Perception can be defined as such a process by which a person retains a belief or opinion about anything or environment on the basis of the way of his understanding using his sensing capability

Perception can be defined as such a process by which a person retains a belief or opinion about anything or environment on the basis of the way of his understanding using his sensing capability. In majority of the cases there is a distinct contradiction between the perceived idea & actual reality. Although the attitude & behavior of the people is not in accordance to the actual reality, but according to their own perception of environment. There are some factors such as personality, personal experiences, current situation, interests and intentions etc. that significantly contribute in building up & also changing the perception. People take perception about the facts corresponding to their personal attributes. Not only the characteristics of the perceiver but also that of target, its background & the time when the perception was taken. Because the impact of the target may be different in different time of situation. Attribution theory of perception demonstrates the fact that what are the causes behind determining a particular perception of people about something or event, which can be external as well as internal factors. Internal factors are the own personal attributes or personality of a person that direct him/her to retain a particular kind of behavior. While external factors are those on which a person has no control and they force him to adopt a certain behavior. Other than these, there are three main attribution factors; distinctiveness, consensus and consistency that contribute in determination of perception or behavior. Distinctiveness means to exhibit different kind of behavior in different situations by a person while consensus is to exhibit same behavior by every individual in response to the same situations or events. Consistency can be basically termed as constant behavior. A person who exhibits same particular behavior in any kind of situation over long span of time and having no change in its behavior can be called as consistent in behavior. Attribution theory also has provided an important fact that preconception about anything or event can mislead the person to attribute about wrongly. Persons sometime estimate about one factor like internal factor more intensively for any other individual or event and giving less importance to external ones. While in case of their own success or ability, they attribute it to internal factors while to external factors in case of any harm or damage. In short they attribute in accordance to their own interests, priorities and motives to satisfy their own conscientiousness, which is called as self serving bias. There are some shortcut strategies that can be used in adopting perception or judgment about something or event, which can help a person in taking correct judgment up-to an extent but are not completely recommendable. One of those is selective perception, in which a person perceives about any person, thing or event according to his own personal desires and expectations while ignoring the all other perceptions and point of views. Because it is very difficult for a person to observe all the aspects of one thing, so he selectively judges it according to his own interests and requirements. Another method for accurate judgment is termed as halo effect in which an individual is judged or interpreted on the basis of only a single trait whether good or bad & thus adopts the opinion or perception about the whole personality. Most frequently used method in organizations and interviews is contrast effect. As obvious from the name contrast effect refers to evaluation of a person’s high or low intensity trait in comparison with others having same trait. In this kind of perception individual is not judged separately, but is compared with other persons who experienced the same situation and how high or less intense their behavior was. One shortcut is stereotyping in which an individual is not evaluated on basis of his own traits or personality but is judged on basis of characteristics of a particular group to which he belongs and perceived that person also has same traits as the whole group. These perception shortcuts are very useful in organizations for hiring of eligible persons and also accurate and fair evaluation of persons’ performance. Individual’s decision making is very much important in organizations. But by way the individuals make decisions is largely affected by their perceptions. Top managers in an organization determine the goals of an organization. Middle level managers set the schedule. ; non managerial employees decide that how much effort is required to complete the task the given by the Boss. We make a decision in the reaction of any problem. Every decision requires us to understand that problem ; then solved that problem. We receive the data from various sources, ; then we decide which data is relevant to the decision; which are not. Our perception will answer the given question. ; then we develop the alternatives; then evaluate the strength ;weakness. ; then the perceptual process will affect the final process of decision. Rational decision making depends on a number of assumptions: That whether the decision maker has completed the information ;whether he has chosen the right option to solve the problem. Most of the decisions in real world doesn’t follow this model. people normally found an acceptable solution to a problem rather than an optimum one.& most significant decisions are made by the proper judgment .Most people solve the difficult problem by reducing it into simpler problem so that they can easily understand that. Because human mind can’t s solve the complex problems with full rationality so they take the help from the bounded rationality .Many problems also don’t have a optimal solution because they are very complicated for a common man to understand himself. So they go for the satisfactory solution. Satisfying is not always the bad idea but if we use rational model in the real world we need to gather a wide variety of information & then compute & calculate the values across the sensible criteria. Also, this process is very time consuming & will cost a lot of money. A fully rationale model can’t be as accurate as the best guess. Intuition is the least rational way of making the decisions. It is basically an unconscious process. So it’s mostly engages our emotions. It is the most complex & depends on the years of experience in the late century many experts believe it to be irrational but that’s no longer the case. Overconfidence bias occurs when you are more confidence than you should given the facts if we are 100 percent confident about our success then it will be true to an extent of 70 to 80 percent. Anchoring bias is an individual’s ability to depend too much on an initial piece of information in decision making process. Confirmation bias is the individual’s ability to search, understand, ; recall information that confirms their existing beliefs e.g. if a person belies that right handed person are more intelligent than left handed person so whenever he meet a person who is right handed ;intelligent as well so he will pay a greater importance on this evidence that supports what he already believe. Availability bias is an individual’s ability to give their judgments in the information available to them e.g. many people thinks smoking is injurious to heath by looking at the cigarettes. Escalation of commitment refers to when Ann individual faces more negative outcomes for decision he take as compared to positive outcomes e.g. If some person is in a relationship, & his relation is not going well but still they want to marry each other because they think that they have invested a lot in their relationship. Randomness error in which individuals believe that they have a control over their destiny.Risk aversion is an assumption in finance in which investor will choose less risky alternative.e.g people buy insurance on the valuable assets. So that if they buy a car & if any damage occur to it they can get the payment back if they insured their car.Hindsight bias refers to as tendency of people to overestimate their ability to predict the outcome e.g a person says that I already knew it when an outcome or any event occurs. From the all the discussion we conclude that how the individuals & organizations make the financial decisions. Overconfidence is not the only decision error subjected in the case of financial crisis. Investors normally avoid negative information about investments. Lenders may overlooked problems with borrowers’ when making loans,. Once a loan has been paid off, lenders also ignore the negative effects of debt. Studies have found that people are more willing to buy ; spend more money when they are confident as compared to when they are not confident. As their confidence level decreases it lead to economical crisis. Basic leadership is influenced by association imperatives and individual trademark. Identity impacts basic leadership. There are for the most part two sorts of identities one is accomplishment endeavoring and other is obedience. Accomplishment endeavoring individuals will probably get their accomplishment however are required to legitimize their activities. Confidence individuals are likewise who assume acknowledgment of progress yet give disappointment credit to others. Sexual orientation additionally impacts basic leadership. Numerous examinations tell that ladies think more than man. They are over thinker. Mental capacity likewise impact basic leadership. Individual with more grounded personality take care of issues quicker than frail personality. They break down issues speedier. Cultural difference likewise impact basic leadership. Individuals having a place with certain culture take choice in another way the individuals who have a place with various cultures. Associations can oblige chiefs. For example, directors shape their choices to mirror the association’s execution assessment and reward framework. Execution Evaluation Managers are emphatically impacted by the criteria on which they are assessed. Reward Systems the association’s reward framework impacts leaders by proposing which decisions have better individual payoffs. There are three moral choices criteria. The first moral measuring stick is utilitarianism which proposes settling on choices exclusively based on their results, in a perfect world to give the best great to the best number. Another criterion is to settle on choices with basic freedoms and benefits. A third rule is to force and uphold leads decently and unbiased to guarantee equity or an evenhanded appropriation of advantages and expenses. Imagination enables the leader to all the more completely evaluate and comprehend the issue. The vast majority have valuable imaginative potential. Different elements can mimic inventiveness, for example, positive feeling of test in work. Work groups are community oriented, differently gifted and thought centered. The idea of three part component for innovativeness need being amended the forward segment of inventiveness, the social condition which clearly affects general idea of imagination.