As part of the course we were asked to watch a video, Money on the Mind, that reports on studies done at Berkley. The studies were all related to how people act based on their wealth and how people's behavior changes when someone socio-economic status is modified either in pretend or real experience. The studies suggest that when a person has a high wealth, they are less considerate of others and feed into a sense of entitlement, neglecting all the factors that placed them in the position of wealth. The studies also showed that when a person was closer to poverty they were more apt to share what they had and were more polite and humble.
A few decision making implications that come to mind from this video include the following list. When wealthy make decisions, they will likely look to create direct benefits for them and not the organization as a whole. However if you expose the person to a simulated or actual poverty level you maybe able to recalibrate them to make decisions in the best interest of the organization and the employees. Wealthy decision makers will also be ok with or prefer win-lose situations instead of win-win situations that can create problems for an organization with suppliers, the labor force, or clients.
The video also discusses that those who are wealthy having the sense of entitlement at work are more likely to steal from work, engage in unethical behavior (the rules don't apply to them), and lie. If you are negotiating with someone who is wealthy, you might want to approach with caution as it will be difficult to determine whether or not they have everyone's best interest in mind or only their own. I would say knowing someone's socio-economic status before going into a negotiation can give you a tactical advantage. If they are wealthy you know they are going to be looking out for themselves more, but even a little exposure to poverty might recalibrate them. If you know this and can force the wealthy person into a simulation or otherwise expose them to poverty, you might be able to make them re-evaluate their own decision making process prior to a final decision. However, if they are closer to poverty they are more likely to give more in negotiations toward the betterment of both organizations.
