IOPS 311

Study Division C: Study Unit 7

Perception and Individual Decision-making

Dr. J Bosman
Defining Perception (p. 202)
a process by which individuals organise and interpret their sensory
impressions in order to give meaning to their environment.

The world that is perceived is behaviourally important = relevance to OB

p. 203
 Person Attribution theory (p. 203) – an attempt to
determine whether an individual’s behaviour is
perception: internally or externally caused.

Making Distinctiveness
judgements Consensus
about others Consistency
Attribution theory (p. 205)
 Attribution theory (p. 205)
• Fundamental attribution error

• Self-serving bias
Common shortcuts in judging others (p. 206)
• Selective perception
• Halo effect
• Contrast effect
• Stereotyping
p. 211
 Decision
making in
organisations:
Rational
decision
making model
(p. 212)
 Bounded
rationality
(p. 212)
Intuition
p. 214
Influences on decision-making (p. 221)
• Individual differences • Organisational constraints
• Personality • Performance evaluation
• Gender • Reward system
• Mental abilities • Formal regulations
• Cultural differences • System-imposed time constraints
• Historical precedents
Ethics in decision-making (p. 226)

• Three ethical decision criteria

• Utilitarianism
• Fundamental liberties and privileges
• Justice of equitable distribution
• Guidelines for ethical decision making
• Gather all the facts
• Define the ethical issues
• Identify the affected parties
• Identify the consequences
• Consider your character and
integrity
• Check your intuition
Improving creativity in decision-making
Implications for managers (p.
232)
• Consistency of behaviour
• Attribution error
• Self-serving bias
• Employee perceptions of manager’s efforts
• Employee perceptions
• Job dissatisfaction, absenteeism and turnover
• Perception of economic and workforce stability
What can managers do to improve their
individual decision-making?
1. Analyse the situation
2. Be aware of biases
3. Combine rational analysis with intuition
4. Try to enhance your creativity