Perception and Decision Making
Individuals with in organizations have to make important decisions everyday, the choices they make greatly effects their outcomes. How individuals in organizations make decisions and the quality of their final choices are largely influenced by their perceptions. During this examination of the role of perception in the decision making process, we will be discussing the meaning of perception and how an individual’s perception of others can impact an organization’s behavior. We will also look at the positive and negative effects of using perception short cuts when judging others. Finally, we will analyze how decisions in real world organizations are made, and how our perceptions shape ethical or moral
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Decision Making in Real World Organizations Most decisions made within real world organizations do not follow the rational modal; instead the acceptable or reasonable solution to the problem is found, rather than the most favorable one (Robbins, 2005). Some ways decisions are made within real world organizations include: bounded rationality, common biases and errors, intuition, individual differences, organizational constraints, and cultural differences. Individuals who operate with in the confines of bounded rationality construct simplified modals that extract the essential features from problems without capturing all their complexity (Robbins, 2005). In addition to engaging in bounded rationality, decision makers allow biases and errors to influence their judgments. Some examples of biases include overconfidence, anchoring bias, confirmation bias, availability bias, representative bias, and hindsight bias. Some examples of errors include escalation of commitment error, and randomness error (Robbins, 2005). Intuition can be a powerful force in decision making as well. Intuitive decision making is an unconscious process created out of distilled experience (Robbins, 2005).
How our Perceptions Shape Ethical/Moral Decisions
Morality is known as what an individual does to conform to societal norms, while ethical behavior deals with the philosophy behind that morality, which determines the individuals perception of right and wrong (Cotter, J.,