Abstract:
Organizations differ in how they evaluate the performance of their employees. Some emphasize high-quality decision-making while others adopt a results-oriented approach that holds employees responsible for the bottom line. For instance, Amazon claims to underline decision-making processes and apparently spends little time discussing financial results. On the other hand, Netflix places emphasis on results, noting that good performance will be rewarded with higher pay and greater responsibility, even if that performance comes with minimal effort. In three online studies and a field study we show that evaluating employees’ decisions based on results (versus process) tends to reduce their risk-taking. However, focusing on results can also lead employees to take more risk if this can offset losses they made in the past.
Biography:
David Faro is an Associate Professor of Marketing at the London Business School. He received his PhD in Marketing and Behavioural Science at the University of Chicago. He joined London Business School in 2006. Dr Faro’s research examines consumer and managerial decision-making. He is particularly interested in how to help consumers make better financial and health decisions. He also does research on the psychology of time perception and prosocial behaviour.
Dr Faro has published academic articles in leading management and psychology journals including Journal of Consumer Research, Management Science, Organizational Behavioural and Human Decision Processes, Journal of Personality and Social Psychology and Psychological Science. His research was presented in leading international conferences, and has received awards and recognitions.
Dr Faro co-directs three executive-education programmes at the London Business School: Strategic Branding, Decision-Making Strategies for Leaders, and Crisis Leadership and Human Behaviour. He has had teaching engagements about decision-making, marketing, and branding with organizations such as Telenor, Tata Group, ExxonMobil, Banca Transilvania, Presidents Institute, and the Saudi Industrial Development Fund. He also teaches Behavioural Economics and Decision-Making for degree programmes. Before joining academia, Dr Faro worked in household appliance firms in Turkey and Greece. He speaks English, Turkish and Hebrew.
Contact: If you would like to attend this seminar, please email mktoffice@wbs.ac.uk.