Nudge Theory – An Application of Behavioral Science in Management for Organizational Growth

Nudge theory is a concept in behavioral science, political theory and economics which proposes positive reinforcement and indirect suggestions to try to achieve non-forced compliance to influence the motives, incentives and decision making of groups and individuals. Nudge means to push slightly or gently to get someone’s attention, prode someone into action. Richard Thaler, the father of Nudge Theory has published a book named as ‘nudge’ associated with Sunstain in 2008. In 2017, he was awarded the Nobel Memorial prize in economics sciences, reasoned that his contributions have built a bridge between the economics and psychological analysis of individual decision-making. The proper implementation of Nudge Theory will systematically affect the individual decision as well as market outcomes which directly promote the organization’s growth by the voluntary action of its manpower. Present world, the successful implementation of behavioural science in management is highly important for the organization’s growth, which encourages the people to make decision or act in their broad self interest instead of penalising people financially if they do not act in certain way. This study aims to probe the importance of nudge concept for organizational growth.