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- The information on which they base choices can be wrong, out-of-date, or incomplete.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:
- Dealing with Your Own Anger
- However perceptive we become about what can anger us, we still do get angry once in a while. Here are
four steps to help you deal with your own anger.
- The Fallacy of the False Cause
- Although we sometimes make decisions with incomplete information, we do the best we can, given what
we know. Sometimes, we make wrong decisions not because we have incomplete information, but because
we make mistakes in how we reason about the information we do have.
- Your Wishing Wand
- Wishing — for ourselves, for others, or for all — helps us focus on what we really want.
When we know what we really want, we're ready to make the little moves that make it happen. Here's a
little user's guide for your wishing wand.
- Hurtful Clichés: I
- Much of our day-to-day conversation consists of harmless clichés: "How goes it?" or
"Nice to meet you." Some other clichés aren't harmless, but they're so common that
we use them without thinking. Maybe it's time for some thought.
- 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.
Forthcoming issues of Point Lookout
- Coming December 18: The Trap of Beautiful Language
- As we assess the validity of others' statements, we risk making a characteristically human error — we confuse the beauty of their language with the reliability of its meaning. We're easily thrown off by alliteration, anaphora, epistrophe, and chiasmus. Available here and by RSS on December 18.
- And on December 25: Disjoint Awareness
- In collaborations, awareness of how our own work might interfere with the work of others is essential. Unless our awareness of others' work — and their awareness of ours — matches reality, the collaboration's objective is at risk. Available here and by RSS on December 25.
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- 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.