Performance evaluation

Appraisals are often the subjective (judgemental) perceptions of appraisers of another worker's job performance:

An employee's future is closely tied to the appraisal, promotion, pay increases and continuation of employment are among the most obvious outcomes.

Although the appraisal can be objective, many jobs are evaluated in subjective terms.

Subjective evaluations are problematic because all the errors discussed thus far - selective perception, contrast effects, halo effects and so on - affect them
Ironically, sometimes performance ratings say as much about the evaluator as they do about the worker!

The link between perception and individual decision making.

Individuals in firms make decisions, which are choices made between two or more alternatives.

Decision making occurs as a reaction to a problem. That is, a discrepancy exists between the current state of affairs and some desired state, requiring us to consider alternative courses of action.
-Every decision requires us to interpret and evaluate information. The decision maker's perceptions will answer that queston
-Throughout the entire decision-making process, perceptual distortions often surface that can bias analysis and conclusions.