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MGMT Chapter 6
N/A
22
Management
Undergraduate 3
10/16/2011

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Term
Perception
Definition
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment
Term
Attribution Theory
Definition
An attempt to determine whether an individual’s behavior is internally or externally caused
Term
Fundamental Attribution Errors
Definition
The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others
Term
Self-Serving Bias
Definition
The tendency for individuals to attribute their own successes to internal factors and put the blame for failures on external factors
Term
Selective Perception
Definition
The tendency to selectively interpret what one sees on the basis of one’s interests, background, experience, and attitudes
Term
Halo Effect
Definition
The tendency to draw a general impression about an individual on the basis of a single characteristic
Term
Contrast Effect
Definition
Evaluation of a person’s characteristic that is affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics
Term
Stereotyping
Definition
Judging someone on the basis of one’s perception of the group to which that person belongs
Term
Bounded Rationality
Definition
A process of making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity
Term
Intuitive Decision Making
Definition
An unconscious process created out of distilled experience
Term
Overconfidence Bias
Definition
People who are weak in an area will overestimate their abilities the most
Term
Anchoring Bias
Definition
The tendency to fixate on initial information, from which one then fails to adequately adjust for subsequent information
Term
Confirmation Bias
Definition
The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments
Term
Availability Bias
Definition
The tendency for people to base their judgments on information that is readily available to them
Term
Escalation Commitment
Definition
An increased commitment to a previous decision in spite of negative information
Term
Randomness Error
Definition
The tendency of individuals to believe that they can predict the outcome of random events
Term
Risk Aversion
Definition
The tendency to prefer a sure gain of a moderate amount over a riskier outcome that might have a higher expected payoff
Term
Hindsight Bias
Definition
The tendency to believe falsely, after an outcome of an event is actually known, that one would have accurately predicted that outcome
Term
Utilitarianism
Definition
A system in which decisions are made to provide the greatest good for the greatest number
Term
Rights Based
Definition
Respecting and protecting the basic rights of individuals
Term
Justice
Definition
Impose and enforce rules fairly and impartially to ensure equitable distribution of benefits and costs
Term
Projection
Definition
Attributing one's own characteristics to other people
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