Individuals make decisions in organization. Decision making is choosing from among two or more alternatives. Individual decision making is influenced by perception. Managers make decision about goals, products, finance, production schedule, pay rises, etc.

Similarly, non-managerial employees make decisions that affect their jobs and the organizations for which they work. The steps involved in individual decision making are influenced by perception. The steps are:

Defining the problem- Every decision problem requires selection, organization and interpretation of information. There are multiple source of information. These information is relevant to the decision is very much influenced by the perception of the decision maker. Perceptual biases influence identification of problems.

Developing alternatives- Every decision requires development of alternatives. It also requires evaluation of the strengths and weaknesses of relevant alternatives. The perception of the decision maker influences the development and evaluation of alternatives.

Making a choice- Decision making is choosing from among the alternatives. The final outcome in terms of making a choice is greatly influenced by the perception of the decision maker. 

Individuals look for a solution that satisfies rather than optimize. Perception influences solution to problems.