WORKPLACE MOTIVATION AND PRODUCTIVITY: A BEHAVIORAL ECONOMICS PERSPECTIVE

Abstract

Workplace motivation and productivity are critical drivers of organizational success, and behavioral economics provides a unique lens to understand the underlying psychological and cognitive factors influencing employee performance. Traditional economic models assume rational decision-making, yet behavioral insights reveal that biases, heuristics, and intrinsic motivators significantly impact workplace behavior. This paper explores key concepts such as loss aversion, prospect theory, nudges, incentives, and social norms in shaping employee motivation and productivity. The research further examines the effectiveness of monetary vs. non-monetary incentives, choice architecture, and commitment devices in optimizing workplace efficiency. By integrating behavioral economics principles into management strategies, organizations can enhance employee engagement, job satisfaction, and overall performance. This study highlights practical applications, including gamification, behavioral nudges, and performance-based incentives, demonstrating how subtle changes in workplace structure can lead to significant improvements in productivity. The findings contribute to the growing discourse on behavioral interventions in corporate settings, providing a roadmap for organizations to leverage psychological insights for sustainable workforce motivation.