Stop expecting your workers to behave rationally

10/19/2011 | Harvard Business Review online

Employees are irrational, and smart bosses take full advantage of their workers' cognitive quirks. For example, research shows that small, unexpected rewards are bigger motivators than big, predictable ones, and that participatory decision-making is much more effective than giving direct orders. "Leaders can leverage social-science research about decision-making to motivate employees more effectively," write Carolyn Dewar and Scott Keller.

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