2 - Perception theory

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    Perception

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    What is perception?

    The process by which people notice and makesense of information from the environment

    The process by which individuals organize andinterpret their sensory impressions in order to givemeaning to their environment

    The active process of sensing reality andorganizing it into meaningful views orunderstandings.

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    Perception is how we.

    What is perception?

    Select Organize Interpret Retrieve

    .information from the organization

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    Why study perception?

    Behavior based on perception of reality,not on reality itself

    IndividualHRMarketing

    Finance

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    Factors influencing Perception

    Factors in thesituationTime

    Work settingSocial setting

    Factors in the targetNovelty, motion, sounds,

    size, background, role, status

    Factors in thePerceiver

    Attitudes, motives, interestsExperience, expectation

    PERCEPTION

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    Perceptual Process

    Stimuli Selection(ext/int. factors)

    Organization

    Interpretation(Perceptual errors

    Attributions)

    Response(Covert/Overt)

    Observation

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    Figure Ground

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    Perceptual Grouping

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    Perceptual Grouping

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    Perceptual Grouping

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    PerceptualContext

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    Social/ Person Perception

    Making judgments about others

    Trying to develop explanations of whypeople behave in a certain way.

    Perceptions & judgments influenced by the

    assumptions we make about that personsinternal state.

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    Biases in Social Perception

    1. Selective Perception

    2. Halo Effect

    3. Stereotyping4. Contrast Effects

    5. Projection

    6. Perceptual Defense

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    Halo Effect

    Drawing a general impression about

    an individual on the basis of a single

    characteristic

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    Stereotyping

    Generalizing characteristics on basisof category or class to which person

    belongs

    Common stereotypes relate to age groups,gender, regional & religious groups, economicclasses, occupations, education levels....

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    MDP India HIV/AIDS Alliance

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    Contrast Effects

    Reaction to one person is influencedby other persons we have recently

    encountered

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    Projection

    Attribute ones own characteristics toother people

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    Assigning to a cause or source The way in which people explain the cause for

    their own or others behavior

    Attribution

    Behavior

    Internallycaused

    Externallycausedor

    Dispositional Situational

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    Factors for determining attribution

    1. Distinctiveness : Shows different behaviors in

    different situations

    2. Consensus : Response is the same as others to

    same situation

    3. Consistency : Responds in the same way overtime

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    Attribution

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    Fundamental attribution error

    Tendency to underestimate the influence of

    external factors and overestimate the influence ofinternal factors while judging others

    Errors & Biases distorting Attributions

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    Self Serving Bias Attribute own success to internal factors such asability, effort while blaming failure on external

    factors

    People tend to make attributions in line with"bad things happen to bad people " and

    "good things happen to good people in order to protect their self esteem & preventfeeling vulnerable.

    Errors & Biases distorting Attributions

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    Perception&

    Decision Making

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    Rational Decision making model

    Model for making rational & logical

    decisions

    Assumes that there is a single, bestsolution that will maximize the desired

    outcomes

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    Assumptions of Rational Decisionmaking modelProblem clarity : The problem is clear & unambiguous. Thedecision maker has complete information regarding situation.Known options : The decision maker can identify all therelevant criteria & can list all the viable alternatives.Furthermore, the decision maker is aware of all possible

    consequences of each alternative.Clear preferences : That the criteria & alternatives can beranked & weighted to reflect their importance.Constant preferences : The specific decision criteria areconstant & weights assigned to them are stable over time.

    No time or cost constraints : The rational decision maker canobtain full information about criteria & alternatives because thereare no time or cost constraints.Maximum payoff: The rational decision maker will choose thealternative that yields the highest perceived value

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    Steps in Rational Decision makingmodel1. Define the problem2. Generate all possible solutions3. Generate objective assessment criteria4. Choose the best solution5. Implement the chosen decision6. Evaluate the success of the chosen

    alternative7. Modify the decisions & actions taken

    based on the evaluation of step 6

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    Limitations

    Requires a great deal of time.Requires great deal of informationIt assumes rational, measurable criteriaare available & agreed upon.It assumes accurate, stable & completeknowledge of all the alternatives,

    preferences, goals & consequences.It assumes a rational, reasonable, non political world

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    Decision Making in real life

    Problem selection - Visible Problems havehigher probability of being selected thanimportant problems

    Alternatives Looking for satisficingsolutions rather than optimum ones

    Making choices Rely on heuristics i.e.judgmental shortcuts

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    How are decisions actually made?

    Intuitive decision makingBounded Rationality

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    Bounded Rational Decision MakingModelHerbert Simon Bounded Rationality Individuals make decisions by constructingsimplified models that extract the essential featuresfrom problems without capturing all their complexityThe decision maker takes the decision or isassumed to choose a solution though not a perfectsolution but good enough solution based on thelimited capacity to handle the complexity of thesituation, ambiguity & informationRealistic Approach for Rational Decision MakingProcess

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    Common Errors/Biases in Decision making

    Overconfidence Bias Anchoring BiasConfirmation Bias

    Availability BiasEscalation of Commitment