Professional Documents
Culture Documents
Final Mio
Final Mio
.......................................................................................................................................................................................................................................
Learner’s Declaration:
I certify that I have not plagiarised the work of others or participated in unauthorised collaboration when
preparing this assignment. No part of this assignment has been previously submitted as part of another
unit/course. (In case assignment is being submitted by email, the learner must type his/her name in upper-case
letters).
1
Management in Organisations
.......................................................................................................................................................................................................................................
......................................................................................................................................................................................................................................
Signature of Part-Time Lecturer: …………..………….. Date:…………............…….……….
2
Management in Organisations
Table of Contents
1 (a) Using relevant examples from an organisation, critically explain the applicability of the
concept of perception and how it affects the effectiveness of an organisation. (15 Marks)............4
(b) Discuss the various types of decision-making models with particular relevance to an
organisation of your choice. (15 Marks)............................................................................................8
Table of References:..........................................................................................................................13
3
Management in Organisations
Perception is specifically defined as: ‘The process by which people select, organise, interpret,
retrieve and respond to information from the environment that surrounds them’. (Schiffman,
1990).
It is a natural human process through which people respond to present situations, how they
organise and interpret situations in respond to those situations.
Since human nature vary from one person to another, it is natural that the perceptive ability of
each individual will vary towards each situation. The behaviour of an individual within an
organisation is based on his own perception of what is reality and not reality itself.
Different factors affect people’s perception a workplace namely: the individual’s attitudes,
motives, experience, expectations, and interests. Other factors which affect perception
involves work setting, social setting, time, novelty, motion, sounds, size, proximity and
background.
For example, during the process of recruiting salespersons for the organisation, within the
first minutes of the interview, the interviewer will have already formed an impression on the
candidate through his own perception on the candidate’s: his physical appearance, his
outward mannerism and way of speaking. The interviewer might be particularly drawn
towards one aspect of the candidate. This leads to the HALO Effect. The Halo effect is
defined as drawing an impression on an individual based on a single characteristic. Here, the
interviewer might assume that the applicant is a good fit for the job due to only one
characteristic of the applicant. Or they might associate themselves as being similar to the
applicant and hence will be a good match for the organisation. The Halo effect might be the
4
Management in Organisations
cause of selecting the wrong person for the job or might as well prove to be effective since
not only one attribute can guarantee the efficiency of selecting a good salesperson.
Moreover, when new recruits are hired, it takes a minimum amount of time for the new staff
to settle in, to get along with their new colleagues and to get familiar with their new working
requirements. During this time period, it is mainly perception which the new recruits will
now use to familiarise themselves with their new environment while getting accustomed to
the ‘reality’ of the organisation.
In the organisation, the first level of promotion is from salesperson to sales manager.
Promotion within the organisation can be a very delicate process. But nevertheless,
discrimination happens more frequently than one might think. For example, a salesperson
might not be getting a promotion because the employer has formed a negative impression
upon a particular employee owing to the particular person belonging to a specific religious
group. This misconception is called stereotyping. Stereotyping is one such issue which should
be severely condemned. Here the wrong perception of a senior employee over a junior
employee can jeopardise the future prospects of an individual. This can lead to junior staff to
feel undervalued, and this can in turn lead to increase absenteeism and decreased job
satisfaction.
An instance might be when a manager has a very keen interest in everything related to
financial data. Now an employee working in the financial department has to prepare two
reports, One concerning sales and the other one related to financial data. The employee does
his best to prepare concise and precise reports to present to the manager, but the one related
to financial data is somewhat rushed through. When presented with the two reports, the
manager focuses more on the financial report (due to his innate keenness towards financial
data) by pointing out minor errors ignoring the fact that the other report submitted was
flawless. This is called selective perception If a manager has a negative opinion of an
individual, he or she might be prone to pay more attention to negative behaviors or actions
from that individual and ignore the positive actions that would contradict the opinion.
5
Management in Organisations
Perception is very important when performing Performance appraisal of their staff. When
conducting performance appraisal of an employee, the manager should understand the
organisational objectives and performance measures. Effective performance appraisal
systems can be performed when managers understand the process of perception, hence they
will most likely not be prone to subjective biases. Information obtained through performance
appraisal can help managers to amend organisational objectives and performance standards.
6
Management in Organisations
well documented all the policies in place and what procedures to follow in case of any
discrepancy. These policies help employees and the management of an organisation to act in
a fair and consistent manner and in so doing reduce to a certain extent the frequency of
perceptive misconceptions.
7
Management in Organisations
Decision making models aids in simplifying decision-making processes and hence promote
effective collaboration within an organization. Models provide a template to teams to follow
in order to create solutions and provide a clear description of processes to follow for other
team members altogether reach a balanced successful solution.
This model focuses on using logical steps to come to the best possible solution. It involves a
clear analysis of solutions and choosing the one with the most profitable outcome. The
rational decision model is mostly used by teams where there is a time for meetings and
research to take place. This will enable the team to create a list of potential solutions and will
allow the team to choose the best solution with the best outcome.
8
Management in Organisations
Through Rational decision making, the organisation will be able to decide whether it will be
profitable to the organisation or not to invest in additional server hardware. All stakeholders
within the team should be consulted, so as to avoid any wastage of the organisation’s fund.
This model involves decision taken mainly dictated by feelings and instinct rather than being
based on logical reasoning. This model is mostly used by team leaders and managers to take
quick decisions when being time constrained. The process is less structured and is mainly
based on previously acquired knowledge.
9
Management in Organisations
After choosing the most viable solution, inform your team or it might be that you will
have to take action without discussing with your team.
The intuitive model can be used by software programmers, while developing softwares it is
inevitable that it will contain bugs. By using his prior experience of dealing with bugs while
developing softwares, the developer will be able to counter the bugs by himself or by
brainstorming with his team members.
This model makes use of original ideas to create innovative solutions to achieve goals or to
overcome an obstacle. This concept is usually employed while embarking on never
experienced new projects. Using the intuitive model requires flexible thinking to achieve
successful solutions.
For example, the software organisation has been selected to create and implement an
application that requires to be developed on a never before used platform by the organisation.
10
Management in Organisations
The organisation will have to detail a new strategy to be able to conform to the customer’s
requirement in order to maintain its competitiveness on the software development market.
Bounded rationality model is typically driven by 3 main factors namely cognitive ability,
time constraint and imperfect information. Bounded rationality model highlights the
limitations of human’s ability to make appropriate decisions. The decision made usually give
satisficing results.
Time constraints refer to the time available to be able to take a decision. It affects our ability
to process and analyse new information related to attaining a particular goal or overcoming a
situation.
When faced with complex choices, consumers may opt to ‘satisfice’ instead of spending time
and effort analysing the situation – leading to a sub-optimal choice. When we are under
pressure and time constraints, we make sub-optimal decisions – at least most of the time.
However, we may make optimal decisions by luck rather than judgment.
11
Management in Organisations
For example, if the CEO of the software organisation is being queried by shareholders
about the performing status of the organisation and are becoming restless for results and
adding to that, profits and revenues are falling. The CEO must take a decision and there is
so much information that needs to be assessed within a limited time. In such a situation, it
is virtually impossible for any CEO to make an optimal decision and finally, a satisfactory
decision is made that meets a limited set of criteria but is not necessarily the most optimal
one.
12
Management in Organisations
Table of References:
13