Chapter 5 - Perception, individual decision making & creativity

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Performance evaluation

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66 Terms

1

Performance evaluation

________ can be problematic because many shortcuts and subjectiveness is used.

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Risk aversion

________: tendency to prefer a sure gain of a moderate amount over a riskier outcome might have a higher expected payoff.

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3

Reward systems

________ influences decision makers by suggesting to them what choices are preferable in terms of personal payoff.

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4

Hindsight bias

________: tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted the outcome.

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5

Whistle blowers

________: individuals who report unethical practices by their employer to outsiders.

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6

Justice criterion

________: impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs.

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7

rationality

Bounded ________: process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

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8

Behavioral ethics

________: analyzing how people actually behave when confronted with ethical dilemmas.

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9

Halo

________ effect: tendency to draw a general impression about an individual on the basis of a single characteristic.

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10

Randomness

________ error: tendency of individuals to believe that they can predict the outcome of ________ events.

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11

Self fulfilling

________ prophecy: 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.

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12

Decisions

________: choices from among to or more alternatives.

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13

relevant stakeholders

Creative outcomes (innovation): ideas or solutions judged to be novel and useful by ________.

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14

Performance evaluation → managers

________ are strongly influenced in their decision making by the criteria on which they are evaluated.

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15

Attribution theory

________: attempt to determine whether an individuals behavior is internally or externally caused.

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16

Idea generation

________: process of creative behavior that involves developing possible solutions to a problem from relevant information and knowledge.

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17

Information gathering

________: state when possible solutions to a problem incubate in individuals mind.

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18

Perception

________: process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

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19

Selective perception

________: tendency to selectively interpret what one sees on the basis of one's interests, background, experience and attitudes.

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20

current state of affairs

Problem: discrepancy between the ________ and some desired state.

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21

individual differences

Influences on decision making: ________ and organizational constraints.

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22

Fundamental attribution theory

________: tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgements about the behavior of others.

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23

Cultural differences → cultural background

________ can definitely influence the way a decision is being made like in the selection of problems, depth of the analysis, etc.

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24

Contrast effects

________: evaluation of a persons characteristics that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.

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25

Employment interview → perceptual judgements

________ are made that are often inaccurate.

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26

Creativity

________: ability to produce novel and useful ideas.

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27

Problem formulation

________: state of creative behavior which involved identifying problem or opportunity that requires a solution that is as yet unknown.

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28

Availability bias

________: tendency for people to base their judgements on information that is readily available to them.

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29

Intuitive decision making

________: unconscious process created out of distilled experience.

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30

Overconfidence bias

________: overconfident about our abilities and the abilities of others, usually unaware of it.

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31

Rights criterion

________: individuals to make decisions consistent with fundamental liberties and privileges, respecting and protecting basic rights of every individual.

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32

Perception

Process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment

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33

Attribution theory

Attempt to determine whether an individual’s behavior is internally or externally caused

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34

Fundamental attribution theory

Tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgements about the behavior of others

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35

Self-serving bias

Tendency for individuals to attribute their own success to internal factors and put the blame for failures on external factors

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36

Selective perception

Tendency to selectively interpret what one sees on the basis of one's interests, background, experience and attitudes

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37

Halo effect

Tendency to draw a general impression about an individual on the basis of a single characteristic

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38

Contrast effects

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

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39

Stereotyping

Judging someone on the basis of one’s perception of the group to which that person belongs

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40

Self-fulfilling prophecy

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

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41

Decisions

Choices from among to or more alternatives

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42

Problem

Discrepancy between the current state of affairs and some desired state

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43

Rational

Characterized by making consistent, value maximizing choices within specified constraints

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44

Rational decision making model

Decision making model that describes how individuals should behave in order to maximize some outcome

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45

Bounded rationality

Process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity

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46

Intuitive decision making

Unconscious process created out of distilled experience

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47

Overconfidence bias

Overconfident about our abilities and the abilities of others, usually unaware of it

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48

Anchoring bias

Tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information

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49

Confirmation bias

Tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgements

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50

Availability bias

Tendency for people to base their judgements on information that is readily available to them

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51

Escalation of commitment

Increased commitment to a previous decision in spite of negative information

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52

Randomness error

Tendency of individuals to believe that they can predict the outcome of random events

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53

Risk aversion

Tendency to prefer a sure gain of a moderate amount over a riskier outcome might have a higher expected payoff

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54

Hindsight bias

Tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted the outcome

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55

3 ethical decision criteria

Utilitarian criterion, rights criterion and justice criterion

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56

Whistle-blowers

Individuals who report unethical practices by their employer to outsiders

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57

Behavioral ethics

Analyzing how people actually behave when confronted with ethical dilemmas

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58

Creativity

Ability to produce novel and useful ideas

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59

Three-stage model of creativity

Proposition that involves three stages: causes (creative potential and creative environment), creative behavior and creative outcomes (innovation)

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60

Problem formulation

State of creative behavior which involved identifying problem or opportunity that requires a solution that is as yet unknown

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61

Information gathering

State when possible solutions to a problem incubate in individuals mind

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62

Idea generation

Process of creative behavior that involves developing possible solutions to a problem from relevant information and knowledge

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63

Idea evaluation

Process of creative behavior involving the evaluation of potential solutions to problems to identify the best one

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64

Creative potential

Intelligence is related to creative behavior, expertise is the foundation of all creative work

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65

Creative environment

Potential is not enough, you need to be in an environment where creative potential can be realized

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66

Creative outcomes (innovation)

Ideas or solutions judged to be novel and useful by relevant stakeholders

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