Chapter 4: Perceptions and Individual Decision Making PDF

Faculty of Business and Management CHAPTER 4 PERCEPTIONS AND INDIVIDUAL DECISION MAKING  LEARNING OUTCOME In this chapter, the students are expected to 1. Define perception. 2. Describe factors influencing perception. 3. Demonstrate the link between perception and individual decision making....

Faculty of Business and Management CHAPTER 4 PERCEPTIONS AND INDIVIDUAL DECISION MAKING  LEARNING OUTCOME In this chapter, the students are expected to 1. Define perception. 2. Describe factors influencing perception. 3. Demonstrate the link between perception and individual decision making. 4. Apply ethics in decision making. WHAT IS PERCEPTION? Perception is the ability to see, hear, or become aware of something through the senses or how something is regarded, understood, or interpreted. Perception is a process by which we organize and interpret sensory impressions to give meaning. Perception is how individuals interpret and make sense of sensory information from their environment. It involves the brain's interpretation of sensory stimuli such as sight, hearing, touch, taste, and smell.  Sensation Process of Response Transduction perception can be divided into several Interpretation and Recognition Neural Processing stages Perception It is important to note that perception is a complex and dynamic process that can vary between individuals FACTORS INFLUENCING PERCEPTION  Perceiver The individual who makes the perception. Each individual is different therefore interpretation is different. Among the characteristics which would influence individual perception: - their past experiences - their motivation level and motivation drivers - attitudes and interests - unique individual personality, and expectations. FACTORS Targets INFLUENCING Object or target are the items which we intend to make a perception on. PERCEPTION - Characteristics of the target or the object affect the perception. - Example: motion, sound, background, proximity as well as the similarity of the targets. Situations The situation would be the context in which we see the object or experience the event.  BASIC OB MODELS Theories related to Perception in Organizational Behavior Attribution Theory Social Identity Theory Stereotyping and Bias Theory Halo Effect and Selective Perception Theory  Attribution Theory  Attribution theory examines how individuals perceive and explain the causes of behavior.  It suggests that people attribute behavior to either internal factors (such as personal characteristics or intentions) or external factors (such as situational factors).  Attribution theory helps explain how individuals make judgments about the intentions, abilities, and motivations of themselves and others in the workplace.  Social Identity Theory  Social identity theory explores how individuals perceive themselves and others based on group membership.  It suggests that individuals derive a sense of identity and self-esteem from the groups they belong to, and this group membership influences how they perceive and interact with others in the organization.  Social identity theory helps explain ingroup favoritism and intergroup conflict in the workplace.  Stereotyping and Bias Theory  Stereotyping and bias theory studies how stereotypes and prejudices affect our perceptions, judgments, and behavior toward individuals or groups based on their social categories.  Stereotypes can be defined as generalizations or simplified beliefs about a particular group of people. They often assume that all individuals within a group possess specific characteristics or traits, which may or may not be accurate.  Biases refer to the attitudes, preferences, or prejudices that individuals hold toward specific groups, leading to differential treatment or evaluations.  Halo Effect and Selective Perception Theory  The Halo effect and selective perception theory relate to how people perceive and evaluate others.  The Halo effect refers to the tendency for individuals to make overall judgments about a person based on a single trait or a few prominent characteristics.  For example, if someone is physically attractive, they may be perceived as more intelligent or competent, even if no direct evidence supports such assumptions.  Selective perception theory refers to the tendency for individuals to selectively interpret and perceive information based on their beliefs, attitudes, and expectations. Perceived Organizational Support  Perception-based concept that focuses on employees' beliefs about how much their organization values their contributions and cares about their well-being.  POS theory is a social exchange theory focusing on the relationship between employees and their organization  Various factors can influence perceived organizational support, including the fairness of organizational policies and procedures, supervisor support, coworker support, and the overall organizational climate.  Perception plays a crucial role in an individual's decision-making process. Linking Here's how perception can affect Perception decision making: and Individual Interpretation of Information Decision Selective Attention Making Framing Effects Biases and Heuristics Emotional Influences Risk Perception  ETHICS IN DECISION MAKING ❑ Ethical decision making involves considering what is morally right and just when making decisions, particularly in situations where there may be conflicting interests or values. ❑ Ethical principles from an Islamic standpoint: 1) Tawhid (Monotheism) 2) Taqwa (God-consciousness) 3) Adl (Justice) 4) Ihsan (Excellence) 5) Akhlaq (Good Character) 6) Respect for Life 7) Social Responsibility