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Self Perception

(imperfectly) interpreting the world. The world is too complex for humans to handle and we can only remember what we have to.

Confirmatory Bias

We have a hypothesis about someone/something and we will only attend to information that supports this belief/hypothesis. We will even make up information to make it consistent...

Primacy Effect

Our initial view of someone has a huge impact about what information we disregard and what information is consistent with that view. (the first handshake can either categorize something as hardworking or lazy)

Halo/Horn Effect

The tendency to rate a person HIGH on all performance factors (hardworking) or LOW (lazy) based on their overall belief of that person.

Mood/Emotion Effects

If you in a good mood, you will notice more positive attributes about someone and interpret them more positively.

Attribution Errors (Encoding and Interpretation)

Fundamental Attribution Error
Self Serving Bias
Individual DIfferences

Fundamental Attribution Bias (traffic incident)

You attribute other's actions to THEM rather than to the situation.
(traffic incident)

Self-Serving Bias

If something goes well for us, we take the credit. If something goes badly it is somebody else's/the situation's fault.
--> If the office doesn't reach the monthly goal, the manager could attribute it to his employee's actions. Rather than thinking about how they could've done better

Internal Locus of Control

Internal Locus of Control: Outcomes are within your control and determined by your hard work, attributes or decisions.
--> if you have a strong internal locus of control, you will have to control everything. Make sure you pay attention to other's feelings.

External Locus of Control

Outcomes are outside your control are determined by fate and independent of hard work of decisions. You should think about what YOU can do to control your own fate.

Imperfect Knowledge Errors

False Consensus Bias
Contrast Error

False Consensus Bias (magazine sales)

We regard ourselves as the norm. We tend to overestimate the degree to which our behavior, attitude and beliefs are shared by other people.
--> A manager will assume their employee's behavior, attitudes and beliefs to be like their own.
-->A manager must see others as they are, not as they want them to be. (MAGAZINE SALES)

Contrast Error

We tend to perceive one against another rather than versus a universal population or specific standard.
-->A manager will evaluate employees in relation to one another. Evaluations SHOULD be based on how well the employee performed in relation to his duties, goals and performance standards.

Storage/Retention Biases...

Recency Effect and Primacy Effect

Recency Effect/Primacy Effect

Given a list of items to remember, we tend to remember the last few and the first few.
-->when evaluating an employee for hardest worker....think about OVERALL performance...not just the last few behaviors or first behaviors.

Sensors vs. Intuitors (how you get information about the world)

Sensors: Like facts, details. Build perceptions from their data
Intuitors: Willing to go with hunches. They look at the big picture rather than the small facts and details.

Thinking vs. Feeling (What criteria you use to make decisions)

THINKERS: Like rules to follow, logical consistency. A thinker is looking for the right job, breaks it down into 13 parts, weighs each option...
FEELERS: Look for solutions that achieve "best for all" considering the people involved

Judgers vs. Perceivers (how you like to make decisions)

JUDGERS: Clear, forward moving process. Like structure and clear rules. Need to come to a conclusion quickly. TO DO LIST! Organized/structured week. They hate uncertainty.
PERCEIVERS: Flexible, spontaneous, adaptive decision makers. Delay decisions. Their mental to do list can be adapted. They are ready to deal with change.


Trusting, good natured, cooperative


Dependable, responsible, persistent, achievement oriented

Emotional Stability

Relaxed, secure, not worried

Openness to Experience

Intellectual, imaginiative, curious


Measures how action-oriented someone is
--> Proactive person sees issues and goes about doing something about it. They persevere until the bring about change.

Self Concept

Self perception as a physical social and spiritual being.
-Self Esteem
-Self Efficacy
-Self Monitoring

Self Efficacy

The belief in one's ability to do a task

Self monitoring

Observing one's behavior and adapting it to the situation...
-If you are HIGH in self monitoring, you will change your behavior to match the situations/environment.


Your capacity for constructive thinking, reasoning, problem solving. SAT SCORE is the BEST way to predict job performace

Emotional Intelligence (EQ)

You know/manage your own emotions and you know/manage other's emotions. It is important for a lawyer, doctor and HR manager to be HIGH in EQ because they are often called in when emotions are high.
-->If a manager is laying off someone, they must have a high EQ so their emotions don't sidetrack their decisions.

Rational Decision Making

1. Identify the Problem
2. Generate Alternative solutions (think outside the box)
3. Select a solution
4. Implement a solution (need key stakeholders on board)
5. Evaluate the solution

Decision Making Biases

Bounded Reality (satisficing)
Escalation of Commitment Bias
Emotion Effects

Bounded Reality

Constraints that restrict rational decision making...
SATISFICING: Choosing a solution that meets a minimum standard. It resolves the problem by producing satisfactory solutions...You make the easy decision. Decision makers WONT evaluate all potential alternatives


Make different decisions based on how a question is asked
-the tendency to consider risks about gains differently that risks pertaining to losses.

Escalation of Commitment Bias

The tendency to stick to an ineffective course of action when it is unlikely the bad situation can ever be reversed...
-->Investing more money into an old or broken car.
-->Set minimum targets for performance, rotate managers in key positions, make decision makers aware of costs of persistence.

Emotion Effects

If we are in a state of extreme emotion, we don't make decisions well

Maslow's Hierarchy of Needs

Motivation is a function of 5 basic needs--physiological, safety, love esteem and self actualization. When the need is satisfied, move up a level.
-->A satisfied need may lose its motivation potential. Managers are more likely to motivate by offering benefits and rewards that meet individual needs.

McClelland's Need Theory

We are driven by 3 basic needs:
-Achievement (accomplish something difficult)
-Affiliation (want to be loved)
-Power (desire to influence, coach, teach, encourage)
-->People with high need for achievement should have a pay-for-performance environment.
-->Managers should have challenging tasks or goals because the need for achievement is positively correlated with goal commitment which influences performance.

Job Characteristics Theory

Intrinsic motivation is determined by 3 psychological states....
1. Meaningfulness of work (skill variety, task identity and task significance)
2. Responsibility for outcomes of work (autonomy. Individual is independent and has freedom)
3. Knowledge of the results. (Feedback. Individual gets direct/clear info about how they are doing)

Goal Setting Theory

Goals 1. Direct Attention 2. Regulate Effort 3. Increase Persistence 4. Encourage people to develop strategies and action plans that enable them to achieve their goals.
-->goals should be SPECIFIC, MEASUREABLE, Have FEEDBACK.
--> creative tasks require less goal setting

Equity Theory

Motivation is a function of fairness in social exchanges. Look for the OUTCOMES to INPUTS ratio. Are they in balance compared to other's ratios?

Organizational Justice Theory

Fair/Just organizations are motivating
1. Procedural fairness (process that came to rewards/punishment)
2. Distributive fairness
3. Interactional fairness (treated like human beings not a number)

Expectancy Theory

Motivate people by showing them something is desirable, indicating how straightforward something is to get, and then supporting their self-belief that they can get there
--> motivation is a combination of VALENCE (value of outcome. What's in it for me?)
INSTRUMENTALITY (The belief that IF I complete the task, I will achieve the outcome. If I do it, will I get the rewards?) EXPECTANCY (If I try, can I do it)

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