~ ~.s fe.)l_~ ilo ~ ?

peJl-c.er+J 1) V) ; s a_ p, 0 <2. e..lc ba l<'J/J c_h '-De.. mer,,.,:;, ze... {

~ (f
i .J:oz.prd::' se.'l')sc ?r(J lrY)p?J"e.&s.i oYJ.s { o <f-ve_ m
to ,a .. ex1viaron m e. ~.
0

~ lk - objec_t ' O 'o icr± boo

pe.n_Wve.d.
I
· s .
kic.~ t k potcsiptiovi 'Y Y \~ .
o ..Si-tu.a±Tovi !vi w
Po._c.:tor.s 1n tk L pe__n_c_.uve.JL · -_ -
e A -t t1 zy ~ , /' - . - '~-- -_._
I

0
Moti vf2,b
0 " I_ ~ ~ ts'~I
I

. ~ e~pv.tecd..n.-rULV1.&,
() .E?:f?u±
1
', ' \
, "'-
O
Po.c...-b~ S I Vl tk .t_
• ~ i ~ Y ovi ~~FB~i)
se±-1:i <f ~
• IAJo'"O" k.
• So&ol sd:~Q
 -Ath~ bA:fo h l ~ cir- asr'lcY":t -5 -th o. ± uJkn w e_

O b.s. e.:,z_ v
t2.. o._ Vt t)I hci1v~ du.af'..s. be... ho
. v10 u:n... , LO e_
-c- -e .:, i_ ~~ L < J k t~ i-l- Lv½
a.±:t4"1p -t:o d_ _d

eJi..s.o "'J. be.. ha. v ~ o

j 1
) "L ,, k " '~ G: ,J. ,..\ e_ d ,
• p \YI...

"'Tiv._ s i ~ 0 ., j
-----

~ £'.l'...-/;-v,,..,~ C<l..L<},e_J ',

u±-7 ~ °i.s. bcw ~ d_ o i,,, 3 ~ do ~

71u.s M o, _~ 'Y l vi

·
:L) Dis t, vi c.i1ve..VV-½
w h ~ o_vi 1VJctv
0
~ckJ. &.sp I ~ c tt f tULa.vJ--
k ha. v~o LOl..6 t V\ ~ff e.JULvJ- srb.~..o.±Io h..b
,
 • I

o.±Q_ ~ \ vif Il.<L'1 c..,,_ of .

I ei,, da..'l\c! to LLYl d_Vz .cl.-6 n, -1:-
. f /
e -x..-1:;e.n.YI ~ f=_t"o 7r .s, f o Ve. 7L .L 3 t"l WI <>-h. B, .o_ i ., u.D . 11. µ. .,

_
of 1n "te.JL~ fo_cJ:o'o__s
~f•, _

~
Se lf-sO L 11 CJ b4 a.c; '. ' : · . · . - .

Q to .. ct ✓i ~ to o. ± t'l "~ b.~ tw o :

le.. ck YJ 0
1

v.o1 t,.J.o eo-..S. 4 ,p~ ~

'Y)ri

0 L.O n $ u .c .~ e .b to j I'\ tV L

bla.~ .foo f.S \u, w , ~ n e -x±e.n. 11,J. ~ c .k_s.

 # CoVYJ1->u>v, sk.o,..bJs 1"1 j u. ~cJ o+~

0 Sz. J e. di \/ L peJLCJLpt I OVL

. .
.
ko±-
~ t:e.,,. d,,_YI cJ "to c.~ os e... -l:-o h-1tvz.-p-irJ::- ,.,o

OVU- Se...t2_$ bo..be...d- Ovt Ov,e..~ j Vlt e:;nLS t...s. ~k

~ I
\

bo,c. \r-·o u.. "ld ~ e. 'X...f e.1till1 UL «/- o.± -i:: i "t Y ~ -

@ H~ { Ho'b"nS e_ffe_d-
@ Ho.lo e...ffe.J:: ; To &0 o. r,,si-l:::1ve... 012.. 'YJ~
'1 'IY1 p.,,-e...s..s1OVJ a,_bo cd: Q.VJ i '1 df vl dwJ. bru. ~ O V) 0....

s?(J I"- c.ho:,u:i_c....--l:-vr1s-l:-ic.. - _-_

{Q H o~Vl.S e..ffe-c...t ~ -H-- '>'!<3-- cd-,ve.... ~vv,f'{~O,

@ Con-f::-'/J&At e_ffe..c±
Evo.kol-1 ovi of a poz..so 11 's. eh =-a...C:.-b,_,j s Bc_.5 ~
-I: hJ: is a.ffe...c.:Ce..J. bcf C.Oi'YJFO..,U soYJ.s t...0~th ol-k.m.
pWP. /.!,. D e . . . ~ [,;t U)C.O d_ uJ k_o "If' C.. VI k . h. ~ ~
l,(_Yj-1::.e',u_·

o~ lou>e::YL 01-1 ~ SQ.W\.L c.ha:n...a.c.. t~ .3 H~ (j

 I I ,

-i.J e, Icu s ~ c_J_ eo 71 d!ti o~ Q , (_ pa'. vt 0

,,' ) .

A- ~pe__ of e_o71d1tfol-\.lcr ~~ ~LO.~ ~l,-\ ~ '.': _

~ V1 df .J: JwJ. 'lf'e.A po'Y't ck -lo s o ~ .s -I::~ 'YYl ~ i:k,.f-
~o J d. n..o t o'll' d.f.'Yl o.:,J ~ p-ro du. u>- .s LI. <c. h c..._
'o~fD'Yl SL

;)) OpeJLO-d c.o<n & t1o<n1(f ( 3~ nvtui)

A 1zJ p of c.o 't1 cLl' tr o crJ. d ~
e.. k1 ~ V\ L{) du 'o<.J
"1

Vo l u. Y) t: ~ 6e.. \-ia. v~ o i,l7L I ~ -b e<... 'lr<2..t..0oJLd V '<>

p'lfe.. \/ e.."1- s pu.. o/'U..s ~ YYU2-.J:: '

Be..ho.v~o'lr~~m : A -l:~1rd: ~ ~ thd-
be.ha.v~or fol/oi,0S si::~rYI~ f YJ °"- 1re. lcJ:.rv¾
Ll.'YJ t h1_ n..lo a 'mO. Y) YI eJL ,
 l~hl(T .
~~) S o ~ c &
~ pe.oplL . ea. V\ leo.xvi tbo(Jl
, 1k v
. , ~ bse:n.
k
v
w
~
_
o vi ~ d 1 ~ ~
. e,ry eX1 e.A/1 uz.. •

-to u d _--t-o d_d- ~

f'15' 0 ( '_ ~ e.! h(\V<L b
e. .< L Y ) "J
Fo u:n__
C J2 -. -I:- ho.±
U w
0
il I
m1 tk .o _ f Vf
\ lu_a._.i-i
ex <m.n

\ d1 V~ cL..,_j
V \j L

8,
'ha. Ve_ D 'Y) Cl\..'Y\ V
• J

\ I
al

The influence of models is central to the social-learning viewpoint. Four pro-

cesses have been found to determine the influence that a model will have on an
individual:
1. Attentional processes. People learn from a model only when they recognize
and pay attention to its critical features. We tend to be most influenced by
models that are attractive, repeatedly available, important to us, or similar
to us in our estimation.
2. Retention processes. A model's influence depends on how well the indi-
vidual remembers the model's action after the model is no longer readily
available.
3. Motor reproduction processes. After a person has seen a new behavior
by observing the model, the watching must be converted to doing. This
process then demonstrates that the individual can perform the modeled
activities.
4. Reinforcement processes. Individuals are motivated to exhibit the mod-
eled behavior if positive incentives or rewards are provided. Behaviors thai
are positively reinforced· are given more attention, learned better, and per·
formed more often.
----
ir s~~a ! ft W1DlY1cr=1aJ_ °to:T' - . ;•
S~"'G be.hQ.vroWI...
,yifv a
! S~st:e.'IY)~'.f • .
'IJ' ~ 1>cl e.a..c. h s u. C.<2. e/28.·, Ve. .s t er YYI o ve.-1
a.o/1 1nd1 v, ~ do s eJL · to tk L ~sr~e...d
1re2> pon Se_ , .
~ w ~ to . s ~e.. b e.. ~ Q.v~ ovO L . . · ~
e-) 't VD - 'o e1., f-o "<>c..a... ~ • Po'I1-o L0', ~ · a.._ p
're/2 o Ne ..
w~th SoVY\.tL.tW ~ ~ p\ ~~ . CJ
U I - '--! '"'\ '

c~) - Ve__ ·,nJ' Vlfv Y ~ ', Po II O u..?~ ~ a._

'1J'ec,po¥'6e... b(1' ~-bvt>- v'1 ~o n '. o ~ ~ ,-8-; bu>.«91
of so rY'.12--\:W. (T
0
u. n f I~ °'J:. . - -
( 3) plA v J sh ~ '~ -- ~

c½J erx-:Bne-Bovt : e_1~~ ?'\d_~~ Cl ~; ;e:nfv~r.9--~

r-W ~s ~• y\ _, bu ni o 0: bt ~ ' OT .
... ' - l...... • _',I '

~) ~ (P-) ~ {)~ Jt ' t~ 1~1-Vcr

~) 1 CJ) LAJ ~ b~ v~ o~ { ~
bu ~(:, ~ ~ e ~ t _:; s LL bs ei~ J::- f'D4,, cf . '-Ll \I\,
 I I
• ' ' J

\ I ' • • l

@ ?ix_e_d_ ~~~vo!c"(u~~~;,,, ·
. . ~ ~U V
±h~
. .$pad ct 'lf<Lt-0c0\.J.& J )_

(5) vw&.11(2_ ~ ~ av J · -
® P i,µ j - 'o~ 0 ': - --:Xh.1 ~~ .
. I ' -
- ,

7re.u'.)a.)Ld4 o.f t-VL ~'X12-.rl ·No. . . .

0
 Exhibit 5-3 -Schedules,o f Reinforcement

Reinforcement Schedule Nature of Reinforcement Effect on Behavior Example

Continuous Reward given after each Fast learning of new behavior but Compliments
desired behavior rapid extinction
Fixed-i nterva I Reward given at fixed time Average and irregular performance Weekly paychecks
intervals with rapid extinction
Variable-interval Reward given at variable Moderately high and stable perfor- Pop quizzes
time intervals mance with slow extinction
Fixed ratio Reward given at fixed High and stable performance at- Piece-rate pay
amounts of output tained quickly but also with rapid
extinction
Variable-ratio Reward given at variable Very high performance with slow Commissioned sales
amounts of output extinction
►

.M' OB Mod. \_ -, ~

7k. °f p,lkP,!~o vi of ~e.1 <n{o ~m.a..J e:.o11upt.-.s

to 1v1d1v~ ~
1

~11 ~~ ~~o~ ~ ~~:fJ~•~ ·

5 s t f- p..-ob\~Wl:--,so Iv~~ ~~ ',
Q) "L1.-d11a- c.~Hrc,,J -b~h~/i oLO½ -
b) De..ve.1.op d.J..... . :' ··- : , - ... .
b£U e.. l1"'-L-

e,y IJ L~ ½1, _b~ h·&v! 9'lrd ·~:"'6 e. !t'.oc~ ~ . :-

d) De.11elJJ1:::, +,wi pLe.~.J:- 4, a>i '1n{V2.~~ J-ro11

st'l f J:.w . --::- -

t:) _P ~~ __ f VL f'o 'oh\a_ vi C!.e.. ~WI}'1r"o ve. ~J :. · , -
- - Ci

4t Del-1Dovi rmo..k cJ 1vi o~~E~~~ - .

Ro±~ J ;0 V\_ A .3 :ct e..

1 of duJ slo VJ 'l'Y) oJi o
C hOJZA.a.te.Ju~e. d. 10' 'IY1~<l d ~~~ -d: e.~ ~
VcJ,w...
0
"n1 Cl'XJ. l)"(U_ $ l
0
a Clo I (.el, 'LO l fil VJ p
.$ e.,(.l f LJ_
0

c,o ns. t'tretf_ d~ .

1 . De..~ "-L.. tk. p"'° bk"")
J. "Id_vJ',%- tk ~cl.s.~ o vi ~·1s!/-·h."1Q.
5. Alloc_o,±e u?e1(J ¼ to t:k_,._ C.'<f~ t~ '\
~ • Dz__v,J,o r ~ ~J_+ e.A. ~ V ~
5, EvcJwJ~ ~ cJ b~ ~v ~
G, .Se- IaJ- -/:k.,... b.u t- cJ t ~ ~vv
Ah Lo-1 C..0'Y1Sc1o lA..c, r~OCL¼ ~ ~e..oJ.:-e:.1 ' ~-u!- (9 f \.
cb..s ti 11 e.. d e. x_pVUe. ~ u_ ,
• I
 Lua.1
tlle more likely we are to corre ct some of the probl ems with our percep
stand s
proce ss. Just as there are biases and error s in the perce ption proce ss, it
g,
to reaso n there are identi fiable biases and error s in our decis ion makin
which we will outlin e next.

__Common Biases and Errors in Decision Making

atic
_~ecis io!1 f!1akers engag e in boun ded ration ali 63 but they also allow system
biase s an rs o creep into t eir Judgm ents. To minim ize effort and avoid
gs,
trade- offs, peop le tend to rely too heavily on exper ience , impul ses, gut feelin
ing
and conv enien t rules of thum b. Short cuts can distor t ration ality. The follow
some
are the most comm on biases in decis ion makin g. Exhib it 5-6 provi des
sugge stion s for avoid ing these biases and errors .

Overconfidence Bias We tend to be overc onfid ent abou t our abilit ies and the
. of other s; also, we are usual ly not aware of this bias. For exam p1e,
a b l·1·It:J.es
64

in num-
when peop le say they' re 90 perce nt confi dent abou t the range a certa
abou t
ber migh t take, their estim ated range s conta in the corre ct answ er only
up confi -
50 perce nt of the time -and exper ts are no more accur ate in settin g
65
denc e interv als than are novic es.

1 4 ,C-I

Exh ibit 5-6 Reducing B~ases a:nd Err~,rs ·, ._. -

' ~-.t:. .. ~~.t.,,.
.-iJU. ~

Focus on Goals. Witho ut goals, you can't be rational, you don't know
what inform ation you
you'll find it
need, you don't know which information is relevant and which is irrelevant,
ence regret
difficu lt to choose between alternatives, and you're far more likely to experi
help you eliminate
over the choices you make. Clear goals make decision making easier and
option s that are inconsistent with your interests.
Look for Inform ation That Disconfirms Your Beliefs. One of the most
effective means for
is to actively look
counteracting overconfidence and the confirmation and hindsight biases
overtly consider
for inform ation that contradicts your beliefs and assumptions. When we
we're smarter than
various ways we could be wrong, we challenge our tendencies to think
we actually are.
Don't Try to Create Meani ng out of Random Events. The educated
mind has been traine d
ask why. And
to look for cause-and-effect relationships. When something happens, we
that there are events
when we can't find reasons, we often invent them. You have to accept
ingfull y explained
in life that are outside your control. Ask yourself if patterns can be mean
ng out of
or wheth er -t hey are merely coincidence. Don't attem pt to create meani
coincidence.

Increase Your Options. No matte r how many options you've identif

ied, your final choice can
for increasing your
be no better than the best of the option set you've selected. This argues
of diverse choices.
decision alternatives and for using creativity in developing a wide range
atives, the
The more alternatives you ·can generate, and the more diverse those altern
greate r your chance of findin g an outstanding one.

s and Taking Control of Your Life (Upper Saddle River, NJ:

Source: Based on S. P. Robbins, Decide & Conquer: Making Winning Decision
Financial Times/Prentice Hall, 2004), 164-68.
anchoring bias A tendency to
fixate on initial information, from
which one then fails to adjust ade-
quately for subsequent information.

confirmation bias The tendency

to seek out information that reaffirms
past choices and to discount
information that contradicts past
judgments.
 The tendency tor
availability bias m ents on
to ba se the ir judg
people
ati on th at is re adily available
inform
to them .

on of commitment
escalati a
n increased c o mm itment to
A
decision de spite negative
previous
information.
 randomness error The tendency
of individuats to believe, that they
can predict the outcome of random
events.

lllllla....__
 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.

hindsight bias The tendency to

believe falsely, after an outcome of
an event is actually -known, that one
would have accurately predicted that
outcome.
 What about Ethics in Decision Making?
5-8 Contrast the three
ethical decision
As discussed in the prior section, ethical considerations should be important
to organizational decision making, but not just during times of crisis. In this
criteria. section, we present three ways to frame decisions ethically and then address the
important issue of the effect of lying on decision making. ·

Three Ethical Decision Criteria

utilitarianism An ethical The first ethical yardstick is utilitarianism, which proposes making decisions
perspective in which decisions solely based on their outcomes, ideally to provide the greatest good for
are made to provide the greatest
good for all. all. 112 This view dominates business decision making and is consistent with
goals such as rationality, efficiency, productivity, and high profits. 113 Keep
whistle- blowers Individuals who
report unethical practices by their
employer to outsiders.

deonance A perspective in
which ethical decisions are made
because you "ought to" in order to
be consistent with moral norms,
principles, standards, rules, or laws.
behavioral ethics Analyzing how
people behave when confronted with
ethical dilemmas.
al

1 • •
,, !! '/(J 1 -'f/ ''! I, 1,

· · · '. ·in Organ1zat1ons

:,
,

Ex hi bi t 5- 7 Thr.ee-St~g
,'.<1/jltl

Ca us es of cre ati ve be ha vio r

~t
·. ir, .i;

Cre ativ e env iro nm ent

Cre ativ e pot ent ial

--
·. _
Cr ea tiv e be ha vio r

a.+ Idea gen era tion ~ Idea evaluation

Pro ble m for mu lati on ~ Info rma tion gat her
ing

Cr ea tiv e ou tco me s (In no va tio n)

No vel ty Usefulness
OB POLL ' '. ·:/_::·?:~%i~-,~, :·:,_•>. ·•_(:i,,,,,~,:'.H·~;~tii/if"'- ~- D

. ls I.. n:n.ovat1.o·n·:f.tore Talk-tha.·

·- . ,.-~ ' . -' '. - . ,._ -

When asked to identify their top three goals for the upcoming year, percentage
of leaders who ranked goals listed below in one of their top three

Developing leaders
51.6%
•
Retaining talerit
46.1%

Recruiting talent

Containing costs ·
35.5%

Fostering innovation ·

30% 35% 40% 45% 50% 55%

f'