How Can Nudge Theory Approach The Employees' Behavioral Change?

 

Introduction

For organizations that want to drive positive behavioral change, nudge theory is a practical concept that should be known. It works on the principle that small measures can have a significant impact on people's behavior. When you hear the term "nudge" in the workplace, it often comes up in conversations about how to influence workplace behavior. Nudge can help people make better decisions and bring about positive change. This article is about how we can apply this concept to our employee development programs and how to avoid pitfalls and use Nudge to make positive changes in the workplace.

A literature review of Nudge Theory

The concept of nudge theory was developed by the American economist Richard Thaler and the Harvard Law School professor Cass Sunstein, who popularized the concept with the publication of their book Nudge: Improving Decisions for Health, Wealth and Happiness in 2008. According to Nobel laureate economist Richard Thaler, nudging is an aspect of the decision-making architecture that changes people's behavior in predictable ways, without banning options or changing their economic incentives. 

The first formulation of the term "nudge" and its associated principles was developed by James Wilk (1995) in cybernetics and described by D. J. Stewart of Brunel University in The Art of Nudge (also referred to as micro nudge). The original definition of a Nudge by Thaler and Sunstein (2008) is a consequence of the above basic definition. The definition of operational independence in nudge regulation is not formal, but the conditions and implications are.

Another definition of Businessball (2014) reflects an expanded view of the broader application of nudge theory. Nudge theory has been applied in a variety of ways to help healthcare professionals make more informed decisions in many areas.

The British Government is exploiting people's inertia and urging people to make better decisions for their future. Due to the pace of change at present in the workplace and the nature of work trends, examining new and new ways of working in this series requires that companies influence the behavior of thousands of workers of all kinds.

Ebert and Freibichler (2015) from The UK government's Behavioural Insights Team argue that in nudging theory fast thinking and efficient goals are conducive to behavior when called upon. Previous research confirms that you should be more thoughtful about the environment you create when you are part of a large or small organization.

Ebert and Freibichler offer several concrete examples of how nudging can increase the productivity of organizations. Kroning, Mogensen, and Christiansen note that with the rise of new demands for faster, more flexible, and more cost-effective methods of change in organizations, nudging theory has emerged as a potential strategy to support the management of the new self-managed knowledge workers.

How can Nudge Theory affect behavioral change in the workplace?

Nudge is a central principle of behavioral economics, a field that combines psychology and economics to understand and guide the process through which people make decisions. According to its origins, nudging theory works by designing decisions for people that promote positive and helpful decisions that they make in the interests of society and the environment. Digital technologies have increased nudging scale and speed, making it a valuable tool for change management in organizations of all sizes.

Nudge theory is based on the understanding that human tendencies and traditional coercive orders, by allowing the reality of the situation, can be ignored or neglected by the reality and situation of people. In many situations, nudge theory can be used to nudge people's feelings to clarify what decisions architects perceive and how those decisions are perceived by the authorities. At this point, the style and reputation of the decisions that architects perceive from the nudged people can be an important factor in the success of the theory's application.

Nudge theory proposes the use of subtle instructions to help people make decisions, take concrete action, and enforce them. A stimulus is a reminder, help, or signal that provides information to help people make good decisions. In this sense, you can use nudging theory to shape employee decision-making processes through positive reinforcement, promote change and lead employees to more favorable outcomes for your company. With small measures, we can get people to adopt the behaviors that make them what they are. To change behavior, your company must begin by defining the behaviors you want to change.

A nudge takes advantage of automatic cognitive processes, prejudices, and heuristics to stimulate behavior without involving individuals in rational thinking. It operates under conditions A and B by trying to influence people's judgments, decisions, and behaviors in a predictable manner. Condition A is motivated by cognitive limitations and distortions in routine habits and individual social decision-making that constitute an obstacle to people performing well in their self-declared interests and Condition B works by exploiting these distortions as an integral part of such experiments.

If you want to use impulses to change behavior in the workplace, think about how you can influence decisions to make your desired behavior change easier, more attractive, more social, and more timely. Investing time to determine how to encourage people to behave is an intelligent decision-making architecture to approach the employees' behavioral change.

Conclusion

Trying to force change on employees will not only make them ignore what you are trying to do, but they will rebel and do the exact opposite. Unfortunately, most managers have no interest in using innate heuristics to achieve certain goals that may unintentionally affect people's freedom of choice.

Organizations can use digital impulses to adapt to changing economic conditions, new technologies, globalization, and competition. Digital impulses can be an effective part of an organization's broader program of change, because organizational change relies on getting people to act and react in different ways, and no one is watching. Workplace nudges create positive and lasting changes in terms of pension rights, well-being and security by developing and strengthening workers.