KIGALI INDEPENDENT UNIVERSITY

MBA
EVENING PROGRAMME
COURSE: MANAGEMENT OF ORGANIZATION

ASSIGNMENT

QUESTION 38:
DISCUSS THE PERCEPTION AND INDIVIDUAL
DECISION MAKING OF ORGANIZATIONAL BEHAVIOR

By

NKUNDABAKURA KARIMA Javan

(Roll Number: 1-2012-0904)

LECTURER: Prof. Dr KAAYA Siraje

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Kigali, January 2013

TABLE OF CONTENTS
INTRODUCTION.......................................................................................... 3
I.Perception
....4
I.1 What is
Perception
..4
I.2 Why is it
Important
4
I.3 Factors Influencing
Perception4
I.4 Person Perception: Making Judgments about
Others4
II.Decision
Making
..5
II.1 What is Decision
Making?........................................................................................................
...........5
II.2 Effective Decision
Making.6
III.The Link between Perception and Individual Decision
Making.................6
IV.Summary and Implications for
Managers.7
V.REFERENCES
...8

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Introduction
Individuals behave in a given manner based not on the way their external
environment actually is but, rather, on what they see or believe it to be.
An organization may spend millions of money to create a pleasant work
environment for its employees. However, in spite of these expenditures,
if an employee believes that his or her job is lousy, that employee will
behave accordingly. It is the employees perception of a situation that
becomes the basis for his or her behavior.
The evidence suggests that what individuals perceive from their work
situation will influence their productivity more than will the situation
itself. Whether or not a job is actually interesting or challenging is
irrelevant. Whether or not a manager successfully plans and organizes
the work of his or her employees and actually helps them to structure
their work more efficiently and effectively is far less important than how
employees perceive the managers efforts. Similarly, issues like fair pay
for work performed, the validity of performance appraisals, and the
adequacy of working conditions are not judged by employees in a way
that assures common perceptions, nor can we be assured that individuals
will interpret conditions about their jobs in a favorable light. Therefore, to
be able to influence productivity, it is necessary to assess how workers
perceive their jobs.

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Absenteeism, turnover, and job satisfaction are also reactions to the

individuals perceptions. Dissatisfaction with working conditions or the
belief that there is a lack of promotion opportunities in the organization
are judgments based on attempts to make some meaning out of ones
job. The employees conclusion that a job is good or bad is an
interpretation. Managers must spend time understanding how each
individual interprets reality and, where there is a significant difference
between what is seen and what exists, try to eliminate the distortions
and make decision accordingly. Failure to deal with the differences when
individuals perceive the job in negative terms will result in increased
absenteeism and turnover and lower job satisfaction.

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I.

PERCEPTION

I.1 What is Perception?

Perception is a process by which individuals organize and interpret their
sensory impressions in order to give meaning to their environment
(Stephen 2005).
Perception is our sensory experience of the world around us and involves
both the recognition of environmental stimuli and actions in response to
these stimuli. Through the perceptual process, we gain information about
properties and elements of the environment that are critical to our
survival. Perception not only creates our experience of the world around
us; it allows us to act within our environment.
http://psychology.about.com/od/sensationandperception/ss/percept
proc.htm
I.2 Why is it Important?
Because peoples behaviour is based on their perception of what reality is,
not on reality itself? The world that is perceived is the world that is
behaviourally important.
I.3 Factors Influencing Perception
The Perceiver: attitudes, motives, interests, experiences, expectations;
The Target: novelty, motions, sounds, size, background, proximity,
similarity;
The Situation: time, work setting, social situation.
I.4 Person Perception: Making Judgments about Others

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Our perception and judgment of others are significantly influenced by our

assumptions of the other peoples internal states.
When individuals observe behaviour, they attempt to determine whether it is
internally or externally caused.
-

Internal causes are under that persons control, it means that internally
caused behaviors are those that are believed to be under the personal
control of the individual;

External causes are not under the persons control, it means that
externally caused behavior is seen as resulting from outside causes;
that is, the person is seen as having been forced into the behavior by
the situation.

Causation judged through:

-

Distinctiveness: Shows different behaviours in different situations;

Consensus: Response is the same as others to same situation;

Consistency: Responds in the same way over time.

(Robbins & Judge, Organizational Behavior, 13th Edition)

II.

DECISION MAKING

II.1 What is Decision Making?

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In its simplest sense, decision making is the act of choosing between two or
more courses of action. However, it must always be remembered that
there may not always be a 'correct' decision among the available choices.
There may have been a better choice that had not been considered, or
the right information may not have been available at the time. Because
of this, it is important to keep a record of all decisions and the reasons
why decisions were made, so that improvements can be made in the
future. This also provides justification for any decision taken when
something goes wrong. Hindsight might not be able to correct past
mistakes, but it will aid improved decision making in the future.

II.2 Effective Decision Making

Although decisions can be made using either intuition or reasoning, a
combination of both approaches is often used. Whatever approach is
used, it is usually helpful to structure decision making in order to:

Reduce more complicated decisions down to simpler steps;

See how any decisions are arrived at;

Plan decision making to meet deadlines.

http://www.skillsyouneed.co.uk/IPS/Decision_Making.html#ixzz2Gy
wzWRFu
III.

The Link between Perception and Individual Decision Making

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Individuals in organizations make decisions. That is, they make choices from
among two or more alternatives. Top managers, for instance, determine
their organizational goals, what products or services to offer, how best to
finance operations, or where to locate a new manufacturing plant. Middle
and lower-level managers determine production schedules, select new
employees, and decide how pay raises are to be allocated.
Individual decision making, therefore, is an important, part of organizational
behavior. But how individuals in organizations make decisions and the
quality of their final choices are largely influenced by their perceptions.
Decision making occurs as a reaction to a problem. So the awareness that a
problem exists and that a decision needs to be made is a perceptual
issue. Moreover, every decision requires the interpretation and evaluation
of information. Finally, throughout the entire decision process, perceptual
distortions often surface that have the potential to bias analysis and
conclusions.

http://www.citeman.com/294-the-link-between-perception-andindividual-decision-making.html#ixzz2HOiwiatL
IV.

Summary and Implications for Managers

Perception:

An employees perception of a situation is the basis for his/her behavior;

To influence productivity, it is important that a manager understand how

employees perceive their job;

Employees try to create meaning out of their job in various situations

Managers are advised to understand how individuals interpret reality

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Individuals behave based not on the way their external environment

actually is but, rather, on what they see or believe it to be;

Evidence suggests that what individuals perceive from their work

situation will influence their productivity more than will the situation
itself;

Individual Decision Making:

Individuals think and reason before they act;

How a people makes decisions may explain their behaviour;

Under some decision situations, people follow the rational decisionmaking model;

So, what can managers do to improve their decision making?

o Analyse the situation;
o Be aware of biases;
o Combine rational analysis with intuition;
o Dont assume that your specific decision style is appropriate for
every job;
o Try to enhance your creativity.

V.

REFERENCES

1. Stephen P. Robbins & Timothy A. Judge, Essentials of Organizational

Behaviour, 10e d. 2005

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2. Robbins & Judge, Organizational Behavior, 13th Edition;

3. http://psychology.about.com/od/sensationandperception/ss/perceptproc
.htm;
4. http://www.skillsyouneed.co.uk/IPS/Decision_Making.html#ixzz
2GywzWRFu;
5. http://www.citeman.com/294-the-link-between-perception-andindividual-decision-making.html#ixzz2HOiwiatL.

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