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Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
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Attribution theory
An attempt to determine whether an individual’s behavior is internally or externally caused
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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
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Self-serving bias
The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors
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Selective perception
The tendency to selectively interpret what one sees on the basis of one’s interests, background, experience, and attitudes
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Halo effect
The tendency to draw a general impression about an individual on the basis of a single characteristic
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Contrast effect
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
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Stereotyping
Judging someone on the basis of one’s perception of the group to which that person belongs
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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
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Decisions
Choices made from among two or more alternatives
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Problem
A discrepancy between the current state of affairs and some desired state
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Rational
Characterized by making consistent, value-maximizing choices within specified constraints
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Rational decision-making model
- 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
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Bounded rationality
A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity
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Intuitive decision-making
An unconscious process created out of distilled experience
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Anchoring bias
A tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information
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Confirmation bias
The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments
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Availability bias
The tendency for people to base their judgments on information that is readily available to them
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Escalation of commitment
An increased commitment to a previous decision in spite of negative information
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Randomness error
The tendency of individuals to believe that they can predict the outcome of random events
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Risk aversion
The tendency to prefer a sure gain of a moderate amount to a riskier outcome, even if the riskier outcome might have a higher expected payoff
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Hindsight bias
The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted the outcome
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Utilitarianism
A system in which decisions are made to provide the greatest good for the greatest number
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Whistle-blowers
Individuals who report unethical practices by their employer to outsiders
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Creativity
The ability to produce novel and useful ideas
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Three-component model of creativity
The proposition that individual creativity requires expertise, creative thinking skills, and intrinsic task motivation
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