Positive feedback in economics explains why some products take off and become the standard, while others don’t. One example often cited is VHS, which edged it over Betamax (a product with a technical edge) by virtue of having a slight lead in the market. Because more people had VHS, more VHS cassettes were produced with more choice, making that the choice for those purchasing a system, so more VHS was bought, and so forth.
Another example is a new service being provided by a national charity. Many local authority commissioners have quickly bought into this service, although it is not yet out of the pilot stage. I wonder if this is the case of “everyone else has one, so it must be good”?
Apply this to behaviour at work as well. If someone gets positive feedback, they believe something worked and will do more of it. On the other hand, negative feedback, fault finding etc. only tells them what not to do and can lead to risk aversion.
Trouble starts here, as positive feedback can lead to poor decisions – technically we should have ended up with a Betamax standard. And who remembers when bell-bottomed trousers were the rage (and everyone had them)?
To encourage positive behaviour at work, people set targets. This would be fine if we knew what would be effective, but the specialised nature of modern work means that the impact of our actions on the whole enterprise is unclear. Targets are best guesses, which then lock people into behaviour patterns that may be damaging, or parochial and narrow in outlook. Missed targets can turn potential positive feedback to negative or blaming.
Positive feedback appears to drive a lot of behaviour. Targets drive a lot of behaviour at work. How can we know it is effective behaviour until long after the fact, if ever?





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