4. Perception

Question 1

Perception

Answer 1

process by which individuals interpret and organise their sensory impressions to give meaning to their environment

Question 2

Relationship-based categorisation

Answer 2

perception by family resemblance (Easterners)

Question 3

Rule-based categorisation

Answer 3

perception by rule (Westerners)

Question 4

Holistic perception

Answer 4

prefer to see entire field including focal object and environment (E)

Question 5

Analytic perception

Answer 5

prefer to observe focal object and analyse (W)

Question 6

Organisation by functions

Answer 6

focus on specialisation, division of labour, lack of consideration of cross-function collaborations or “relationships” between functions

Question 7

Matrix organisation

Answer 7

organisational structure that focuses on cross-functions

Question 8

Takeaways of Gorilla Experiment

Answer 8

shows that our perception is selectively picking up information, we pay attention to the most relevant, important information. Unlikely to trust as our perception loses too much information

Question 9

Rationality model

Answer 9

– making sound decisions to achieve given goal within limits imposed by conditions and constraints
1.	Define the problem
2.	Identify the decision criteria
3.	Allocate weights to the criteria
4.	Develop the alternatives
5.	Evaluate the alternatives
6.	Select the best alternative
Unlikely to be possible as our cognitive capacity is limited, and limited availability of information

Question 10

Bounded Rationality

Answer 10

rationality is limited when individual’s make decisions
• This is because our cognitive capacity is limited, and we make decisions by considering limited amount of information.
• We generate alternatives from our experience, not by gathering and analysing outside information
• We select solutions that are satisfactory and sufficient

Question 11

Typical Perception Biases (5)

Answer 11

Availability, Anchoring, Hindsight, Escalation of Commitment, Randomness Errors

Question 12

Availability Bias

Answer 12

base judgments on information readily available to them

Question 13

Anchoring Bias

Answer 13

fixate on initial information, from which one then fails to adjust adequately for subsequent information

Question 14

Hindsight Bias

Answer 14

believe falsely that after an outcome, they would have accurately predicted that outcome

Question 15

Escalation of Committment

Answer 15

increased commitment to a previous decision despite negative information

Question 16

Randomness Errors

Answer 16

individuals believe they can predict the outcome of random events