ORBG Ch. 4

• Explain how two people can see the same thing and interpret it differently
  
  • Perception
    

     
     

• List the three determinates of attribution
  

  1 Distinctiveness
  

  • Refers to whether an individual displays different behaviors in different situations
    

  2 Consensus
  

  • If everyone who faces a similar situation responds in the same way
    

  3 Consistency
  

  • Does the person respond the same way over time?
    
  • Attribution Theory
    
    • Suggest that when we observe an individual's behavior, we attempt to determine whether it was internally of externally caused
      
• Describe how shortcuts can assist in or distort our judgment of others
  
  • Selective Perception
    
  • Halo Effect
    
  • Contrast Effects
    
  • Projection
    
  • Stereotyping
    
• Explain how perception affects the decision-making process
  
• Outline the six steps in the rational decision-making model
  
  • Defining the problem
    
  • Identify the decision criteria
    
  • Allocate weights to the criteria
    
  • Develop the alternatives
    
  • Evaluate the alternatives
    
  • Select the best alternative
    
• Describe the actions of the boundedly rational decision maker
  
• List and explain the common decision biases or errors
  
  • Overconfidence Bias
    
  • Anchoring Bias
    
  • Confirmation Bias
    
  • Availability Bias
    
  • Representative Bias
    
  • Escalation of Commitment
    
  • Randomness Error
    
  • Hindsight Bias
    

     
     

• Identify the conditions in which individuals are most likely to use intuition in decision making
  
  • When a high level of uncertainty exists
    
  • When there is little precedent to draw on
    
  • When variable are less scientifically predictable
    
  • When "facts" are limited
    
  • When facts don't clearly point the way
    
  • When analytical data are of little use
    
  • When there are several plausible alternative solutions from which to choose, which good arguments for each
    
  • When time is limited and there is pressure to come up with the right decision
    
• Contrast the three ethical decision criteria
  
  • Utilitarian
    
    • Decisions are made solely on the basis of their outcomes or consequences
      
    • Provide the greatest good for the greatest number
      
    • Consistent with efficiency, productivity and high profits
      
  • Rights
    
    • Calls on individuals to make decision consistent with fundamental liberties and privileges as set forth in documents such as the Bill of Rights
      
    • Protects whistle-blowers
      
  • Justice
    
    • Requires individuals to impose and enforce rules fairly and impartially so that an equitable distribution of benefits and cost results