Dan Ariely, the author of Predictably Irrational, referenced the foolishness of certain actions (e.g. texting while driving), what he calls “small irrationalities” that we do every day. These can lead up to big problems. With our current model of labor, for instance, we reward people with rest. This doesn’t really capture what it is that engages people, what causes them to want to work. The structure of bonuses in similar: it’s assumed that the promise of money will make people work harder. Arielly’s studies have shown that we are not necessarily inspired by more money, as money is both a motivator and a stressor.
So what does this mean for Wall Street and our spending patterns in general? And how do successfully map incentive to performance? FULL ARTICLE >>