Perception and Individual Decision Making

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Perception and Individual Decision Making
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Planning Horizon and Uncertainty
?
RISK
CERTAINTY
UNCERTAINTY
NOW
TIME
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Factors ThatInfluence Perception
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Specific Applications in Organizations

• Employment interview
• Performance expectations
• Performance evaluation
• Employee effort
• Employee loyalty

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Awareness and Recognition of Problems
Perception and Individual Decision Making
Interpretation and Evaluation of Information
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Decision-Making Process

• Identify and Define Problem
• Identify and Set Decision Criteria
• Develop List of Alternatives
• Bounded Rationality
• past experience
• time, resources
• Evaluate Alternatives
• Select Best Alternative
• Implement
• Evaluation and Feedback

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Assumptions of the Model
One Problem Clarity
Four Constant Preferences
Five No Constraints
Two Known Options
Three Clear Preferences
Six Maximum Payoff
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The Three Components of Creativity
Expertise
Creativity
Task Motivation
Creativity Skills
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A Model of Bounded Rationality
Ascertain the Need for a Decision
Select Criteria
Identify a Limited Set of Alternatives
Compare Alternatives Against Criteria
Select the First Good Enough Choice
Yes
Simplify the Problem
Expand Search for Alternatives
A Satisficing Alternative Exists
No
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Intuitive Decision Making

• High uncertainty levels
• Little precedent
• Hard to predictable variables
• Limited facts
• Unclear sense of direction
• Analytical data is of little use
• Several plausible alternatives
• Time constraints

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Two Important Decision-Making Phases
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Making Choices in the Workplace
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Decision-Making Styles
High
Analytic
Conceptual
Tolerance for Ambiguity
Behavioral
Directive
Low
Way of Thinking
Rational
Intuitive
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Performance Evaluation
Reward System
Organizational Constraints
Historical Precedents
Programmed Routines
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Ethics in Decision-Making