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How Behavioral Economics Should Shape the Navy’s New Evaluation System

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Document pages: 39 pages

Abstract: The United States Navy’s most recent strategy document, A Design for Maritime Superiority 2.0, calls for the modernization of its own personnel management system to help maintain America’s competitive advantage over near peer adversaries in an increasingly complex global security environment. Additionally, the document commits the service to a performance evaluation transformation intended to emphasize meaningful, frequent, and timely feedback. Behavioral insights can and should play an integral role in bolstering the efficacy of the Navy’s new personnel performance evaluation system. After first examining what exactly makes performance appraisal effective, this paper will present the shortcomings of the Navy’s outgoing legacy performance evaluation system and provide an overview of the current proposed performance evaluation transformation. Then, behavioral science-backed recommendations will be made to limit the impacts of decision errors and biases, improve rating accuracy, and ensure reactions to appraisal-derived feedback are positive and productive.

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