PERCEPTION

PRESENTED BY:-
RAUNAK AGARWAL
HARSH AGARWAL
ANISH BADAL
RUCHI BAJRACHARYA
SUMAN CHAUDHARY
PRABESH RAJ BASNET
 CONCEPT

 Perception is the organization, identification and

interpretation of sensory information in order to represent
and understand the environment.
 It is the process through which we select, organize and
interpret input from our sensory receptors.
 Perception is how our mind take things in and makes
sense out of them.
 For example:- If I see a bee, then I might take it as a
wonderful part of nature. However, at the same time my
friend might see it as a terrifying insect and want to run.
 Importance of perception

Perception is very important in our life.

For example:- If a person tries hard to get a job

and he gets rejected then he might perceive it
as the end of his life. However, another person
in same case, might perceive his failure as
valuable feedback from which he can learn
many lessons and be hopeful for future.
 Importance of perception in
business and management
 Lets take an example of :-Red Bull is a soft drink that
does not taste good enough though it is taking good
market just because of advertisement.
 In this case, perception of manager launching this product
must be optimistic.
 So in brief, yes perception in management is a very
important tool because it can take a product or service
out of the trash and put it into the success column
financially.
Factor that influence perception

Factor in the perceiver

 Attitudes
 Motives
 Interests
 Experiences
 Expectation
Factor that influence perception

Factors in situation
 Time
 Work setting
 Social setting
Factor that influence perception

Factors in the target

 Novelty
 Motion
 Sounds
 Size
 Background
 Proximity
 Similarity
Person Perception: Attribution
Theory
Suggests that perceivers try to “attribute” the observed
behavior to a type of cause:

 Internal – behavior is believed to be under the personal control of

the individual

 External –the person is forced into the behavior by outside

events/causes
Determinants of Attribution

Distinctiveness – whether an individual displays different

behaviors in different situations (the uniqueness of the
act)
Consensus – does everyone who faces a similar situation
respond in the same way as the individual did
Consistency – does the person respond the same way over
time
 Attribution Errors
 Fundamental Attribution Error
The tendency to underestimate the influence of
external factors and overestimate that of internal
factors.

 Self-Serving Bias
Occurs when individuals overestimate their own
(internal) influence on successes and overestimate
the external influences on their failures.
Shortcuts Used in Judging Others

 Selective perception
 Halo effect
 Contrast effect
 Projection
 Stereotyping
Specific application of shortcuts in
organization
 Employment interview
 Performance expectation
 Performance evaluation
 Employee effort
 Ethnic profiling
The Link Between Perception and
Decision Making

Decision making occurs as a reaction to a perceived problem

 Perception influences:
 Awareness that a problem exists
 The interpretation and evaluation of information
 Bias of analysis and conclusions
How should decision be made?
 Every manager want to choose the alternative with yields the
highest payoff.

 Assumptions of Rational decision making :-

 Has complete information
 Knows all the alternative
 Clear preference
 No time or cost constraints
Steps in Rational decision making

1 Define the problem

2 Identify the decision criteria

3 Allocate weights to the criteria

4 Develop the alternatives

5 Evaluate the alternatives

6 Select the best alternative

Is it possible to make decision
rationally by a manager in the
real world???
 How Decision actually made in an
organization?

Bounded rationality:
Because the capacity of human mind for formulating and solving
complex problems is far too small to meet the requirement for full
rationality, individual operates within the confines of bounded
rationality.
 Most people respond to a complex problem by reducing it to a
level at which it can be readily understood.
 People satisfice – they seek solutions that are satisfactory and
sufficient.
 How does bounded rationality
works?

 Once a problem is identified, the search for alternative begins

 The decision maker identified limited list made up of the more
conspicuous choice(easy to find and highly visible)
 Then the decision maker starts to review the alternatives, but not all
the alternatives are carefully reviewed
 The decision maker then reviews the list, looking for a solution that
is “good enough.”
 Intuitive decision making

 An unconscious process crested out of distilled experiences

 Intuition can be a powerful force in decision making
THANK YOU 