WORXOGO: NUDGING FOR HIGH EMPLOYEE PERFORMANCE
CASE STUDY SOLUTION
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SYNOPSIS
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Based on their extensive consulting and advisory experience in large-scale consulting transformations for
various large enterprises, Ramesh Srinivas and his colleagues at Worxogo Solutions Pvt. Ltd. (Worxogo)
in Bengaluru, India, had launched an artificial intelligence (AI)–based nudge platform called Nudge Coach
in 2017 to change employees’ behaviour positively and voluntarily so as to bolster team performance. The
platform’s self-learning AI engine had been designed based on insights from behavioural sciences and
n
popular motivation theories. It featured deep-learning algorithms that understood individual motivations
tio
and provided personalized coaching tips, appropriate challenges, and rewards. The platform was presented
as a coach that could help employees manage their performance.1
lu
By 2023, Worxogo had garnered numerous clients and accolades for its platform’s novelty and efficacy in
improving employee performance and organizational outcomes.2 However, Worxogo had implemented its
platform predominantly for a limited set of functions, such as sales and data-centre operations, characterized by
So
well-defined lead and lag performance metrics. Clients, buoyed by the platform’s success, began encouraging
the Worxogo team to extend the nudge-based performance-improvement system to other functions and domains.
Thus, Srinivas, Worxogo’s chief executive officer, faced a dilemma in August 2023of whether to continue
OBJECTIVES
The Case Solution Starts From page 6
,1. Based on the goal-setting theory, which states that employees are motivated by clear, well-defined goals and
feedback, examine the applications of algorithm-based nudging techniques to provide dynamic performance
feedback and to influence employees’ behaviours and decisions so as to improve overall performance.
2. Gauge the effectiveness of nudges across various functions, domains, and job roles.
3. Identify the advantages and disadvantages of using nudges as a performance-management mechanism.
4. Assess the unintended consequences of sharing employee- and team-level AI platform-engagement data.
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ASSIGNMENT QUESTIONS
1. What are nudges and how are they designed?
2. For which target industries and job functions is algorithmic nudging most appropriate? What are
appropriate nudges for contexts without specific lead and lag performance measures?
3. Why is the nudge system ineffective for extremely high-performing and underperforming employees?
4. What are the risks of sharing employee-level platform-engagement data with employees’
organizations? How can these risks be mitigated?
5. What ethical issues are associated with AI-enabled HRM platforms?
The Case Solution Starts From page 6
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1. What are nudges and how are they designed?
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Famed behavioural economics Richard Thaler and Cass Sunstein coined the term “choice architecture” to
refer to the “context in which people make decisions.”5 A nudge is any facet of the choice architecture that
m
predictably adjusts individuals’ behaviour without forbidding any options or significantly changing their
economic incentives.6 Students may describe nudges as tools for changing individual behaviour for the
better. With the growth in new sources of individual-level data, enhanced computational capabilities
Sa
provide insights into individual behaviour in differing contexts. This enhancement enables organizations to
leverage objective data to address behavioural research through data analytics. Behavioural research in
information systems is at the cusp of integrating user behaviours with associated attitudes and perceptions,
enabling effective information systems, analytics, and predictive models.7
n
Thaler and Sunstein posited that nudges are a form of “libertarian paternalism,” which can be seen as
tio
lu
So
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
lu
So
5. What ethical issues are associated with AI-enabled HRM platforms?
Studies indicate that employees lack trust in predictive analytics projects and their outcomes. Risks for
employees emerge with operationalizing bias, discrimination, and psychological or social profiling.
Further, the lack of transparency around the purpose of nudges to shape employee behaviour raises ethical
questions about users’ information rights and their effect on personal autonomy. The increased enablement
of measuring performance using data may cause managers to lose the context for nudging.
Respecting privacy rights, transparency, the inclusion of diverse stakeholders, and the fair and proportionate
use of data for employee benefits are among the recommendations for addressing some of the risks of
The Case Solution Starts From page 6
, EXHIBIT -1: THE MINDSPACE MODEL AND ITS APPLICATION TO WORXOGO’S NUDGE COACH
MINDSPACE Aspect definition Nudge Coach application
aspect
Messenger We are heavily influenced by who is The organization-sponsored platform is configured
communicating the information. in line with the goals agreed on with the manager
and inputs based on the customer-relationship-
management system.
Incentives Predictable mental shortcuts shape our The platform provides nudges that help individuals
responses to incentives. prioritize value-adding activities.
Norms We are heavily influenced by what others Based on the social-comparison theory, norm
do. referencing is also adopted to nudge employees.
Defaults
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
CASE STUDY SOLUTION
e
pl
m
SYNOPSIS
Sa
Based on their extensive consulting and advisory experience in large-scale consulting transformations for
various large enterprises, Ramesh Srinivas and his colleagues at Worxogo Solutions Pvt. Ltd. (Worxogo)
in Bengaluru, India, had launched an artificial intelligence (AI)–based nudge platform called Nudge Coach
in 2017 to change employees’ behaviour positively and voluntarily so as to bolster team performance. The
platform’s self-learning AI engine had been designed based on insights from behavioural sciences and
n
popular motivation theories. It featured deep-learning algorithms that understood individual motivations
tio
and provided personalized coaching tips, appropriate challenges, and rewards. The platform was presented
as a coach that could help employees manage their performance.1
lu
By 2023, Worxogo had garnered numerous clients and accolades for its platform’s novelty and efficacy in
improving employee performance and organizational outcomes.2 However, Worxogo had implemented its
platform predominantly for a limited set of functions, such as sales and data-centre operations, characterized by
So
well-defined lead and lag performance metrics. Clients, buoyed by the platform’s success, began encouraging
the Worxogo team to extend the nudge-based performance-improvement system to other functions and domains.
Thus, Srinivas, Worxogo’s chief executive officer, faced a dilemma in August 2023of whether to continue
OBJECTIVES
The Case Solution Starts From page 6
,1. Based on the goal-setting theory, which states that employees are motivated by clear, well-defined goals and
feedback, examine the applications of algorithm-based nudging techniques to provide dynamic performance
feedback and to influence employees’ behaviours and decisions so as to improve overall performance.
2. Gauge the effectiveness of nudges across various functions, domains, and job roles.
3. Identify the advantages and disadvantages of using nudges as a performance-management mechanism.
4. Assess the unintended consequences of sharing employee- and team-level AI platform-engagement data.
e
pl
m
Sa
n
tio
lu
So
ASSIGNMENT QUESTIONS
1. What are nudges and how are they designed?
2. For which target industries and job functions is algorithmic nudging most appropriate? What are
appropriate nudges for contexts without specific lead and lag performance measures?
3. Why is the nudge system ineffective for extremely high-performing and underperforming employees?
4. What are the risks of sharing employee-level platform-engagement data with employees’
organizations? How can these risks be mitigated?
5. What ethical issues are associated with AI-enabled HRM platforms?
The Case Solution Starts From page 6
, e
1. What are nudges and how are they designed?
pl
Famed behavioural economics Richard Thaler and Cass Sunstein coined the term “choice architecture” to
refer to the “context in which people make decisions.”5 A nudge is any facet of the choice architecture that
m
predictably adjusts individuals’ behaviour without forbidding any options or significantly changing their
economic incentives.6 Students may describe nudges as tools for changing individual behaviour for the
better. With the growth in new sources of individual-level data, enhanced computational capabilities
Sa
provide insights into individual behaviour in differing contexts. This enhancement enables organizations to
leverage objective data to address behavioural research through data analytics. Behavioural research in
information systems is at the cusp of integrating user behaviours with associated attitudes and perceptions,
enabling effective information systems, analytics, and predictive models.7
n
Thaler and Sunstein posited that nudges are a form of “libertarian paternalism,” which can be seen as
tio
lu
So
The Case Solution Starts From page 6
, e
pl
m
Sa
n
tio
lu
So
5. What ethical issues are associated with AI-enabled HRM platforms?
Studies indicate that employees lack trust in predictive analytics projects and their outcomes. Risks for
employees emerge with operationalizing bias, discrimination, and psychological or social profiling.
Further, the lack of transparency around the purpose of nudges to shape employee behaviour raises ethical
questions about users’ information rights and their effect on personal autonomy. The increased enablement
of measuring performance using data may cause managers to lose the context for nudging.
Respecting privacy rights, transparency, the inclusion of diverse stakeholders, and the fair and proportionate
use of data for employee benefits are among the recommendations for addressing some of the risks of
The Case Solution Starts From page 6
, EXHIBIT -1: THE MINDSPACE MODEL AND ITS APPLICATION TO WORXOGO’S NUDGE COACH
MINDSPACE Aspect definition Nudge Coach application
aspect
Messenger We are heavily influenced by who is The organization-sponsored platform is configured
communicating the information. in line with the goals agreed on with the manager
and inputs based on the customer-relationship-
management system.
Incentives Predictable mental shortcuts shape our The platform provides nudges that help individuals
responses to incentives. prioritize value-adding activities.
Norms We are heavily influenced by what others Based on the social-comparison theory, norm
do. referencing is also adopted to nudge employees.
Defaults
e
pl
m
Sa
n
tio
lu
So
The Case Solution Starts From page 6
