Behavioral Economics for Leaders

and Employees Imitate It 95 24 Selfish Leaders End Up with Selfish Followers 99 Part IV Behavioral Economic Research on Gender Differences and Unequal Pay: Women Are More Risk Averse (and Men Overestimate Themselves) 103 25 An Argument for Gender Quotas in Employment: They Can Help Attract Highly Qualified Women 105 26 The More Competitive Your Attitude, the Higher Your Lifetime Earnings 109 27 Willingness to Compete Starts by Early Childhood: The Pivotal Role of the Family 113 28 Cultural Conditioning Helps Explain Differing Male and Female Attitudes Toward Competition 117 29 A "Nudge" for Reducing the Male/Female Wage Gap 121 30 Women Leaders Earn More and Revenue per Employee Goes Up When Women Are on the Board 125 Part V the Economic Benefits of Fairness and Trust 129 31 Trust Is an Economic Asset; Lack of Trust Is Expensive 131 32 A Little Accountability Goes a Long Way: Trust Works Best When Monitoring Is Possible but Not Used 135 33 Why It's Important to Explain Difficult Employee Decisions: Treating One Employee Unfairly Hurts Everyone's Productivity 139 34 Communicating Good Intentions Gets You a Better Outcome 143 Part VI Salary and Bonuses 147 35 Paying People More Doesn't Mean They'll Make Better Decisions 149 36 Team Bonuses Motivate Employees to Work Harder-- and to Help Each Other More 153 37 Nobody Wants to Be Below Average; How Performance Bonuses Can Hurt Productivity and Job Satisfaction 157 38 The Limits of Homo Economicus: Employees Underperform If Their Performance- Based Bonus Hurts Their Colleagues' Bonus 161 39 Wall Street Bonuses Incentivize Unhealthy Risk Taking-- and Increase Systemic Risk 165 40 Don't Incentivize Employees to Sabotage Colleagues: The Problems with Relative Performance Bonuses 169 Part VII Ethics in Companies and on the Markets 173 41 Markets Hurt Morality: Government Intervention Can Help 175 42 Unethical Behavior Rises and Falls with Incentives-- Make It Hard for People to Get Rich Doing the Wrong Thing 179 43 Small- Scale Cheating Can Lead to Major Corruption: Leaders Should Not Tolerate Minor Ethical Violations 183 44 People Care More About the Environment When They Know Their Organization Cares Too 187 45 The Stunted Career Path of Whistleblowers: Employees View Them As Disloyal 191 46 A Bad Corporate Culture Can Turn Honest People into Liars 195 Part VIII Leadership and the C- Suite 199 47 Visionary Leaders Outperform Operations- Oriented Leaders Over the Long Term 201 48 The Four Traits That Set CEOs Apart from Other Managers: Strategic Thinking, Charisma, Intellectual/Social Skills, and Focus on Results 205 49 Leaders Who Focus on Short- Term Results Innovate Less and Lower Company ROI 209 50 Charismatic Leaders Inspire Their People to Deliver Better Results 213 Appendix: All Takeaways--for Impatient Readers 217 Source Materials 227 About the Author 233 Index 235