PERCEPTION Is a process by which individuals organise and interpret their sensory impressions in order to give meaning to their environment. It is possible that what one perceives can be substantially different from objective reality. Study of ‘PERCEPTION’ is important in O. B. because people’s behavior is based on their ‘PERCEPTION’ and NOT on reality itself.

PERCEPTION Fundamental Attribution Error – It’s a natural tendency to under-estimate the influence of the external factors and over-estimate the influence of the internal factors when making the judgment about the behavior of others.

PERCEPTION Factors influencing ‘Perception’ A] Perceiver’s Factors Attitude Motives Interest Experience Expectations

PERCEPTION B] Situational factors Time Work conditions (settings) Social conditions (Settings)

PERCEPTION C] Target factors Novelty Motion Sound Size Back ground Proximity Similarity

PERCEPTION Self-serving Bias – The tendency for individuals to attribute their own successes to the internal factors and give the blame of failures on external factors. Selective PERCEPTION – People selectively interpret what they see on the basis of their interests, back-ground, experience and Attitudes.

PERCEPTION ‘Halo Effect’ – Means drawing a general impression about an individual on the basis of a single characteristics. ‘Contrast Effect’ – Evaluation of a person’s characteristics that are different be comparison with other people recently encountered who rank higher or lower on the same characteristics.

PERCEPTION ‘Stereotyping – Judging someone on the basis of one’s perception of the group to which that person belongs. ‘Self-fulfilling prophecy - A situation in which one person inaccurately perceives second person and the resulting expectations cause the second person to behave in ways consistent with original PERCEPTION

PERCEPTION The link between PERCEPTION and Individual ‘decision Making’ – - How individuals in the organisations make decisions and the quality of their final choices are largely influenced by their PERCEPTION. Decisions – The choices made from amongst two or more alternatives / options.

PERCEPTION Steps in Rational Decision Making Model – Define the problem Rationally Identify the decision criteria Allocate the weights to the criteria Develop the alternatives Evaluate the Alternatives properly Select the best Alternative. Implement and monitor

PERCEPTION Creativity – An ability to produce novel and useful ideas. Three Component Model of Creativity – - This Model proposes that individual creativity requires expertise, creative-thinking skill and importantly intrinsic ‘Task motivation’.

PERCEPTION Intuitive Decision making - An unconscious process created out of ‘Distilled experience’. Presently, there is growing recognition that rational analysis has been over-emphasised and that in certain instances, relying on ‘Intuition’ can improve ‘Decision Making’.

PERCEPTION The conditions in which ‘Intuition decision Making’ is likely – In case of high level of uncertainty No precedent available Variables are less scientifically predictable ‘Facts’ are limited Many alternatives having equal merit Pressure to decide in limited Time

Decision Making Tolerance for Ambiguity High Analytic Conceptual Directive Behavioral Low Rational Intuitive Way of Thinking