Have a bad manager? Science explains why.
Summary
Planet Money explores why companies struggle to identify good managers, featuring Harvard economist David Deming. His research reveals that self-promoted candidates often exhibit toxic overconfidence and perform poorly, while strong economic decision-making and fluid intelligence are better predictors of success. Deming argues that relying on interviews or eagerness to lead is flawed, suggesting instead that objective testing for problem-solving skills could significantly boost business profits.
Topics discussed
Introduction: The problem of bad managers
Sponsors: Amazon Health, Mint Mobile, and Jerry
Why current hiring methods like interviews fail
The experiment: Testing managerial traits
Results: Overconfidence and toxic eagerness
Key predictors: Economic decision-making and fluid intelligence
Real-world impact: Sales and profits in grocery stores
Discussion: Testing for skills vs. IQ and social skills
Credits and closing sponsors
Listen ad-free on Castria