Loss Aversion

(default position, ie assumes the worst, especially if uncertain; with focus on safety first for good performance & when exploring things; people are motivated by the avoidance of loss rather than the opportunity to gain as it is a survival mechanism. Thus change needs to be explained as a gain and not as a loss or a situation involving too much uncertainty with the potential for loss; need to acknowledge losses to build trust. It explains resistance to change & reaction to feedback, like performance reviews, ie people's innate preference is to dwell on negatives as they are most concerned about potential losses (including self-esteem, etc); acknowledge any losses (financial, status, position, etc) to build trust; if feeling threatened, people will fight frantically; as change is felt at a personal level, need to work at this level; need to understand the 4 responses to fear or attack

- withdrawal (avoid &/or escape from danger)

- immobility (freezing)

- defensive aggression (appear dangerous or fight back)

- submission (appeasement)

 

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