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Perception Individual Decision Making

This document discusses perception and individual decision making. It covers topics like what perception is, factors that influence perception, attribution theory, biases in judgment and decision making. It also addresses the link between perception and decision making, and implications for managers, such as analyzing situations carefully, acknowledging cognitive biases, and combining rational and intuitive thinking to make more ethical and creative decisions.

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0% found this document useful (0 votes)
53 views16 pages

Perception Individual Decision Making

This document discusses perception and individual decision making. It covers topics like what perception is, factors that influence perception, attribution theory, biases in judgment and decision making. It also addresses the link between perception and decision making, and implications for managers, such as analyzing situations carefully, acknowledging cognitive biases, and combining rational and intuitive thinking to make more ethical and creative decisions.

Uploaded by

John
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CH6

Perception & Individual Decision


Making
Agenda
• What Is Perception
• Person Perception
• The Link Between Perception & Individual Decision Making
• Decision Making in Organizations
• Influences on Decision Making
• What About Ethics in Decision Making ?
• Global Implications
• Summary and Implications for Managers
What Is Perception ?
• Definition
A process by which individuals organize and interpret t
heir sensory impressions in order to give meaning to the
ir environment.

• Factors That Influence Perception


(1) perceiver
(2) target
(3) situation
Factors That Influence Perception
Person Perception :
Making Judgment About Others (a)

• Attribution Theory
(1)internally/externally
(2)three factors :
distinctiveness/consensus/consistency
(3)fundamental attribution error
(4)self-serving bias
Attribution Theory
ERRORS AND BIASES OF ATTRIBUT
ION THEORY
Fundamental Attribution In general, we
Error tend to blame
the person first,
not the
situation.

Self-Serving Bias
The tendency for individuals to attribute their
own successes to internal factors while putting
the blame for failures on external factors .

Eg – Exams …
Person Perception :
Making Judgment About Others (b)

• Common Shortcuts in Judging Others


(1) selective perception
(2) halo effect
(3) contrast effect
(4) stereotyping
Person Perception :
Making Judgment About Others (c)

• Specific Applications of Shortcuts in Organization


(1) Employment Interview
(2) Performance Expectations
(3) Performance Evaluation
Decision Making in Organizations
(b)
• Common Biases and Errors in Decision Making

(1) Overconfidence Bias


(2) Anchoring Bias
(3) Confirmation Bias
(4) Availability Bias
(5) Escalation of Commitment
(6) Randomness Error
(7) Risk Aversion
(8) Hindsight Bias
MORE PERCEPTUAL ERRORS

• RECENCY EFFECT
• LENIENCY
• CENTRAL TENDENCY
• STRICTNESS ERROR
• PYGMALION EFFECT – SELF FULFILLING PR
OPHECY
The Link Between
Perception & Individual Decision Making

• Decision
• Problem
• The way of making decision
• The quality of making decision
Decision Making in Organizations
(a)
• The Rational Model, Bounded Rationality, and Intuition
(1)Rational Decision Making
Define the problem
Identify the decision criteria
Allocate weights to the criteria
Develop the alternatives
Evaluate the alternatives
Select the best alternatives

(2)Bounded Rationality
(3)Intuition
What About Ethics in Decision Making ?
• Three Ethical Decision Criteria
(1)utilitarianism – JOHN STUART MILL
(2)right
whistle-blowers
(3)justice
• Improving Creativity in Decision Making
(1) Creative Potential
(2) There- Component Model of Creativity
expertise
creative-thinking skills
intrinsic task motivation
Decisions Time

• Close down inefficient plant


• Selling products with questionable effects
• Moving production overseas and laying off peopl
e to cut costs
Summary and Implications for Managers
• Perception
• Individual Decision Making
1. analyze the situation
2. be aware of biases
3.combine rational analysis with intuition
4. try to enhance creativity

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