Perceptions, Decisions and Power Flashcards
Why study perceptions and decisions?
- our behavior is based on how we perceive ourselves and our social and physical environment
- > there is no such thing as objective reality
- perceptions profoundly influence communication (e.g.: during conflicts), leadership, job-related attitudes etc.
- everyone makes decisions almost continuously and everyone influences others with their decisions
- > decision making is at the core of management in terms of getting things done how, why, when etc.
Explain perception and the three elements it consists of
- can be defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
- three elements:
- factors in the perceiver e.g.: attitudes, motives, values
- factors in the target e.g.: continuity, similarity, proximity, closure, novelty
- factors in the situation e.g.: social or professional/ work setting
Explain selective attention/ perception and name two famous percetion biases
we cannot take in all the sensory information that is coming at us -> we actually miss a lot of it and only take in bits and pieces; our brains, however, connect these and form a coherent whole based on our personality including our attitudes, emotions, values
-> conclusion: we see what we want to see
famous percetion biases:
- halo effect: tendency for positive impressions of a person/ company/ brand/ product in one area to positively influence one’s opinion or feelings in other areas e.g.: I like him so he must be smart
- contrast effect, e.g.: job applications with extreme differences in quality -> after interviewing a row of VERY unsuitable applicants, a solely unsuitable applicant is considered more suitable
Explain the attribution theory and name the behaviors we distinguish between
= person perception
- provides explanation of the ways in which we judge people differently, depending on the meaning we attribute to a given behavior
we distinguish between:
- internal: behaviours are under our control
- external: behaviours are forced by the situation
- distinctiveness (do I behave differently in different settings?)
- consensus (does everyone face this situation in a similar way?)
- consistency (do I behave the same way over time?)
Explain the actor-observer bias
- is a type of attributional bias that plays a role in how we perceive and interact with other people
= the tendency to attribute one’s own actions to external causes while attributing other people’s behaviors to internal causes
Explain the fundamental attribution error (Stichwort: observer behavior)
actor-observer bias -> observer behavior: attributing error to people themselves rather than to situations
Explain self-serving bias (Stichwort: actor behavior)
actor-observer bias -> actor behavior: tendency to attribute success internally and failure externally
Explain the rational decision-making model and name the underlying problem
- assumes that people will make choices that maximize benefits and minimize costs
- > differentiation between programmed (if the problem has been dealt with before) vs. nonprogrammed decision-making
- problem with the model: bounded rationality:
meaning we do not have complete and unbiased information for identifying and selecting the option with the highest utility
Explain the bounded reality model and its four-step process
- optimizing vs. satisficing (= decision-making strategy or cognitive heuristic that entails searching through the available alternatives until an acceptability threshold is met)
- usage of heuristics
- process:
1. identify problem
2. search for alternatives
3. seek for easily available and visible options
4. accept the first acceptable option
Explain heuristic techniques
approach to problem solving/ self-discovery that employs a practical method that is sufficient for reaching an immediate short-term goal or approximation
Name the nine heuristics in decision-making
- Anchoring
- Availability
- Confirmation
- Escalation of commitment
- Framing
- Hindsight
- Overconfidence
- Randomness
- Representativeness
What is ethical decision making? Explain the ethical decision-making model
- refers to the process of evaluating and choosing among alternatives in a manner consistent with ethical principles
The selection is made on the basis of:
- rewards/ punishment
- authority
- organizational culture
- personal values
- cultural characteristics
- moral intensity
Name two definitions of power
- Power is about the capacity of one party (the agent) to influence another party (the target)
- Power is the discretion and means to enforce your will on others
- > It thus is about influencing others to do what you want them to do (for you).
Name the five bases of power
- Legitimate power
- Reward power
- Coercive power
- Expert power
- Referent power
Explain legitimate power
- legitimate power is what most people think of as authority and is anchored to a formal position or job (e.g.: a manager)
- may be used positively or negatively:
- positively: job performance
- negatively: threatening and demeaning behavior towards those being influenced
- has a slightly positive effect
Explain reward power
- Individuals or organizations have reward power if they can obtain compliance by promising or granting rewards valued by the other party
- > pay-for-performance plans and positive reinforcement practices rely on reward power
- has a slightly positive effect
e. g.: relationship between Barnes & Noble and Starbucks, is an excellent example, since books and coffee are a wonderful combination for many people, and this partnership enables one party to help combat the extinction of brick and mortar bookstores, while at the same time providing books to customers without having to invest in inventory and manage the operation
Explain coercive power
= exercising coercive power is the ability to make use of threats of punishment and deliver actual punishment
- has a slightly negative effect
