Perception and individual dicision making

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Individuals organize and interpret

their sensory impressions

in order to give meaning to their environment

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challenge what we perceive is substantially different

from the objective reality

• Peoples behavior

based on their perception of what reality is

• not on the reality itself

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Situation

TimeWork settingSocial setting

ReceiverAttitudesMotivesInterests ExperienceexpectationsTarget

MotionSounds SizeBack groundProximitySimilarity

Perception

Factors that influence perception

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We try to explain others behaviors

assume other people’s internal status

judge people based on our perceptions

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This is fundamental attribution error

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Selective perception

• Tendency to

selectively interpret

what one sees on

the based of ones

interests, back

ground, experience,

attitudes

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Halo effect

• Draw a general impression about an individual based on a single characteristic

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Contrast effect

• Evaluation of a persons is not done in isolation, we compare he/she with people we recently encountered

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Stereotyping

• Judging someone on the basis of one’s perception of the group to which that person belongs

• This activates prejudice and discrimination

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• Employment Interviews-1st impression

• Performance expectations-people’s

behavior determine by others expectations

(Self Fulfilling Prophecy)

• Performance Evaluation-appraisals very

often subjective

Perception and Decision Making

Related?

• How?

Decision Making in OrganizationsRational Decision Making

Bounded Rationality

• Unconscious process created from

distilled experience

• Out side conscious thought

• Rely on holistic associations

• Links between disparate pieces of

information

• Human beings have difficulty dealing with

chance

• Believe we have some control over our

world or the destiny

• We try to create meaning out of random

events

( I do not take any important decision on Friday!)

• Individual Differences

• Personality

• Gender

• Mental Ability

• Utilitarianism – greatest good for greatest

number

• Consistence with fundamental liberties

and privileges

• Impose and enforce rules fairly and

impartially

Improving Creativity in Decision Making

Group Decision Making

Group think

• Group pressures for conformity

• Deter the appraisal of unusual, minority and unpopular views

• Dramatically hinder performance

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Group Shift or Group polarization

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Brain Storming

Nominal Group Technique

Electronic Meetings

Social Loafing

• Strengths of Group Decision Making

• Weakness of Group Decision Making

• Effectiveness and efficiency