Tea Template 16x9

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
Attitudes, motives, interests
Experience, expectation
Factors in the
situation
Time PERCEPTION
Work setting
Social setting
Factors in the target
Novelty, motion, sounds,
size, background, proximity,
similarity
Perceptual Process
Selection
Stimuli Observation Organization
(ext/int. factors)
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 person’s internal
state.
Biases in Social Perception
(Perceptual Distortions)
Common shortcuts in Judging Others

1. Selective Perception
2. Halo Effect
3. Stereotyping
4. Contrast Effects
5. Projection
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 one’s 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....
Contrast Effects
“Reaction to one person is influenced by

other persons we have recently
encountered”
Projection
“ Attribute one’s own characteristics to

other people”
Applications of Shortcuts in Organizations
 Employment Interview
 Performance Expectations
 Self fulfilling prophecy
(Self-fulfilling prophecy are effects in behavioral confirmation effect, in
which behavior, influenced by expectations, causes those expectations to
come true)
The Pygmalion effect, is the phenomenon whereby higher expectations
lead to an increase in performance. Golem effect, when negative
expectations of an individual cause a decrease in that individual’s
performance
 Performance Evaluation (Appraisal)
Attribution
“ Assigning to a cause or source”
The way in which people explain the cause for their
own or others behavior
Behavior
Internally Externally
or
caused caused
Dispositional Situational
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
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.
Defensive Attribution
 A set of beliefs used as a shield against the fear that one will be
the victim or cause of a serious mishap.
 Walster (1966) hypothesized that it can be frightening to believe

that a misfortune could happen to anyone at random, and
attributing responsibility to the person(s) involved helps to
manage this emotional reaction
 Shaver (1970) hypothesized negative relationship between
similarity and responsibility, i.e.. similarity of the witness to the
person(s) involved in the misfortune – in terms of situation, age,
gender, personality, etc. – changes the amount of blame one is
ready to ascribe.
 Example – Rape cases (Blame the victim)
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. Define the problem
2. Generate all possible solutions
3. Generate objective assessment criteria
4. Choose the best solution
5. Implement the chosen decision
6. 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
Ethics in Decision Making
Criteria in making choices
 Utilitarian approach
ethical action is the one that provides the most good or does the least
harm
 Rights approach
ethical action is the one that best protects & respects the moral rights
of those affected
 Justice
ethical actions treat all human beings equally-or if unequally, then
fairly based on some standard that is defensible
Common Errors/Biases in Decision making
 Overconfidence Bias
 Anchoring Bias
 Confirmation Bias
 Availability Bias
 Escalation of Commitment
 Randomness Error
 Risk Aversion
 Hindsight Bias
Reducing Biases & Errors
 Focus on Goals
 Look for information that disconfirms your beliefs
 Don’t try to create meaning out of random events
 Increase your options

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Perception

“ The process by which individuals organize and interpret

“ The active process of sensing reality and organizing it into

Select Organize Interpret Retrieve

….information from the organization

 Behavior – based on perception of reality, not

“Making judgments about others”

Trying to develop explanations of why people

Perceptions & judgments influenced by the

Common shortcuts in Judging Others

“Tendency to selectively interpret what one sees on the basis

“Drawing a general impression about an

Common stereotypes relate to age groups,

“Reaction to one person is influenced by

“ Attribute one’s own characteristics to

1. Distinctiveness: Shows different behaviors in different

2. Consensus: Response is the same as others to same

3. Consistency: Responds in the same way over time

 Fundamental attribution error

Self Serving Bias

People tend to make attributions in line with

 Walster (1966) hypothesized that it can be frightening to believe

 Model for making rational & logical decisions

 Requires a great deal of time.

 Problem selection - Visible Problems have higher

 Alternatives – Looking for satisficing solutions rather

 Making choices – Rely on heuristics i.e. ‘judgmental

 Intuitive decision making

 Herbert Simon – ‘Bounded Rationality’

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