12 Cognitive Biases. 

User Generated

Frirazrzb

Business Finance

Description

  • Watch the video on 12 Cognitive Biases: https://www.youtube.com/watch?v=wEwGBIr_RIwPick any 4 biases from the video. Define each bias as clearly as possible and describe how each bias could impact a manager when they are performing a performance appraisal.

Unformatted Attachment Preview

Chapter 7 Perception & Attribution Perception • Cognitive process by which we interpret and understand our surroundings • Social perception – how we make sense of ourselves and others Perception: An Information Processing Model Stage 1 Stage 2 Stage 3 Stage 4 Selective Attention/Comprehension Encoding and Simplification Storage and Retrieval and Response Retention A Competing environmental stimuli ▪ People ▪ Events ▪ Objects B C D E Interpretation and categorization A C Memory C Judgments and decisions F F 7-3 Stage I: Selective Attention/Comprehension • World is full of too much stimuli • No one can pay attention to it all • So, we select certain things to pay attention to and ignore the rest • Salient Stimuli – different, novel, noticeable • Tendency to pay more attention to negative stimuli Stage II: Encoding & Simplification • Raw sensory stimulus can’t be kept in memory – We have to encode it • Schema – mental picture or summary – Kept in an orderly fashion in your head – Connect new information to what you already know Why Individual Perceptions Differ • Your previous experiences have influenced the schemata that you’ve developed • Moods and emotions influence what we pay attention to and how we encode it • Recent cognitions influence your encoding • Individuals differences account for differences in encoding Stage III: Storage & Retention • Long term memory consists of related categories of thoughts • Event Memory – Script • Semantic Memory – Good leader • Person Memory – Groups of people Stage IV: Retrieval & Response • Use information processed through perception to make decisions • Hiring decisions – Implicit cognition • • • • Performance Appraisal Leadership Communication Counterproductive work behaviors 7-9 Perceptual Errors 7-10 Common Perceptual Errors • Perceptual Defense – People protect themselves from things that are threatening – Only perceive positive information – Danger – Inability to change when faced with negative feedback. Common Perceptual Errors • Projection – Tendency to see your own traits in other people – Especially negative traits that the perceiver possesses but fails to recognize – Way of dealing with issues that you can’t face directly Stereotypes • An individual’s beliefs about the attributes of a group • Help us deal with having too much information to process • Can lead to poor decisions • Influenced by the amount of info. available & motivation to accurately process info. • Gender, age, race/ethnic, disability Self-fulfilling Prophecy • Pygmalion Effect – Someone’s high expectations for another person result in high performance • Galatea Effect – An individual’s high self-expectations lead to high performance • Golem Effect – Loss in performance due to low leader expectations A Model of the Self-Fulfilling Prophecy 5 Supervisor expectancy 1 Leadership Performance 6 2 4 Motivation 3 Subordinate selfexpectancy 7-15 Causal Attributions • People attempt to infer causes of observed behavior • Tend to be self serving & invalid • Behavior can be attributed to internal (something about the person) or external factors (something about the environment) Causal Attributions cont’d • Internal/external attributions are based on: – Consensus – comparison of an individual’s behavior with peers – Distinctiveness – comparison of an individual’s performance on one task vs. other tasks – Consistency – comparison of an individual’s performance on a task and previous performance on that task Kelley’s Attribution Model • Consensus – Involves the comparison of an individual’s behavior with that of his or her Low High peers A 1-18 B C People D E A B C People D E Kelley’s Theory of Attribution • Distinctiveness is determined by comparing a person’s behavior on one task with his or her behaviorLow on other tasks. High A 1-19 B C Tasks D E A B C Tasks D E Kelley’s Theory of Attribution • Consistency is determined by judging if the individual’s performance on a given task is Low High consistent over time. 1-20 Time Time How Kelley’s Model Works • External Attribution – High consensus – High distinctiveness – Low consistency • Internal Attribution – Low consensus – Low distinctiveness – High consistency 1-21 Attribution errors • Fundamental attribution bias – tendency to attribute other’s behavior to internal factors • Self serving bias – Success – internal – Failure – external
Purchase answer to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Answer attached.

Running head: COGNITIVE BIASES

1

Cognitive Biases
Student’s Name
Institution Affiliation

COGNITIVE BIASES

2
Cognitive Biases

According to Practical Psychology (2016), cognitive bias refers to a form of deviation
from what can result in right decisions in a particular decision. The presence of cognitively
biased choices especially in business decisions can lead to various errors. This paper seeks to
discuss the bandwagon, confirmation, outcome and selective perception biases and how they can
impact a manager during the appraisal process.
Bandwagon bias
In business line, this form of bias is one in which the manager can make a ge...


Anonymous
Excellent resource! Really helped me get the gist of things.

Studypool
4.7
Trustpilot
4.5
Sitejabber
4.4

Similar Content

Related Tags