Decision Making and Business Applications

Verified

Added on  2021/04/21

|10
|2700
|79
AI Summary
This assignment provides a comprehensive overview of decision making and its applications in business. It covers various aspects such as understanding the decision-making process, differentiating between managers and non-managers' neural processing for decisions, and exploring the impact of perceptions on job satisfaction. The assignment also discusses the role of intelligence quotient (IQ) in predicting job performance, the importance of managing sequential task portfolios, and the consequences of broken promises in recruitment contexts. With a focus on practical applications, this assignment aims to equip students with the knowledge and skills necessary to make informed decisions in business.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
Running Head: HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE
ESSENTIAL IN MANAGERIAL DECISIONS 1
How Perceptual Errors, Attributions, and Biases Are Essential In Managerial Decisions
Name:
Institution Affiliation:

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 2
Introduction
The role of perceptual errors, attributions and biases in managerial decisions in the
decision-making process by different managers remains to be extremely vital (Decision Making,
2016). As managers develop that intimate portrait of the global operations around them, their
experience during the services and their expected information come into play. Managerial
decisions are not only the function of perceptual errors, attributions, as well as biases, but the
behavior of managers depends on all these three factors in one way or the other. Operations of
managers are always based on their perception of what reality is, but not on reality itself (Pais et
al., 2013). There are different factors that affect managerial decisions, and they include
perceptual errors, attributions, and biases. Therefore primary focus of this investigative paper is
to discuss how perceptual errors, attributions, and biases are essential in managerial decisions.
How perceptual errors, attributions, and biases are essential in managerial decisions
Perceptual errors, attributions, and biases made by different people tend to influence how
managers behave in their operations. These errors describe the manner that managers filter,
interpret, and organize sensory facts for their services (Dhami & Mumpower, 2018). Attributions
on the other end tend to explain to managers how individuals act by deciding how people
respond to the activities of others efficiently. Accurate perceptual understanding help in allowing
managers to efficiently to attain operational decisions that are essential in completing different
tasks and operate while acting on ethical approach. Precise perception and attributions enable
managers to interpret what they view as well as hear in the workplace efficient to attain
operational decisions that are essential in competing tasks while acting ethically (Romeike et al.,
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 3
2016). Persistence in cases of perceptual errors, attributions and biases lead to problems among
managers of an organization such as the rising cases of the stereotype that can lead managers to
make different assumptions erroneously.
The perception remains to be the mental process that involves cases of paying attention
selectively to different stimuli along with cues. The existence of social understanding in
operation of different organizations plays the essential purpose in daily activities of managers
(Richardson & Norgate, 2015). However, understanding is inherently flawed and subject to
various biases among managers. These occurrences of preferences are often accentuated when
managers move across cultural limits (Cheng & Tsai, 2014). Besides, similar behavior is
perceived variably in different culture leading to various meanings. Active managers utilize
information concerning the social perception process to help them in becoming aware of their
biases as well as knowing how other people within the society perceive their operations.
It is evident that the perceptual process in operations of an organization continues to be
inherently flawed and subject to bias. People tend to view global society differently and how
managers see the world help in shaping how they make judgments and how they behave.
Therefore, there is a need for every manager to be aware of the various examples where biases
along with perceptual errors might influence how managers view and interpret different things
and operations (Richardson & Norgate, 2015). Besides, culture offers complexity and frequently
the unknown situation like the cross-cultural interaction that is well known to be the particular
subject of perceptual errors. Managers and people in the society are more probable to use closure
as well as fall prey to perceptual biases when they are unfamiliar with the scenario. Therefore,
being in the advanced cultural surrounding or interacting with an individual from the variable
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 4
culture remains to be the situation that is particularly probable to be the subject of errors and
biases (Erskine et al., 2014). When managers are facing instances of cross-cultural encounter,
whether it is while traveling abroad, working with the foreign national, or even operating with an
individual from the different group of culture within their nation, there is always the need for the
people to take a moment to stop and slow down their process of attributions. Managers are
always in a position that is likely to jump to inaccurate judgments in different situations, so they
have the capacity of stopping and asking themselves the source of their reaction.
Perceptual errors, attributions, and biases improve procedure of deciding among managers
Perceptual errors, attributions, and biases improve the procedure of deciding among
leaders of the organizations. The factors that include Perceptual errors, attributions, and biases
help in understanding the approaches that lead to such preferences. After following every activity
that causes biases in operation then the managers can be capable of making ideal decisions to
support operations of the organization by ensuring that such cases do not occur again (Tomlinson
& Cames, 2015). Moreover, Perceptual errors, attributions, and biases increase interaction help
in providing more information on ensuring that every business decision is attained. Therefore,
the more time managers spend with their coworkers along with employees, the more they get to
understand them and the less probable managers are to base their judgments together with
attributions on errors or biases (Bozeman, Fay, & Gaughan, 2013). It is impossible for managers
to understand every employee, especially if the company has the massive group of individuals
reporting to them, they need to make an effort to interact with them and keep track of their
performance.

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 5
Perceptual errors, attributions, and biases make managers aware of the power of the
fundamental attribution error in the operations of the company. Managers remain to be likely to
make personal attributions about the cause of behavior of other people within the services of an
organization (Romeike, Nienaber, & Schewe, 2016). Managers tend to think often inaccurately
that individuals behave the way they do because of who they are rather than because of external
operational factors. Perceptual errors, attributions, and biases are essential in managerial
decisions making and in several other situations of administrative (Hobolt, Tilley, & Wittrock,
2013). The biases of operations may lead individuals to misconstrue individuals and pass up a
great opportunity for incredible open doors in their own lives in associations. Therefore,
Perceptual errors, attributions, and biases help managers to make the judgments about other
stakeholders of an organization during their operations.
The theory about Perceptual errors, attributions, and biases that help managers to operate
successfully include attribution theory, fundamental attribution theory, and self-serving bias
among other hypotheses. Attribution theory allows managers to observe behaviors of employees
as they attempt to determine if it is internally or externally caused to improve employees’
operations (Caspers et al., 2012). Fundamental attribution error helps managers to form the
propensity to disparage the impact of outer factors and overestimate the impact of the energy of
interior elements when making diverse judgments concerning behavior of other employees.
Moreover, the theory of self-serving bias helps in the development of tendency for managers to
credit their victories to inside elements while setting fault for disappointments on outside
components during operations. Therefore, theories on Perceptual errors, attributions and biases
helm managers to use shortcuts in judging other people. In most cases, the bias makes managers’
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 6
judge people that they find attractive as smart (Konradt, Garbers, Erdogan, & Bauer, 2016).
Therefore, examples of biases help managers to offer the best training to workers to make more
precise discernment to help them by directing more powerful business interviews, audits of
performance, along with daily management tasks.
Managing perceptual errors, attributions, and biases
Most managers during their operations have difficulty when they find themselves in the
unfamiliar ambiguous situation while they are performing their duties. The clear understanding
of Perceptual errors, attributions and biases help managers to handle complaints to their thoughts
by plainly expressing the advantages of their situation to all gatherings in business operations.
Through the presentation of a compelling case for ideas by managers, they always get
endorsement for their proposed methodology regardless of whether restricted by encounter or
unresponsiveness (Sterling et al., 2013). By currently perceiving perception, biases, along with
attributions of people, active managers build justifications for their approach as well as getting
help when necessary. Therefore, managers normally credit accomplishment to good fortune,
ability, or possibility (Nowell, 20120. Therefore, Perceptual errors, attributions, and biases help
managers to respond to circumstances in view of what they think caused the occasion. In this
manner, similarly as discernment can stay to be flawed, attributions can be mistaken as well in
operations of the business (Pais et al., 2013). Managers ensure that workers attribution actions
were more effective by offering diversity training. Such activities help in preventing the hostile
work setting for the employee from different cultures.
Recommendations
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 7
Presence of perceptual errors, attributions and biases calls for the need for business
operations to minimize their effects during operations. The ideal way of reducing biases that
distort attribution can assist in fostering effecting teamwork by manners. Therefore, by use of
different techniques, tips, devices, and available resources from websites like the site of the
cultural navigator, managers can focus on ideal ways of reducing the rate at which
representatives specifically translate diverse occasions in light of their working knowledge, states
of mind, and background. There is a need for managers to overcome biases in their operations.
They can overcome biases by focusing on initial information as the starting point to ensure that
every plan within the process is attainable within the set time frame. Besides, managers need to
establish and maintain the impression that is congruent with the perceptions that they need to
convey to their employees to help in decreasing cases of perceptual errors, attributions, and
biases during operations in the competitive business marketplaces. It is valuable for managers to
concentrate on how to efficiently be equipped with the use of advanced innovation, social
assorted variety, alongside moral guidelines to empower them to proficiently take in the perfect
model to follow in their basic leadership process in their managerial positions.
Conclusion
It is clear that process of making managerial decisions remains to be one of the most
dynamic, challenging, as well as ongoing approach in operations of every organization. The
process is challenging when managers deal with cases of perceptual errors, attributions, and
biases. The managers of all levels of services have the responsibilities of considering the general
interest of the employees they are serving in their decisions while they encourage effectiveness
in reducing chances of occurrences of perceptual errors, attributions, and biases. Therefore, the

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 8
primary process in perceptual errors, attributions and biases remain to be selective attention,
proper organization, together with the interpretation of the business operations. There exist
appropriate stimuli that managers should follow to develop after employees make sense of the
stimuli. Several stimuli can help in attracting the attention of perceiver when individuals pay
attention to one thing that they naturally concerned with the series of data into the organized
value. The proper understanding of perceptual errors, attributions and biases can assist in the
provision of the organizational managers with various practical benefits. Therefore, it is essential
for corporate managers to avoid cases of perceptual errors, attributions, and biases in the
perception of individuals. Conversely, managers should take more time to gather as well as
consciously utilize additional data concerning individuals and avoid snap judgments concerning
people. Besides, managers have the mandate of checking their assumptions and develop self-
awareness of personal biases together with preferences.
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 9
References
Bozeman, B., Fay, D., & Gaughan, M. (2013). Power to Do...What? Department Heads' Decision
Autonomy and Strategic Priorities. Research In Higher Education, 54(3), 303-328.
doi:10.1007/s11162-012-9270-7
Caspers, S., Heim, S., Lucas, M. G., Stephan, E., Fischer, L., Amunts, K., & ... Soriano-Mas, C.
(2012). Dissociated Neural Processing for Decisions in Managers and Non-Managers.
Plos ONE, 7(8), 1-11. doi:10.1371/journal.pone.0043537
Cheng, Y., & Tsai, Y. (2014). Train delay and perceived-wait time: passengers' perspective.
Transport Reviews, 34(6), 710-729. doi:10.1080/01441647.2014.975169
Decision Making. (2016). International Journal of Psychology, 51335-355.
doi:10.1002/ijop.12307
Dhami, M. K., & Mumpower, J. L. (2018). Kenneth R. Hammond's contributions to the study of
judgment and decision making. Judgment & Decision Making, 13(1), 1-22.
Erskine, M. A., Gregg, D. G., Karimi, J., & Scott, J. E. (2014). Business Decision-Making Using
Geospatial Data: A Research Framework and Literature Review. Axioms (2075-1680),
3(1), 10-30. doi:10.3390/axioms3010010
Hobolt, S., Tilley, J., & Wittrock, J. (2013). Listening to the Government: How Information
Shapes Responsibility Attributions. Political Behavior, 35(1), 153-174.
doi:10.1007/s11109-011-9183-8
Document Page
HOW PERCEPTUAL ERRORS, ATTRIBUTIONS, AND BIASES ARE ESSENTIAL IN
MANAGERIAL DECISIONS 10
Konradt, U., Garbers, Y., Erdogan, B., & Bauer, T. (2016). Patterns of Change in Fairness
Perceptions During the Hiring Process. International Journal Of Selection & Assessment,
24(3), 246-259. doi:10.1111/ijsa.12144
Nowell, A. (2012). Industrial/Organisational/Work. International Journal Of Psychology, 47486-
558. doi:10.1080/00207594.2012.709112
Pais, D., Hogan, P. M., Schlegel, T., Franks, N. R., Leonard, N. E., & Marshall, J. R. (2013). A
Mechanism for Value-Sensitive Decision-Making. Plos ONE, 8(9), 1-9.
doi:10.1371/journal.pone.0073216
Richardson, K., & Norgate, S. H. (2015). Does IQ Really Predict Job Performance?. Applied
Developmental Science, 19(3), 153-169. doi:10.1080/10888691.2014.983635
Romeike, P. D., Nienaber, A., & Schewe, G. (2016). How differences in perceptions of own and
team performance impact trust and job satisfaction in virtual teams. Human Performance,
29(4), 291-309. doi:10.1080/08959285.2016.1165226
Sterling, C., Lopez-Kidwell, V., Labianca, G. (., & Moon, H. (2013). Managing Sequential Task
Portfolios in the Face of Temporal Atypicality and Task Complexity. Human
Performance, 26(4), 327-351. doi:10.1080/08959285.2013.814658
Tomlinson, E. C., & Carnes, A. M. (2015). When promises are broken in a recruitment context:
The role of dissonance attributions and constraints in repairing behavioural integrity.
Journal Of Occupational & Organizational Psychology, 88(2), 415-435.
doi:10.1111/joop.12087
1 out of 10
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]