Common Causes of Bad Decisions
collaborativefund.com
collaborativefund.com
Example: Incentives can tempt good people to push the boundaries farther than they’d ever imagine.
You often need incentives though to focus people in the right directionn.
Example 2: Tribal instincts reduce the ability to challenge bad ideas because no one wants to get kicked out of the tribe.
It's important to form a tribe, and to maintain its cohesiveness, otherwise you can't really get anything done.
And so on. It's good to consider both sides of each coin.
Spot on. In the work place, this is toxic. Especially if on top of this fear of being kicked out, you have a psychopathic boss.
What happens in this scenario? Bad decision after bad decision with workers even though they know it is wrong, won't challenge out of fear.
>So people either willingly nod along with bad ideas, or become blinded by tribal loyalty to how bad the ideas are to begin with.
Damn office sheep....
A place can rot to quite a surprising amount yet people in it won't be able to react.
We're built to overreact (relative to our modern context) to social rejection because we evolved in small groups. In the bad old days, being rejected or embarrassed in front of your tribe meant you were socially, reproductively, and possibly literally dead. In tribes of 100 people, it made sense to respond strongly to rejection of all forms. In today's world, it doesn't. You get rejected (for jobs, for romantic partnerships, etc.) a lot more, but it's usually harmless. It's "a numbers game"; but our wetware hasn't caught up. Which is why people are so averse to taking social risks, breaking rules even when they should be broken, and pointing out bad ideas.
Thing is, in the office world, we're back in those small tribes where each minuscule rejection or aggression is a possible threat. We're back in the world where being disliked by one or two of the wrong people means catastrophe. So, that's an environment in which is really does make sense to play it safe.
Challenging bad ideas benefits the company. It almost never benefits the person raising the issue. If you're wrong, you look like an idiot. If you're right but not convincing, you look like an idiot. If you're right and you are convincing, someone higher in the power structure will take credit for your idea.
All because of fear.
This pushes you to invest yourself emotionally into a community that a wealthier, more powerful person can take away in an instant.
The thing is, in American capitalism, bosses want their underlings to think they have input and think decisions are made by consensus when, in reality, the "right answer" was preselected, and the politically savvy know what it is. Corporates don't actually want workers to have say. They just want the workers to work as hard, and buy in as much, as they would if they actually had a say.
This is also why venture funded companies give employees token stock option allocations even though the percentages are actually a joke. In exchange for options that might be worth $5,000 per year by fair market value, the workers work 50% harder because enough of them are young and inexperienced enough to think they "own the company" in a meaningful way.
The other side of the coin for his implicit argument that you should think about these tail end risks is that they're everywhere and in everything we all do commonly, even in fundamentally non-irresponsible activities. Ie: driving your car daily for errands around town will 99.9% of the time result in errands completed more quickly. 1 out of 1000 times, it could result in you killing yourself or someone else, even if you're always perfectly sober when you drive. Thus, while long tails risks shouldn't be forgotten, giving them too much weight as a basis for decision making could easily paralyze one into forfeiting all kinds of activity or choices. It would become a very constricting way to live a life, very quickly. Magnify this possibility accordingly for people who naturally suffer anxiety issues about life.
[1] - https://en.wikipedia.org/wiki/Transportation_safety_in_the_U...
Or even just walking: you could get hit by a car, or get robbed
Edit: it stopped happening shortly after I posted this comment.
Whats the cause of this bad decision?