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Perception & Decision Making

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Perception & Decision Making

Uploaded by

rishabh
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Perception and Decision

Making

Factors influencing perception, Errors


in perception, Perception and
individual decision-making (bounded
rationality), Attribution Theory
What is perception?
 Perception is a process by which
individuals organize and interpret their
sensory
impressions in order to give meaning to
their environment.
 The process of interpreting information
 What one perceives can be substantially
different from objective reality.
Why should Managers study
Perception
 Employment interview
 Performance evaluation
 Employee efforts
 Employee loyalty
Perceiver Characteristics Target
• Familiarity with target Characteristics
• Values, attitudes/Mood • Physical appearance

• needs, motives • Verbal communication

• Self-concept • Nonverbal cues

• Cognitive structure • Intentions

Social
Social
Perception Perception
Model

Situational Characteristics
• Interaction context

• Strength of situational cues


Perception and Individual
decision making
Perceptual Errors
 Stereotyping
 Contrast effect
 Halo Effect
 Horns effects
 Selective Perception
 First impression error
 Projection
 Self fulfilling prophecy or Pygmalion effect
Racial stereotyping in
Hiring
 Despite decades of progress in race relations,
discrimination against non-white workers is a
harsh reality.
 In a study of the low-wage labor market in New
York city, researchers found that white applicants
were twice as more likely to receive a job offer
than equally-qualified black counterparts.
 The study also showed that white individuals just
released from prison were just as likely to receive
a job offer as blacks or Latinos with no criminal
background.
 Halo effect- the tendency to draw a positive
impression about an individual on the basis
of a single characteristic.
 Horns effect- the tendency to draw a
negative impression about an individual on
the basis of a single characteristic.
 Contrast effect-evaluation of a person’s
characteristics that is affected by
comparisons with other people recently
encountered who rank higher or lower on
the same charactersitcs.
 Projection-This occurs when an individual
attributes their own thoughts, feelings, or
motives to another person or external
situation.
Self-fulfilling Prophecy
 A self-fulfilling prophecy is a prediction or
belief that, due to the behavior it incites,
causes itself to come true. The term was first
coined by sociologist Robert K. Merton in 1948,
who defined it as a false belief or expectation
that brings about its own reality by influencing
people to act in ways that make the belief
true.
 Also called as Pygmalion Effect.
Impression
Management
The process by which individuals try to control the
impression others have of them
 Name dropping

 Disclosing obstacles

 Doing favours

 Flattery

 Opinion conformity

 Playing safe

According to new research from Hong Kong University of


Science and Management, suggests that insincere
flattery is quite effective. Though often viewed
negatively, the report shows that flattery with an
obvious ulterior motive leads to a initial favorable
reaction.
How do individuals perceive & make
judgments? (Attribution Thoerys)
 Attribution process explains how
individuals pinpoint the causes of their
own behavior or that of others
 Internal attributions:
 Attributing events to something
within the individual’s control.
 External attributions:
 Attributing events to something outside
the individual’s control.
Attribution Theory
Attributional biases
 Fundamental attribution error- the tendency to
underestimate the influence of external factors
and overestimate the influence of internal
factors when making judgments about the
behaviour 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.
Perception and Decision Making
 Rational Decision making model focuses on
how individuals should behave to maximize
some outcomes.
 Bounded rationality- A simplified process of
making decision by perceiving and interpreting
the essential features of problems without
capturing their complexity.
 Intuition- An unconscious process created out
of distilled experiences.

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