This chapter explores each substage of the perception and decision-making processes. Humans have five senses through which we experience the world: sight, hearing, touch, smell, and taste. Most of us “trust our senses,” but sometimes this blind faith can lead us to believe that our perceptions are a perfect reflection of reality. The accuracy of perceptions can also be improved by obtaining observations from different people and different perspectives. Having multiple points of view is especially valuable when it comes to self-perceptions of upper-level managers, who often overestimate their interpersonal effectiveness when their perceptions go unchecked. The chapter emphasizes the creativity process and describe how organizations can enhance creativity by selecting appropriate people or by managing in the appropriate fashion. A thorough understanding of the perceptual process by which people encode and make sense out of the complex world around them is critical to those who would manage organizational behavior.