Bertrand Russell once remarked, "It has been said that man is a rational animal — throughout a long life, I have been searching evidence which could support this." Behavioral economics tells us that, we may think of ourselves as rational, but our choices are governed by systematic and predictable biases, as well as subject to change based on the context. In this brief seminar we examine the key concepts of behavioral economics from a perspective of management of human resources. Daniel Kahneman’s contribution to understanding judgment and decision making, which forms the foundations of behavioral economics, was awarded with the Nobel Prize in 2002. And Richard Thaler, who developed on ideas of Kahneman was awarded the Nobel Prize in 2017.
From an HR point of view, there are several key decisions and choices which are subject to biases and unconscious influences. Clearly recruitment is one of them. How can we make better decision in induction of the right talent to the job. But the implications of behavioral economics in HR go much beyond recruitment. Every company is interested in designing policies and systems which will lead to the best possible performance from the employees. Behavioral economics has significant implications on how we can design and communicate these policies and systems to lead to better compliance and higher morale.
HR professionals
Ashok Sethi, Head of Illuminera Institute
Ashok heads the Illuminera Institute, whose mission is to expand the frontiers of marketing research and provide powerful insights and decision making support to marketing companies.
With over 30 years of experience in market and social research, he has previously headed custom research business of GfK and TNS in China, leading teams of highly skilled and experienced researchers to develop close and consultative relationships with clients.
He has extensive experience in both qualitative and quantitative research and in sectors as diverse as FMCG, Finance, Healthcare, Telecoms, Automotive and social marketing and has worked on a diverse set of projects focusing on consumer insights including the luxury market, the digital evolution, retail trends, youth research and on consumer trends in Asia.
Ashok's special area of interest is in behavioral economics, and he specializes in training and consultancy in applying the principles of behavioral economics to improve decision making across management functions, including marketing, communication, HR, and negotiations.
Illuminera Institute is a part of the Illuminera Group, which was founded in 2007 with a vision to do market research differently. With this vision, Illuminera has shunned the path taken by other research firms, but has endeavored to be a genuine and long-standing partner to our clients, supporting them to take the right marketing decisions at all stages of marketing cycle and growing profitably.
