Nudge theory proposes that people can be influenced to make better decisions through subtle cues or nudges rather than direct commands. It was popularized in a 2008 book by Richard Thaler and Cass Sunstein. Nudges guide simpler choices around health, wealth, and happiness through mindful or mindless cues that encourage or discourage certain behaviors. Nudge theory can also be applied in human resources to subtly influence employees' decisions through choice architecture rather than mandates.

2. NUDGE
ChrisJose
DepartmentofHuman Resources

3. Nudge… A light touch or push.
To push slightly or gently, to get someone's attention, prod someone into action, etc.
Nudge theory was named and popularised by the 2008 book, 'Nudge: Improving
Decisions About Health, Wealth, and Happiness', written by American academics
Richard H Thaler and Cass R Sunstein.

4. Richard H Thaler
▪ Father of 'nudge theory'
▪ Wins 2017 Nobel prize in
economics
▪ Professor at University of
Chicago

5. Nudges are about designing choices to try to help people make
choices in a more simple way.
✓ Mindful Nudges - guide people to a more controlled state such as eating healthier, stop
smoking, exercising and saving more money.
✓ Mindless Nudges - use emotion or framing to influence decisions that people make.
✓ Encouraging Nudges - facilitate the implementation or continuation of a particular behavior.
✓ Discouraging Nudges - Discouraging nudges hinder or prevent behavior that is believed to
be undesirable.

6. The Nudge Theory applied to HR
People don't always act rationally. In fact, they tend to act irrationally -
but in predictable ways.
Because their mistakes tend to be predictable, people can be
encouraged to make better choices.
HOW?
By changing their choice architecture and giving them a NUDGE!

7. Nudging employees to do right thing – applying behavioral
insights in the work place.
1. Find out what works
2. Nudge people to do it
3. Make it bigger
• What makes work better?
-Helping others, A friend at Work, A Boss you like..
• Understanding of how people think,
make decisions, and behave.
• Helping people improve their
thinking and decisions.
• Managing change of all sorts, and
Identifying and modifying existing
unhelpful influences on people.

8. • Ever wonder why people make New Year resolutions to go to the
Gym, when they could start exercising any time?
That’s a Nudge!!
Can the slightest change or nudge cause people to make better
decisions?
Yes, the slightest suggestions can force better decisions.
The brain takes on billions of bits of info daily.
With all that input, it can be hard to make good choices.
Whether created by ourselves or someone else, nudges will help our brains make a decision.

9. “Nudging” is one element, can be used to manipulate people!!
Thank You!!!