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Understanding Perception and Decision Making

Perception is how people notice and make sense of their environment by selecting, organizing, and interpreting sensory information. It is influenced by factors in the perceiver, the situation, and the target of perception. The perceptual process involves stimuli being observed, selected, organized, and interpreted, which can lead to perceptual errors. Social perception involves making judgments about others and is influenced by biases like selective perception, halo effect, stereotyping, and attribution errors. Decision making is complex and boundedly rational, relying on heuristics and being prone to biases rather than perfectly rational.

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0% found this document useful (0 votes)
166 views34 pages

Understanding Perception and Decision Making

Perception is how people notice and make sense of their environment by selecting, organizing, and interpreting sensory information. It is influenced by factors in the perceiver, the situation, and the target of perception. The perceptual process involves stimuli being observed, selected, organized, and interpreted, which can lead to perceptual errors. Social perception involves making judgments about others and is influenced by biases like selective perception, halo effect, stereotyping, and attribution errors. Decision making is complex and boundedly rational, relying on heuristics and being prone to biases rather than perfectly rational.

Uploaded by

swishrick1818
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPT, PDF, TXT or read online on Scribd

Perception

What is perception?
The process by which people notice and make
sense of information from the environment
The process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment The active process of sensing reality and organizing it into meaningful views or understandings.

What is perception?
Perception is how we.

Select

Organize

Interpret

Retrieve

.information from the organization

Why study perception?


Behavior based on perception of reality,

not on reality itself


Individual

HR
Marketing Finance

Factors influencing Perception


Factors in the Perceiver Factors in the situation
Time Work setting Social setting Attitudes, motives, interests Experience, expectation

PERCEPTION

Factors in the target


Novelty, motion, sounds, size, background, role, status

Perceptual Process
Stimuli Observation Selection
(ext/int. factors)

Organization

Interpretation
(Perceptual errors Attributions)

Response
(Covert/Overt)

Figure Ground

Perceptual Grouping

Perceptual Grouping

Perceptual Grouping

Perceptual Context

Social/ Person Perception


Making judgments about others Trying to develop explanations of why people behave in a certain way. Perceptions & judgments influenced by the assumptions we make about that persons internal state.

Biases in Social Perception


1. Selective Perception 2. Halo Effect 3. Stereotyping

4. Contrast Effects
5. Projection 6. Perceptual Defense

Selective Perception
Select only a few stimuli at a given time Selective filtering of information

Tendency to selectively interpret what one sees on the basis of ones interests, background, experience and attitudes

Halo Effect
Drawing a general impression about an individual on the basis of a single characteristic

Stereotyping
Generalizing characteristics on basis of category or class to which person belongs
Common stereotypes relate to age groups, gender, regional & religious groups, economic classes, occupations, education levels....

MDP India HIV/AIDS Alliance

Contrast Effects

Reaction to one person is influenced by other persons we have recently encountered

Projection

Attribute ones own characteristics to other people

Attribution
Assigning to a cause or source The way in which people explain the cause for their own or others behavior Behavior Internally caused Dispositional Externally caused Situational

or

Factors for determining attribution


1. Distinctiveness: Shows different behaviors in different situations 2. Consensus: Response is the same as others to same situation 3. Consistency: Responds in the same way over time

Attribution

Errors & Biases distorting Attributions

Fundamental attribution error


Tendency to underestimate the influence of external factors and overestimate the influence of internal factors while judging others

Errors & Biases distorting Attributions


Self Serving Bias
Attribute own success to internal factors such as ability, effort while blaming failure on external factors
People tend to make attributions in line with "bad things happen to bad people" and "good things happen to good people in order to protect their self esteem & prevent feeling vulnerable.

Perception & Decision Making

Rational Decision making model


Model

for

making

rational

&

logical

decisions
Assumes that there is a single, best

solution that will maximize the desired


outcomes

Assumptions of Rational Decision making model


Problem clarity: The problem is clear & unambiguous. The

decision maker has complete information regarding situation. Known options: The decision maker can identify all the relevant criteria & can list all the viable alternatives. Furthermore, the decision maker is aware of all possible consequences of each alternative. Clear preferences: That the criteria & alternatives can be ranked & weighted to reflect their importance. Constant preferences: The specific decision criteria are constant & weights assigned to them are stable over time. No time or cost constraints: The rational decision maker can obtain full information about criteria & alternatives because there are no time or cost constraints. Maximum payoff: The rational decision maker will choose the alternative that yields the highest perceived value

Steps in Rational Decision making model


1. 2. 3. 4. 5. 6. Define the problem Generate all possible solutions Generate objective assessment criteria Choose the best solution Implement the chosen decision Evaluate the success of the chosen alternative 7. Modify the decisions & actions taken based on the evaluation of step 6

Limitations
Requires a great deal of time.

Requires great deal of information


It assumes rational, measurable criteria

are available & agreed upon. It assumes accurate, stable & complete knowledge of all the alternatives, preferences, goals & consequences. It assumes a rational, reasonable, non political world

Decision Making in real life


Problem selection - Visible Problems have

higher probability of being selected than important problems


Alternatives Looking for satisficing

solutions rather than optimum ones


Making choices Rely on heuristics i.e.

judgmental shortcuts

How are decisions actually made?


Intuitive decision making

Bounded Rationality

Bounded Rational Decision Making Model


Herbert Simon Bounded Rationality

Individuals

make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity The decision maker takes the decision or is assumed to choose a solution though not a perfect solution but good enough solution based on the limited capacity to handle the complexity of the situation, ambiguity & information Realistic Approach for Rational Decision Making Process

Common Errors/Biases in Decision making


Overconfidence Bias

Anchoring Bias
Confirmation Bias Availability Bias

Escalation of Commitment

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