Decision Making

Group Members
Sohail Rafiq Mohsin Aslam Ayesha Yasin Afshan Noor

Outlines
What Is Decision Making? What Is Perception? Attribution Theory Frequently Used Shortcuts In judging Others Decision Making In Organizations Common biases And Errors In Decision Making Influences On Decision Making Ethics In Decision Making

Decision Making
Decision making can be regarded as the mental processes resulting in the selection of a course of action among several alternative scenarios. Every decision making process produces a final choice. The output can be an action or an opinion of choice.

Perception
Process by which individuals organize and interpret their sensory impression in order to give meaning to their environment. Perception can be substantially different from objective reality Employees of a firm may view it as great place to work Favorable working conditions, excellent benefits, interesting job assignments, good pay and responsible management. But in real life it is unusual to find such agreements

Factors That Influence Perception

Personal characteristics of the individual perceiver. To Perceive the young people to be lazy Characteristics of the target we observe. Loud people are more likely to be noticed in a group than quiet ones. Context in which we see objects or events. At a nightclub on Saturday night, we may not notice a young guest dressed to the nines

Attribution Theory
It tries to explain the ways in which we judge people differently, depending on the meaning we attribute to a given behavior.

distinctiveness
Consensus Consistency

Frequently Used Shortcuts In judging Others

Selective perception Halo effect Contrast effect Stereotyping

Decision Making In Organizations

Bounded Rationality: Most people respond to a complex problem by reducing it to a level at which they can readily understand it. Limited information make it assimilate all the information necessary to optimize. So they satisfies Intuition: Rely on the intuition is the least rational way. Intuitive decision making is a nonconscious process. It relies on holistic association, its fast and affectively charged.

Common biases And Errors In Decision Making

Overconfidence bias Anchoring bias Confirmation bias Availability bias Escalation of commitment Randomness error Winners curse Hindsight bias

Influences On Decision Making

Individual differences: personality Gender Organizational constraints: Performance evaluation Reward system Formal regulations

Ethics In Decision Making

What is ethics? Three different ways to frame decision making 1. Utilitarian 2. Focus on rights 3. Focus on justice