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This lecture explores perception processes, cognitive biases, and emotional influences on behavior outcomes. Learn about common perception errors like stereotyping and halo effects, cognitive biases in negotiations, and the impact of emotions on decision-making.
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CHAPTER FIVE Perception, Cognition, and Emotion INB 350 Lecture By: Ms. Adina Malik (ALK)
Learning Objectives • Perception • Forms of perception disorder • The process of cognition • Cognitive biases or systematic errors • The role of moods and emotions • For causes of behavior • For consequences of outcome
Perception Perception is: • The process by which individuals connect to their environment. • A “sense-making” process • A complex physical and psychological process • It is defined as ‘the process of screening, selecting and interpreting stimuli so that they have meaning to the individual’ (Steers,1084).
The Role of Perception • The process of ascribing meaning to messages and events is strongly influenced by the perceiver’s current state of mind, role, and comprehension of earlier communications • People interpret their environment in order to respond appropriately • The complexity of environments makes it impossible to process all of the information • People develop shortcuts to process information and these shortcuts create perceptual errors
Perceptual Distortion • Four major perceptual errors: • Stereotyping • Halo effects • Selective perception • Projection Distortion by Generalization Distortion based on Attributes
Stereotyping • Is a very common distortion • Occurs when an individual assigns attributes to another solely on the basis of the other’s membership in a particular social or demographic category • For e.g.: ‘Old people are conservative; this person is old and therefore is conservative.’
Halo Effects • Are similar to stereotypes • Occur when an individual generalizes about a variety of attributes based on the knowledge of one attribute of an individual • For e.g.: A smiling person is judged to be more honest than a frowning person, even though there is no consistent relationship between smiling and honesty. • It can be positive or negative
Selective Perception • The perceiver singles out information that supports a prior belief but filters out contrary information • Perpetuates stereotypes or halo effects • For e.g.: Smile as honest or dishonest are likely to affect how the other party’s behavior is perceived or interpreted.
Projection • Arises out of a need to protect one’s own self-concept • People assign to others the characteristics or feelings that they possess themselves (position reversed) • For e.g. frustration
Cognitive Biases in Negotiation • Negotiators have a tendency to make systematic errors when they process information. These errors, collectively labeled cognitive biases, tend to impede negotiator performance. Cognitive Biases: • Irrational escalation of commitment • Mythical fixed-pie beliefs • Anchoring and adjustment • Issue framing and risk • Availability of information • The winner’s curse • Overconfidence • The law of small numbers • Self-serving biases • Endowment effect • Ignoring others’ cognitions • Reactive devaluation
Irrational Escalation of Commitment and Mythical Fixed-Pie Beliefs • Irrational escalation of commitment • Negotiators maintain commitment to a course of action even when that commitment constitutes irrational behavior • To avoid it parties should involve advisor who will work as a reality check point • Mythical fixed-pie beliefs • Negotiators assume that all negotiations (not just some) involve a fixed pie • To avoid it parties should introduce accountability in the negotiation context
Anchoring and Adjustment and Issue Framing and Risk • Anchoring and adjustment • The effect of the standard (anchor) against which subsequent adjustments (gains or losses) are measured • The anchor might be based on faulty or incomplete information, thus be misleading • Thorough preparation, along with reality check can help to avoid it • Issue framing and risk • Frames can lead people to seek, avoid, or be neutral about risk in decision making and negotiation
Availability of Informationand the Winner’s Curse • Availability of information • Operates when information that is presented in vivid or attention-getting ways becomes easy to recall. • Becomes central and critical in evaluating events and options • The winner’s curse • The tendency to settle quickly on an item and then subsequently feel discomfort about a win that comes too easily • The best remedy for winner’s curse is to prevent it from occurring
Overconfidence and The Law of Small Numbers • Overconfidence • The tendency of negotiators to believe that their ability to be correct or accurate is greater than is actually true • The law of small numbers • The tendency of people to draw conclusions from small sample sizes • The smaller sample, the greater the possibility that past lessons will be erroneously used to infer what will happen in the future
Self-Serving Biasesand Endowment Effect • Self-serving biases • People often explain another person’s behavior by making attributions, either to the person or to the situation • The tendency, known as fundamental attribution error, is to: • Overestimate the role of personal or internal factors • Underestimate the role of situational or external factors • Endowment effect • The tendency to overvalue something you own or believe you possess
Ignoring Others’ Cognitionsand Reactive Devaluation • Ignoring others’ cognitions • Negotiators don’t bother to ask about the other party’s perceptions and thoughts • This leaves them to work with incomplete information, and thus produces faulty results • Reactive devaluation • The process of devaluing the other party’s concessions simply because the other party made them
Mood, Emotion and Negotiation • The distinction between mood and emotion is based on three characteristics: • Specificity • Intensity • Duration
Mood, Emotion and Negotiation Negotiations create both positive and negative emotions • Aspects of the negotiation process can lead to positive emotions • Positive feelings result from fair procedures during negotiation • Positive feelings result from favorable social comparison • Positive emotions generally have positive consequences for negotiations • They are more likely to lead the parties toward more integrative processes • They also create a positive attitude toward the other side • They promote persistence
Mood, Emotion and Negotiation • Aspects of the negotiation process can lead to negative emotions • Negative emotions may result from a competitive mindset • Negative emotions may result from an impasse
Mood, Emotion and Negotiation • Negative emotions generally have negative consequences for negotiations • They may lead parties to define the situation as competitive or distributive • They may undermine a negotiator’s ability to analyze the situation accurately, which adversely affects individual outcomes • They may lead parties to escalate the conflict • They may lead parties to retaliate and may thwart integrative outcomes
Mood, Emotion and Negotiation However, • Effects of positive and negative emotion • Positive emotions may generate negative outcomes • Negative feelings may elicit beneficial outcomes • Emotions can be used strategically as negotiation gambits