Employees do not respond to the message actually sent; they respond to what they think was meant, which depends on their perception of the sender and situation. Misperceptions can create misunderstandings, rumours, and strained relationships even when intentions are positive.
Decision-Making:
Managers and employees select, organise, and interpret information based on their past experiences and expectations, which can lead to biased judgments or ignoring important data.
Leadership and Trust:
How fair, supportive, or competent a leader is perceived to be affects motivation, commitment, and willingness to follow instructions more than the leader’s actual traits alone.
Performance Appraisal:
Perceptual errors such as the halo effect, stereotyping, and self-serving bias can distort evaluations, leading to unfair ratings and demotivation.
Conflict and Culture:
Many conflicts arise because parties perceive the same event differently. Over time, shared perceptions form organisational culture (e.g., “this is a fair place” or “promotions are political”).