Evaluating people’s results, as opposed to the effort they put in, may penalize bad luck and reward good luck.
That’s according to top behavioral economists such as Daniel Kahneman and Dan Ariely.
What’s more, says psychologist Barry Schwartz, prioritizing results over process can hurt the quality of people’s work in the long run.
In most workplaces today, you don’t earn an “A” for effort.
If you failed to make a sale even though you sat at your desk for hours every day calling clients, it’s hard to believe you’ll get a pat on the back — or a promotion. Results matter.
But top psychologists argue that this system of evaluating performance is heavily flawed.
At the World Business Forum in New York, Daniel Kahneman told the audience that organizations should evaluate employees’ process instead of their outcome.
Kahneman won the Nobel Prize in 2002 for his pioneering work in behavioral economics; in 2011 he published the bestseller “Thinking, Fast and Slow,” in which he explored the intricacies of human decision-making.
Read more: A Nobel Prize-winning psychologist says the most successful decision-makers know how to use their gut feelings in a way the rest of us don’t
“The quality of people’s decisions doesn’t determine the outcome,” Kahneman told …read more
Source:: Businessinsider – Strategy