Wednesday, August 29, 2012

Book Review: The Upside of Irrationality- Dan Ariely


Dan Ariely has divided the books into two broad parts: Part 1- The unexpected way we defy logic at work and Part 2- The unexpected way we defy logic at home. Each part has five chapters covering five different areas where so called rational human being behaves irrationally.
Why and bonuses work in motivating employees? How much bonus should be paid to employees performing physical work and mental work?  When do we derive joy from our work, how comes the sense of contribution? Do people satisfy themselves with compensation despite having no attachment for the work they are performing? Is there actually an upside of revenge, why people inflict pain upon themselves to teach lessons to others? These questions are covered in the first part of the book with simple narrative and various examples. The second part primarily deals with ability to adapt, emotion and decision making.
Most of the conclusions and finding of the book will look logical if you already know that rational man is not so rational. However, the beauty of the book is the gamut of experiments conducted to validate the logical aspects of irrationality. Dan Ariely adds his own experiences, esp. with burn injuries to elaborate some of the points.
A good book to understand how you and the world around you behave in various situations. Dan goes further to explain how the irrational side could be harnessed for the benefit of companies, society and at personal level.
Worth spending your time and money for this 334 page book.