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The Role of Perception in the Decision-Making Process

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Essay title: The Role of Perception in the Decision-Making Process

The Role of Perception in the Decision-Making Process

Hannah M, Haggins

Axia College

MGT 245

Organizational Theory and Behavior

Profesor Robert Peart

December 30, 2007

Perception and Decision-Making

In business, what is the leading reason for conflict? The answer is perception and its effect on the decision-making process. Many executives approach situations half-cocked only knowing half the facts. Having a perceived view of what is happening and depending on how well that manager is at perceiving the situation, his or her reaction can make the situation worse. Perception, like many other managerial skills, is a learned reaction practice and can be improved over time. How the manager controls their awareness will determine how successful they are as a manager.


Perception is one of the oldest subjects within scientific psychology, and there are equally many assumptions about its original development. In psychology, perception is the process of acquiring, interpreting, selecting and organizing. Systems of learning perception range from biological or physical approaches, through psychological approaches to the often-abstract use of mental philosophy. Awareness in business can speak about how a customer, manager, owner, or corporation views what is happening within a certain team or company. How the activity is meant is often what causes the response and how the situation is handled. This is not automatically the correct way of dealing with a situation. Administrators in any size business must take into consideration all sides and views of a situation before reacting.

Judgment can easily affect ones decision-making process. When coming into a situation, as a manager or otherwise, one must take into account what is happening and this is considered first perception or view. If an employee walked into a fight that was taking place within the company, a first decision may be to punish all individuals involved, but after investigating the situation and gathering all the facts that perception may change. Mind state also influences perception and judgment. These are all things that a manager must consider before making the call.

Positive and Negative Effects of Perception Usage

Does the practice of perception have both positive and negative effects in the decision making-process? The answer to that question is yes. Not only does individual perception of a situation change ones judgment but it also weighs heavily on how people will react to the situation. Imagine walking into a situation at work involving people speaking of someone and as an individual walks up, the talking ceases. Now also imagine that same individual is unhappy with his or her current job. What would one do? Now a person first thought would be that the other employees are speaking of him or her, without knowing all the facts the individual decides to stop working before finding another job. This would be a negative affect of perception in the decision-making process, because without taking the time to investigate the situation, anger takes over and a bad decision is made.

Now, imagine a similar situation but this time the other employee takes the time to fill one in on what is going on. The employee now feels like part of the team because coworkers explained that they were planning to get together after work and wanted to invite him or her. This is a sign that conditions are improving and this could be a place where one could grow. Based on that observation the individual is prepared to give it a while longer before making the final decision to quit. This is an example of positive judgment because now one has motivation to give things one last chance. Knowledge and attitude can make all the difference in the world, especially the world of business.

Real World Decisions

How are decisions in a business organization made? It is based on one manager’s opinion and then taken to the management team for a final decision. When a situation takes place at a time when all managers cannot be present in the decision-making process, it is customary to wait until all members of management are available to sit down and discuss what should be done. During this time that the major decisions

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