Kiran Tanveer M20MBA119

Hanoof Wasim M20MBA124

Ayesha Badar M20MBA155
Saba Hussain M20MBA098
Ayesha Masood M20MBA
Misbah Javed M20MBA133
Takreem Fatima M20MBA135
Sitara M20MBA
Remsha Ahmed M20MBA109
Fazeela shabir M20MBA087
 Perception

 What is Perception?
Perception is a process by which individuals organize and interpret their sensory impressions
in order to give meaning to their environment.
 Importance Of Perception

 Why it is important?

• Because people’s behavior is based on their perception of what reality is, not on reality
itself.
• The world as it is perceived is the world that is behaviorally important.
Factors that influence
 Factors that influence

 When you look at a target and attempt to interpret what you see, your interpretation is
heavily influenced by your personal characteristics.
 Characteristics of the target also affect what we perceive.
 Context matters too. The time at which we see an object or event can influence our attention,
as situational factors.
 Attribution Theory

Definition: An attempt to determine whether an individual’s behavior is internally or externally

caused.

We’ll discuss these points in Attribution Theory:

 Types of Attribution
 Determining Factors
 Fundamental Attribution Error
 Self Serving Bias
 Types Of Attribution

Two general types of attributions that people make are as follow:

 Internal Causation:
Internally caused behavior are those, an observer believes to be under the personal behavioral
control of another individual

 External Causation:
Externally caused behavior is what we imagine the situation forced the individual to do.
 Determining Factors Of Attribution Theory

Three determining factors are as follow:

 Distinctiveness:
Distinctiveness shows different behavior in different situation
 Consensus:
Response is the same as others to same situation
 Consistency:
Response in the same way over time. The more consistent the behavior, the more we are
inclined to attribute it to internal causes.
Attribution Theory
 Fundamental Attribution Error

Definition:
The tendency to underestimate the influence of external factors and overestimate the
influence of internal factors when making judgments about the behavior of others.
 Self Serving Bias
Definition:
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:
“The tendency to selectively interpret what one sees on the basis of one’s interests, background,
experience, and attitudes.”

Selective perception allows us to speed-read others, but not without the risk of drawing an
inaccurate picture. Seeing what we want to see, we can draw unwarranted conclusions from an
ambiguous situation.
Halo Effect:
The tendency to draw a general impression about an individual on the basis of a single
characteristic.
The reality of the halo effect was confirmed in a classic study in which subjects were given a list
of traits such as intelligent, skillful, practical, industrious, determined, and warm and asked to
evaluate the person to whom those traits applied. Subjects judged the person to be wise,
humorous, popular, and imaginative.
Clearly, the subjects were allowing a single trait to influence their overall impression of the
person they were judging.
Contrast Effects:
Evaluation of a person’s characteristics that is affected by comparisons with other people recently
encountered who rank higher or lower on the same characteristics.
For Example:
In a series of job interviews, interviewers can make distortions in any given candidate’s evaluation
as a result of his or her place in the interview schedule. A candidate is likely to receive a more
favorable evaluation if preceded by mediocre applicants and a less favorable evaluation if
preceded by strong applicants.
Stereotyping:
Judging someone on the basis of one’s perception of the group to which that person belongs.
In organizations, we frequently hear comments that represent stereotypes based on gender, age,
race, religion, ethnicity, and even weight “Men aren’t interested in child care,” “Older workers
can’t learn new skills,” “Asian immigrants are hardworking and conscientious.
Research suggests stereotypes operate emotionally and often below the level of conscious
awareness, making them particularly hard to challenge and change.
Stereotypes can be deeply ingrained and powerful enough to influence life-and-death
decisions.
For example: the degree to which black defendants in murder trials looked “stereotypically
black” essentially doubled their odds of receiving a death sentence if convicted.
Specific Applications of Shortcuts in Organizations

Employment Interview:
Research shows we form impressions of others within a tenth of a second, based on our first
glance. As a result, Information elicited early in the interview carries greater weight than does
information elicited later, and a “good applicant” is probably characterized more by the absence of
unfavorable characteristics than by the presence of favorable ones.
Specific Applications of Shortcuts in Organizations

Performance Expectations:
self-fulfilling prophecy: A situation in which a person inaccurately perceives a second person,
and the resulting expectations cause the second person to behave in ways consistent with the
original perception.
The self-fulfilling prophecy has been found to affect the performance of students, soldiers, and
even accountants.
Specific Applications of Shortcuts in Organizations
Performance Evaluation:
An employee’s future is closely tied to the appraisal, promotion, pay raises, and continuation of
employment are among the most obvious outcomes. Although the appraisal can be objective, and
many jobs are evaluated in subjective terms. Subjective evaluations, though often necessary, but
problematic.
The Link Between Perception and Individual
Decision Making
Decisions: Choices made from among two or more alternatives.
Individual decision making is thus an important part of organizational behavior. But the way
individuals make decisions and the quality of their choices are largely influenced by their
perceptions.
Problem: A discrepancy between the current state of affairs and some desired state.
One person’s problem is another person’s satisfactory state of affairs. So awareness that a
problem exists and that a decision might or might not be needed is a perceptual issue. Finally,
throughout the entire decision making process, perceptual distortions often surface that can bias
analysis and conclusions.
Common Biases and Errors in Decision Making
Confirmation
Bias Randomness
Error

Availability
Bias

Hindsight
Anchoring Bias
Escalation of
Bias
commitment
Errors and Bias
Bias is a systematic error that leads to an incorrect estimate of
effect or association. Many factors can bias the results of a
study such that they cancel out, reduce or amplify a real effect
you are trying to describe.
Overconfidence Bias
This error occurs when the decision maker believe that they know more than what they actually
do.
In simple words I can’t go wrong
individuals with the weakest intelligence and interpersonal skills are the most likely to exhibit
overconfidence in their decision making
Example :
Studies have shown that when people state they’re 60–70% sure they’re right, those people are
only right 50% of the time. Similarly, when they state they’re 100% sure, they’re usually right
about 70–85% of the time.
Anchoring Bias
• Anchoring bias occurs when people rely too much on pre-existing information
or the first information they find when making decisions.
• They tend to ignore the information received in the later stage
• First impression their priority
• For example, a manager may be interviewing a candidate for a job, and that
candidate asks for a $100,000 starting salary. As soon as that number is stated,
the manager’s ability to ignore that number is compromised, and subsequent
information suggesting the average salary for that type of job is $80,000 will
not hold as much strength.
Confirmation Bias
• A confirmation bias is a type of cognitive bias that involves favoring information
that confirms your previously existing beliefs or biases.
• confirmation bias represents the gathering of information that supports one’s
initial conclusions.
For example
Two people on social media may be arguing the existence of climate change. In
the instance of confirmation bias, each of those people would look to find
scientific papers and evidence that supports their theories, rather than making a
full examination of the situation.
Availability Bias
Availability bias suggests that decision makers use the information that is most
readily available to them when making a decision.
When decision makers only remembers events that are more recent.
This distorts their judgments as they are not able to recall past events.
Escalation of commitment
Escalation of commitment is a human behavior pattern in which an individual or
group facing increasingly negative outcomes from a decision, action, or
investment nevertheless continues the behavior instead of altering course.
Example:
Employee staying in a job that provides poor satisfaction, financing projects
showing little return on investment and getting into bidding wars.
Randomness Error
When decision makers have a tendency to create meaning from random events.
There are so many events that happens by chance and there is no way you can
predict them.
Example
Decisions can become impaired when we try to create meaning out of random
events. Consider stock prices. Financial advisors feel they can predict the flow of
stock prices based on past performance, but on any given day, those stock prices
are completely random. In reality, these advisors were able to predict the
direction of stock prices about 49 percent of the time, or about as well as if
they’d just guessed.
Hindsight Bias
When decision makers say that they would have predicted the result of any event after the
event outcome is already known.
Example
A boy sends a poem into a popular poetry journal and says he thinks he has a good shot at
getting published, even though deep down he doesn't believe it. When he gets the acceptance
letter, he immediately replies that he predicted it.