The Link Between Perception and Individual Decision Making
Decision Making Survey
Common Decision Making Errors
Brad, Moses, Anna
- Increasing commitment to a decision in spite of evidence that it is wrong
- Creating meaning out of random events
- Every decision requires interpreting and evaluating information
- Which data are relevant to the decision and which are not?
- Depends on the perception of the decision maker
- Highest bidder pays too much due to value overestimation
- After an outcome is already known, believing it could have been accurately predicted beforehand
Decision Making Survey
Decision Making
Common Biases in Decision Making
The Rational Decision-Making Model
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
- Believing too much in our own ability to make good decisions
- How individuals in organizations make decisions and the quality of their final choices are greatly influenced by their perceptions.
- Decision making occurs as a reaction to a problem
- Defining what is or is not a problem is based on your perception
Decision Making Survey
- Using early, first received information to make judgements
- Selecting and using only facts that support decision
- Emphasizing information that is most readily at hand
What is Perception?
How Many Bars Do You See?
Shortcuts Used in Judging Others
- A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.
- People's behavior is based on their perception of what reality is, not on reality itself
- Selective Perception
- Halo Effect
- Contrast Effects
- Stereotyping
Scenario 2
Scenario 1