Because peopleâ€™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, peopleâ€™s decision will be impaired by wrong perception.
2.Halo (Horns) Effect: people are drawing a general impression about an individual ...view middle of the document...
This may not ensure the best decisions.
7.Intuitive Decision Making: intuition is often used when there is a high level of uncertainty, there is little precedent to go on, when the variable in question are less predictable, when facts are limited, these facts donâ€™t lead you in one particular direction, data is of little use, when there are several plausible choices, and there is time pressure. It may be used in decision making process when all given factors are ambiguous.
8.Overconfidence Bias: we tend to be overly optimistic especially when our intellect and interpersonal abilities are low. This wrong perception will lead to wrong decisions.
9.Anchoring Bias: it is the tendency to focus on initial information as a starting point. This occurs because our mind appears to a disproportionate amount of emphasis to the first information it receives. This results in not to take the optimal decisions.
10.Confirmation Bias: we tend to selectively seek out information that reaffirms our past choices and we discount information that contradicts our past judgments. This could happen even if we are not sure that this is the optimal choice.
11.Availability Bias: the tendency of people to base their judgments on information readily available to them whatever this information is enough to make the best decisions or not.
12.Representative Bias: the tendency to assess the likelihood of an occurrence by drawing analogies and seeing identical situations in which they donâ€™t exist. This will lead to make the decisions on a very weak base.
13.Escalation of Commitment: an increased commitment to a previous decision in spite of negative information which is often creeps into decision making process.
14.Randomness Error: we tend to create meaning out of random events which is not enough to ensure the optimal decision making process.
15.Hindsight Bias: we tend to believe...