September 29, 2011 | Mark Paradies

Economics and Root Cause Analysis

I attended the Milken Conference held in LA. Gary Becker, Nobel Prize and Presidential Medal of Freedom winner, explained the theory of human behavior and rewards.

Once again, the material we teach in TapRooT® Courses was confirmed through a different science – economics.

His economic theory is that people act because of the rewards built into the system.

So, if your boss with an MBA starts blaming folks after an incident – especially if rules were broken and the “enforcement” system isn’t working as intended, tell him/her to look into the research of renowned economist Gary Becker.

People are rational … The rewards system is broken.

TapRooT®’s Corrective Action Helper® can help you fix it.

For more information about TapRooT® Training, see:

Root Cause Analysis
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