PERCEPTION & INDIVIDUAL DECISION
MAKINGSubmitted by :
SANTHI BIJU
DHWANI SHAH
Perception and Individual Decision Making
CONTENTS
a) INTRODUCTION
b) FACTORS THAT INFLUENCE PERCEPTION
c) ATTRIBUTION THEORY
d) THE LINK BETWEEN PERCEPTION AND INDIVIDUAL DECISION MAKING
e) DECISION MAKING
f) INDIVIDUAL DIFFERENCES
g) ORGANIZTIONAL CONSTRAINTS
“The eye sees only what the mind is prepared to
comprehend”
ROBERTSON DAVIES, quoted in The Wordsworth Dictionary of Quotes
Perception and Individual Decision Making
INTRODUCTION
PerceptionA Process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
It involves deciding which information to notice, how to categorize this information and how to interpret it within the framework of existing knowledge.“WE DON’T SEE THINGS AS THEY ARE, WE SEE THINGS AS WE ARE”
The world as it is perceived is the world that is behaviorally important.
People’s behavior is based on their
perception of what reality is, not on
reality itself.
Perception and Individual Decision Making
FACTORS THAT INFLUENCE PERCEPTION
FACTORS IN TARGET
• MOTIVATION• PROXIMITY • SOUND• SIZE• BACKGROUND• SIMILARITY• NOVELTY
FACTORS IN SITUATION
• TIME• WORK SETTING • SOCIAL SETTING
FACTORS IN PERCEIVER
• ATITUDES• MOTIVES• INTEREST• EXPERIENCE• EXPECTATIONS
PERCEPTION
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. This determination depends mainly on three factors:Distinctivenessconsensusconsistency
ATTRIBUTION THEORY
Perception and Individual Decision Making
KEY ELEMENTS OF ATTRIBUTION THEORY
INDIVIDUAL BEHAVIOUR
DISTINCTIVENESS
EXTERNAL
INTERNAL
CONSENSUS
EXTERNAL
INTERNAL
CONSISTENCY
INTERNAL
EXTERNAL
HIGH HIGH HIGHLOW LOW LOW
OBSERVATION INTERPRETATION ATTRIBUTION OF CAUSE
Perception and Individual Decision Making
ERRORS AND BIASES OF ATTRIBUTION THEORY
Fundamental Attribution Error
The tendency to underestimate the influence of external factors and overestimate the influence of internal factors when making judgments about the behavior of others. In general, we 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 .
Thought: When student gets an “A” on an exam,. they often say they studied hard. But when they don’t do well, how does the self serving bias come into play? Hint: Whose fault is it usually when an exam is “tough”?
In general, we tend to blame the person first, not the situation.
Perception and Individual Decision Making
FREQUENTLY USED SHORTCUTS IN JUDGING OTHERS
Selective Perception
People selectively interpret what they see on the basis of their interests, background, experience, and attitudes.
Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic.
Contrast Effects
Evaluation of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.
Perception and Individual Decision Making
Projection
Attributing one’s own characteristics to other people.
Stereotyping
Judging someone on the basis of one’s perception of the group to which that person belongs.
THE LINK BETWEEN PERCEPTION AND INDIVIDUAL DECISION
MAKING
Problem
A perceived discrepancy between the current state of affairs and a desired state.
Decisions
Choices made from among alternatives developed from data perceived as relevant
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Perception and Individual Decision Making
PERCEPTION OF THE DECISION
MAKER
OUTCOMES
Perception and Individual Decision Making
THREE COMPONENT MODEL OF CREATIVITY
EXPERTISE
INTRINSIC TASK
MOTIVATION
CREATIVE
THINKING SKILLS
The ability to produce novel and useful ideas
Helps people to:• Better understand the problem• See problems others can’t see• Identify all viable alternatives• Identify alternatives that aren’t readily
apparent
Perception and Individual Decision Making
DECISION MAKING
Rational Model:
Characterized by making consistent, value- maximizing choices within specified constraints.
PROBLEM CLARITY
KNOWN OPTIONS
CLEAR PREFERENCES
CONSTANT PREFERENCES
NO TIME /COST CONSTRAINTS
MAXIMUM PAY OFF
Perception and Individual Decision Making
DECISION MAKING IN ORGANIZATIONS
Bounded Rationality
Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.
Intuition decision making
An unconscious process created out of distilled experience.
Perception and Individual Decision Making
COMMON BIASES AND ERRORS IN DECISION MAKING
someone's subjective confidence in their judgments is reliably greater than their objective accuracy, especially when confidence is relatively high.
A tendency to fixate on initial information ,from which one then fails to adequately adjust for subsequent information .
The tendency for people to base their judgments on information that is readily available to them.
The tendency of individuals to believe that they can perfect the outcome of random events.An increases commitment to a previous decision in spite of negative information.
The tendency of people to favor information that confirms their beliefs.
Perception and Individual Decision Making
INDIVIDUAL DIFFERENCES
PERSONALITY GENDER MENTAL ABILITY
CULTURAL DIFFERENCES
Perception and Individual Decision Making
ORGANIZATIONAL CONSTRAINTS
PERFORMANCE EVLUATION
REWARD SYSTEM
FORMAL REGULATIONS
SYSTEM-IMPOSED TIME CONSTRAINTS
HISTORICAL PRECEDENTS
Perception and Individual Decision Making
CONCLUSION
“What you see and hear depends a good deal on where you are standing;
it also depends on what sort of person you are.” C.S. LEWIS, The Magician's Nephew
Perception in Decision-making is based on a person’s internal understanding of reality rather than reality itself.
Perception and Individual Decision Making
BIBLIOGRAPHY
BOOKS1. Henry, D. &. (1993). Spatial Perception in Virtual Environments: Evaluating an Architectural Application. 2. Hubel, M. L. (1988). Segregation of Form, Color, Movement, and Depth:Anatomy,physiology and
perception. 3. Schermerhorn, H. (2005). Organizational Behavior. JOHN WILEY & SONS.
WEBSITES4. (2013, 04). Perception, Sensation. StudyMode.com. Retrieved 04, 2013, from
http://www.studymode.com/essays/Perception-Sensation-1612267.html5. (n.d.). Retrieved from http://somepsychology.com/psisper2.htm6. (2008, 10). Perception. StudyMode.com. Retrieved 10, 2008, from http://
www.studymode.com/essays/Perception-171322.html
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Perception and Individual Decision Making