An examination of behavioral economic nudges in technical management

Building on insights from behavioral economics, Thaler and Sunstein advocate the use of nudging to promote beneficial outcomes. Even given a choice to opt out, nudges are structured in way that decision makers are likely to choose the option that is objectively most beneficial to themselves. This paper examines the use of nudges in the workplace. It begins with a discussion of the anatomy of a nudge and considers the benefits of deploying these on behalf of employees. Next, the authors examine if and how nudging fits into the ideologies of foundational thinkers in technical management such as Fayol, Taylor, and Deming. Special attention is placed on how nudges relate to employee motivation. The authors then analyze the ethical issues of using nudges in the workplace. The paper concludes with a preview of future projects intended to explore the effective use of nudges.