Perception and decision making

Perception is the process of gathering, organizing, and interpreting of sensory information in

order to represent and understand the presented information or the environment. Decision
making is the process of identifying and choosing alternatives based on the values,
performance, and beliefs of the decision maker.

Every individual faces a point where he expected to make an important decision from a
vast array of alternatives. An individual is required to go through all the alternatives and
make a rational decision. But people cannot process all the information and scrutinize every
single problem. As a result, they make a habit deciding on the basis of perception so we can
argue that there is a link between perception and decision making.

On the basis of perception, individuals make decisions towards continuations or

termination, make decisions towards continuation or termination, make behavior patterns at
the workplace and with supervisors, managers and team members. Thus, the perception
theories are much useful in organizational decision making.
Decisions are influenced in most of the cases by individuals behavior, perception effects on
behavior. Therefore perception is closely associated with individuals' decision-making
process. There are three theories of individual decision making.

I) classical or rational decision making

These modules describe how individuals should behave in order to maximize some
outcomes. This module assumes that the best decision maker is rational.

Assumptions of this modules

• The decision maker can easily analysis the problem
• Performance is clearly constant and stable.
• The decision maker has complete information.
• The decision maker is capable of finding out the best alternatives solution and choosing the
best option.