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Perception and Individual Decision Making

This document provides an overview of perception and its link to individual decision making. It discusses key topics like attribution theory, common shortcuts for judging others, and how perception influences decision making. For example, it notes that something simple like color can impact purchasing decisions. It also outlines common biases that influence decisions, like overconfidence, and factors like personality and organizational constraints that shape decision making. Finally, it covers ethical decision criteria and improving creativity in the process.

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Rakibul Islam
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© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
35 views

Perception and Individual Decision Making

This document provides an overview of perception and its link to individual decision making. It discusses key topics like attribution theory, common shortcuts for judging others, and how perception influences decision making. For example, it notes that something simple like color can impact purchasing decisions. It also outlines common biases that influence decisions, like overconfidence, and factors like personality and organizational constraints that shape decision making. Finally, it covers ethical decision criteria and improving creativity in the process.

Uploaded by

Rakibul Islam
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Perception and Individual

Decision Making
Group No - One
What topics we cover:
● Introduction
● Perception: What is it?
● Attribution theory
● Common shortcuts for judging others
● Specific application of shortcuts in organization
● Link between perception and individual decision making
● The Rational Model, Bounded Rationality, and Intuition
● Common biases and errors in decision making
● Influences on decision making: Individual Differences
● Organizational constraints
● Ethical decision Criteria
● Improving creativity in decision making
● Component of creativity
Introduction
Perception is a fascinating topic that affects
every aspect of our lives, from the decisions we
make to the way we interact with others. At its
core, perception is about how we interpret and
make sense of the world around us.

Understanding perception is crucial because it


can have a profound impact on our decision
making. For example, did you know that
something as simple as the color of a product
can influence whether or not we buy it? By
understanding perception, we can make better
decisions and avoid common pitfalls.
Perception: What is it?

Perception is a process by which individuals organize and interpret their sensory


impressions in order to give meaning to their environment.

Why is perception important in the study of OB? Simply because people’s


behavior is based on their perception of what reality is, not on reality itself. The
world as it is perceived is the world that is behaviorally important
Factors that influence perception
Attribution theory

Attribution theory tries to explain the ways in


which we judge people differently, depending on
the meaning we attribute to a given behavior. It
suggests that when we observe an individual’s
behavior, we attempt to determine whether it was
internally or externally caused. That
determination, however, depends largely on
three factors:

(1) distinctiveness,

(2) consensus, and

(3) consistency
Common shortcut for judging others
People in organizations are always judging each other. Managers must appraise
their employees’ performances. And effort their co-workers are putting into their
jobs.
● Selective perception
● Halo effect
● Contrast effect
● Stereotypes.

Specific application of shortcuts in organization


● Employment Interview
● Performance Expectation
● Performance Evaluation
Link between perception and individual decision making
● Organizational individuals make decisions by choosing between two or more
options. top managers try to resource activities in the most efficient manner.
● Lower and middle managers try to set schedules and manage activities.
organizations today are beginning to empower non-executive workers in ways
that historically have not. for managers, it is an important part of
organizational behavior in decision making.
● For every decision we need to evaluate multiple sources of information. we
need to understand which of those data are relevant to the decision and
which are not. for example, delta airlines stopped negative publicity by
increasing its workforce after complaints about its management weaknesses.
Weaknesses and strengths of organizations should be identified by
developing alternatives
The Rational Model, Bounded Rationality, and Intuition

1. Rational Decision Making: In rational decision making, we often think of


the decision maker as choosing the highest value within specified
constraints.
2. Bounded Rationality: when our limited information processing makes it
impossible to understand all the information at once, we simplify the
process by reducing the information to a level of complex problem.
3. Intuition: Intuition is perhaps the least rational way of decision making.
we cannot rely too much on such a process. It is so unprovable that it is
difficult to know whether our ideas are right or wrong
Common Biases and Errors in Decision Making

Decision makers engage in bounded rationality, but they also allow systematic
biases and errors to creep into their judgment
● Overconfidence Bias
● Anchoring Bias
● Confirmation Bias
● Availability bias
● Randomness Error
● Hindsight Bias
Influences on Decision Making: Individual Differences and
Organizational Constraints
We turn here to factors that influence how people make decisions and the
degree to which they are susceptible to errors and biases. We discuss
individual differences and organizational constraints. Following discussion
helps to understand how individual difference and organizational constraints
affect decision making.
Individual Difference Organizational Constraints
● Personality ● Performance evaluation
● Gender ● Reward Systems
● Mental ability ● Formal Regulations
● Cultural differences ● System-Imposed Time Constraints
● Historical Precedents
Ethical decision Criteria & Improving creativity in decision making
● Ethical decision-making refers to the process of evaluating and choosing
among alternatives in a manner consistent with ethical principles.
● Creativity allows the decision maker to more fully appraise and
understand the problem, including seeing problems others can’t see

Ethical decision Criteria Improving Creativity in Decision Making

● Rights Criteria There are three components of creativity:


● Utilitarian Criteria ● Expertise
● Justice Criteria ● Creative thinking skill
● Motivation

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