PPT On Perception And Individual Decision Making

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Perception And Individual Decision Making Presentation Transcript:
1.Perception & Individual Decision Making

2.What Is Perception, and Why Is It Important?
Perception
A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

3.Person Perception: Making Judgments About OthersAttribution Theory
When individuals observe behavior, they attempt to determine whether it is internally or externally caused.

4.Errors and Biases in Attributions
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.
Self-Serving Bias
The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.

5.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

6.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.

7.Employment Interview
Perceptual biases of raters affect the accuracy of interviewers’ judgments of applicants.
Performance Expectations
Self-fulfilling prophecy (pygmalion effect): The lower or higher performance of employees reflects preconceived leader expectations about employee capabilities.
Ethnic Profiling
A form of stereotyping in which a group of individuals is singled out—typically on the basis of race or ethnicity—for intensive inquiry, scrutinizing, or investigation.

8.Performance Evaluations
Appraisals are often the subjective (judgmental) perceptions of appraisers of another employee’s job performance.
Employee Effort
Assessment of individual effort is a subjective judgment subject to perceptual distortion and bias.

9.The Link Between Perceptions and Individual Decision Making

10.Assumptions of the Rational Decision-Making Model
Rational Decision- Making Model
Describes how individuals should behave in order to maximize some outcome.

11.How/Why problems are identified
Visibility over importance of problem
Attention-catching, high profile problems
Desire to “solve problems”
Self-interest (if problem concerns decision maker)
Alternative Development
Satisfying: seeking the first alternative that solves problem.
Engaging in incremental rather than unique problem solving through successive limited comparison of alternatives to the current alternative in effect.

12.Common Biases and Errors
Overconfidence Bias
Believing too much in our own decision competencies.
Anchoring Bias
Fixating on early, first received information.
Confirmation Bias
Using only the facts that support our decision.
Availability Bias
Using information that is most readily at hand.
Representative Bias
Assessing the likelihood of an occurrence by trying to match it with a preexisting category.

13.Escalation of Commitment
Increasing commitment to a previous decision in spite of negative information.
Randomness Error
Trying to create meaning out of random events by falling prey to a false sense of control or superstitions.
Hindsight Bias
Falsely believing to have accurately predicted the outcome of an event, after that outcome is actually known.

14.Organizational Constraints on Decision Makers
Performance Evaluation
Evaluation criteria influence the choice of actions.
Reward Systems
Decision makers make action choices that are favored by the organization.
Formal Regulations
Organizational rules and policies limit the alternative choices of decision makers.
System-imposed Time Constraints
Organizations require decisions by specific deadlines.
Historical Precedents
Past decisions influence current decisions.

15.Ways to Improve Decision Making
Analyze the situation and adjust your decision making style to fit the situation.
Be aware of biases and try to limit their impact.
Combine rational analysis with intuition to increase decision-making effectiveness.
Don’t assume that your specific decision style is appropriate to every situation.
Enhance personal creativity by looking for novel solutions or seeing problems in new ways, and using analogies.