A Blog by Jonathan Low

 

Nov 19, 2014

Are We Entering the Age of Neuromanagement?

High performance organizations are already monitoring the health of key individuals whose behavior is crucial to their success. Aside from providing the best in diagnostic medical care, eating habits, sleep patterns and recreational interests are assessed on a regular basis. For starters.

New capabilities in the realm of neuro-science now provide opportunities to measure brain structure and activity, potentially as a precursor to hiring, promotion or retention.

If this sounds Orwellian, well, what doesn't these days? Society is increasingly devoted to the interpretation of data as a means of determining fitness in all of its various meanings. Whether this is acceptable is, in our civilization, usually determined by what is 'legal.' But since the law has an understandably hard time keeping up with the latest scientific and technological developments, it may take a while to render an opinion. The larger issue is what norms society wishes to establish to govern the way individuals interact with each other and the institutions for which they work or to which they must respond in order to function in all its complexity. JL

James Heskett reports in Harvard Business School (thanks to Dave Bracken for the link):

Is it possible that some organizations selecting and hiring talent may, in the future, require a brain scan, just as some require psychological testing today? Is hiring on the basis of brain structure much different than hiring, for example, on the basis of height or other characteristics
For years, behavioral scientists have been telling us that they have a great deal to contribute to decision theory and management. Their work most applicable to business, however, was often overshadowed by that of economists. But as the assumptions of rational behavior and "perfect information" that formed the basis of much of the work in economics concerning markets came into question, behavioral science not based on those assumptions gained ascendance.
At first, the contributions from behavioral science were based on laboratory tests, too many of them involving handy college students. They helped describe biases (at least among those being tested). For example, we learned that people tend to devalue long-term returns in relation to short-term gains. They tend not to buy and sell according to self-set rules.
A person willing to pay up to $200 for a ticket to a sporting event is not, once he owns it, willing to sell it at any price above $200—counter to what economists would predict. Behavioral science regards it as perfectly reasonable behavior, explained by what they call the "endowment effect." It is one of many behaviors that help explain why markets are not always "rational," why they may not be a reflection of perfect information, why people buy high and sell low.
“We can begin to learn which parts of the brain govern how we feel, how we respond to stimuli, and how we react to challenges”
Brain scanning technology adds a new dimension to this work. It has provided fodder for books on a variety of subjects, all of which rely to some degree on brain reaction to stimuli. By introducing various stimuli while scanning a person's brain, we can begin to learn which parts govern how we feel, how we respond to stimuli, and how we react to challenges.
A recent study of "midlife northeast American adults" raises questions about whether we are entering the next stage in what might be termed an era of neuromanagement. In it, a group of researchers claim to have found that brain structure and the density of cells in the right posterior parietal cortex are associated with willingness to take risks. They found that participants with higher gray matter volume in this region exhibited less risk aversion. The results "identify what might be considered the first stable biomarker for financial risk-attitude," according to the authors.
The study is a distant cousin to those that have located the side of the brain associated with creativity and the portion of the brain that is stimulated, for example, by gambling or music. Assuming: (1) there will be more research efforts combining the results of brain scans with behavioral exercises, and (2) findings are proven to be more valid than, say, those associated with phrenology, it raises some interesting questions about the future.
Is it possible that some organizations selecting and hiring talent may, in the future, require a brain scan, just as some require psychological testing today? Is hiring on the basis of brain structure much different than hiring, for example, on the basis of height or other characteristics required to perform certain jobs? Or does it raise too many ethical questions? For example, who will own the data? How will it be used? How would we apply the results?

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