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Ch 6 Perception and Individual Decision Making
MGMT Organizational Behavior UVU
27
Management
Undergraduate 3
09/15/2015

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Term
perception
Definition
A process by which

individuals organize and interpret their

sensory impressions in order to give

meaning to their environment.
Term
attribution theory
Definition
An attempt to

determine whether an individual’s

behavior is internally or externally

caused.
Term
fundamental attribution error
Definition
The

tendency to underestimate the

influence of external factors and

overestimate the influence of internal

factors when making judgments about

the behavior of others.
Term
self-serving bias
Definition
The tendency for

individuals to attribute their own

successes to internal factors and put

the blame for failures on external

factors.
Term
selective perception
Definition
The tendency

to selectively interpret what one

sees on the basis of one’s interests,

background, experience, and attitudes.
Term
halo effect
Definition
The tendency to draw a

general impression about an individual

on the basis of a single characteristic.
Term
contrast effect
Definition
Evaluation of a

person’s characteristics that is affected

by comparisons with other people

recently encountered who rank higher

or lower on the same characteristics.
Term
stereotyping
Definition
Judging someone on the

basis of one’s perception of the group

to which that person belongs.
Term
self-fulfilling prophecy
Definition
A situation in

which a person inaccurately perceives

a second person, and the resulting

expectations cause the second person

to behave in ways consistent with the

original perception.
Term
decisions
Definition
Choices made from among

two or more alternatives.
Term
problem
Definition
A discrepancy between

the current state of affairs and some

desired state.
Term
rational
Definition
Characterized by making

consistent, value-maximizing choices

within specified constraints.
Term
rational decision-making model
Definition
A

decision-making model that describes

how individuals should behave in

order to maximize some outcome.
Term
Steps in the Rational Decision-Making Model
Definition
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.
Term
bounded rationality
Definition
A process of

making decisions by constructing

simplified models that extract the

essential features from problems

without capturing all their complexity.
Term
intuitive decision making
Definition
An

unconscious process created out of

distilled experience.
Term
anchoring bias
Definition
A tendency to fixate

on initial information, from which

one then fails to adequately adjust for

subsequent information.
Term
confirmation bias
Definition
The tendency to

seek out information that reaffirms

past choices and to discount

information that contradicts past

judgments.
Term
availability bias
Definition
The tendency for

people to base their judgments on

information that is readily available to

them.
Term
escalation of commitment
Definition
An

increased commitment to a previous

decision in spite of negative

information.
Term
randomness error
Definition
The tendency of

individuals to believe that they can

predict the outcome of random events.
Term
risk aversion
Definition
The tendency to prefer

a sure gain of a moderate amount over

a riskier outcome, even if the riskier

outcome might have a higher expected

payoff.
Term
hindsight bias
Definition
The tendency to

believe falsely, after an outcome of

an event is actually known, that one

would have accurately predicted that

outcome.
Term
utilitarianism
Definition
A system in which

decisions are made to provide the

greatest good for the greatest number.
Term
whistle-blowers
Definition
Individuals who

report unethical practices by their

employer to outsiders.
Term
creativity
Definition
The ability to produce novel

and useful ideas.
Term
three-component model of

creativity
Definition
The proposition that

individual creativity requires expertise,

creative thinking skills, and intrinsic

task motivation.
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