We often assume that people are motivated by rational self-interest. In this model of behavior, people make choices that they calculate will benefit them most, and most directly. If we want to predict behavior, or direct it, all we have to do is provide the right "incentives" or "disincentives" and we can get people to do what we need them to do.
If only Life were that simple.
Although predictions on the basis of the rational model can be successful, some have come to believe that strict adherence to the rational model is not only limiting, but often wrong.
The problem is that sometimes people don't choose rationally, and even when they do, they often choose differently from what we might expect if we consider only the content of the issue. Here are some reasons why.
- It's always a judgment call
- In the organizational context, the consequences of choices are rarely all good or all bad. People have to decide what they care about and how much, and people do differ.
- Some people react to the past
- Sometimes people don't
choose rationally. Even
when they do, they
apply their own judgment,
- Something about the situation might trigger responses from childhood, or from other experiences. People then react to those past experiences instead of reacting to the here-and-now.
- Some are overloaded
- Some people must choose quickly, because of real or perceived time pressure. In haste, they make choices that differ from those they would make if they felt they had more time.
- Some feel peer pressure
- Some make choices on the basis of the choices they perceive others making. They want either to be like others, or to be unlike others.
- Some fear imaginary consequences
- When they lack concrete knowledge, some people make up some pretty terrifying scenarios. Then they react to what they've imagined, instead of to what is.
- Some have wrong information
- The information on which they base choices can be wrong, out-of-date, or incomplete. Or they might have misunderstood or forgotten the information they did have.
- Some seek revenge
- Anger or thirst for revenge can cause some to make choices to harm others, ignoring (or blinded to) consequences that are seriously harmful to themselves.
- Some have received bad advice
- Even when people have all the facts right, some follow bad advice or misguided (or worse) leaders.
- Some have cut deals
- Sometimes people make choices that are counter to their own interests, because — rightly or otherwise — they expect someone else to intervene or to support them in another context.
Finally, some believe that the world consistently works in ways that it does not. This can cause them to make choices that might not be in their own self-interest — they might even choose to use the rational model to devise ways to influence the choices of others. Top Next Issue
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For more on irrational decision-making, see the report by Paul Solman on the May 10, 2005, edition of the PBS program The News Hour with Jim Lehrer. The report is available in text, streaming audio, or streaming video. It emphasizes the work of Terry Burnham, author of Mean Markets and Lizard Brains: How to Profit from the New Science of Irrationality, published in 2005 by Wiley. Order from Amazon.com.
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More articles on Emotions at Work:
- September Eleventh
- Because of the events of September Eleventh, and out of respect for the dead and bereaved, Point Lookout
didn't appear this week. I hope we can all find a way through our pain to a place of peace and respect
for all. Please take the time that you would have spent reading Point Lookout and use it to move us
all a little closer to that goal.
- One Cost of Split Assignments
- Sometimes management practices have unintended consequences. To reduce costs, we keep staff ranks thin,
but that leads to split assignments for those with rare skills. Here's one way split assignments can
lead to higher costs.
- Fill in the Blanks
- When we conceal information about ourselves and our areas of responsibility, we make room for others
to speculate. Speculation is rarely helpful. It's wise to fill in the blanks.
- Not Really Part of the Team: I
- Some team members hang back. They show little initiative and have little social contact with other team
members. How does this come about?
- Dealing with Deniable Intimidation
- Some people use intimidation so stealthily that only their targets recognize the behavior as abusive
or intimidating. Targets are often so frustrated, angered, and confused that they cannot find suitable
Forthcoming issues of Point Lookout
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- One of the attributes of team cultures is something called power distance, which is a measure of the overall comfort people have with inequality in the distribution of power. Power distance can determine how well a team performs when executing high-risk projects. Available here and by RSS on October 23.
- And on October 30: Power Distance and Risk
- Managing or responding to project risks is much easier when team culture encourages people to report problems and question any plans they have reason to doubt. Here are five examples that show how such encouragement helps to manage risk. Available here and by RSS on October 30.
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- The Race to the South Pole: Lessons in Leadership
On 14 December 1911, four men led by Roald Amundsen reached the South Pole. Thirty-five days later, Robert F. Scott and four others followed. Amundsen had won the race to the pole. Amundsen's party returned to base on 26 January 1912. Scott's party perished. As historical drama, why this happened is interesting enough. But to organizational leaders, business analysts, project sponsors, and project managers, the story is fascinating. We'll use the history of this event to explore lessons in leadership and its application to organizational efforts. A fascinating and refreshing look at leadership from the vantage point of history. Read more about this program.
Here's a date for this program:
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio
44017: November 7,
Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute.
- Baldwin-Wallace University, 275 Eastland Road, Berea, Ohio 44017: November 7, Kerzner Lecture Series/International Project Management Day, sponsored by Baldwin Wallace University and the Northeast Ohio Chapter of the Project Management Institute. Register now.
- The Power Affect: How We Express Our Personal Power
Many people who possess real organizational power have a characteristic demeanor. It's the way they project their presence. I call this the power affect. Some people — call them power pretenders — adopt the power affect well before they attain significant organizational power. Unfortunately for their colleagues, and for their organizations, power pretenders can attain organizational power out of proportion to their merit or abilities. Understanding the power affect is therefore important for anyone who aims to attain power, or anyone who works with power pretenders. Read more about this program.