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• People’s behavior is
based on their
perception of what
reality is, not on
reality itself.
• The world as it is
perceived is the world
that is behaviorally
important.
Factors That
Influence
Perception
Person Perception: Making Judgments About
Others
Perceptions
of the
decision
maker
Outcomes
Assumptions of the Rational Decision-Making
Model
1. Problem clarity
2. Known options
3. Clear preferences
4. Constant
preferences
5. No time or cost
constraints
6. Maximum payoff
How Are Decisions Actually Made in
Organizations
How Are Decisions Actually Made in
Organizations (cont’d)