ORGANIZATIONAL

BEHAIVOUR
MG-482
Faiza Jehangir (khan.faiza1993@cloud.neduet.edu.pk)
NED UNIVERSITY OF ENGINEERING & TECHNOLOGY
SECTION B – Foundations Of
Individual Behavior

2) Perceptions & Individual

Decision Making
INTRODUCTION:
WHAT IS PERCEPTION?

 Perception is a process by which we organize and interpret sensory

impressions in order to give meaning to our environment. What we
perceive can be substantially different from objective reality.

 According to Joseph Reitz; “Perception includes all those processes by

which an individual receives information about his environment—
seeing, hearing, feeling, tasting and smelling.”
SIGNIFICANCE
 If people behave on the basis of their perception, we can predict
their behavior in the changed circumstances by understanding their
present perception of the environment.
 It is vitally important if we want to get along with others to try to see
things from their perspective or walk in their shoes for a while. 
 Perception is very important for the manager who wants to avoid
making errors when dealing with people and events in the work
setting. This problem is made more complicated by the fact that
different people perceive the same situation differently.
PERCEPTION AND WORKPLACE
 In terms of perceptions, research has shown that what employees
perceive from their work situation influences their productivity most.
 Likewise, absenteeism, turnover and job satisfaction have more to do
with an employee’s perception of the job. 
 Consequently, perception influences decision-making within an
organization.
FACTORS INFLUENCING PERCEPTION
DECISION MAKING

 Decision-making involves the selection of a course of action from

among two or more possible alternatives in order to arrive at a
solution for a given problem”.
 Decision making process can be regarded as check and balance system
that keeps the organization growing both in vertical and linear
directions. It means that decision making process seeks a goal.
LINK BETWEEN PERCEPTION &
INDIVIDUAL DECISION MAKING
OPTIMIZING DECISION MAKING
MODEL
 RATIONAL / CLASSICAL MODEL
 It makes consistent, value-maximizing choices within specified
constraints.
 The rational decision making model assumes decisions are based on
an objective, orderly, structured information gathering and analysis.
The model encourages the decision maker to understand the
situation, organize and interpret the information, and then take
action. 
 STEPS:

 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 alternative.
ALTERNATIVE DECISION MAKING
MODELS
1) BOUNDED RATIONALITY MODEL:

The bounded rationality model of decision making recognizes the limitations

of our decision-making processes.
According to this model, individuals knowingly limit their options to a
manageable set and choose the first acceptable alternative without
conducting an exhaustive search for alternatives.
An important part of the bounded rationality approach is the tendency
to satisfice (a term coined by Herbert Simon from satisfy and suffice), which
refers to accepting the first alternative that meets your minimum criteria.
2) INTUITIVE DECISION MAKING MODEL:

The intuitive decision-making model has emerged as an alternative to

other decision making processes. This model refers to arriving at
decisions without conscious reasoning. 
We use this model when:
 Goals are unclear.
 There is time pressure and analysis paralysis would be costly.
 You have experience with the problem.
ERRORS/ISSUES IN DECISION MAKING:

 Bounded Rationality
 Escalation of Commitment
 Time Constraints
 Uncertainty
 Personal Biases
 Conflict
REFERENCES
 Organizational Behavior, Chapter 6, 17th edition by Stephen P
Robbins and Timothy Judge
 https://
open.lib.umn.edu/organizationalbehavior/chapter/11-2-unders
tanding-decision
making/#:~:text=Decision%20making%20refers%20to
%20making,which%20may%20also%20include
%20inaction.&text=Individuals%20throughout%20organizations
%20use%20the,the%20course%20of%20an%20organization
THE END