mba _individual tp of mgt of organization

KIGALI INDEPENDENT UNIVERSITY

MBA

EVENING PROGRAMME

COURSE: MANAGEMENT OF ORGANIZATION

ASSIGNMENT

By

NKUNDABAKURA KARIMA Javan

(Roll Number: 1-2012-0904)

LECTURER: Prof. Dr KAAYA Siraje Kigali, January 2013

of 8

QUESTION 38:

DISCUSS THE PERCEPTION AND INDIVIDUAL DECISION MAKING OF ORGANIZATIONAL BEHAVIOR

TABLE OF CONTENTS

INTRODUCTION..................................................................................................................................................3

I.Perception……………………………………………………………………………………………………………....4

I.1 What is Perception……………………………………………………………………………………………..4

I.2 Why is it Important……………………………………………………………………………………………4

I.3 Factors Influencing Perception……………………………………………………………………………4

I.4 Person Perception: Making Judgments about Others……………………………………………4

II.Decision Making……………………………………………………………………………………………………..5

II.1 What is Decision Making?...................................................................................................................5

II.2 Effective Decision Making………………………………………………………………………………….6

III.The Link between Perception and Individual Decision Making…………………….................6

IV.Summary and Implications for Managers……………………………………………………………….7

V.REFERENCES………………………………………………………………………………………………………...8

of 8

Introduction

Individuals behave in a given manner based not on the way their external environment

actually is but, rather, on what they see or believe it to be. An organization may spend

millions of money to create a pleasant work environment for its employees. However, in

spite of these expenditures, if an employee believes that his or her job is lousy, that

employee will behave accordingly. It is the employee’s perception of a situation that

becomes the basis for his or her behavior.

The evidence suggests that what individuals perceive from their work situation will

influence their productivity more than will the situation itself. Whether or not a job is

actually interesting or challenging is irrelevant. Whether or not a manager successfully

plans and organizes the work of his or her employees and actually helps them to structure

their work more efficiently and effectively is far less important than how employees

perceive the manager’s efforts. Similarly, issues like fair pay for work performed, the

validity of performance appraisals, and the adequacy of working conditions are not judged

by employees in a way that assures common perceptions, nor can we be assured that

individuals will interpret conditions about their jobs in a favorable light. Therefore, to be

able to influence productivity, it is necessary to assess how workers perceive their jobs.

Absenteeism, turnover, and job satisfaction are also reactions to the individual’s

perceptions. Dissatisfaction with working conditions or the belief that there is a lack of

promotion opportunities in the organization are judgments based on attempts to make

some meaning out of one’s job. The employee’s conclusion that a job is good or bad is an

interpretation. Managers must spend time understanding how each individual interprets

reality and, where there is a significant difference between what is seen and what exists, try

to eliminate the distortions and make decision accordingly. Failure to deal with the

differences when individuals perceive the job in negative terms will result in increased

absenteeism and turnover and lower job satisfaction.

of 8

I. PERCEPTION

I.1 What is Perception?

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

impressions in order to give meaning to their environment (Stephen 2005).

Perception is our sensory experience of the world around us and involves both the

recognition of environmental stimuli and actions in response to these stimuli. Through the

perceptual process, we gain information about properties and elements of the environment

that are critical to our survival. Perception not only creates our experience of the world

around us; it allows us to act within our environment.

http://psychology.about.com/od/sensationandperception/ss/perceptproc.htm

I.2 Why is it Important?

Because people’s behaviour is based on their perception of what reality is, not on reality

itself? The world that is perceived is the world that is behaviourally important.

I.3 Factors Influencing Perception

· The Perceiver: attitudes, motives, interests, experiences, expectations;

· The Target: novelty, motions, sounds, size, background, proximity, similarity;

· The Situation: time, work setting, social situation.

I.4 Person Perception: Making Judgments about Others

Our perception and judgment of others are significantly influenced by our assumptions of

the other people’s internal states.

When individuals observe behaviour, they attempt to determine whether it is internally or

externally caused.

of 8

- Internal causes are under that person’s control, it means that internally caused

behaviors are those that are believed to be under the personal control of the

individual;

- External causes are not under the person’s control, it means that externally caused

behavior is seen as resulting from outside causes; that is, the person is seen as

having been forced into the behavior by the situation.

Causation judged through:

- Distinctiveness: Shows different behaviours in different situations;

- Consensus: Response is the same as others to same situation;

- Consistency: Responds in the same way over time.

(Robbins & Judge, Organizational Behavior, 13th Edition)

II. DECISION MAKING

II.1 What is Decision Making?

In its simplest sense, decision making is the act of choosing between two or more courses

of action. However, it must always be remembered that there may not always be a 'correct'

decision among the available choices. There may have been a better choice that had not

been considered, or the right information may not have been available at the time. Because

of this, it is important to keep a record of all decisions and the reasons why decisions were

made, so that improvements can be made in the future. This also provides justification for

any decision taken when something goes wrong. Hindsight might not be able to correct past

mistakes, but it will aid improved decision making in the future.

of 8

II.2 Effective Decision Making

Although decisions can be made using either intuition or reasoning, a combination of both

approaches is often used. Whatever approach is used, it is usually helpful to structure

decision making in order to:

Reduce more complicated decisions down to simpler steps;

See how any decisions are arrived at;

Plan decision making to meet deadlines.

http://www.skillsyouneed.co.uk/IPS/Decision_Making.html#ixzz2GywzWRFu

III. The Link between Perception and Individual Decision Making

Individuals in organizations make decisions. That is, they make choices from among two or

more alternatives. Top managers, for instance, determine their organizational goals, what

products or services to offer, how best to finance operations, or where to locate a new

manufacturing plant. Middle and lower-level managers determine production schedules,

select new employees, and decide how pay raises are to be allocated.

Individual decision making, therefore, is an important, part of organizational behavior. But

how individuals in organizations make decisions and the quality of their final choices are

largely influenced by their perceptions.

Decision making occurs as a reaction to a problem. So the awareness that a problem exists

and that a decision needs to be made is a perceptual issue. Moreover, every decision

requires the interpretation and evaluation of information. Finally, throughout the entire

decision process, perceptual distortions often surface that have the potential to bias

analysis and conclusions.

http://www.citeman.com/294-the-link-between-perception-and-individual-

decision-making.html#ixzz2HOiwiatL

of 8

http://www.citeman.com/294-the-link-between-perception-and-individual-decision-making.html#ixzz2HOiwiatL



IV. Summary and Implications for Managers

Perception:

- An employee’s perception of a situation is the basis for his/her behavior;

- To influence productivity, it is important that a manager understand how employees perceive their job;

- Employees try to create meaning out of their job in various situations

- Managers are advised to understand how individuals interpret reality

- Individuals behave based not on the way their external environment actually is but,

rather, on what they see or believe it to be;

- Evidence suggests that what individuals perceive from their work situation will

influence their productivity more than will the situation itself;

Individual Decision Making:

- Individuals think and reason before they act;

- How a people makes decisions may explain their behaviour;

- Under some decision situations, people follow the rational decision-making model;

- So, what can managers do to improve their decision making?

o Analyse the situation;

o Be aware of biases;

o Combine rational analysis with intuition;

o Don’t assume that your specific decision style is appropriate for every job;

o Try to enhance your creativity.

of 8

V. REFERENCES

1. Stephen P. Robbins & Timothy A. Judge, Essentials of Organizational Behaviour, 10e éd. 2005

2. Robbins & Judge, Organizational Behavior, 13th Edition;

3. http://psychology.about.com/od/sensationandperception/ss/perceptproc.htm;

4. http://www.skillsyouneed.co.uk/IPS/Decision_Making.html#ixzz2GywzWRFu;

5. http://www.citeman.com/294-the-link-between-perception-and-individual-

decision-making.html#ixzz2HOiwiatL.

of 8




mba _individual tp of mgt of organization

Documents