MEANING OF PERCEPTION

There are two meaning of Perception

1. Literal Meaning Perception is a process by which individual organize and interpret their sensory impressions in order to give meaning to their environment. 2. General Meaning Perception is the view of a person that is formed through a combination of factors such as his personality, attitude, experience, the environment in which he reside.

FACTORS INFLUENCING PERCEPTION

The factors influencing the Perception are as follows:-

1. Factors In The Perceiver Factors influencing perceiver are Attitudes, Motives, Interests, Experience and Expectation. 2. Factors In The Situation Factors influencing situations are Time, Working Setting and Social Setting.

3. Factors In The Target Factors influencing Target are Novelty, Motion, Sounds, Size, Background, Proximity and Similarity

APPLICATION OF PERCEPTION CONCEPTS TO OB

ATTRIBUTION THEORY
Attribution Theory has been proposed to develop explanations of the ways in which we judge people differently, depending on What meaning we attribute to a given behavior. The theory depends on three factors:1. Distinctiveness 2. Consensus 3. Consistency

1. Distinctiveness:It refers to whether individual displays different behavior at different situation. 2. Consensus:It refers to behavior of the person who faces similar situation responds in the same way. 3. Consistency:It refers to consistency with which a person acts, tells whether person respond the same way over time?

FINDING OF ATTRIBUTION THEORY

There are errors or biases that distort attributions. There are two kinds of errors in the Attribution Theory. 1. 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. 2. Self-Serving Bias The tendency for individuals to attribute their own successes to internal factors while putting the blame for failures on external factors.

SHORTCUTS USED IN JUDGING OTHERS

Sometimes we use shortcuts in judging others and they create distortion. The shortcuts are as follows:1. Selective PerceptionIt refers to the selectively interpreting what one sees on the basis of ones interest, background, experience, and attitude. 2. Halo EffectIt draws a general impression about an individual on the basis of a single characteristic. 3. Projection It attributes ones own characteristics to other people.

4. Contrast EffectsIt refers to the evaluation of persons characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics.
5. Stereotyping It is judging someone on the basis of ones perception of the group to which that person belongs. 6. Self-fulfilling prophecyIt is a situation in which one person inaccurately perceives a second person and the resulting expectations cause the second person to behave in ways consistent with the original perception.

THE LINK BETWEEN PERCEPTION & INDIVIDUAL DECISION MAKING

HOW SHOULD DECISION SHULD BE MADE????

The Rational Decision-Making Process The decision-making model that describes how individuals should behave in order to maximize some outcome. There is the rational model which would help us to make a proper decision

THE RATIONAL MODEL

In these model there are six steps in rational decision-making model. The six steps are:1) Define the problem. 2) Identify the decision criteria. 3) Allocate weights to the criteria. 4) Develop the alternatives. 5) Evaluate the alternatives. 6) Select the best alternatives.

ASSUMPTIONS OF RATIONAL-MODEL
The Rational decision making model we just described contains a number of assumptions. They are:1) Problem Clarity. 2) Known Options. 3) Clear Preference. 4) Constant Preferences. 5) No Time or Cost Constraints. 6) Maximum Payoff.

HOW ARE DECISION ACTUALLY MADE IN ORGANISATION

Bounded Rationality:It refers for making decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity.

COMMON BIASES AND ERROR

These are the following common biases and error:1) Overconfidence Bias It refers to those individuals whose intellectual and interpersonal abilities are weakest are most likely to overestimate their performance and ability. 2) Anchoring Bias It refers to the tendency to fixate on initial information, from which we then fail to adequately adjust for subsequent information. 3) Conformational Bias The tendency to seek out information that reaffirms past choices and to discount information that contradicts past judgments. 4) Availability Bias The tendency for people to base their judgments on information that is readily available to them.

5) Representative Bias Assessing the likelihood of an occurrence by inappropriately considering the current situation as identical to ones in the past. 6) Escalation Of Commitment An increased commitment to a previous decision in spite of negative information. 7) Randomness Error The tendency of individuals to believe that they can predict the outcome of random events. 8) Winners Curse A decision making dictum that argues that the winning participants in an auction typically pay too much for the winning item.

9) Hindsight Bias The tendency for us to believe falsely that we would have accurately predicted the outcome of an event, after that outcome is actually known.

INDIVISUAL DIFFERENCES
There are individual differences that create deviations from the rational model. The two individual differences variables are 1) Personality 2) Gender

ORGANIZATIONAL CONSTRAINTS
The Organizational Constraints are as follows1) Performance Evaluation 2) Reward Systems 3) Formal Regulations 4) System-Imposed Time Constraints 5) Historical Precedents