PRESENTED BY : Mir Zeeshan AliPERCEPTION AND INDIVIDUAL DECISION MAKING
Learning Objectives1. Perception and the factors that influence it.2. Attribution Theory3. Making judgements about others4. Link between Perception and Decision Making5. Rational Model of Decision Making6. Common Decision biases or errors7. Individual differences and organizational constraints affects decision making8. Three Ethical decision criteria9. Creativity10. Global Implications 2
Perception• Perception is the process of receiving information about and making sense of the world around us. It involves deciding which information to notice, how to categorize this information and how to interpret it within the framework of existing knowledge.• A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. “WE DON’T SEE THINGS AS THEY ARE, WE SEE THINGS AS WE ARE”
Factors That Influence Perception Factors in the perceiver • Attitudes • Motives • Interests • Experience • ExpectationsFactors in the situation• Time Perception• Work Setting• Social Setting Factors in the Target • Novelty • Motion • Sounds • Size • Background • Proximity • Similarity
Attribution TheoryPerceptions we have of people Observing individuals behavior Internal external Distinctiveness Consensus consistency
Attribution Theory Determining Factors Externalsituational
DISTORTIONS Distortions In attributions Fundamental attribution error Self serving bias Under estimating the influence of Indviduals and organisations tend to External factors Attributing success to ability/ effort, Over estimate the influence of blame for failure on Internal or personal factors bad luck/ unproductive coworkers
APPLICATION OF SHORTCUTS• Employment interview• Performance Expectation• Performance Evaluation
LINK BETWEEN PERCEPTION &INDIVIDUAL DECISION MAKING• What is perception and its importance?• Factors influencing perception.• How decision should be made?• How to improve quality of decision?
Decision-Making Organizations• Rational Model: Characterized by making consistent, value- maximizing choices within specified constraints.• Six – Step Decision Process:4. Define problem5. Identify decision criteria6. Allocate weights to the criteria7. Develop alternatives8. Evaluate alternatives9. Select the best alternatives
Decision-Making Organizations• Bounded Reality: A process of making decision by constructing simplified models that extracts the essential features from problems without capturing all their complexity.• Intuition: An unconscious process created out of distilled experience.
“Good Enough” Lacks versus Complete Optimizing Information Bounded Rationality Cannot Cannot Assess All Weigh Alternatives All Criteria
Common Biases & Errors in decision makingCommon biases and Errors in decision making :2. Overconfidence bias3. Anchoring bias4. Confirmation bias5. Availability bias6. Escalation of commitment7. Randomness Error8. Winner’s Curse
Individual Differences in decision-making• Personality: Conscientiousness may effect escalation of commitment3. Achievement-strivers are likely to increase commitment4. Dutiful people are less like to have this bias• Gender:8. Women analyze decisions more than men rumination9. Women are twice as likely to develop depression 23
Organizational Constraints Performance Evaluation Managerial evaluation criteria influence actions Reward Systems Managers will make the decision with the greatest personal payoff for them Formal Regulations limit the alternative choices of decision makers System-imposed Time Constraints Restrict ability to gather or evaluate information Historical Precedents Past decisions influence current decisions
Ethics in Decision Making Ethics, also known as moral philosophy, is a branch of philosophy that addresses questions about morality — that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc. Here are some criteria that can help ensure appropriate ethical considerations are part of the decisions being made in the organization .• Compliance.• Promote good and reduce harm.• Responsibility.• Respects and preserves rights.• Promotes trust.• Builds reputation
Three Ethical Decision CriteriaAn individual can use three different criteria in making ethical choices• Utilitarian criterion;- Decisions are made solely on the basis of their outcomes or consequences.- The goal is to provide the greatest god for the greatest number.- It promotes efficiency and productivity, but it can result in ignoring the rights of some individuals, particularly those with minority representation.• Focus on Rights- To make decisions consistent with fundamental liberties and privileges as set forth in documents such as Constitution of India.- It means respecting and protecting the basic rights of individuals.- It creates an overly legalistic work environment that hinders productivity and efficiency.• Focus on Justice- This requires individuals to impose and enforce rules fairly and impartially so that there is an equitable distribution of benefits and costs.- It justifies paying people the same wage for a given job, regardless of performance differences and using seniority as the primary determination in making layoff decisions.- It encourages a sense of entitlement that reduces risk taking, innovation and productivity.
CREATIVITY• The ability to produce novel & useful ideas i.e different from what’s been done before but that are appropriate to the problem or oppurtunity presented. • Why is creativity important to decision making ? • Three component model of creativity Expertise Creative thinking skill Intrinsic task motivation
GLOBAL IMPLICATIONS• Attributions• Decisions Making• Ethics