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In luck we trust: Capturing the diversity bonus through random selection

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  • Chengwei Liu

    (European School of Management and Technology, ESMT Berlin)

Abstract

Complex tasks often cannot be addressed with expertise, but instead by assembling a diverse cognitive repertoire in teams. In such cases, engaging diversity may enhance performance. Yet various behavioral and social limits often deter organizations from recognizing or integrating valuable diversity. I argue that random selection is an undervalued tool for capturing the diversity bonus because it helps address: (1) the paradox of merit, by avoiding fruitless deliberation; (2) biased reasoning, by deciding on the basis of no reason; and (3) learning traps, by discovering self-confirming false beliefs. More generally, incorporating random selection in organizational design can generate a less-is-more effect: deciding by blind luck means exercising less control over outcomes but achieving more by saving time and resources, as well as detecting and sanitizing biased reasons.

Suggested Citation

  • Chengwei Liu, 2021. "In luck we trust: Capturing the diversity bonus through random selection," Journal of Organization Design, Springer;Organizational Design Community, vol. 10(2), pages 85-91, June.
    • Handle: RePEc:spr:jorgde:v:10:y:2021:i:2:d:10.1007_s41469-021-00100-8
    DOI: 10.1007/s41469-021-00100-8
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    References listed on IDEAS

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    Cited by:

    1. Linus Dahlander, 2022. "The role of autonomy and selection at the gate in flat organizations," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(1), pages 27-29, March.
    2. Jose P. Arrieta & Yash R. Shrestha, 2022. "On the strategic value of equifinal choice," Journal of Organization Design, Springer;Organizational Design Community, vol. 11(2), pages 37-45, June.

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