When we try to influence others, especially large groups or entire companies, we sometimes create packages of incentives and disincentives that are intended to affect behavior. These strategies usually assume that people make choices on rational grounds. Is this assumption valid?
e 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, not yours.
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The information on which they base choices can be wrong, out-of-date, or incomplete.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. TopNext Issue
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. .
The article you've been reading is an archived issue of Point Lookout, my weekly newsletter. I've been publishing it since January, 2001, free to all subscribers, over the Web, and via RSS. You can help keep it free by donating either as an individual or as an organization. You'll receive in return my sincere thanks — and the comfort of knowing that you've helped to propagate insights and perspectives that can help make our workplaces a little more human-friendly. More info
"If we promote you, we'll have to promote all of them, too." This "slippery-slope" tactic for winning debates works by exploiting our fears. Another in a series about rhetorical tricks that push our buttons.
If you've ever known a particular dog at all well, you've probably been amazed at how easy it is to guess a dog's mood, even though dogs can't speak. Perhaps what's more amazing is that it's so difficult to guess a person's mood, even though humans can speak.
One widespread feature of organizational life is the announcement of across-the-board cuts. Although they're announced, they're rarely "across-the-board." What's behind this pattern? How can we change it to a more effective, truthful pattern?
Getting home from work is far more than a question of transportation. What can we do to come home totally — to move not only our bodies, but our minds and our spirits from work to home?
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e 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.
Top 
Next IssueFor 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. .
The article you've been reading is an archived issue of Point Lookout, my weekly newsletter. I've been publishing it since January, 2001, free to all subscribers, over the Web, and via RSS. You can help keep it free by donating either as an individual or as an organization. You'll receive in return my sincere thanks — and the comfort of knowing that you've helped to propagate insights and perspectives that can help make our workplaces a little more human-friendly. More info
The Slippery Slope That Isn't
Dealing with Your Own Anger
Why Dogs Wag Their Tails
Those Across-the-Board Cuts That Aren't
Totally at Home
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Ever wonder if there isn't a better way to travel? Travel is essential, but the hassles of travel aren't. Read 202 Tips for Business Travel to learn how to convert business travel from a time-wasting hassle to a breeze. Revised and updated for 2008 with 101 new tips! Check it out!
Projects never go quite as planned. We expect that, but we don't expect disaster. How can we get better at spotting disaster when there's still time to prevent it? How to Spot a Troubled Project Before the Trouble Starts is filled with tips for executives, senior managers, managers of project managers, and sponsors of projects in project-oriented organizations. Check it out!
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Are you doing work you love? Are you less in love with the job? Bad boss, long commute, troubling ethical questions, hateful colleague? Read Go For It! Sometimes It's Easier If You Run to learn what we can do when we love the work but not the job. It helps you get moving again!
Are you fed up with tense, explosive meetings? Are you or a colleague targets of a bully? Read 101 Tips for Managing Conflict to learn how to make peace with conflict. Check it out!
Are you managing a change effort that faces rampant cynicism, passive non-cooperation, or maybe even outright revolt? Read 101 Tips for Managing Change to learn how to plan and execute your change efforts to inspire real, passionate support. Check it out!
A Tip a Day arrives by email each business day. It's 20 to 30 words at most, and gives you a new perspective on the hassles and rewards of work life. Most tips also contain links to related articles. Free!
Do you ever wonder if all these meetings are really necessary? (They aren't) Or whether there isn't some better way to get this work done? (There is) Read 101 Tips for Effective Meetings to learn how to make meetings more productive — and more rare. Check it out!
