NOVEL SOLUTIONS
When Irrational Is Rational D
SHEA GIBBS, SENIOR EDITOR
an Ariely is part behavioral economist, part psy- chologist. He divides his most recent book, the bestselling T e Upside of Irrationality, accordingly. T e fi rst part of Upside is valuable for business and
management professionals. T e second part is less valuable, more along the lines of pop psychology than practical busi- ness advice. T e key is not to overlook the fi rst part for fear of the second. Upside represents another installment in a wave of
management books championing the (relatively young) fi eld of behavioral economics. Like several Nobel Laureates before him, Ariely draws from experimental observations to determine how people actually function in the marketplace, instead of assuming they act rationally, as in classical eco- nomics. He believes businesses can learn to function more effi ciently from these experiments. “As we gain some understanding about what really drives our behaviors and what steers us astray—from business decisions about bonuses and motivation to the most personal aspects of life such as dating and happiness—we can gain control over our money, relationships, resources, safety, and health, both as individuals and as a society,” Ariely writes. In the business part of the book, Ariely spends a lot of time describing his experimental exploits (you’ll be tempted to skim over some of these sections, but they can be some of the most enjoyable to read) to make what amounts to a few practical points about the way people act: 1. Big bonuses make people nervous, actually hurting their performance.
2. People like to see the results of their labor and know their work means something.
3. People distrust ideas that aren’t their own. 4. Workers overvalue things that they have made. T e fi rst three are valuable to metalcasters from a
managerial standpoint. According to Ariely, large monetary awards can work for individuals doing mechanical, repetitive tasks (like many performed in a metalcasting facility), but when the brain is involved, managers should look for other ways to motivate people, such as allowing them to see the fruits of their labor or infl uencing them to feel as if they have contributed to the formation of actionable ideas. T ese three points, like most of Upside, are about eliciting the most from people—i.e., how to motivate employees in your organization—but the fourth tenant touches on how to elicit the most out of your customers—i.e., how to exploit their irrational desires. In this case, it is their love of their own worth as a creator. Many metalcasters believe they can help customers best with a collaborative eff ort, and this is yet another reason to bring casting buyers and designers in on the early stages of new product development. “As companies start to understand the true benefi ts of
customization, they might start generating products that allow customers to express themselves and ultimately give them higher value and enjoyment,” Ariely writes.
42 | MODERN CASTING July 2011
“If companies really want their workers to produce, they should…[allow them] to feel a sense of completion and [ensure] a job well done is acknowledged.”
Metalcaster’s Translation: Division of labor can
alienate your employees from the product your company manufactures. To keep fl oor workers engaged, ensure they understand the castings they are making by taking them into the fi eld or to visit customers, where they can see the castings being put to use.
ABRIDGED
Relevance to Metalcasters Technical Diffi culty Self-Help Fluff Bottom Line
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60