Perception and individual decision making

Perception and individual decision making

• 1.
  Perception and Individual Decision Making FaizatulHiqmah
• 2.
  What will we learn? Perceptionand factors that influence perception Person Perception : Making Judgement about others Link between perception and individual decision making How shoud the decision be made? How are decision actually made in organizations? Ethics in decision making Improving creativity in decision making
• 3.
  Factors Influence Perception PERCEIVER TARGET SITUATION • Processby which individuals organize and interpret their sensory impressions in order to give meaning to their environment Perception • People behavior is based on their perception. NOT ON REALITY ITSELF Why important to OB :
• 4.
  Person Perception : MakingJudgement about Others Attribution Theory •Observing others is based on the determination of whether it was internal/externally caused. •Distinctiveness •Consensus •Consistency Frequently used shortcuts in Judging Others •Selective perception •Halo Effect •Contrast Effect •Stereotyping Spesific application of Shortcuts in Organizations •Employment interview •Performance expectation •Performance evaluation
• 5.
  The Link betweenPerception and Individual Decision MakingDecision : Choices made among two or more alternatives Decision making  Reaction to problems Discrepancy between current state of affairs and desired state  alternative courses of action Decision = interpretation and evaluation of information
• 6.
  How Should Decision be Made? •Defining problems • Identify the decision criteria important to solving the problems • Weight the previously identified criteria in order to give them the correct priority in the decision • Generate possible alternatives that could succeed in resolving problems • Rate each alternative on each criterion • Compute the optimal decision Rational Decision Making Process • Problem clarity • Known options • Possible consequences in each alternatives • Clear preference • Constant preferences Assumption of the models
• 7.
  How are Decision Actually made in Organizations? BoundedRationality • When faced with a complex problem, most people respond by reducing the problem to a level at which it can be understood Why? • Limited information-processing capability • People satisfice – seek solution that are satisfactory and sufficient
• 8.
  Overconfidence Bias Anchoring Bias ConfirmationBias Availability Bias Representatives Bias Escalation of Commitment Randomness Error Winner’s Curse Hindsight Bias How are Decision Actually made in Organizations?
• 9.
  How are Decision Actually made in Organizations? •Unconscious process created of distiled experiences Intuition • High level of uncertainty exists • Little precedents to draw on • Variables are less scientifically predictable • “Facts” are limited • Facts do not clearly point the way to go • Analitical data are of little use • Several plausible alternatives to choose, with good arguments for each • Time is limited In what condition Intuition works? • Personality  Constientiousness • Gender  Rumination Individual Differences • Performance evaluation • Reward systems • Formal regulation • System imposed time constraints • Historical Precedents Organizational Constraints
• 10.
  Ethics in DecisionMaking Utilitarian Focus on the rights Focus on Justice
• 11.
  Improving Creativity in Decision Making Expertise Creative thinkingskills Intrinsic task motivation
• 12.
  Thank You Faizatul Hiqmah