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

THANK YOU

Perception and Individual Decision Making