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Pushing Yourself Towards Excellence

Baskar Sundaram
Baskar Sundaram
WhatsApp Image 2018 12 19 at 6.48.47 PM

Behavioral economists believe that individuals quickly make decisions when they feel pressured based off  intuition, biases, and psychological misjudgments. Since many people do not make correct decisions and choices, a “nudge” might help you take the right step. A nudge is something that helps guide decisions without restricting them.Behavioral economists, psychologists, and neurosciences have great belief that cleverly, thought out designed nudges can efficiently influence behaviour and encourage results in issues within a workplace.

An example where a nudge was effectively used was at Virgin Atlantic. The airline teamed up with professional economists to come up with a program that reduces fuel by influencing the behaviour of 335 of their flight captains. There were four that consisted of different exercises. The first was a control group that was alerted that the usage of their fuel would be monitored. The second group was provided monthly reports of their fuel usage. The third group were given monthly reports and precise targets that were to be achieved. They were either praised for their success,or encouraged when they failed. The last group received monthly reports, were given targets, and were told that every time they hit their target, charitable donation will be given.

The three groups that were given monthly reports saved a lot more fuel than the first control group. The two groups that had to reach monthly targets were the groups that performed the best. This experiment caused the airline to save 6,828 metric tons of fuel, which cost about more than 3.3 million pounds. Not only did the airline notice substantial savings with the experimental groups, but also noticed a higher amount of satisfaction within the pilots of their airline.Behavioral science gives a boost on cultural change, corporate transformation, and can lead to effective processes. No matter what, a workplace should strategically encourage active participation with their employees to get better results. This experimental pilot program  should be an inspiration for other organizations to transform and improve in every little thing as best as they can. A little nudge in the right direction can go a long way.



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