Chapter 6
halo effect
The tendency to draw a general impression about an individual on the basis of a single characteristic
rational decision-making model
a decision-making model that describes how individuals should behave in order to maximize some outcome
problem
a discrepancy between the current state of affairs and some desired state
Perception
a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
Bounded rationality
a process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity
Self-fulfilling prophecy
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
utilitarianism
a system in which decisions are made to provide the greatest good for the greatest number
anchoring bias
a tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information
Attribution theory
an attempt to determine whether an individual's behavior is internally or externally caused 3 factors: 1) distinctiveness 2) consensus 3) consistency
escalation of commitment
an increased commitment to a previous decision in spite of negative information
intuitive decision making
an unconscious process created out of distilled experience
intuitive decisions making
an unconscious process created out of distilled experience.
rational
characterized by making consistent, value-maximizing choices within specific constraints
decisions
choices made from among two or more alternatives
contrast effect
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
whistle-blowers
individuals who report unethical practices by their employer to outsiders
stereotyping
judging someone on the basis of one's perception of the group to which that person belongs
confirmation bias
tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgements
Organizational Behavior Theory
studies behavior as it relates to concerns such as absenteeism, turnover, productivity, and performance.
creativity
the ability to produce novel and useful ideas
three-component model of creativity
the proposition that individual creativity requires expertise, creative thinking skills, and intrinsic task motivation.
self-serving bias
the tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors
availability bias
the tendency for people to base their judgements on information that is readily available to them
randomness error
the tendency of individuals to believe that they can predict the outcome of random events
hindsight bias
the tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome
risk aversion
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
selective perception
the tendency to selectively interpret what one sees on the basis of one's interests, background, experience, and attributes
fundamental attribution error
the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgements about the behavior of others