Module 5
Perception & Decision Making
What is Perception?
• Perception is the process by which people become
aware of internal and external messages and interpret
these messages into meanings.
• Every individual has only limited cognitive space for
processing information.
• The raw incoming data is interpreted in the light of his
past experiences, and interns of his current needs and
interests.
Significance of Perception
• Departmental head and subordinate react differently to top
management directives
• An individual’s answer to a question is based on what he heard the
boss say, not on what the boss actually said
• The same boss may be viewed as most effective superior by some
subordinates and some other sub-ordinates may consider him as
most ineffective boss
• Any change in the personnel policy of the organization may be
perceived as desirable by middle managers, but undesirable by
shop floor workers or vice versa.
Perception Involves 5 Sub Processes
• Inputs – Specific Stimulus
• Processing Mechanisms – Selection,
Organization, Interpretation
• Outputs – Attitudes, Opinions, Beliefs
• Behaviour
External Attention Factors
• Intensity: The intensity principle of attention states
that the more intense the external stimulus, the more
likely it is to be perceived. E.g. Loud Voice, Bright
Light, Strong Odour
• Size: The larger the object, more likely it will be
perceived E.g. Classifieds vs. Full Advertisement
• Contrast: External Stimuli which stand out against the
background will attract the attention.
– E.g. Safety Signs, Written Messages
External Attention Factors
• Repetition: Repeated External Stimuli is more attention
getting than single one. E.g. Instructions,
Advertisements
• Motion: People will pay more attention to moving
objects in their field of vision than to the stationary
ones
• Novelty & Familiarity: Novel or Familiar External
Situation acts as attention getter. E.g. Job Rotation
Internal Attention Factors
• Learning: Plays a role in developing
Perceptual Set
• Previous learning creates expectancy to
perceive in certain manner
Internal Attention Factors
• Motivation: Plays a role in Perceptual Selectivity
• Perception of frustrated individual significantly differs
from that of highly motivated individual
• Depending on strength of power, affiliation or
achievement motive, individual will give attention to
relevant situational factors
• E.g. Person insecure about his job is likely to perceive
job threatening comments
Internal Attention Factors
• Personality: Affects what individual is likely to attend
to in confronting situation
• Determines individual’s response disposition (tendency
to perceive familiar stimuli rather than unfamiliar ones)
• E.g. Policeman, Doctor, Mechanic witnessing Car
Accident differently
• Optimistic vs. Deviant Individual
• Jolly vs. Sad Individual
• Secure people perceive other as warm individuals and not as cold
or indifferent.
• Thoughtful people do not make extreme judgments of others. They
can perceive different shades of grey rather than only black or
white.
• Self accepting people have faith in their individuality and tend to
perceive things favorably.
• Self-accepting people perceive themselves as liked, wanted and
accepted by others. Those who are not self-accepting tend to
distrust others.
• Self-accepting people also accept others easily, whereas those who
are not self-accepting do not accept others also readily.
Common Shortcuts in Judging Others
Attribution Theory
• Explains the way in which we judge people
differently depending on meaning we
attribute to given behaviour
• We attempt to determine whether behaviour
was internally or externally caused
• This determination depends on
Distinctiveness, Consensus, Consistency
Internal Vs. External Cause
• Internally Caused Behaviours are under
control of individual
• Externally Caused Behaviours – Situation
Forced Individual to
Errors While Making Judgments
Fundamental Attribution Error
• Tendency to underestimate influence of external factors and
overestimate influence of internal factors while making
judgment about others.
Self Serving Bias
• The tendency for individuals to attribute their own successes
to internal factors and put the blame for failures on external
factors.
Common Shortcuts in Judging Others
• Selective Perception
• Halo Effect
• Contrast Effect
• Stereotyping
Selective Perception
• Any Characteristic that makes a person,
object or event stand out will increase the
probability we will perceive it
• We cant observe everything that goes around
us
• As we cannot assimilate all that we observe
we take in bits and pieces
Halo Effect
• Drawing general impression about an
individual on the basis of a single
characteristics such as Intelligence,
Sociability or Appearance
• E.g. Tell critic to write 10 things he admires
about particular person and vice versa
Contrast Effect
• We don’t evaluate person in isolation
• Our reaction is influenced by other
persons we have recently encountered
• E.g. Interview
Stereotyping
• Judging somebody on the basis of our
perception of the group to which he or she
belongs
• Generalizing Inaccurately
• E.g. Older workers cant learn new skills
• Keep constant check so that Stereotypes do not
influence our judgments
Application of Shortcuts in
Organization
• Employment Interview
• Performance Expectations
• Performance Evaluation
