Perception and Decision Making Essay

679 Words Mar 27th, 2012 3 Pages
Section Four Perception and Individual Decision Making

1. Perception

A process by which individuals selects, organize and interpret their sensory impressions in order to give meaning to their environment

Person Perception (frequently used shortcuts in judging others)
Selective perception
People selectively interpret what they see based on their interests, background, experience, and attitudes (Ex.
Perceiving a problem from my specialty view)

Judging someone on the basis of one's perception of the group to which that person belongs (ex. Athletics are

best to hire)

Attributing one's own characteristics to other people (ex. everyone is as ambitious

Contrast effect
A person's
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2 door, 4 door, van, truck

What do you want it equipped with?
CD player, A/C, and on and on

How do we decide?

Rational Decision Making Process
1. 2. 3. 4. 5. 6.

Define the problem Identify the decision criteria Allocate weights to the criteria Develop the alternatives Evaluate the alternatives Select the best alternative

Basic assumptions
1. 2. 3.

Problem clarity Known options Clear preferences




Constant preferences No time or cost constraints Maximum payoff

How Are Decisions Actually Made?
Bounded rationality
Individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all its complexities

Satisficing not optimizing


the first good enough

Intuitive decision making
An unconscious process created out of distilled experience. People use intuition when:
High level of uncertainty and when little precedent exists When variables are less scientifically predictable Facts are limited, data not that useful, when time is limited and pressure exists
Fire fighters


Individual Differences: Decision Making Styles
Tolerance for ambiguity High Analytic
Careful decision maker Ability to cope with new situations

Creative Focus on long range





Efficient & logical decisions. Focus on the short run

Work well with others Receptive to suggestions from others

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