Analyzing Perceptual Errors, Biases, and Attributes in Organizations

This essay delves into the critical role of perception, biases, and attributes in organizational decision-making. It examines how perceptual errors, such as stereotyping and the halo effect, can negatively impact managerial decisions, using case studies of Woolworths, Wesfarmers, and Metcash to illustrate these concepts. The study explores various theories of perception, including Kelley's theory of causal attribution, and discusses their application in real-world scenarios. The essay highlights the importance of understanding and addressing perceptual biases to improve HR management and overall organizational productivity. It also analyzes the application of Lewin's change management model to improve the working procedures and decision-making processes within the companies discussed. The essay provides insights into how managers can mitigate these errors and foster more effective decision-making processes, ultimately improving organizational outcomes. The discussion also includes the importance of open communication within the organization and the need to set short-term goals to achieve success.

Running head: MANAGING ORGANIZATIONS
Managing organizations
Name of the Student:
Name of the University:
Author’s note:

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Introduction
The background of the study is on the role played by perception, and attributes on the
decision-making procedure of the organization. In accordance with Vázquez-Diez et al. (2016),
the managers offer performance to other individuals based on their perception regarding the
individuals. In this context, it can be stated that perceptual errors might create a negative impact
on the decision-making process. It has been observed that a wrong perception of the
organisational managers might drive them to draw the generalized perception of a person.
appraisals. According to Plutarco, Freitas nd Mota (2015) this kind of judgement is done by
managers after assessing a single characteristic trait of this person. It has been observed that
stereotyping also plays a significant role in the decision-making process. It has been observed
that stereotyping also plays a significant role in the decision-making procedure of any
organization. The thesis statement is perceptual errors, biases along with attributes adversely
affects the decision-making procedure of any organization. The scope of the essay is to
understand the importance of perceptual errors, biases and attributes on the decision-making
procedure of the organization. It has been observed that inaccurate perceptions, biased attitudes
as well as attributes delays the decision-making process. Sometimes the wrong perceptions,
biasness and attributes drives the management of the organization to undertake wrong decision.
As a result, productivity of the organization gets hampered in the due process. The outline of
the essay is to examine the impact of perpetual errors, biases and attributes on an organizational
decision-making procedure has been discussed. In this study, the concept of perpetual errors,
stereotyping and attributes are discussed in a precise manner. This study sheds light on various
theories of perception and attributes are discussed. In addition to this, the application of these
theories on managerial decisions in the context of Woolworths, Wesfarmers and Metcash are

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covered in this particular study. The following paragraphs will shed light on positive and
negative impact on the organizational decision-making procedure. Apart from this, possible ways
for improving the HR management are briefly explained in this particular study. This study will
identify the key barriers, which restricts the managers to maintain perpetual accuracy in their
decision-making process based on which developments would be made by the HR managers
working at Woolworths.
Discussion
In accordance with the opinion of Vázquez-Diez et al. (2016), perception refers to the
procedure of recognizing as well as interpreting the sensory stimuli. In other words,
Oettershagen et al. (2016) commented that perception is used for representing as well as getting
an idea of the information or an environment. Mistakes committed by the individuals at the time
of interpreting information is termed as perpetual errors. Therefore, illusion is a kind of
perceptual distortion. From the perspective of Chappell et al. (2016), Illusion does not exist in
the reality. It has been observed that stereotyping can be explained as the judgements of the
individuals, which are based on beliefs of the group membership. Stereotyping allows the
managers working at Woolworths to maintain a consistency throughout the decision-making
processes.
In accordance with Chappell et al. (2016), perpetual biases are the systematic mistakes
committed by people at the time of perceiving others. In most of the cases, it has been observed
that perception is the main reason of conflict.

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It is seen that in case of fundamental attribution error people tend to put importance
inherent characteristics instead of putting emphasis on the external factors at the time of
describing another individual’s behavior in the given circumstance.
It has been observed that these generalized perceptions can positive or negative. In the opinion of
Small et al. (2016), halo effect can be explained as the individual’s tendency to judge a person
after assessing a single characteristic of the respective individual. Moreover, Calegari, Sibley
and Turner (2015) commented that this judgement can be favorable or unfavorable. Harvey et al.
(2014) argue that attribution is a procedure where organisational managers draw conclusions
regarding the factors, which impacts on each other’s behavior. It is seen that personal disposition
as well as situational disposition are two different kinds of attributions.
As per the concept of Kelleys’s theory of casual attribution, information, agreement,
distinctiveness as well as consistency, are the sources responsible for influencing making
judgements of behavior of other person. It has been noticed that agreement is the extent to which
the behavior of another person is same like the behavior of the observed individual (Plutarco,
Freitas and Mota, 2015). Consistency can be defined as the extent to which the observed
individuals begins behaving in the similar way on the similar occasions (Shaver, 2016).
Distinctiveness can be described as the extent to which the observed individuals starts behaving
similarly on the different occasions. Fiske (2018) commented that managers working at the
supermarket chain of Australia are to some extent behaving similarly on different occasions. This
theory has been used in this study because it will help us to understand how perceptual errors,
biased attitudes negatively impacts on the management’s decision-making process. It also helps
in understanding how information, agreement, consistency along with distinctiveness adversely

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impacts the decision-making process. This is the justification for using this theory in this
particular student.
The application It is seen that Wesfarmers is adhering to a strict management style. The
employees of his reputed supermarket chain does not have any scope to share their individual
viewpoints in front of top executives, managers of this company. As a result, the employees
become disappointed and they are also suffering from low morale, which is restricting them to
deliver their best performance in the organization. In this regard, it can be stated that it is
essential for the management of the respective company to implement Lewin’s change
management model in its working procedures. This model comprises of three steps such as
freezing, changing and refreezing. It has been observed that procedure of change which entails
formulating the perception that change is required, then it moves towards a new level of the
behavioral approach, and solidifying that this new behavioral approach as a norm. This model
has been chosen because it will bring change in the working procedures of the respective
company. It will bring changes in the decision-making procedures of Wesfarmers., which is
following an autocratic style of management, thereby giving rise to low morale among its
workforce. This is the justification that lies behind this theory.
The first step is unfreezing. It includes preparing the company to accept the fact that
change is essential in the working process of the organization. In this particular stage, the
breakdown of the current status quo takes place. It is required for the management of
Woolworths to let the employees know why the breakdown has taken place and why change is
essential. It is required for the managers to challenge beliefs, value as well as attitudes of
Woolworths. It is the responsibility of Woolworths to explore the scope of expanding their
business activities in the marketplace. In this regard, it can be stated that they need to initiate

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open and honest conversation with its workplace. This approach will inspire its employees to use
their critical thinking abilities in order to meet the specified business objectivities.
Change is the next step. It is seen that after creating uncertainty in the initial stage,
individuals start resolving the uncertainty in this particular stage. In this particular stage, people
starts seeking for the new ways of doing things. Individuals take time to accept changes and they
take part proactively in this change. In this context, it can be stated that in order to embrace
change, individuals should gain an understanding how such changes are going to benefit them. It
has been observed that Metcash often recruits wrong individuals after judging on their single
trait. As a result, these individuals deliver poor performance in the respective supermarket chain
thereby lowering the overall productivity of the respective company (Liu et al. 2015). However,
it is essential for the managers to bring a change in the recruitment and selection process. In
order to implement this change, they need to form a strong coalition by bringing all its
employees under the same roof. It has been observed that by building a unified team , it is
possible to avoid perpetual errors thereby increasing the productivity of the respective company.
The third step is refreezing. It is seen that after making modifications in the
organizational workflow and after individuals have accepted these changes, refreezing of
Wesfarmers takes place. The stable company chart, consistency in job description are some signs
that shows refreezing is happening within the workflow of the respective company. Employees
become confident after the changes are made and they feel comfortable with new means of
working. Ineffective management style and lack of a good leader has caused disappoint and
resentment among the employees. As opined by Liu et al. (2015) it is important for the company
to create a strong vison so that its employees can understand what they have to do in order to
fulfill the expectations of Wesfarmers. In addition to this, Heilman et al. (2018 ) asserted that a

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good leadership can aid this supermarket chain to form a fruitful strategy, which should be
aligned with the company’s new vision. It is needed for the management of Wesfarmers to give
directions to its employees for executing the new vision.
It is very important for the supermarket chain to interact its vision to all the workforce so
that they can work harder to meet the goals and objectives of this Australian company.
According to Liu et al. (2015), it is very important for the managerial section of Wesfarmers to
address employee’s concerns by starting an open conversation with them. In this, it is possible
for the respective company to avoid perpetual errors.
In accordance with Amodio (2014), it is the duty of the management of Woolworths to
bring change by identifying the individuals who are showing their unwillingness for changing
the working processes. There are various reasons for resisting change in organisational workflow
such as lack of resources, lack of financial security, and concern for security. It is seen that there
are individuals who are reluctant for bringing any sort of modification in the working procedures
because they feel that there is no need to change the current organisational working procedures.
It is needed for the management of this company to make ensure the fact that appraisals are
given to performers after judging their performance. This judgement should be unbiased in
nature thereby decreasing the scope for perpetual errors.
From the perspective of Heilman et al. (2018), it is the primary task of the management
of Metcash to set short-term goals for the workforce. In addition to this, it is required for the
managers to recognize the good performance of the employees through offering them
performance appraisals. It also empowers the workforce for action.

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The management needs to find out what are the loopholes and what are its strengths so
that they can work for continuous improvement.
It is very important for the management to recognize the efforts of the employees who are
responsible for bringing innovative changes in the workflow of Metcash.
It has been noted that perceptual errors, stereotyping as well as attributions directly
influences the decision-making process of Woolworth. Various factors contribute to create an
impact on the perceptions, which influences the overall decision-making procedures. These are
selective perception, halo effect, contrast effect, stereotyping, rationality as well as projections.
Selective perception refers to a procedure where a person perceives what the individual intends
to and ignores perceptions of rest individuals. The rigid management style of Woolworths
ignores other’s perspectives. In case of halo effect, it is seen that sometimes, managers undertake
final decisions after evaluating a person’s single trait, thereby adversely influencing on the
decision-making process of Woolworths. Strict management style of Woolworths gives no scope
to employees to share their opinions in the decision-making procedures. Therefore, Fiske (2018)
commented that the management does not have any idea about the critical thinking abilities and
creative skills of their employees. On the other hand, Amodio (2014) asserted that they judges
their employees only on single characteristic trait of the employees thereby giving rise to
wrong perceptions, biasness and attributes thereby increasing the ineffectiveness of decision-
making procedure. Incorrect perceptions, biased attitudes and attributes gives rise to prevalence
of low morale among the employees. Therefore, they feel demotivated and demoralized. This led
to reduce the overall workflow of the respective organization.
In the opinion of Amodio ( 2014), contrast effects means assessment of the single trait of
the individuals, influenced by comparison with characteristic of other individuals. These

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individuals rank higher or lower and they possess same characteristics. This impacts managerial
decision-making of Wesfarmers. Managers of Wesfarmers often takes logical decisions instead
of taking optimal decisions, thereby impacting the decision-making procedure. It has been
observed that projection refers to a defense mechanism, which aids to safeguard individual from
the unpleasant truths. In this context, it can be stated that managers working at Wesfarmers
sometimes becomes reluctant to listen unpleasant truths about themselves or the company. This
creates a negative impact on the decision-making process of Woolworths.
In the opinion of Heilman et al. (2018), perpetual errors, biases and attributes creates a
positive impact on decision-making process of Metcash. On the other hand, Hamilton (2015)
commented that, stereotyping enables a person or a manager to undertake prompt decisions
thereby impacting the decision-making process of the respective organization. In this context, it
can be stated that sometimes perpetual errors, biases as well as attributes helps the management
to take quick decisions without lowering the productivity of the respective business firm. This
approach enhances the decision-making process of Metcash.
Conclusion and Recommendation
From the above discussion, it can be concluded that perceptual errors, biases along with
attributes are responsible for creating a negative impact on the decision-making process of
Woolworths, Metcash and Wesfarmers. It has been observed that different factors contribute to
the prevalence of perpetual errors within the workflow of the organization. Factors like
projections, halo effect, contrast effects, rationality, stereotyping and selective participation are
responsible for influencing perception, which is directly responsible for creating an adverse
effect on decision-making process. Moreover, it is seen that the proper implication of Lewin’s
Change management model will reduce the extent of perpetual errors that often disrupts the

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workflow of the entire organization. It is suggested for the HR managers to adopt participative
style of management where all low-level employees, mid-level employees and high-level
employees can share their ideas and thoughts in front of the hierarchy. This approach of the
management will reduce the chance of perpetual errors that usually takes place at the time of
undertaking important business decisions. It has been observed that managers of Woolworths,
Metcash and Wesfarmers sometimes make perpetual errors while evaluating the performance of
their employees. As a result, these perpetual errors, attributes along with biases adversely
impacts on the decision-making procedures. It is required for the HR managers to show their
unbiased attitude at the time of interviewing the individual. It is a suggestion for the HR
managers working at Woolworth, Wesfarmers and Metcash to include on-job training in its
working procedures. In this training sessions, HR managers of the respective company would act
as a mediator thereby resolving the conflicts of existing employees and new joinees. Apart from
this, it is recommended for the HR managers to improve their analytical skills so that they can
appraise one’s performance after judging all the traits of the respective individual.

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