Showing posts with label Dan Ariely. Show all posts
Showing posts with label Dan Ariely. Show all posts
Wednesday, 9 June 2010
Just the other day I had posted the review of some studies done by D. Ariely on the relationship between bonuses and performance. Today I found this great animation of some of the studies carried out in the field of motivation. Very fun to watch!
Monday, 7 June 2010
Big Bonus = Better Performance?
What's the relationship between pay and performance? Is it wise to pay executives with incredible bonuses? Higher pay equals more motivation? Dan Ariely, professor at Duke University and author of "Predictably Irrational" and most recently of the new book "The Upside of Irrationality" tried to answer these questions (and many others) with one of his nice experiments.
Imagine the following experiment: you are given six tasks to perform. All the tasks require a mix "creativity, concentration, memory and problem-solving skills". Each task lasts for some minutes; all together they last for about an hour. In the first condition you are told that if you do very well in the six task you will get the equivalent of one day of compensation. In the second condition you are given two weeks of compensation. In a third condition you are given, instead, five months of compensation!
Professor Ariely and his collaborators run this experiments in rural India (where the average person monthly spending is about $11). In this way they could perfom the experiment without "raising the eyebrows and ire of the university's accounting system", but still offer very meaningful rewards to the people involved.
The results showed that money can be a "double-edged sword". In fact more money are motivating you to perform better. But, this holds true up to a certain point. After a certain amount, big bonuses have a stressing effect: you feel like you have to give more but enter into a stressed state of mind and are not able to perform well anymore. As mentioned by Ariely in a recent interview on his book: "when it comes to creativity and problem solving and thinking and memory and concentration, it turns out you can't will yourself to higher level of performance. And instead, the high bonus actually got people to be very stressed."
Therefore, according to Ariely's experiments, the incredible bonuses executives are taking would not lead them to perform better. If you want to find out more about the relationship discussed here and learn much more about the way in which irrationality governs our life give a look to Dan Ariely last book: The Upside of Irrationality: the Unexpected Benefits of Defying Logic at Work and at Home.
Wednesday, 16 September 2009
The Dark Side of the Green Side
Today, during one of my endless surfing sessions, I read a Blog entry by Dan Ariely (author of Predictably Irrational) discussing a forthcoming article (Do Green Products Make Us Better People?) on the various implications of the green effect on consumers. The findings of the article, let me warn you, are kind of unexpected. As discussed in a previous post in this blog (Are You Into Ecopornography?) we have witnessed, in the last years, an incredible increase in the amount of green products offered in the market. This probably reflects the fact that consumers not only choose what to buy on the basis of the price and/or quality, but also on the basis of social and ethical factors. Being green is seen as cool. Being green is a socially desirable attribute. It makes you fell good. No doubts.
After a series of experiments, the two researchers (Mazar & Zhong) found out that:
- the mere exposure to green-related concepts and/or products through priming would lead to a subsequent activation of our social responsibility and therefore to a more likely altruistic/green behaviour.
- However (and here comes the interesting one): people act less altruistically and are more likely to cheat and steal after purchasing green products as opposed to conventional products.
The findings reported in point 1 are in line with the research on the phenomenon of priming. A precedent series of stimuli can influence our subsequent behaviour. For example some studies found out that exposure to a series of exclusive restaurant pictures was positively influencing manners in a subsequent "eating situation". Otherwise as described in M.Gladwell's book Blink an exposure to a series of words recalling old age was affecting the speed at which people were walking out of the laboratory after the experiment.Therefore accordingly to previous research green priming (let me call it like that), influences subsequent behaviour in a positive way.
The findings reported in the second point are more interesting and unexpected. It looks like that, after a green purchase we would be more likely to feel like: "Ok, I've done my part. My conscience is now clean. Let's rob a bank!" (or something like that). The authors explain their findings like that: "our studies suggest that social and ethical acts may contribute to a more general sense of moral self than previously thought, licensing socially undesirable behaviors in distant domains." (i.e.: cheating or stealing money).
Doing good would make us feel OK with ourself and therefore more likely to act in a anti-social or self interested way in a latter situation. Therefore if you did something good today, pay attention to what you may find yourself doing this evening!
0 comments Labels: Dan Ariely, green, priming
Monday, 7 September 2009
Predictably Irrational
Duke university professor and author of the book Predictably Irrational Dan Ariely gives a brilliant and actually amusing lecture on how our brain plays tricks on us.
At the following link you can also find an article I wrote on the topic for the student magazine eCHanges:
0 comments Labels: brain, Dan Ariely, eChanges, Predictably Irrational, Rationality
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