Yale School of Management

Posts by Organizational Behavior

The Benefit of Broken Rules

April 9, 2014
In the face of uncertainty, organizations make rules: banks set credit thresholds to limit risk exposure; colleges require baseline SATs to ensure student success; restaurants standardize procurement protocols to guard against low-quality ingredients. But rules are imperfect. A credit score is not a failsafe indicator of financial responsibility, just as SATs are not ideal predictors of academic aptitude. This inexactness gives life to a fundamental tension: when do rules and standards help, and when do they inhibit, an organization in the achievement of its goals? Continue reading “The Benefit of Broken Rules”