicants for jobs; research supports the social media decision-making bias link
Potential Remedies: AI-assisted performance assessments; Other decision-support systems
Decision Making: occurs as a reaction to a problem
Steps in the Rational Decision-Making Model
1. Define the problem
2. Identify the decision criteria
3. Allocate weights to the criteria
4. Develop the alternatives
5. Evaluate the alternatives
6. Select the best alternative
Decision Maker: has complete information; is able to identify all the relevant options in an unbiased manner
Bound Rationality: Most people respond to a complex problem by reducing it to a level at which it can be readily understood
Intractable problem: a problem that may change entirely or become irrelevant before we finish the process of organizing our thoughts, gathering information, analyzing the information, and making judgments or decisions
Intuitive decision making: occurs outside conscious thought; it relies on holistic associations, or links between disparate pieces of information, is fast, and is affectively charged, meaning it usually engages the emotions
Overconfidence Bias: individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability
Anchoring Bias: fixating on initial information as a starting point and failing to adequately adjust for subsequent information
Confirmation Bias: type of selective perception.
- Seek out information that reaffirms past choices, and discount information that contradicts past judgments
Availability Bias: tendency for people to base judgments on information that is readily available
Escalation of Commitment: staying with a decision even when there is clear evidence that it’s wrong
Randomness Error: our tendency to believe we can predict the outcome of random events
Risk Aversion: the tendency to prefer a sure thing instead of a risky outcome
Hindsight Bias: the tendency to believe falsely that one has accurately predicted the outcome of an event, after that outcome is actually known
Organizational Constraints: Performance evaluation systems, reward systems, formal regulations, time constraints, historical precedents, decision-making in times of crisis
Utilitarianism: decisions are made solely on the basis of their outcomes or consequences (the greatest good for the greatest number)
Focus on rights: calls on individuals to make decisions consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights
Behavioral ethics: an area of study that analyzes how people behave when confronted with ethical dilemmas.
Whistleblowers: someone who recognizes a problem and source and speaks up about it
Creativity: the ability to produce novel and useful ideas
Motivation: the processes that account for an individual’s intensity, direction, and persistence of effort toward attaining a goal
Three Key Elements of Motivation:
- Intensity: concerned with how hard a person tries
- Direction: the orientation that benefits the organization
- Persistence: a measure of how long a person can maintain their effort
Maslow’s Hierarchy of Needs: Physiological, Safety-Security, Social-Belongingness, Estem, Self-Actualization
McClelland’s Theory of Needs:
- Need for Achievement (nAch): drive to excel, to achieve in relation to a set of standards, to strive to succeed
- Need for Power (nPow) : need to make others behave in a way that they would not have behaved otherwise
- Need for Affiliation (nAfl): desire for friendly and close interpersonal relationships
Self-determination Theory (SDT): employees’ well-being and performance are influenced by the nature of their motivation for certain job activities
Cognitive Evaluation Theory: when people are paid for work, it feels less like something they want to do and more like something they have to do
Self-concordance theory: considers how strongly people’s reasons for pursuing goals are consistent with their interests and core values
Regulatory focus theory: people differ in the way they regulate their thoughts and behaviors during goal pursuit
Two Categories of Regulatory Focus Theory: Promotion focus, Prevention focus
Job Engagement: the investment of an employee’s physical, cognitive, and emotional energies into job performance
Reinforcement theory: behavior is a function of its consequences
Operant conditioning theory: people learn to behave to get something they want or to avoid something they don’t want
Social-learning theory: we can learn through both observation and direct experience
Expectancy theory: a tendency to act in a certain way depends on an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual
Three Relationships: Effort-performance relationship, performance-reward relationship, rewards-personal goals relationship
Goal-setting theory: intentions to work toward a goal are considered a major source of work motivation
Goals: direct attention, mobilize effort, encourage persistence, facilitate the development of strategy
Goal Origins: Self-set goals can lead to greater employee enthusiasm, whereas supervisor-set goals may lead to heightened anxiety and perceptions of uncertainty and threat
Goal Characteristics: Specific goals increase performance; Difficult goals, when accepted, result in higher performance than easy goals
Factors influencing the goals-performance relationship: Goal commitment, task characteristics, feedback, goal orientation, goal conflict
Management by objectives (M BO): a program that encompasses specific goals, participative set, for an explicit time period, with feedback on goal progress
Self-efficacy theory: an individual’s belief that he or she is capable of performing a task
Increasing Self-Efficacy: enactive mastery, vicarious modeling, verbal persuasion, arousal
Pygmalion effect: A form of self-fulfilling prophecy—believing in something can make it true
Six Choices in Perceiving Inequity: Change inputs, Change outcomes, Distort perceptions of self, distort perceptions of others, choose a different referent, leave the field
Justice Outcomes: All the types of justice discussed have been linked to higher levels of task performance and citizenship
Promoting Justice: Adopting strong justice guidelines in an attempt to mandate certain managerial behavior isn’t likely to be universally effective
Culture and Justice: Inputs and outcomes are valued differently in various cultures