Organizational Behavior and Decision Making

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Organizational behavior and Decision making

This chapter helped me in understanding the process of decision making. It elaborates the factors that impact decision making of an individual and organization. The key factor of any decision is based on perception of an individual. Perception is defined as, “perception is the process by which individual organize and interpret their sensory impressions in order to give meaning to their environment.”(Pearson education, 2009). The understanding of perception is necessary to assess the behavior of an individual

Different factors work differently on the perception of an individual. These factors can be subdivided into three main categories. Firstly, factors in perceiver mind; these factors are crucial in their nature as they vary from person to person. It includes motives, interest, attitude, expectation and experience. Secondly, factors in the situation; which includes time, work and social setting. Thirdly, factors in the target which includes novelty, sound, size, background, proximity and similarity. (Pearson education, 2009)

The chapter unveils the attribution theory which explains the concept of perception. Attribution theory is based on judgment. It is a natural phenomenon that we judge people, and our judgment is based on the assumption that it is caused internally or externally. This determination depends on three things. Distinctiveness, Consensus, Consistency. Distinctiveness is how a different people behave in different situation, if they do; it is because they are caused externally. and if they don't; their behavior is caused internally. Consensus happens when a in a given circumstances every one reacts similarly. The attribution is caused externally, but if it differs from one and another then it is caused by internally. For example if a group of employees are given a same target and one of them haven't complete, it shows that target was achievable and it was not completed because of his tardiness.Consistency is gauged in one's action. If he responds in similar manner over a period of time, despite the change in the situation, the behavior is outcome of internal causes. (Pearson, 2009)

There are certain biases which distort the attribution theory, the fundamental attribution error that people tend to underestimate the external factors and overestimateinternal factors or caused by personality traits. Oppositely individual, give credit to them for the success and blame other in case of failure. This is called self- serving bias. (Robins, 2002).

Individual Application

There are certain errors individual are tend to commit in drawing perception about other.

Selection error is made when we judge see people with how we want to see them. We make judgment on one of their stand out characteristic. The selection is influenced by our own background, experience, interest and attitude.

Halo effect is judging people on single characteristic. It is about drawing conclusion on a single factor.

Contrast effect is another error which is made when we compare people reaction in similar situation. For example for particular job, if applicants tend to give similar answer, the manager is inclining to make contrast error. Projection error is made when is unable to ...