BUAD 309 Chapter 6

________ bias indicates the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors. A) Status quo B) Self-serving C) Distinction D) Congruence E) Anchoring

* Self-serving * Individuals and organizations tend to attribute their own successes to internal factors such as ability or effort, and place the blame for failure on external factors such as bad luck or unproductive co-workers. This is known as a self-serving bias.

Which of the following is a component of the three-component model of creativity? A) expertise B) logical thinking skills C) extrinsic task motivation D) intuition E) analytical skills

* expertise * Expertise is the foundation for all creative work. The potential for creativity is enhanced when individuals have abilities, knowledge, proficiencies, and similar expertise in their field of endeavor.

Which of the following is a shortcut used in judging others by making generalizations? A) hindsight bias B) randomness error C) stereotyping D) illusory superiority E) telescoping effect

* stereotyping * Stereotyping is defined as judging someone on the basis of one's perception of the group to which that person belongs. Relying on this type of generalization helps a person make decisions quickly.

Which of the following is a factor present in a situation which may affect a person's perception? A) similarity B) size C) expectation D) time E) experience

* time* Factors present in a situation which may affect perception are work setting, social setting, and time

The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome is known as the confirmation bias.

*FALSE* The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome is known as the hindsight bias.

________ refers to the tendency of people to draw a general impression about an individual on the basis of a single characteristic. A) Confirmation bias B) Self-serving bias C) Randomness error D) Halo effect E) Hindsight bias

*Halo effect * When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating. A single trait is allowed to influence the overall impression of the person being judged.

________ is a highly complex and highly developed form of reasoning that is based on years of experience and learning. A) Process consultation B) Action research C) Intuition D) Active selection E) Emotional intelligence

*Intuition* Intuition is a highly complex and highly developed form of reasoning that is based on years of experience and learning.

A(n) ________ refers to a discrepancy between the current state of affairs and some desired state. A) problem B) decision C) instinct D) intuition E) perception

* problem* A problem refers to a discrepancy between the current state of affairs and some desired state. Decision making occurs as a reaction to a problem.

Which of the following is an example of externally caused behavior? A) An employee postpones a meeting because he overslept. B) An employee is late to work because of a punctured tire. C) An employee was fired because he violated a company policy. D) An employee was promoted when he achieved more than the assigned objectives. E) An employee closed a sale with an important corporate client because of his excellent negotiation skills.

*An employee is late to work because of a punctured tire.* Externally caused behavior is what we imagine the situation forced the individual to do. For instance, if an employee is late for work, and you attribute his arriving late to an automobile accident or a flat tire, then you are making an external attribution.

Which of the following is an example of internally caused behavior? A) An employee was late for a team meeting because of a heavy downpour. B) An employee was laid off because the company was attempting to cut costs by laying off employees. C) An employee was fired from work because he violated a company policy. D) An employee could not attend an interview because of a delayed flight. E) An employee could not come to work because he met with an accident.

*An employee was fired from work because he violated a company policy. Internally caused behaviors are those we believe to be under the personal control of the individual.

________ explains the ways in which we judge people differently, depending on the meaning we assign to a given behavior. A) Attribution theory B) Equity theory C) Object relations theory D) Attachment theory E) Cultural schema theory

*Attribution theory* Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally caused. Determination however, depends largely on three factors, namely, distinctiveness, consensus, and consistency.

________ bias refers to the tendency for people to base their judgments on information that is easily accessible. A) Anchoring B) Availability C) Overconfidence D) Confirmation E) Hindsight

*Availability* Availability bias refers to the tendency for people to base their judgments on information that is readily available to them.

Johanna Murray, a climate campaigner at The National Footprint Foundation, is known in her organization to be a campaigner of caliber and high performance. She recently worked on a campaign against global warming during which she worked extremely hard to achieve project milestones. However, the campaign failed as it could not achieve the desired objective. Due to this, her manager, Brenda Owens gave her a poor performance appraisal. In the appraisal, Brenda said that Johanna was not motivated and failed to reach out to 25,000 people through Internet media to spread awareness about climate change. Which of the following, if true, weakens Brenda's statement? A) Johanna lacks experience in publicizing campaigns using Internet media. B) Brenda was unable to make time for Johanna to brief her on the tasks involved in carrying out the campaign's media strategy. C) Johanna recently moved from the agriculture campaign to the climate campaign. D) Johanna's previous job involved an extensive amount of researching on environmental issues. E) Brenda is known in the organization to be a fair and unbiased manager.

*Brenda was unable to make time for Johanna to brief her on the tasks involved in carrying out the campaign's media strategy.* Individuals and organizations tend to attribute their own successes to internal factors such as ability or effort, and place the blame for failure on external factors such as bad luck or unproductive co-workers. This is known as a self-serving bias. If Brenda was unable to make time for Johanna to brief her on the tasks involved in carrying out the campaign's media strategy, then this weakens the argument because it shows that it was not entirely Johanna's fault and that Brenda is partly to blame. If Johanna lacks experience in publicizing campaigns using Internet media, it strengthens Brenda's statement. The fact that Johanna recently moved from the agriculture campaign to the climate campaign and that Johanna's previous job involved an extensive amount of researching on environmental issues is irrelevant to Brenda's argument. Brenda's argument is strengthened if she is known to be a fair and unbiased manager because it indicates that her evaluation of Johanna is most likely true.

Alicia Akers works as a marketing executive. She always talks in a high pitch and often draws a lot of attention wherever she is. Which of the following statements best explains the reason behind people noticing Akers? A) Perception of reality depends on the perceiver's past experiences. B) Perception of reality depends on the perceiver's personality. C) Characteristics of the target affect people's perception. D) The time at which we observe behavior affects perception. E) Motives and interests of the perceiver affects perception of behavior.

*Characteristics of the target affect people's perception. Characteristics of the target we observe can affect perception. Loud people are more likely to be noticed in a group than quiet ones. Even extremely attractive or unattractive individuals are more likely to be noticed. Since people do not look at targets in isolation, the relationship of a target to its background influences one's perception of the target.

________ refers to the 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. A) Halo effect B) Contrast effect C) Confirmation bias D) Stereotyping E) Anchoring bias

*Contrast effect* Contrast effect is the 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.

________ refers to staying with a decision even when there is clear evidence it's wrong. A) Escalation of commitment B) Fundamental attribution error C) Randomness error D) Risk aversion E) Availability bias

*Escalation of commitment * Escalation of commitment refers to staying with a decision even when there is clear evidence it's wrong.

The perception of a target is unaffected by the perceiver's personality or past experiences.

*FALSE* A number of factors operate to shape and sometimes distort perception. These factors can reside in the perceiver, in the object, or target, being perceived, or in the context of the situation in which the perception is made.

According to attribution theory, the more consistent a behavior, the more we are inclined to attribute it to external causes.

*FALSE* According to attribution theory, the more consistent a behavior, the more we are inclined to attribute it to internal causes.

According to the attribution theory, if a behavior scores high on consensus and distinctiveness, we tend to consider it as an internally caused behavior.

*FALSE* According to the attribution theory, if a behavior scores high on consensus and distinctiveness, we tend to consider it as an externally caused behavior.

Rational decision making is an unconscious process created from distilled experience.

*FALSE* Intuitive decision making is an unconscious process created from distilled experience.

A person's tendency to believe he/she can predict the outcome of random events is known as the self-serving bias.

*FALSE* Our tendency to believe we can predict the outcome of random events is the randomness error.

A focus on utilitarianism creates an environment that hinders productivity and efficiency.

*FALSE* The first ethical yardstick is utilitarianism, which proposes making decisions solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number. This view dominates business decision making. It is consistent with goals such as efficiency, productivity, and high profits.

The rational decision-making model takes into consideration the fact that all information pertaining to a problem might not be available to the decision maker.

*FALSE* The rational decision-making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility.

The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors is known as the confirmation bias.

*FALSE* The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors is known as the self-serving bias.

The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others is known as the randomness error.

*FALSE* The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others is known as the fundamental attribution error.

A candidate is likely to receive a more favorable evaluation if preceded by mediocre applicants and a less favorable evaluation if preceded by strong applicants. This is an example of the halo effect.

*FALSE* We don't evaluate a person in isolation. Our reaction is influenced by other persons we have recently encountered and this phenomenon is explained by the contrast effect.

The tendency to draw a general impression about an individual on the basis of a single characteristic is known as the contrast effect.

*FALSE* The tendency to draw a general impression about an individual on the basis of a single characteristic is known as the halo effect.

Jeanne Edwards works as a campaign manager at Rainforest Alliance Trust, a forest protection organization in Indonesia. She is currently working on the Palm Oil Campaign which aims at establishing stringent laws against companies which aggravate deforestation to extract palm oil for commercial use. Her role is to establish allies with other forest protection organizations and companies which use eco-friendly products that set good examples for other companies to follow. Jeanne allied with Griffin and Powell, a large multinational company, which, unknown to Jeanne, also has strong ties with local logging groups in Jakarta. Which of the following, if true, would strengthen the argument that Jeanne had an availability bias while establishing an ally with the company? A) Griffin and Powell ensures that all their CSR initiatives on forests are regularly and substantially publicized. B) Jeanne has adequate experience in leading such campaigns. C) Jeanne is well acquainted with various research techniques. D) Jeanne has access to environmental records maintained by the Information Ministry. E) Rainforest Alliance Trust has strong networks with local environmental research organizations.

*Griffin and Powell ensures that all their CSR initiatives on forests are regularly and substantially publicized.* The tendency for people to base their judgments on information that is readily available to them refers to availability bias. If Griffin and Powell ensures that all their CSR initiatives on forests are regularly and substantially publicized, then this supports the argument that Jeanne has an availability bias and made her decision to ally with the company after learning about their CSR initiatives. If Jeanne has adequate experience in leading such campaigns and is well acquainted with various research techniques, it weakens the argument because it would mean that she would tend to be unbiased while making decisions. If Jeanne has access to environmental records maintained by the Information Ministry, it would imply that she has access to a wide range of information and would not make a decision based on readily available information. If the Rainforest Alliance Trust has strong networks with local environmental research organizations, then this would also mean that Jeanne has access to a wide range of information and would not make a decision based on readily available information.

Which of the following statements is true regarding the rational decision-making model? A) It takes into consideration the limited information-processing capability of individuals. B) It involves constructing simplified models without capturing all their complexity. C) It deals with satisficing decisions by seeking solutions that are satisfactory and sufficient. D) It assumes that an individual is able to identify all relevant options in an unbiased manner. E) It is an unconscious decision-making process created from distilled experience.

*It assumes that an individual is able to identify all relevant options in an unbiased manner.* The rational decision-making model relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility.

Which of the following statements is true regarding a contrast effect? A) It attributes success to internal factors and blames failure on external factors. B) It involves judging a person on the basis of perception of the group to which he or she belongs. C) It involves evaluation of a person's features based on comparison with another person. D) It indicates a tendency to draw a general conclusion about a person on the basis of one feature. E) It indicates a tendency to fixate on initial information and failing to accept subsequent data.

*It involves evaluation of a person's features based on comparison with another person.* Contrast effect is the 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.

Which of the following is true of intuitive decision making? A) It is a slow process of decision making. B) It is devoid of emotions. C) It is the most rational way of making decision. D) It occurs within conscious thought. E) It involves making decisions based on distilled experience.

*It involves making decisions based on distilled experience.* Intuition refers to an unconscious process created out of distilled experience. It occurs outside conscious thought and relies on holistic associations, or links between disparate pieces of information. It is fast and is affectively charged, meaning it usually engages the emotions.

Janice is late for work each day by about ten minutes. How would attribution theory describe this behavior? A) It shows consensus. B) It shows similarity. C) It shows consistency. D) It shows reliability. E) It shows distinctiveness.

*It shows consistency. * Consistency in a person's actions means that the person responds the same way over time to the same situation. An employee who hasn't been late for several months is perceived differently than an employee who is late two or three times a week. Janice demonstrates high consistency in tardiness.

Johanna Murray, a climate campaigner at The National Footprint Foundation, is known in her organization to be a campaigner of caliber and high performance. She has strong networks with the ministry of environment and allies with several environmental organizations in the country. Over the years, she has gained substantial knowledge on the issue of climate change. However, recently when she was asked by her manager to prepare a consolidated report on a conference she attended on climate change, it reflected major loopholes and limited information from the conference. Which of the following, if true, substantiates that Johanna had an anchoring bias? A) Johanna was moved by the arguments put forth by the first speaker. B) Johanna participated actively in the interactive session conducted at the end. C) The speakers at the conference consisted of renowned environmental scientists and activists. D) Johanna has attended several conferences where the panel consisted of eminent scientists. E) Johanna was shocked by the startling facts shown during the concluding session.

*Johanna was moved by the arguments put forth by the first speaker.* A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information refers to an anchoring bias. If Johanna was moved by the arguments put forward by the first speaker, then this supports the argument that she had an anchoring bias because this may have led her to prepare a report which had limited information and focused on initial parts of the conference. If Johanna participated actively in the interactive session conducted at the end, then this works against the argument. It is irrelevant to the argument that the speakers at the conference consisted of renowned environmental scientists and activists. If Johanna has attended several conferences where the panel consisted of eminent scientists, works against the argument because it indicates that she is used to attending similar conferences and not overwhelmed by the presence of eminent scientists. Hence, this weakens the argument. Johanna being shocked by the startling facts shown during the concluding session weakens the argument as it shows that she did not fixate only on the information presented at the beginning of the conference.

Amanda Winter used to work as a public engagement coordinator at Safe Food Alliance, until three months ago when her manager, Laura Morris, promoted her to the position of a sustainable food campaigner. However, soon after this, Laura noticed that Amanda was facing major difficulties in achieving campaign milestones and the project was falling behind schedule due to her lack of performance. Which of the following, if true, would most strengthen the argument that Laura was influenced by the halo effect in her decision to promote Amanda? A) Laura is known to micromanage most of her projects. B) Laura uses cultural stereotyping in order to speed up the process of decision making. C) Laura has made good hiring decisions in the past and is known to be an unbiased judge of character. D) Laura sat in on only one of Amanda's presentations prior to giving her the promotion. E) Laura worked closely with Amanda over a period of 8 months.

*Laura sat in on only one of Amanda's presentations prior to giving her the promotion.* When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating. A single trait is allowed to influence the overall impression of the person being judged. The fact that Laura sat in on only one of Amanda's presentations prior to giving her the promotion indicates that she was influenced by the skills that Amanda displayed during that single encounter. Her decision was not based on a comprehensive evaluation of Amanda's abilities and performance. The fact that Laura is known to micromanage most of her tasks weakens the argument that Laura experienced the halo effect. The fact that Laura uses cultural stereotyping in order to speed up the process of decision making is irrelevant to the argument because it talks about a halo effect and not cultural stereotyping. If Laura has made good hiring decisions in the past and is known to be an unbiased judge of character, it weakens the argument that she was influenced by the halo effect. If Laura worked closely with Amanda, she is most likely to know her strengths and weaknesses and would not be influenced by the halo effect.

Naomi Fisher, a sales manager at Pure, a water purifier company, had a new member, Leah Marshall join her team. Though during Leah's interview, Naomi felt she would be a productive sales executive, her performance has often been below the mark. Consistently in the past three months, Leah has been unable to reach her targets and is falling substantially behind on her annual targets. Naomi assumes that Leah is not determined and motivated enough to do what it takes. Which of the following, if true, weakens Naomi's assumption? A) Leah has often arrived late for team meetings conducted in the morning. B) Leah has been assigned a sales territory where consumers are from low income groups. C) Leah has good interpersonal skills and gets along well with her customers. D) Research showed that the company's largest competitor had a lower turnover than they did. E) Naomi recently received feedback from other team members that Leah is often uncooperative

*Leah has been assigned a sales territory where consumers are from low income groups.* The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others refers to the fundamental attribution error. If Leah is assigned a sales territory where consumers are from low income groups, this shows that she does not necessarily lack the ability to perform and that external constraints are the reason for her underperformance. It thus weakens Naomi's assumption. If Leah often arrives late for meetings, it strengthens Naomi's assumption because it indicates that Leah is not motivated. Good interpersonal skills do not necessarily mean that a person is motivated, and hence, this does not weaken Naomi's assumption. Research showing that the company's largest competitor had a lower turnover than them is irrelevant to the assumption.

Laura Simpson, a campaign manager at a child rights organization in Jakarta, planned a marathon for celebrities to raise money for underprivileged children. Though all arrangements for the event had been made, a few days before the event she realized that on the same day there was a political rally happening in the city which will block access to the route on which the marathon was supposed to be undertaken. In such a situation, what is Simpson, who suffers from a self-serving bias, most likely to say? A) I did not do sufficient research on public events in the city. B) My colleagues did not inform me about the rally. C) The director had warned me of this. I should have known better. D) I should have weighed feasibility options for the event. E) I should have established better contacts to know about this update.

*My colleagues did not inform me about the rally.* A self-serving bias places the blame for failure on external factors such as bad luck or unproductive co-workers, rather than taking personal responsibility for the failure.

Which of the following statements is true regarding perception? A) Perception of reality is independent of one's personality. B) Our perception of a target is not affected by the context of the situation in which the perception is made. C) Our perception of reality can be different from the objective reality. D) Our perception of reality is independent of our past experiences. E) We form a perception of a target by looking at it in isolation.

*Our perception of reality can be different from the objective reality.* Our perception of reality can be different from the objective reality. Our perception of reality is affected by our personality, past experiences , and the context of the situation in which the perception is made.We do not look at targets in isolation.

________ is the process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. A) Sensation B) Impression C) Apprehension D) Attribution E) Perception

*Perception * Perception is defined as a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. People's behavior is based on their perception of what reality is, and not on reality itself. What a person perceives can be substantially different from objective reality.

An individual's perception of reality can be substantially different from objective reality.

*TRUE* Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. However, what we perceive can be substantially different from objective reality.

Attribution theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior.

*TRUE* Attribution theory tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior.

Escalation of commitment refers to staying with a decision even when there is clear evidence it's wrong

*TRUE* Escalation of commitment refers to staying with a decision even when there is clear evidence it's wrong.

Stereotyping helps individuals make quick decision through generalizations.

*TRUE* Judging someone on the basis of one's perception of the group to which that person belongs is known as stereotyping. For individuals, relying on generalizations every day helps them make decisions quickly; they are a means of simplifying a complex world.

People's behavior is based on their perception of what reality is, not on reality itself.

*TRUE* People's behavior is based on their perception of what reality is, not on reality itself. The world as it is perceived is the world that is behaviorally important.

In an interview, information elicited early from an interviewee carries greater weight than information elicited later.

*TRUE* Research shows we form impressions of others within a tenth of a second, based on our first glance. If these first impressions are negative, they tend to be more heavily weighted in the interview than if that same information came out later. Most interviewers' decisions change very little after the first 4 or 5 minutes of an interview. As a result, information elicited early in the interview carries greater weight than does information elicited later.

Anchoring bias occurs because our mind appears to give a disproportionate amount of emphasis to the first information it receives.

*TRUE* The anchoring bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information. It occurs because our mind appears to give a disproportionate amount of emphasis to the first information it receives.

Women are more likely than men to overanalyze problems before making a decision and to rehash a decision once made.

*TRUE* Twenty years of study find women spend much more time than men analyzing the past, present, and future. They're more likely to overanalyze problems before making a decision and to rehash a decision once made.

Extremely attractive or unattractive individuals are most likely to be noticed in a group. Which of the following statements best describes the reason behind it? A) Our perception of reality depends on our past experiences. B) Our perception of reality depends on our personality. C) We don't look at targets in isolation. D) The time at which we see an object can influence our perception of the object. E) Our motives and expectations affect our perception of a target.

*We don't look at targets in isolation.* Characteristics of the target we observe can affect what we perceive. Loud people are more likely to be noticed in a group than quiet ones. So, too, are extremely attractive or unattractive individuals. Because we don't look at targets in isolation, the relationship of a target to its background influences our perception of the target.

According to the attribution theory, which of the following behaviors is most likely to be attributed to an external cause? A) a behavior that scores high on consensus B) a behavior that scores low on distinctiveness C) a behavior that scores high on consistency D) a behavior that scores low on traceability E) a behavior that scores high on rigidity

*a behavior that scores high on consensus* According to the attribution theory, if a behavior scores high on consensus, we tend to attribute it to external causes.

The ________ bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information. A) hindsight B) overconfidence C) anchoring D) availability E) self-serving

*anchoring * The anchoring bias is a tendency to fixate on initial information and fail to adequately adjust for subsequent information. It occurs because our mind appears to give a disproportionate amount of emphasis to the first information it receives.

Which of the following types of biases is most likely to play a significant role during a negotiation? A) impact bias B) normalcy bias C) distinction bias D) anchoring bias E) status quo bias

*anchoring bias* Any time a negotiation takes place, so does anchoring. For example, when a prospective employer asks how much you made in your prior job, your answer typically anchors the employer's offer.

When individuals observe another person's behavior, they attempt to determine whether it is internally or externally caused. Which of the following attempts to explain this phenomenon? A) pygmalion effect B) emotional dissonance C) attribution theory D) two-factor theory E) framing effect

*attribution theory * Attribution theory is an attempt to determine whether an individual's behavior is internally or externally caused. We judge people differently, depending on the meaning we attribute to a given behavior. Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally caused.

A manager doing performance appraisals gives more weight to recent employee behaviors than to behaviors of 6 or 9 months earlier. This shows that the manager's perception is affected by a(n) ________ bias. A) self-serving bias B) availability C) impact D) distinction E) hindsight

*availability* Availability bias refers to the tendency for people to base their judgments on information that is readily available to them. The availability bias explains why managers doing performance appraisals give more weight to recent employee behaviors than to behaviors of 6 or 9 months earlier.

A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity is known as ________. A) optimal decision making B) intuitive decision making C) bounded rationality D) active selection E) incremental decision making

*bounded rationality * The human mind cannot formulate and solve complex problems with full rationality. Thus, they operate within the confines of bounded rationality. The process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity is known as bounded rationality.

The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments is known as a(n) ________ bias. A) distinction B) omission C) impact D) confirmation E) anchoring

*confirmation* The confirmation bias represents a specific case of selective perception. People seek out information that reaffirms past choices, and discount information that contradicts them. They also tend to accept at face value information that confirms our preconceived views, while we are critical and skeptical of information that challenges these views.

According to the attribution theory, if everyone who faces a similar situation responds in the same way, we can say the behavior shows ________. A) distinctiveness B) tractability C) consensus D) consistency E) manageability

*consensus* If everyone who faces a similar situation responds in the same way, we can say the behavior shows consensus.

If a person responds to a particular situation in the same way over a long time period, then the attribution theory states that the behavior demonstrates ________. A) distinctiveness B) consensus C) consistency D) discontinuity E) traceability

*consistency * Consistency in a person's actions means that the person responds in the same way to the same situation over a long period of time. For instance, an employee who has not been late for several months is perceived differently from an employee who is late two or three times a week. The regularly late employee demonstrates high consistency in tardiness

Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally caused. That determination, however, depends largely on three factors. Which of the following is one of these three factors? A) traceability B) consistency C) verifiability D) relatedness E) affect intensity

*consistency* Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally caused. Determination however, depends largely on three factors, namely, distinctiveness, consensus, and consistency. Page Ref: 168

Jessica recently joined a new company and was first introduced to Michelle, her cubicle neighbor. Michelle came across as amiable and cheerful. During lunch she met another colleague, Carrie, who did not come across as friendly as Michelle. In this situation, Jessica's interpretation of Carrie's personality is most likely to be affected by a ________. A) confirmation bias B) contrast effect C) fundamental attribution error D) self-serving bias E) bandwagon effect

*contrast effect * Contrast effect is the 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.

Which of the following terms refers to choices made from among two or more alternatives? A) inquiry B) decision C) perception D) intuition E) rationalization

*decision* A decision refers to choices made from among two or more alternatives. Individual decision making is thus an important part of organizational behavior. But the way individuals make decisions and the quality of their choices are largely influenced by their perceptions.

What is the first step in the rational decision-making model? A) developing alternatives B) defining the problem C) identifying the decision criteria D) weighing the decision criteria E) evaluating the alternatives

*defining the problem * The rational decision-making model follows a six-step process. The steps are: 1) Defining the problem; 2) Identifying the decision criteria; 3) Allocating weights to the criteria; 4) Developing the alternatives; 5) Evaluating the alternatives; 6) Selecting the best alternative.

Anne Warner, a climate campaigner at an environmental organization, is in charge of implementing a campaign activity where she needs to increase the use of renewable energy in the villages of Vietnam. For her project, she uses the rational decision-making model to implement activities. She has just completed identifying an appropriate criteria for decision making and has allocated weights to the criteria. Which of the following is Warner most likely to undertake next according to the model? A) develop options of wind, solar, and hydro energy B) analyze the problems of the project C) determine goals of the project D) select hydro energy as the best option E) weigh advantages between solar and wind energy

*develop options of wind, solar, and hydro energy* The rational decision-making model follows a six-step process. The steps are: 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. Anne should now develop various alternative solutions.

According to the attribution theory, ________ is one the three main factors which attempts to determine an individual's behavior. A) distinctiveness B) perverseness C) flexibleness D) resilience E) timorousness

*distinctiveness* Attribution theory suggests that when we observe an individual's behavior, we attempt to determine whether it was internally or externally caused. Determination, however, depends largely on three factors, namely, distinctiveness, consensus, and consistency.

With reference to the attribution theory, which of the following terms indicates the extent to which an individual displays different behaviors in different situations? A) flexibility B) integrity C) consensus D) consistency E) distinctiveness

*distinctiveness* Distinctiveness is one of three determining factors that contribute to attribution theory perceptions. Distinctiveness refers to whether an individual displays different behaviors in different situations.

Which of the following is referred to as a halo effect? A) attributing our own successes to internal factors and failures to external factors B) judging someone on the basis of our perception of the group to which he or she belongs C) interpreting a person's behavior in comparison to others recently encountered D) drawing a general impression about an individual on the basis of a single characteristic E) underestimating the influence of external factors when making judgments about people

*drawing a general impression about an individual on the basis of a single characteristic* We tend to draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance. This is known as halo effect.

During team meetings Amber Downing always notices that Rhona Law tends to ask innumerable questions and suggests ideas at each discussion. However, Law stands out in the meetings only because she is the only one making suggestions. If both of them were part of team meetings where almost all members made suggestions and asked questions, Law would not have drawn as much attention from Downing. Which of the following factors has most likely influenced Downing's perception of Law? A) expectation B) interest C) past experience D) context E) motive

*expectation* A number of factors operate to shape and sometimes distort perception. These factors can reside in the perceiver, in the object or target being perceived, or in the context of the situation in which the perception is made.

Monica Walden feels that people who use plastic bags are insensitive toward the environment. She believes that people have a certain obligation toward their environment and should take it upon themselves to protect and preserve it. Which of the following factors has most likely influenced Walden's perception of people? A) location B) time C) characteristic of the target D) expectation E) context

*expectation* A number of factors operate to shape and sometimes distort perception. These factors can reside in the perceiver, in the object or target being perceived, or in the context of the situation in which the perception is made.

Which of the following terms best describes the tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others? A) fundamental attribution error B) bandwagon effect C) contrast effect D) emotional dissonance E) self-fulfilling prophecy

*fundamental attribution error * The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others is referred to as the fundamental attribution error

Johanna Springer, who works as a sales executive at Pascal's Bank, is upset at the way her manager, Emma Womack, always calls her in for one-on-one meetings to discuss her underperformance. Though Springer makes a higher number of sales calls and works longer hours than last year, her sales figures are still low. She knows that the main reason behind her underperformance is the recent economic meltdown in the country. However, her manager feels that Springer's underperformance is the result of her laid back attitude and has nothing to do with external factors. In this situation, Womack's behavior is characterized by a(n) ________. A) anchoring bias B) contrast effect C) fundamental attribution error D) self-fulfilling prophecy E) pygmalion effect

*fundamental attribution error * The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others is referred to as the fundamental attribution error.

William Davies, a guest relations executive at a five star deluxe hotel, regularly interacts with bureaucrats, politicians, celebrities, and other prosperous individuals. He feels that all rich people are kind, hardworking, and friendly. Which of the following is Davies most likely to be characterized by? A) confirmation bias B) self-serving bias C) randomness error D) halo effect E) hindsight bias

*halo effect * When we draw a general impression about an individual on the basis of a single characteristic, such as intelligence, sociability, or appearance, a halo effect is operating. A single trait is allowed to influence the overall impression of the person being judged.

Janice Yoder works in an environmental campaigning organization and often needs to interact with a large team for project implementation activities. However, she always finds it difficult to work as a part of a team. She always seems to have major disagreements with team members which lead to antagonistic relations between them. Though she has moved from one team to another, her relations with colleagues always seem to be hostile and cold. How would the attribution theory describe this behavior? A) low on consensus B) high on reliability C) high on adaptability D) high on consistency E) low on distinctiveness

*high on consistency* Consistency in a person's actions means that the person responds the same way over time to the same situation. Yoder in this situation has had hostile relationships with colleagues over a long period of time. Thus, her behavior shows consistency.

The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome is known as a(n) ________ bias. A) self-serving B) confirmation C) impact D) hindsight E) anchoring

*hindsight* The hindsight bias is the tendency to believe falsely, after the outcome is known, that one would have accurately predicted it. The hindsight bias reduces our ability to learn from the past. It lets us think we are better predictors than we are and can make us falsely confident.

David Myers is of the opinion that people who drive SUVs are rash drivers. He feels that people driving SUVs do not respect road rules and always violate traffic regulations. What personal factor is most likely to be affecting Myers' perception of SUV drivers? A) his financial background B) his expectations C) his interest D) his motive E) his personality

*his expectations* Myers expects all SUV drivers to be dangerous. His expectations are what color his perception. The example doesn't explain why he expects this, although it could be from a previous bad experience.

Which of the following is a factor present in a perceiver which may affect perception? A) interest B) similarity C) sound D) proximity E) background

*interest* Factors present in a perceiver which may affect perception are attitudes, motives, interests, experience, expectations.

The three-component model of creativity proposes that individual creativity essentially requires expertise, creative thinking skills, and ________. A) external locus of control B) intrinsic task motivation C) emotional intelligence D) positivity offset E) selective perception

*intrinsic task motivation* The three-component model of creativity proposes that individual creativity essentially requires expertise, creative thinking skills, and intrinsic task motivation.

Phyllis Stintson needs to decide whether to start a campaign against deforestation in Indonesia. Though her research team has provided substantial information on the high feasibility of the project, Stintson does not go ahead with the project. Stintson's decision is most likely influenced by which of the following if she made the decision by drawing unconscious references from several different experiences in the past? A) optimization B) intuition C) fundamental attribution error D) framing effect E) anchoring bias

*intuition* Intuition is a highly complex and highly developed form of reasoning that is based on years of experience and learning. The key to using intuition in decision making is neither to abandon nor to rely solely on intuition, but to supplement it with evidence and good judgment.

Megan Cardova, who works as a sales executive at Orbit Bank, has been failing to meet her sales targets for the last 10 months. Recently, she had a face-to-face discussion with her manager where she said that the unrealistic targets were the reason for her underperformance. The manager, however, noticed that all the other team members were achieving their targets and sometimes were even achieving more than the set numbers. Which of the following is Cardova's behavior most likely to be characterized by according to the attribution theory? A) low distinctiveness B) high rigidity C) high traceability D) low consensus E) low consistency

*low consensus* If everyone who faces a similar situation responds in the same way, we can say that the behavior shows consensus.

20) According to the attribution theory, if a behavior scores ________, we tend to attribute it to external causes. A) low on distinctiveness B) low on adaptability C) low on consistency D) high on stability E) low on consensus

*low on consistency* Consistency indicates if the person responds the same way over time. The less consistent the behavior, the more we are inclined to attribute it to external causes.

Samantha is never late for work. But last Monday she arrived an hour late because of heavy traffic. According to the attribution theory, Samantha's behavior on that day scores ________. A) high on reliability B) low on distinctiveness C) high on traceability D) low on consistency E) high on stability

*low on consistency* If a person responds the same way over time then his or her behavior displays consistency. Since Samantha is generally in the office on time, her behavior scores low on consistency.

According to the attribution theory, if a behavior scores ________, we tend to attribute it to internal causes. A) low on consistency B) high on rigidity C) low on distinctiveness D) high on consensus E) low on conformity

*low on distinctiveness* Distinctiveness refers to whether an individual displays different behaviors in different situations. According to the attribution theory, if a behavior scores low on distinctiveness, we tend to attribute it to internal causes.

Which of the following is a factor present in a target which may affect a person's perception? A) attitude B) motive C) interest D) novelty E) experience

*novelty* Factors present in a target which may affect perception are novelty, motion, sound, size, background, proximity, and similarity.

When two people witness something at the same time and in the same situation yet interpret it differently, factors that operate to shape their perceptions reside in the ________. A) perceivers B) target C) timing D) context E) situation

*perceivers * Since the time and situation are the same, the factors that operate to shape perception must be in the perceivers themselves. Personal characteristics that can affect perception include perceiver attitudes, personality, motives, interests, past experiences, and expectations.

Which of the following is a decision-making model that describes how individuals should behave in order to maximize some outcome? A) rational decision-making model B) flexible decision-making model C) distributive decision-making model D) associative decision-making model E) integrative decision-making model

*rational decision-making model* Rational decision-making model refers to a decision-making model that describes how individuals should behave in order to maximize some outcome. It relies on a number of assumptions, including that the decision maker has complete information, is able to identify all the relevant options in an unbiased manner, and chooses the option with the highest utility.

Emily Boyce, a project manager at an insurance firm, regularly satisfices while making decisions. She often comes across complicated problems which would take a long time to resolve. Due to the pressing deadlines, she often meets project goals by satisficing a large number of her decisions. Which of the following is Boyce most likely to do? A) seek complete information while making decisions B) search for solutions that are reasonable C) identify all possible options to solutions D) analyze each alternative in an unbiased manner E) choose the optimal solution to each problem

*search for solutions that are reasonable* The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. In addition, many problems likely do not have an optimal solution because they are too complicated to be broken down into the parameters of the rational decision-making model. Hence, people satisfice, that is, they seek solutions that are satisfactory and sufficient.

With reference to decision making, which of the following does satisficing involve? A) weighing each criteria before making a decision B) seeking solutions that are satisfactory and sufficient C) scrutinizing and evaluating each alternative in detail D) selecting the best option with the highest utility E) finding optimal solutions to problems

*seeking solutions that are satisfactory and sufficient* ) The limited information-processing capability of human beings makes it impossible to assimilate and understand all the information necessary to optimize. In addition, many problems likely do not have an optimal solution because they are too complicated to be broken down into the parameters of the rational decision-making model. Hence, people satisfice, that is, they seek solutions that are satisfactory and sufficient.

You are more likely to notice a car like your own due to ________. A) stereotyping B) self-serving bias C) halo effect D) selective perception E) contrast effect

*selective perception * Because we can't observe everything going on about us, we engage in selective perception. Selective perception allows us to "speed-read" others. Due to selective perception, we are more likely to notice cars like our own.

Individuals engage in ________ because it is impossible for them to assimilate everything they see and can take in only certain stimuli. A) selective perception B) cognitive dissonance C) self-serving bias D) emotional labor E) self-fulfilling prophecy

*selective perception* Any characteristic that makes a person, an object, or an event stand out will increase the probability we will perceive it. Since we can't observe everything going on about us, we engage in selective perception.

Harriet Kirby, a fund raising manager at a women's rights organization, experienced a bad incident last year with the public relations manager of a banking company who had committed to sponsor a charity event. The bank backed out at the last minute. This year, when a renowned international bank executive showed interest in sponsoring the organization's upcoming annual event, Kirby rejected their participation. She felt that banks have a casual approach toward charity events, and it is risky to involve them in the event. Which of the following is Kirby most likely to be characterized by? A) selective perception B) cognitive dissonance C) self-serving bias D) bandwagon effect E) self-fulfilling prophecy

*selective perception* Because we cannot assimilate all that we observe, we take in bits and pieces. But we don't choose randomly; rather, we select according to our interests, background, experience, and attitudes. This is known as selective perception.

Sarah Covington, a sales manager at Synergy Corporation Bank, often keeps low expectations of her team. She feels that they are under qualified for their job and do not have substantial experience to sell a large number of accounts. Covington's team does not feel motivated enough and invariably underperforms and misses targets on a regular basis. Which of the following concepts best explains Covington's team's poor performance? A) hindsight bias B) self-fulfilling prophecy C) confirmation bias D) contrast effect E) bandwagon effect

*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 is known as a self-fulfilling prophecy.

Which of the following terms refers to 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? A) confirmation bias B) self-fulfilling prophecy C) attribution theory D) contrast effect E) bandwagon effect

*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 is known as a self-fulfilling prophecy.

Jane Allen, a campaign manager at a non-profit organization, often takes full credit for project successes even when her team members' contributions play a big role in achieving milestones. However, when projects receive setbacks, she blames her team members and sometimes states that the situation was beyond her control. Allen's behavior is an example of a(n) ________ bias. A) impact B) anchoring C) confirmation D) distinction E) self-serving

*self-serving* Individuals and organizations tend to attribute their own successes to internal factors such as ability or effort, and place the blame for failure on external factors such as bad luck or unproductive co-workers. This is known as a self-serving bias.

Judging someone on the basis of one's perception of the group to which the person belongs is called ________. A) confirmation bias B) stereotyping C) framing effect D) self-serving bias E) bandwagon effect

*stereotyping * Stereotyping is defined as judging someone on the basis of one's perception of the group to which that person belongs. Relying on this type of generalization helps a person make decisions quickly.

Rose Buffay needs to give a presentation to the board of directors of her organization next week. She knows that her presentation will play an important role in her performance appraisal in the next quarter. However, she knows that two of her colleagues, John Roy and Keith Mathews, will also be giving a presentation on the same issue. She is nervous because she believes that men have a better flair for giving presentations. Buffay's perception of John and Keith is most likely characterized by ________. A) a halo effect B) a contrast effect C) a hindsight bias D) stereotyping E) a confirmation bias

*stereotyping* When a person engages in stereotyping, they are judging someone on the basis of one's perception of the group to which that person belongs. The teacher is judging all the presenters by their gender group

A manager believes that he should not hire older workers because they can't learn new skills. This belief is an example of ________. A) an anchoring bias B) a fundamental attribution error C) a confirmation bias D) a self-serving bias E) stereotyping

*stereotyping* When we judge someone on the basis of our perception of the group to which he or she belongs, we are using the shortcut called stereotyping.

According to the concept of ________, decisions are made solely on the basis of their outcomes, ideally to provide the greatest good for the greatest number. A) utilitarianism B) selective perception C) self-fulfilling prophecy D) halo effect E) contrast effect

*utilitarianism * According to the ethical yardstick of utilitarianism, decisions are made to provide the greatest good for the greatest number. In this system, decisions are made solely on the basis of their outcomes.

Individuals who report unethical practices by their employer to outsiders are known as ________. A) change agents B) boundary spanners C) early adopters D) whistle-blowers E) free riders

*whistle-blowers* Whistle-blowers are individuals who reveal an organization's unethical practices to the press or government agencies, using their right to free speech.