Because people’s behavior is based on their perception of what reality is, not on reality itself, it is possible that two persons can see the same thing and interpret it differently.
Based on the above, the following are some factors that affect perception and hence, it affects decision making process:
1.Selective Perception: people selectively interpret what they see on the basis of their interest, background, experience, and attitudes. This factor allow people to speed-read others but not without the risk of drawing an in accurate picture. Hence, people’s decision will be impaired by wrong perception.
2.Halo (Horns) Effect: people are drawing a general impression about an individual on the basis of a single characteristic. This will negatively affect their decisions.
3.Contrast Effects: it is evaluations of a person’s characteristics that are affected by comparisons with other people recently encountered who rank higher or lower on the same characteristics. This factor also affects decisions quality.
4.Stereotyping: it is judging someone on the basis of one’s perception of the group to which that person belongs. People rely on generalizations every day because they help them make decisions quickly. They are a means of simplifying a complex world. This will affect decision making process.
5.Rationality: people are usually content to find an acceptable or reasonable solution to a problem rather than an optimal one. The process of making decisions using rationality rather than a defined prescriptive model in not effective enough in taking the best decision.
6.Bounded Rationality: individuals make decisions by constructing simplified models that extract the essential features from problems without capturing all their complexity. So, people seek decisions that are satisfactory and sufficient. They tend to choose the first acceptable solution encountered rather than the optimal one. This may not ensure the best decisions.
7.Intuitive Decision Making:...