It is a organizational behavioral term.

1. Perception and Individual
Decision Making

2. Perception

3. Factors That Influence Perception
There are three factor which determine the several working situation .
Factors Regarding :-
1. Perceiver.
2. Time.
3. Target.

4. Person Perception: Making Judgments
about Others
There are some criteria for making people judge about the
perception regarding the environment. The attribution
theory helps to determine the factor that help the site of
the human being for running any organization.
That determination, how-ever, depends largely on three
factors:
1. Distinctiveness.
2. Consensus.
3. Consistency.

5. The application of Attribution theory
Organization Attribution Attribution of Cause
High
High
High
Low
Low
Low
External
External
External
Internal
Internal
Internal
Consistency
Consensus
Distinctiveness
Individual behavior

6. Common Shortcuts in Judging Others
Selective Perception: Any characteristic that makes a person, an
object, or an event stand out will increase the probability we will
perceive it.
Halo Effect: When we draw a general impression about an
individual on the basis of a single characteristic, such as intelligence,
sociability, or appearance, a halo effect is operating.

7. Contrast Effects: Evaluation of a person’s characteristics that is
affected by comparisons with other people recently encountered
who rank higher or lower on the same characteristics.
Stereotyping: When we judge someone on the basis of our
perception of the group to which he or she belongs, we are using the
shortcut called stereotyping.
Common Shortcuts in Judging Others

8. Specific Applications of Shortcuts in
Organizations
Managers must appraise their employees’ performances. We eva
1. Employment Interview:
Few people are hired without an interview. But interviewers make
perceptual judgments that are often inaccurate and draw early impressions that
quickly become entrenched. Research shows we form impressions of others
within a tenth of a second, based on our first glance.
2. Performance Expectations:
People attempt to validate their perceptions of reality even
when these are faulty. The terms self-fulfilling prophecy and Pygmalion effect
describe how an individual’s behavior is determined by others’ expectations how
much effort our co-workers are putting into their jobs.

9. 3. Performance Evaluation:
An employee’s future is closely tied to the
appraisal promotion, pay raises, and continuation of employment
are among the most obvious outcomes.
Specific Applications of Shortcuts in
Organizations

10. Decision Making in Organizations
Decision-making is the process of identifying and choosing
alternatives based on the values, preferences and beliefs of
the decision-maker. Every decision-making process produces
a final choice, which may or may not prompt action.

11. The Rational Model, Bounded Rationality,
and Intuition
Steps in the Rational Decision-Making Model
1. Define the problem.
3. Allocate weights to the criteria.
4. Develop the alternatives.
6. Select the best alternative.
2. Identify the decision criteria.
5. Evaluate the alternatives.

12. Common Biases and Errors in Decision
Making
Overconfidence Bias: The tendency to be too confident about
their ideas might keep some from planning how to avoid problems
that arise.
Anchoring Bias: The anchoring bias is a tendency to fixate on
initial information and fail to adequately adjust for subsequent
information. It occurs because our mind appears to give a
disproportionate amount of emphasis to the first information it
receives. Anchors are widely used by people in professions in which
persuasion skills are important advertising, management, politics,
real estate, and law.

13. Hindsight Bias: The hindsight bias is the tendency to believe
falsely, after the outcome is known, that we’d have accurately
predicted it. When we have accurate feedback on the outcome, we
seem pretty good at concluding it was obvious.
Availability bias: The tendency for people to base their
judgments on information that is readily available to them.
Common Biases and Errors in Decision
Making

14. Influences on Decision Making: Individual
Differences and Organizational Constraints
Personality:
The little research so far conducted on personality and decision making suggests
personality does influence our decisions. Specific facets of conscientiousness
rather than the broad trait itself may affect escalation of commitment. Two such
facets achievement striving and dutifulness actually had opposite effects.
Gender: Research on rumination offers insights into gender differences in
decision making. Rumination refers to reflecting at length. In terms of decision
making, it means overthinking problems.

15. Mental Ability: We know people with higher levels of mental ability are
able to process information more quickly, solve problems more accurately, and
learn faster, so you might expect them also to be less susceptible to common
decision errors.
Influences on Decision Making: Individual
Differences and Organizational Constraints

16. Three Ethical Decision Criteria
Utilitarianism: Which proposes making decisions solely on the basis of
their outcomes, ideally to provide the greatest good for the greatest number.
This view dominates business decision making. It is consistent with goals such as
efficiency, productivity, and high profits.
Whistle-blowers: Individuals who report unethical practices by their
employer to outsider’s process. This criterion protects whistle-blowers when
they reveal an organization’s unethical practices to the press or government
agencies, using their right to free speech.
Impose and enforce: A third criterion is to impose and enforce rules
fairly and impartially to ensure justice or an equitable distribution of benefits
and costs. Union members typically favor this view.

17. Improving Creativity in Decision Making
Creative Potential: Most people have useful creative potential. But to
unleash it, they have to escape the psychological ruts many of us fall into and
learn how to think about a problem in divergent ways.
Expertise: Expertise is the foundation for all creative work. Film
writer, producer, and di-rector Quentin Tarantino spent his youth working in a
video rental store, where he built up an encyclopedic knowledge of movies.

18. Creative-thinking skills: The second component is creative-thinking
skills. This encompasses personality characteristics associated with creativity,
the ability to use analogies, and the talent to see the familiar in a different light.
Intrinsic task motivation: The final component in the three-
component model of creativity is intrinsic task motivation. This is the desire to
work on something because it’s interesting, involving, exciting, satisfying, or
personally challenging.
Improving Creativity in Decision Making