Perception in business situation:

1) Perception and motivation: perception of the workplace plays a major role in motivation.
Suppose an employee is experiencing some unexpected money trouble. Because of her
disposition (she is worried) and the salience of money (it is unusually important to her at the
moments), she will be especially sensitive to issues of compensation. Through projection, she
may assume that everyone in the organization also cares mainly about money. A large pay raise
given to another employee will seem frustrating and will intensity her efforts to get a pay raise of
her own, focusing even more attention on her own pay, the pay of others, and how they compare
to one another.
2) Perception and hiring: hiring new employees can be affected by perception in many ways.
Contrast or novelty in the job applicant can affect his or her chances of getting the job. The
person doing the hiring may stereotype applicants on the basis of race or sex, or may allow the
halo effect to color an overall perception of an applicant.
An interviewer's disposition during an interview or attitudes towards certain of the applicants'
attributes can also affect the interviewer's perceptions of an applicant.
For example, a manager, who believes that people should dress professionally for a job
interview, is likely to be unimpressed by an applicant who shows up wearing sunglasses and a
flowered sports coat.
3) Performance appraisal: the appraisal of a subordinate's performance is highly affected by
the accuracy of a manager's perceptions. The major areas of concern in this context are:
Managers may have tendencies to positively evaluate some employees. Because they are better
liked, or are on favored tasks, or are particularly noticeable; and
Performance evaluation will be affected adversely because of halo effects,
4) Employee effort: an individual's future in an organization id usually not dependent on
performance alone. In many organizations, he level of an employee's effort is given high
importance. Just as teachers frequently consider how hard you try in a course as well as how
you perform on examinations, so often do managers. An assessment of an individual's effort is a
subjective judgment susceptible to perceptual distortions and bias. If it is true, as some claim,
that "more workers are fired for poor attitudes and lock of discipline than for lack of ability" , then
appraisal of an employee's effort may be a primary influence on his or her future in the
organization.
5) Employee loyalty: another important judgment that managers make about employees is
whether or not they are loyal to the organization. Despite the general decline in employee loyalty,
few organizations appreciate it when employees, especially those in the managerial ranks,
openly disparage the firm, furthermore, in some organizations, if the word gets around that an
employee is liking at other employment opportunities outside the firm, that employee may be
labeled as disloyal and so may be cut off from all future advancement opportunities. The issue is
not whether organizations are right in demanding loyalty, the issue is that many so, and that
assessment of an employee's loyalty or commitment id highly judgment.