Perception influences organizational behavior in several ways. Selective perception can harm decision making by limiting viable alternatives. Perception is shaped by individual attributes like attitudes and experiences as well as situational factors. Common perceptual biases in the workplace include fundamental attribution error, self-serving bias, selective perception, projection, stereotyping, and the halo effect, which can negatively impact areas like performance reviews, promotions, and hiring. Managing perception is important for fair treatment of employees and effective decision making.