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Perceptual biases and shortcuts cause various problems for organizations. For instance, in job interviews, perceptual judgment may result in employment of inappropriate employees. Secondly, in performance expectations, both employers and employees attempt to make their perceptions of reality valid when they are not right. Another problem is ethnic profiling that occurs when a company profiles its employees based on their ethnicity. Perceived effort is another major issue which is usually used as an excuse for termination. Lastly, it is subjective performance evaluation of employees by management.

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Halo effect refers to the overall impression of a person based on a single characteristic without regard to general characteristics of that person. In one situation at my work place, there was a staff member in a different department who was not very social, though her work was very good. Supervisor could not tolerate her antisocial attitude and often referred to her as unfit to work in the company. He reported this assumption to the management that decided not to renew her contract after its expiry date.

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To overcome issues of perceptual biases, organizations need to develop a rational decision-making model which will guide all staff members and management in making decisions. This model includes a number of steps. The first step involves defining a problem and then identifying decision criteria. The third step is allocating weights to the criteria, and the fourth is developing alternatives. The fifth step entails evaluating alternatives, and the last one concludes with selecting the best model. With this model, management will have helpful guidelines in making decisions. If these guidelines are followed, organizations will do away with perception biases. However, it is also important to note that perception bias problem might not end instantly but take a little time for management to get acquainted with decision-making models. Nonetheless, there is hope that the issue may diminish with time. 

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