The Role of Perception in the Decision Making Process

Perception is a cognitive process by which individuals organize, interpret, and understand their surroundings and environment which also includes impressions formed objects, events, and people. In the process of making decisions, you must fully understand the situation along with it's facts to come to a resolution. Without consuming all the factors, the wrong decision may be made. Individuals behave based on what they see or believe it to be instead of their external environment.

An organization's behavior can be impacted by one's perception of others in many ways. Someone who may be higher up in the workplace may have a huge impact on the behavior in the organization. Managers are supposed to make the best decisions possible for the business. Every decision made by a manager will effect the company in some way. If the wrong decision is made, it may affect the products and employees of the organization. Some things that can impact a persons perception may be time, work settings, and social settings. What individuals perceive from their work situation will influence their productivity more than the situation itself will.

Perception "shortcuts" are often used for judging others. They can be both positive and negative. The attribution theory shows some frequently used shortcuts when judging others. The selective perception is when a person selectively interprets what they see on the basis of their interest, background, experience, and attitudes. The halo effect is when one draws a general impression about an individual on the basis of a single characteristic. The contrast effect evaluates a person's characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. Projection is attributing to one's own characteristics to other people. Then there is stereotyping which is a negative shortcut that involves judging someone on the basis of one's perception of the group to which the person belongs whether it be their gender, cultural background, nationality etc..

You might be wondering how decisions are actually made in the real world. That is where the term bounded rationality comes in. Bounded rationality is when individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. Decision-makers for an organization may develop alternatives to a situation and then review them and find the one they feel will be the most effective. Decisions may also be made by intuitive decision making. This is an unconscious process created out of distilled experience. This type is often used when there is a high level of uncertainty, little precedent, facts are limited. Time is limited, or there are several plausible choices.

Perceptions can shape ethical and moral decisions. Utilitarian criterion is decisions made solely on the basis of their outcomes or consequences. Rights criterion is decisions consistent with fundamental liberties and privileges as set forth in documents like the Bill of Rights. Justice criterion is decisions that impose and enforce rules fairly and impartially so there is an equitable distribution of benefits and costs. Ethical behavior is looked at differently by people with different backgrounds. One person may see something as ethical and moral and it may be unethical and immoral to another individual based on their perception. Religion, culture, nationality, and history can influence an individual's perception on ethical and moral decisions.

Managers can improve their decision making by following these steps. First you need to analyze the situation. Combine the facts and sort them to know exactly what you are dealing with. Next, pay attention to biases. Biases can come up in the decision making process but do not let it change your decision unless it is valid. Combine rational analysis with intuition in the process. Do not assume that your decision style is appropriate for every job. Just because one style worked for one position, does not mean you should choose that same one every time. Lastly you need to enhance your creativity. Look for different ways that might be better and more effective. There is nothing wrong with trying different ways to come up with a solution.

Sources:

Dalton, F. (2007). Confidently make decisions on demand. Retrieved June 4, 2008, from

http://www.allbusiness.com/5844171-1.html

Stelzer, L. (n.d.). Management and organization behavior. Retrieved June 3, 2008, from http://pirate.shu.edu/~stelzele/daymbalectures/perception.htm