Key Learning Objectives:
- Perception — Process by which individuals organiz end interpret their impressions…can be substantially different from objective reality. So Why is it is still important? Because people’s behavior depends on their perception of what reality is – not on reality itself.
- Fundamental Attribution Error — FOR OTHERS People tend to underestimate the influence of external factors and overestimate the influence of internal or personal factors. FOR SELF – Vice Versa.
- 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.
- 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.
- Contrast Effect — contrast effect can distort perceptions. We don’t evaluate a person in isolation. Our reaction is influenced by other persons we have recently encountered
- 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.
- 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.
- Decision Making — Choose between alternatives, pros and cons, options – or sometimes not making any decision (which may be a decision itself)
- Rational vs. Irrational – As long as we have HUMAN component – decisions will never be fully rational. It will always be a mix of rational and emotional thinking. And it will always have bounded rationality – which may be distorting significantly the factual / rational stance.
- Overconfidence Bias – When we’re given factual questions and asked to judge the probability that our answers are correct, we tend to be far too optimistic
- Anchoring Bias – 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
- Confirmation Bias – case of selective perception: we seek out information that reaffirms our past choices, and we discount information that contradicts them
- Availability Bias – tendency to base judgments on information readily available
- Escalation of Commitment – when we continue staying with a decision when there is a clear evidence it’s wrong.
- Randomness Error – tendency to believe we can predict the outcome of the random events (we try to create meaning in random events, and turn patterns into superstitions)
- Risk Aversion – tendency to prefer a sure thing over a risky outcome.
- Hindsight Bias – tendency to believe falsely, after the outcome is known, that we could have accurately predicted it
- Factors that Influence Perception:
There is no task for this module.
Students/Participants are advised to read the above Key Learning Objectives and think of examples for the concepts covered in this module.