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In modern organizations, the pursuit of data for efficiency through rigid systems, smart KPIs, and clearly defined roles has become the norm. On the surface, these structures seem to offer control, predictability, and measurable progress. However, beneath this technocratic drive, a deeper crisis is brewing.
The ongoing focus on rational control, while ignoring less predictable, irrational aspects of human behavior is leading to severe consequences for individuals and organizations alike. As we continue to overestimate rationality and underestimate the power of irrationality, the toll on mental health, team cohesion, and even survival of the company can be big.
The Overemphasis on Rationality in Organizations
Too many organizations nowadays still operate under the assumption that human behavior can be controlled, measured, and optimized. This assumption is deeply rooted in the classical theories of management. The problem, however, is that these models often fail to account for the more complex, emotional, and irrational drivers of human behavior.
Research shows that over 80% of human decision-making is influenced by unconscious processes, emotional triggers, and biases, rather than by pure logic and rationality (1). Despite this, many organizations still prioritize systems that are overly focused on rational metrics like KPIs and efficiency targets, while putting aside the psychological and emotional well-being of their employees. This creates a disconnect between what is measured and what truly matters in terms of human motivation and organizational performance.
The Psychological Cost: Burnout and Disengagement
The impact of these rigid structures is becoming increasingly visible in the form of rising burnout rates, disengaged employees, and a growing prevalence of toxic leadership. According to a study by Maslach and Leiter (2), burnout is often linked to organizational factors such as lack of control, and the absence of meaningful work. These are precisely the areas where overly technocratic organizations tend to fail. By focusing on pure technocratic goals they neglect the deeper psychological needs of employees—such as autonomy, purpose, and social connection.
This disconnect creates a breeding ground for emotional exhaustion and even collective and individual cynicism and these are key components of burnout. Employees who feel they are treated as mere elements in a machine, constantly monitored and controlled, lose the intrinsic motivation that drives meaningful engagement. The result is not only personal suffering but also decreased productivity, higher employee turnover, weakened team dynamics and simply bad results.
Narcissistic Leadership and Toxic Cultures
Another unintended consequence of this control-oriented approach is the rise of narcissistic leaders. Leaders who thrive in technocratic environments often exhibit traits such as excessive self-confidence, a lack of empathy and too much reward for being extraverted. In fact, research suggests that certain organizations may actively encourage narcissistic behavior by rewarding short-term results and individual success over collaborative, long-term thinking (3).
These leaders can perpetuate a toxic culture where employees feel unsupported, unheard, and undervalued. In such environments, power dynamics become skewed, and inappropriate behavior—such as harassment, micromanagement, and ethical misconduct—becomes more common. This further fuels issues of burnout and disengagement leading to a vicious cycle that is difficult to break.
The Case for Organizational Therapy
Given these challenges, it is clear that organizations must evolve beyond purely rational, system-based approaches to management. What is needed is a deeper understanding of the psychological and emotional dimensions of organizational life. This is where the concept of "organizational therapy" comes into play. Just as therapy helps individuals understand and heal their emotional wounds, organizational therapy can help companies address the underlying cultural and psychological issues that are driving dysfunction.
Organizational therapy involves regularly assessing and reflecting on the organization's culture, leadership practices, and employee well-being. This process can help identify areas where the organization is out of alignment with its values or where toxic behaviors are undermining performance. Moreover, it encourages the development of more human-centered leadership practices, which prioritize empathy, collaboration, and long-term thinking.
Conclusion: Moving Beyond Control
In conclusion, the overreliance on rational systems and controls in modern organizations is not only outdated but also harmful. While systems, KPIs, and clear roles have their place, they must be balanced with an understanding of the irrational and emotional aspects of human behavior. The failure to do so is contributing to a range of issues, from burnout and disengagement to toxic leadership and dysfunctional teams. By embracing a more holistic approach—one that includes organizational therapy and a focus on psychological well-being—businesses can create healthier, more resilient environments where people and organizations can truly thrive.
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