This Soft Skill PPT has following Topics: What is Perception? What is Individual Decision Making? Attribution Theory. Link Between Perception & Individual Decision Making. 7 Steps to Effective Decision Making Model. Common Biases in Decision Making. Pros & Cons of Individual decision making & Group decision making. Decision making exercise.

1. INDIVIDUAL DECISION
MAKING
Presented By-
Vipul Mirajkar
Amit Pal
Shashi Soni

2. CONTENTS
 What is Perception?
 What is Individual Decision Making?
 Attribution Theory.
 Link Between Perception & Individual Decision Making.
 7 Steps to Effective Decision Making Model.
 Common Biases in Decision Making.
 Pros & Cons of Individual decision making & Group decision
making.
 Decision making exercise.

3. “WE DON’T SEE THINGS AS THEY ARE, WE
SEE THINGS AS WE ARE.”

4. WHAT IS PERCEPTION?
A process by which individuals organize and
interpret their sensory impressions in order to
give meaning to their environment.
The world as it is perceived is the world that is
behaviorally important.

5. INDIVIDUAL DECISION MAKING
Individuals have a tendency to think and question
before performing. This is fruitful in analysis and
forecasting of individual’s behavior leads to decision
making.
Understanding a problem is must. Understanding leads
to a good solution. Hasty decisions usually end up
wrong.

6. ATTRIBUTION THEORY
When individuals observe behaviour, they attempt to determine
whether it is internally or externally caused.
 Internal – behavior is believed to be under the personal control of
the individual
 External –the person is forced into the behavior by outside
events/causes

7. 3 FACTORS OF ATTRIBUTION THEORY
1. Distinctiveness – whether an individual displays different
behaviors in different situations (the uniqueness of the
act)
2. Consensus – does everyone who faces a similar situation
respond in the same way as the individual did.
3. Consistency – does the person respond the same way
over time.

8. DETERMINANT OF ATTRIBUTION THEORY

9. LINK BETWEEN PERCEPTION & INDIVIDUAL
DECISION MAKING.

10. 7 STEPS TO EFFECTIVE DECISION MAKING

11. STEPS FOR DECISION MAKING
Step 1: Identify the decision
You realize that you need to make a decision. Try to clearly define the nature
of the decision you must make. This first step is very important.
Step 2: Gather relevant information
Collect some pertinent information before you make your decision: what
information is needed, the best sources of information, and how to get it. This
step involves both internal and external “work.”

12. STEPS CONTINUED..
Step 3: Identify the alternatives
As you collect information, you will probably identify several possible paths of action, or
alternatives. You can also use your imagination and additional information to construct new
alternatives. In this step, you will list all possible and desirable alternatives.
Step 4: Weigh the evidence
Draw on your information and emotions to imagine what it would be like if you carried out
each of the alternatives to the end. Evaluate whether the need identified in Step 1 would be
met or resolved through the use of each alternative.

13. STEPS CONTINUED..
Step 5: Choose among alternatives
Once you have weighed all the evidence, you are ready to select the
alternative that seems to be best one for you. You may even choose a
combination of alternatives.
Step 6: Take action
You’re now ready to take some positive action by beginning to implement
the alternative you chose in Step 5.

14. STEPS CONTINUED..
Step 7: Review your decision & its consequences
In this final step, consider the results of your decision and evaluate whether or
not it has resolved the need you identified in Step 1. If the decision
has not met the identified need, you may want to repeat certain steps of the
process to make a new decision. For example, you might want to gather more
detailed or somewhat different information or explore additional alternatives.

15. COMMON BIASES IN DECISION MAKING
1. Overconfidence Bias -
As managers and employees become more knowledgeable about an
issue, the less likely they are to display overconfidence
2. Anchoring Bias -
A tendency to fixate on initial information and fail to adequately
adjust for subsequent information
3. Confirmation Bias -
Seeking out information that reaffirms our past choices and
discounting information that contradicts past judgments

16. BIASES CONTINUED..
4. Availability Bias -
The tendency to base judgments on information that is readily available
5. Escalation of Commitment -
Staying with a decision even when there is clear evidence that it is wrong
6. Hindsight Bias -
The tendency to believe falsely that we could have accurately predicted the
outcome of an event after that outcome is already known

17. PROS & CONS OF INDIVIDUAL DECISION
MAKING & GROUP DECISION MAKING

18. QUOTE FOR THE DAY!