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Invest Like the Best with Patrick O'Shaughnessy cover image

Robin Dunbar - Optimizing Human Connection (Dunbar's Number) - [Invest Like the Best, EP.367]

Invest Like the Best with Patrick O'Shaughnessy

NOTE

The Importance of Rituals and Social Bonds in Workplace Productivity

Rituals in organizations act as internal bonding mechanisms, akin to religious practices. An example cited is the Japanese car industry requiring employees to do calisthenics together, fostering a sense of belonging and commitment to the company. Historical context reveals that successful multinationals in the past emphasized social bonds within the workforce through initiatives like building social clubs and organizing events. These practices facilitated a happy and bonded workforce, contributing significantly to enhanced productivity. However, with the advent of post-World War II cost-cutting measures, such social activities have been disregarded in favor of quantifiable financial gains, neglecting the crucial role of rituals and social bonds in promoting productivity.

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