Management Studies in Development and Evolution

Designing an Organizational Health Model Based on Behavioral Economics

Document Type : Research Paper

Authors

saeed fardani 1
akbar etebarian 2
saeed sharifi 3
Saeed Daei-Karimzade, saeed 3

1 PhD Student in Public Administration, Azad Khorasgan University, Isfahan, Iran.

2 Professor, Department of Public Administration, Faculty of Management, Khorasgan Azad University, Isfahan, Iran.

3 Assistant Professor, Public Administration Dept., Faculty of management Azad Khorasgan University, Isfahan, Iran.

https://doi.org/10.22054/jmsd.2025.85050.4632
Abstract
This study aimed to present an organizational health model based on the behavioral economics approach in Isfahan Municipality. By using an exploratory mixed research design (qualitative phase: grounded theory with 18 semi-structured interviews, quantitative phase: survey with 272 employees), effective factors were identified in the form of causal conditions (economic incentives, cognitive biases, social capital), contextual conditions (organizational culture, policies, work environment) and intervening conditions (training, rewards, leadership). The designed strategies, including nudge interventions, infrastructure development and improvement of communication skills, led to significant outcomes: a 22% increase in productivity (p<0.05), a 30% reduction in costs and a 35% improvement in mental health indicators. The findings showed that small changes based on behavioral economics (such as modifying the physical environment and positive feedback) at low cost have a significant impact on organizational health. This study adds to the existing literature in three ways: (1) localizing behavioral economics models in Iran, (2) providing empirical evidence of the impact of environmental reforms, and (3) developing an integrative framework. The main limitation was the focus on a single government organization, which limits generalizability. This model can help similar organizations implement cost-effective solutions.

Keywords

Organizational health
behavioral economics
systematic evidence-based theory
noded interventions
Subjects
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Management Studies in Development and Evolution
Volume 34, Issue 117
Summer 2025
Pages 81-120

  • Receive Date 18 May 2025
  • Revise Date 04 June 2025
  • Accept Date 01 July 2025

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