Tuesday, October 28, 2014

The Honest Truth About Dishonesty: Implications for Management

"Where does [dishonesty] come from?  What is the human capacity for both honesty and dishonesty?  And, perhaps most importantly, is dishonesty largely restricted to a few bad apples or is it a more widespread problem?"

These are the questions that Dan Ariely has set out to answer in his book, The Honest Truth About Dishonesty: How We Lie to Everyone--Especially Ourselves.  Considering the subject of this book and post, I feel the need to be completely honest with you: I purchased this book primarily because it was available for $2.99 on Amazon at one point.  I had read Predictably Irrational: The Hidden Forces That Shape Our Decisions and The Upside of Irrationality: The Unexpected Benefits of Defying Logic at Work and at Home, both by Dan Ariely as well.  I really like Dan Ariely (not only because he is a Duke man) and found Predictably Irrational to be enjoyable and informative.  The Upside of Irrationality was, for me, a little repetitive and seemed to be a bit more of a cash-in on the popularity of the first book.  So I wasn't sure what to expect with The Honest Truth About Dishonesty.  I will admit that I have always been amazed at people's ability to justify dishonest or immoral actions and retain an high, and often inflated, image of self-worth.  And at $2.99, why not?

I actually found myself very pleasantly surprised by this book; in fact, I would say I took more away from it than I did from Predictably Irrational.  The first was something that a lot of people probably intuitively know, even if they can't put it into words: people cheat in small enough ways to influence actions that they find desirable, but not big enough to influence their view of themselves as a moral person.  Dan proves this through numerous tests that have clear opportunities for cheating.  When given the chance, people cheated, but not on every question.  And this was only exacerbated when they saw other people cheating, especially when they identified with the person doing the cheating.  At an extreme level, it provides insight into how something like the Holocaust could happen.

Beyond this, as managers in corporate America, what can be learned about the human tendency for dishonesty and how can it be applied in the workplace?
  1. Don't overwork your employees.  Dan performs numerous tests in order to determine how fatigue contributes to dishonesty.  The fact is that resisting temptation takes energy and when there are clear incentives to cheat, an exhausted individual is more likely to take those options than a fresh one.
  2. Establish a culture of honesty throughout your entire team.  People are much more likely to cheat when they see others cheating, especially if they relate to that individual.  Even one bad apple on a team could quickly spread the disease of dishonesty to other team members, even if the others ordinarily would have very high integrity.
  3. Constantly remind your employees that you view them as, and expect them to be, honest.  Individuals reminded of their own morality prior to taking a test are less likely to cheat than individuals reminded after a test.  Every day could bring a potential test for your employees, so make sure that they are aware of the high standards for the team frequently.
  4. Address dishonesty and cheating regardless of severity.  Dan discusses the Broken Windows Theory, first explained in a 1982 article in the Atlantic.  Essentially, if some windows on a building are already broken, people are less likely to care about breaking others.  If employees see dishonesty or cheating, even if it is in small doses, they are less likely to be concerned about more severe examples.  Stamp these issues out before they become real problems.
Human psychology has found a way to allow individuals to cheat while still viewing themselves as heroes starring in their own movie.  This is not limited to certain people who are perpetually dishonest, though those certainly exist and should be avoided at all costs.  But by setting an appropriate and consistent culture of honesty and integrity, managers can naturally steer employees towards their honesty tendencies and away from the temptations of dishonesty.