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Questions for Review
6-1. What are the factors that influence our perception?
Answer: Perception is a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment. What one perceives
Learning Objective: Explain the factors that influence perception
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
6-2. What is attribution theory?
Answer: Attribution theory suggests that when we observe an individual’s behavior, we
attempt to determine whether it was internally or externally caused. That determination
depends largely on three factors: distinctiveness, consensus, and consistency. An
Learning Objective: Describe attribution theory
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
6-3. What is the link between perception and decision making?
Answer: Individuals must make decisions at work. Decision making occurs as a reaction
to a problem – a discrepancy that exists between the current state of affairs and a desired
Learning Objective: Explain the link between perception and decision making
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
6-4. How is the rational model of decision making different from bounded rationality and
intuition?
Answer: The optimizing decision maker is rational. He/she makes consistent,
Step 1: Define the problem.
Step 2: Identify the decision criteria.
Step 3: Allocate weights to the criteria.
The rational model that differs in that bounded rationality is the “real world” model that
seeks satisfactory and sufficient solutions from limited data and alternatives. Intuition is a
Learning Objective: Contrast the rational model of decision making with bounded rationality and intuition
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
6-5. How do individual differences and organizational constraints influence decision making?
Answer: Individual differences can result in deviations in decision making. A person’s
Organizational constraints can include:
a. Performance Evaluation – managerial evaluation criteria influence actions.
b. Reward Systems – managers will make the decision with the greatest personal payoff
c. Formal Regulations – limit the alternative choices of decision makers.
Cultural differences also impact decision making based on traditions, customs, religion,
etc.
Learning Objective: Explain how individual differences and organizational constraints affect decision
making
Learning Outcome: Describe the factors that influence the formation of individual attitudes and values
AACSB: Reflective thinking
6-6. What are the three ethical decision criteria, and how do they differ?
Answer: The three ethical decision criteria:
1. Utilitarianism—decisions are made solely on the basis of their outcomes or
2. Focus on rights—calls on individuals to make decisions consistent with fundamental
practices to the press or government agencies, using their right to free speech.
3. A third criterion is to impose and enforce rules fairly and impartially to ensure justice
Each criterion has advantages and liabilities. A focus on utilitarianism promotes
efficiency and productivity, but it can sideline the rights of some individuals, particularly
those with minority representation. The use of rights protects individuals from injury and
Learning Objective: Contrast the three ethical decision criteria
Learning Outcome: Apply the study of perception and attribution to the workplace
AACSB: Ethical understanding and reasoning; Reflective thinking
6-7. What are the parts of the three-stage model of creativity?
Answer: Exhibit 6-5 shows the three-stage model of creativity. The core of the model is
Learning Objective: Describe the three-stage model of creativity.
Learning Outcome: Apply the study of perception and attribution to the workplace
AACSB: Reflective thinking
Experiential Exercise
Good Liars and Bad Liars
This exercise contributes to:
Learning Objectives: Explain the factors that influence perception; Contrast the rational model of decision making
with bounded rationality and intuition
Learning Outcome: Apply the study of perception and attribution to the workplace
AACSB: Ethical understanding and reasoning; Reflective thinking
Break the class into groups of three (this exercise can be adjusted for groups of four). Have each
student write down four statements about themselves—three should be truths, and one should be
a lie. The lie should not be obvious; each student’s objective is to sell the lie as a truth along with
the actual truths.
Going around the circle, each student states the truths and the lie. The group may ask a maximum
of two follow-up questions for each statement. Then the group votes on each of the statements:
truth or lie? The student can finally reveal the lie after everyone has voted.
After everyone in the circle has taken a turn, the group answers the following questions:
6-8. How many of the lies were detected? Were they easy or difficult to detect?
6-9. What made you think a statement was a lie: was it the probability of the statement itself,
or the delivery by the student?
6-10. Do you think it is possible to be a good liar? What factors would a good liar have to
control in order to pass off a lie as truth?
Teaching Notes
This exercise is applicable to face-to-face classes or synchronous online classes such as
BlackBoard 9.1, Breeze, WIMBA, and Second Life Virtual Classrooms. See
http://www.baclass.panam.edu/imob/SecondLife for more information.
Ethical Dilemma
Cheating is a Decision
This exercise contributes to:
Learning Objectives: Explain the factors that influence perception; Contrast the rational model of decision making
with bounded rationality and intuition; Contrast the three ethical decision criteria
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Ethical understanding and reasoning; Reflective thinking
We all have cheated at something. We may think that deciding to cheat is a product of cold
calculation: Is the benefit worth the cost? In some cases, this appears to be true—a recent study
found that students who are studying in a non-native language, who believe they would obtain a
lower grade, and who prefer risk are more likely to buy essays. They are more likely to resist,
however, when they think they may be caught and when the penalty is high. In other cases,
cheating is less of a conscious decision than expected. Here are some realities of cheating:
1. Cheating isn’t a cash deal. People would rather take things than cash.
2. Cheating is contagious. When we see others cheat, we are more likely to do it ourselves.
3. Moods affect cheating. People cheat more when they are angry or tired.
4. Incentives to cheat do work. If the goals are obtainable only through cheating, people will
likely cheat more.
5. People like to cheat in secret. When people can be out of sight, they tend to cheat more.
Thankfully, knowledge of OB can help limit cheating incidents. For example, one recent study
suggests that heightened enthusiasm in leaders may curb followers’ tendency to cheat. Making
certain that people realize there is an ethical aspect to their decisions reduces cheating, as does
monitoring people in performance settings.
Sources: E. B. Beasley, “Students Reported for Cheating Explain What They Think Would Have Stopped Them,” Ethics and Behavior 24, no. 3
(2014): 229–52; J. Chen, T. L.-P. Tang, and N. Tang, “Temptation, Monetary Intelligence (Love of Money), and Environmental Context on
Unethical Intentions and Cheating,” Journal of Business Ethics 123, no. 2 (2014): 197–219; M. N. Karim, S. E. Kaminsky, and T. S. Behrend,
“Cheating, Reactions, and Performance in Remotely Proctored Testing: An Exploratory Experimental Study,” Journal of Business and
Psychology 29, no. 4 (2014): 555–72; G. Orosz, I. Toth-Kiraly, B. Boethe, A. Kusztor, Z. U. Kovacs, and M. Janvari, “Teacher Enthusiasm: A
Potential Cure of Academic Cheating,” Frontiers in Psychology 6 (2015): UNSP 318; D. Rigby, M. Burton, K. Balcombe, I. Bateman, and A.
Mulatu, “Contract Cheating and the Market in Essays,” Journal of Economic Behavior and Organization 111 (2015): 23–37; and M. H. Bazerman
and A. E. Tenbrunsel, Blind Spots: Why We Fail to Do What’s Right and What to Do about It (Princeton, NJ: Princeton University Press, 2012).
Questions
6-11. Do you know classmates who have cheated in school? Have you ever cheated?
Answer: Responses to this question will vary by student. An interesting follow-up
6-12. The authors of one study noted that people feel they don’t need to be objective in
evaluating potential cheaters. Do you agree? Why or why not?
Answer The answer to this question will depend on the student’s ethical position. Some
students will hold a very strong ethical position and will see disclosure of an ethical
6-13. Do you think if we admitted it to ourselves when we cheated, we would be less likely to
cheat in the future? Why or why not?
Answer: Again, this answer will depend on the student’s perspective on cheating.
Teaching Notes
This exercise is applicable to face-to-face classes or synchronous online classes such as
BlackBoard 9.1, Breeze, WIMBA, and Second Life Virtual Classrooms. See
http://www.baclass.panam.edu/imob/SecondLife for more information.
Case Incident 1
Too Much of a Good Thing
This exercise contributes to:
Learning Objectives: Explain the factors that influence perception; Contrast the rational model of decision making
with bounded rationality and intuition; Explain how individual differences and organizational constraints affect
decision making
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
Have you created an e-portfolio for job applications? If you attend the University of
Massachusetts, the University of South Florida, Stanford, Marquette, or Westminster College,
where e-portfolios are expected, you probably have developed one. E-portfolios—digitized
dossiers of presentations, projects, writing samples, and other work—are used by over 50 percent
of students looking for jobs or internships. Putting together an e-portfolio is “a learning
experience, linked to a career opportunity,” said Associate Professor Tim Shea, who oversees a
business school’s mandatory e-portfolio program.
Proponents contend that e-portfolios don’t replace résumés, they enhance them. “You can write
on a résumé that you did an internship somewhere, but if I can see the projects that you worked
on, it gives me a more rounded view of the candidate,” said Greg Haller, president of the western
U.S. region for Verizon Wireless. Student Inga Zakradze agrees, saying the e-portfolio gives “a
better feel for me as a well-rounded student.” And in a recent Association of American Colleges
and Universities survey, 83 percent of respondents believed an e-portfolio would be useful.
With all this affirmation, you might think an e-portfolio is critical to obtaining a job, but that
would be a misperception. Other than Haller, opinions seem divided: schools like students to
make e-portfolios, but employers don’t want them. One of the reasons is technological—HR
screening software doesn’t allow for links to websites where e-portfolios would be stored.
Portfolio hubs Pathbrite and thePortfolium have tried to get around this problem, but they have
yet to obtain a single corporate contract. Another reason is information overload—managers
don’t have time to read through, say, your travel log from a semester at sea. Third, many
companies don’t believe e-portfolios are value-added. “They are typically not a factor in our
screening process,” said Enterprise talent acquisition VP Marie Artim. Stuart Silverman, a
university dean, acknowledged the possibility. “Whether or not the prospective employer looked
at it, or weighed it, who knows.”
Proponents of e-portfolios, primarily from the education sector, believe there is value in them
beyond job seeking. Kerri Shaffer Carter, a university director of e-portfolios, says, “We don’t
draw a sharp distinction between the portfolio as a learning process and the portfolio as an
employment tool, since the self-awareness that comes out of that process ultimately prepares the
student for the workplace.” Just don’t expect all that hard work to land you a job.
Sources: “Global Digital Positioning Systems: E-Portfolios in a Digital Age,” 2015 Forum on Digital Learning and E-Portfolios, January 24,
2015, Association of American Colleges and Universities, https://www.aacu.org meetings/annualmeeting/AM15 eportfolioforum; M. Korn,
“Giant Resumes Fail to Impress,” The Wall Street Journal, February 6, 2014, B7; G. Lorenzo and J. Ittelson, “An Overview of E-Portfolios,”
Educause Learning Initiative, July 2005, https://net.educause.edu/ ir/library/pdf/eli3001.pdf, accessed May 7, 2015.
Questions
6-14. How might the misperception about the importance of having an e-portfolio have begun?
Answer: In schools like University of Massachusetts where e-portfolios are widely used
and prepared by a large percentage of the student body, e-portfolios are probably
6-15. What are the reasons you would decide to use an e-portfolio?
Answer: This item can be assigned as a Discussion Question in MyManagementLab.
6-16. What do you think would be the best way to deliver an e-portfolio to a prospective
employer?
Answer: This is an opinion question for the student to respond to. As such, answers
Teaching Notes
This exercise is applicable to face-to-face classes or synchronous online classes such as
BlackBoard 9.1, Breeze, WIMBA, and Second Life Virtual Classrooms. See
http://www.baclass.panam.edu/imob/SecondLife for more information.
Case Incident 2
The Youngest Billionaire
This exercise contributes to:
Learning Objectives: Explain the factors that influence perception; Contrast the rational model of decision making
with bounded rationality and intuition; Explain how individual differences and organizational constraints affect
decision making
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
Picture this: the billionaire owner and founder stands in the conference room trying on bras while
the CEO stands behind her, adjusting the straps. The floor is littered with underwear. The owner
takes off one bra and puts on another. Five executives in the conference room barely blink.
Welcome to Sara Blakely’s company, Spanx. In just a few years, Spanx has become to slimming
underwear what Jello is to gelatin and Kleenex is to facial tissue – so dominant is the brand that
its name is synonymous with the category.
At 42, Blakely is not the youngest billionaire in the world. However, she is the youngest female
self-made billionaire. Like many stories of entrepreneurial success, hers is part gritty
determination, part inspiration, and part circumstance. The grit was easy to see early on. As a
child growing up in Clearwater Beach, Florida, she lured friends into doing her chores by setting
up a competition. At 16, Blakely was so intent on success that she listened to self-help guru
Wayne Dyer’s recordings incessantly. Friends refused to ride in her car. “No! She’s going to
make us listen to that motivational crap!” Blakely recalls they said.
After twice failing to get into law school, Blakely started her first business in 1990, running a
kids’ club at the Clearwater Beach Hilton. It worked until the Hilton’s general manager found
out. Later, while working full-time in sales, Blakely began learning how to start a business. Her
inspiration for Spanx came while she was cold-calling customers as a sales manager for an office
supply company. She hated pantyhose. “It’s Florida, it’s hot, I’m carrying copy machines,” she
noted.
At the Georgia Tech library, Blakely researched every pantyhose patent ever filed. She wrote her
patent application by following a textbook she read in Barnes & Noble. Then she worked on
marketing, manufacturing, and financing, treating each as its own project. After numerous
rejections, she finally found mill owners in North Carolina willing to finance the manufacturing.
"At the end of the day, the guy ended up just wanting to help me," Blakely said. "He didn't even
believe in the idea."
For a time, Blakely relied on stores like Neiman Marcus to set up her table and on
word-of-mouth to get the news out to the public. Her big break came when she sent samples to
Oprah Winfrey’s stylist. Harpo Productions called to say that Winfrey would name Spanx her
favorite product of the year and warned Blakely to get her website ready. She didn’t have a
website.
Billions of dollars in sales later, Blakely has no plans to slow down. Spanx is sold in 54
countries, and Blakely wants to double international sales in three years. She says: "The biggest
risk in life is not risking. Every risk you take in life is in direct proportion to the reward. If I'm
afraid of something, it's the next thing I have to go do. That's just the way I've been."
Sources: Based on J. Mulkerrins, “All Spanx to Sara,” Daily Mail (April 6, 2013), downloaded May 7, 2013, from www.dailymail.co.uk/home/;
C. O’Connor, “American Booty,” Forbes (March 26, 2012), pp. 172–178; and R. Tulshyan, “Spanx's Sara Blakely: Turning $5,000 into $1 Billion
with Panties,” CNN.com (December 5, 2012), downloaded on May 7, 2013, from http://edition.cnn.com/.
Questions
6-17. How much of Blakely’s success is due to her personality and effort and how much to
serendipity (being in the right place at the right time)? Does attribution theory help you
answer this question? Why or why not?
Answer: Many students will suggest that Blakely’s success is a result of both her
personality and effort, and being in the right place at the right time. Some students may
6-18. Does hindsight bias affect the factors to which you might attribute Blakely’s success?
Why or why not?
Answer: Again, responses to this question will vary depending on the student’s personal
opinion and experience. Many students, however, will probably agree that most
6-19. Use the three-stage model of creativity to analyze Blakely’s decision making. What can
you learn from her story that might help you be more creative in the future?
Answer: The three-stage model of creativity involves three stages: causes (creative
potential and creative environment); creative behavior; and creative outcomes
Teaching Notes
This exercise is applicable to face-to-face classes or synchronous online classes such as
BlackBoard 9.1, Breeze, WIMBA, and Second Life Virtual Classrooms. See
http://www.baclass.panam.edu/imob/SecondLife for more information.
My Management Lab
Go to mymanagementlab.com for Auto-graded writing questions as well as the following
Assisted-graded writing questions:
6-20. In relation to Case Incident 1, how do you think more employers’ dim view of
e-portfolios can be changed?
6-21. Consider Case Incident 2, the chapter-opening story, and the chapter. Do you think
creativity is “born” (inherent in the individual) or “made” (a product of opportunity
and reinforcement)? Compare what we know of the lives of Palmer Luckey and Sara
Blakely with those of other creative individuals you know personally.
6-22. MyManagementLab Only – comprehensive writing assignment for this chapter.
Instructor’s Choice
Applying the Concepts
This exercise contributes to:
Learning Objectives: Explain the factors that influence perception; Contrast the rational model of decision making
with bounded rationality and intuition; Explain how individual differences and organizational constraints affect
decision making
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
Bill Ford never doubted that he could run his family’s company, Ford Motor Company. He just
had to convince others that he could. It is not every day that an owner decides to throw him or
herself into the management pool and learn to swim with different strokes. When Ford took over
in 1999, many were skeptical and predicted a continued slide for Ford Motors. However, Ford
believed that his new strategy would once again bring the Ford Company to prominence. The
strategy was very simple—make more money selling fewer cars. Even though this strategy runs
contrary to others in the industry, Ford has demonstrated that unprofitable lines can be
eliminated, costs can be reduced, more affluent customers can be targeted, and that a rifle
approach can win over the traditional shotgun approach. The key to Ford’s new approach is to
surround himself with a team of executives that are decisive, can get along with one another, and
are willing to take risks as a group. His team was assembled from all over the world. Different
points of view were essential to the decision making success of the group. Ford believes in group
decision making as opposed to the lone gun approach. The new bottom line is profits and a
vision for the company that makes sense. Will Ford and his company make these dreams come
true? Analysts are betting “yes” and have the stock numbers to support their vote.
Using a search engine of your own choosing, find an article about Bill Ford and the job he is
doing at Ford Motor Company. What evidence of team-oriented decision making did you
find in your article? Be sure to summarize any approach identified.
Using a search engine of your own choosing, find an article about Ford’s new hybrid car, the
Escape. Note that the Escape comes in a traditional and hybrid version. Since the Escape
hybrid will take some time to show profits, why would Ford pursue such a car given the
strategic information presented in the story above?
Go to the Ford website (www.ford.com) and find two examples of team-oriented decision
making at the company. Be specific in your examples and be sure to demonstrate how your
example demonstrates the team-oriented approach.
Instructor Discussion
The transformation of Ford Motor Company under the leadership of Bill Ford is nothing short of
amazing. Mr. Ford was probably given more room and time to make changes because of his
unique position in the company at the onset; however, Wall Street watched him very closely. His
team approach is something new at Ford. Traditionally, separate projects and divisions were very
territorial and managers seemed to seek the spotlight instead of enhancement of the bottom line.
Ford’s cost cutting measures were also against industry tradition. For more information on Bill
Ford and his team decision making approach, see “Bill’s Brand New Ford,” in Fortune, June 28,
2004, pp. 68–76.
Teaching Notes
This exercise is applicable to face-to-face classes or synchronous online classes such as
BlackBoard 9.1, Breeze, WIMBA, and Second Life Virtual Classrooms. See
http://www.baclass.panam.edu/imob/SecondLife for more information.
Exploring OB Topics on the Web
This exercise contributes to:
Learning Objectives: Explain the factors that influence perception; Contrast the rational model of decision making
with bounded rationality and intuition
Learning Outcome: Apply the study of perceptions and attribution to the workplace
AACSB: Reflective thinking
1. Read more about ethics in the workplace. A comprehensive guide on many topics confronting
managers can be found at:
http://siteresources.worldbank.org/INTETHICS/Resources/10Myths.pdf.
In particular, look at the roles and responsibilities of managing ethics in the workplace. Write
2. Learn more about Attribution Theory at:
http://www.as.wvu.edu/~sbb/comm221/chapters/attrib.htm.
Does this information explain how we as humans can explain anything? Obviously, there are
3. Explore the topic of decision making and intuition. Go to:
http://www.forbes.com/sites/cherylsnappconner/2013/08/05/should-intuition-be-running-your
-business-yes-and-no/ and
http://www.forbes.com/sites/timworstall/2011/12/26/why-rules-of-thumb-intuition-gut-feelin
gs-work-in-business-decisions/.
Write out several ideas you learned from these articles, or others that you have found, and
bring them to class for further discussion.
4. Conduct an Internet search on one of the topics from this chapter combined with the word
culture. For example, stereotyping and culture, ethics and culture, decision making and
