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Nudging in Behavioral Decision Making 5within an organization.

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  • "Nudging in Behavioral Decision Making 5within an organization. Recent events are preferred since the scenario may still be available inthe minds of the targeted respondents.Loss aversion and framingIt is important to consider that presenting two opt..

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  • "Nudging in Behavioral Decision Making 5within an organization. Recent events are preferred since the scenario may still be available inthe minds of the targeted respondents.Loss aversion and framingIt is important to consider that presenting two options that complements each other ispreferable. Loss aversion should be considered by choice architects when developing contexts tobe used in nudges. Framing is a technical approach that should be used by choice architects toinfluence decision-making. However, choice architects should be careful not to reduce the choiceoptions that respondent has to select.Status quo bias and emotion of decision-makingStatus quo refers to the state of affairs in an organization and what people believe in at themoment. Choice architects should be careful not to include bias choices that would createfactions within the organization. Nudges are efficient when respondents are more active toprovide the good mood for decision-making. Emotions can significantly influence the decisionsthat people make or the choices they make during nudges.Mindless choosing and mental accountingIndividuals should be advised to avoid mindless choosing since the situation can lead toweak results. Even though nudges may influence respondents to switch off from thinking mode,it is advisable that the respondents consider the choices provided. Mental accounting is anecessary step that should be exercised when using nudges for behavioral decision-making.Mental accounting will help determine logical relationships and status of context.Feedback and comparison Nudging in Behavioral Decision Making 6People will feel the effect of a nudge once feedback is provided via the right channel,within a short time and in the recommended quality.Organizational behavior is easily nudgedwhen the mentioned qualities are adequately observed. Feedback helps the individuals within theorganization to develop issues of concerns. Comparisons are important as they help behavioraldecision-makers make decisions concerning other experiences. Decision-makers should becareful not to use comparisons that can lead to contradictory decisions. It has been establishedthat the use of irrelevant comparative sources can be the primary root for inconsistent decisions.Too many choices can pose a challenge when it comes to a comparison since some of the choicesare closely related.Real examples of nudgesThis section will provide examples of how nudging can be used to change the behavior ofindividuals.Nudge and the wider behavior change policy familyAccording to Whitehead et al. (2014), tthe field of behavioral sciences has made the mostof the nudges to change the public policies. The idea originally developed by Thaler andSunstein has gained prominence in a behavioral scientist who target to modify the behavioraldecisions people make. The two scholars brought nudging into the limelight when theyintroduced their book that talked about improving the way people make health decisions, wealth,and happiness. The book identified that human beings behave in non-rational ways that canplunge them into debts, poor health, and environmental degradation. Behavioral advocates toalter the environments within which people make unhealthy decisions have used nudges. Nudgeshave been used to create a belief that various problems can be addressed at a very low cost and Nudging in Behavioral Decision Making 7preserve the freedom of the people at the same time. Even though some approaches are notcalled nudges, they have adopted the nudging approach and principles. For instance, the aspectof social marketing is an area that makes the most of the nudges to change behavioral decisionsclients make. In the US, a software company, Opower collaborated with energy companies tocontrol the behavioral decisions on energy consumption and saving. Energy data was presentedto customers in a salient manner that would portray a dictator-like situation. With time, there wasa significant behavioral change in energy use and consumption. The initiative resulted in almost3 percent saving on energy consumption.Department of Management Public LectureAnother example where nudging was used to stir behavioral changes is seen during thetalk delivered by Dr. Halpmen at the old Theatre (London School of Economics, 2015). Ahistorical review of a scenario where small changes made a difference was narrated. The insightbehavioral team came up with an experimental nudge unit that targeted Ten Downing Streets.The approach was never predicted to last but it persisted over a year. Most of the critics weredisapproved with Dr. Halpmen taking charge to change the status quo. The main aim was toadopt a model that made use of behavioral economics to influence the decisions people make.The use of nudges proved to be a success in the in a small area and gained prominence in manyother areas.Strengths and limitation of nudgesAdvantages of nudges in behavioral decision-makingNudges have been used in many organizations and positive results linked to this toolregarding the moderating behavioral decision (Thaler & Sunstein, 2008). Nudges aim to rectify Nudging in Behavioral Decision Making 8some behavioral characteristics within an organization. One of the important behavioral aspectstargeted by nudges is ignorance of individuals within an organization. Most public policyformulators advice the government to use nudges in cases such as derivation of retirement plans.In most cases, the government may have insufficient knowledge of a matter prompting the use ofnudges. Nudges aim to cover for uncertainties that exist within an organization.Criticism of nudges in behavioral decision-makingNudges have been used to influences the changes that individuals within an organizationmake (Jonathan, 2011). The choices presented by the choice architects may not be efficient inrepresenting a broad range of options that people can choose from. For this reason, when nudgesare used in behavioral decision-making, some people may view it a way of infringing on theirdemocratic rights. The modern world has allowed most people to have liberal choices. Limitingsuch individuals to a few choices is an implication that freedom of making choices has beenbarred. Such notions can easily erode the morale of individuals within an organization. Peoplewill equally portray reluctance in participating in decision-making processes within anorganization.Criticism of ethical and political positions of using nudges in behavioral decision-makinghas been raised. The main word the face opposition in the process of nudging is ‘manipulation ofpeople’s choices.’ It has also been established that related principle of oxymoron contained inlibertarian paternalism (Abbandonato, 2013). Many individuals have made conclusions thatnudges is a typical reincarnation of libertarian paternalism and has adopted all its doctrines. Inaddition, some individuals have a notion that nudges are only practiced without consent anddisappear when the public discovers their limiting capacities. Nudges have been linked to having "

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