What is the Catfish Effect?

The catfish effect is used in human resource management to describe how the presence of a strong competitor can motivate groups to work toward a common goal.

This study was prompted by observations of how two differently sized schools of sardines interacted in Norwegian waters. The smaller fish appeared to be consuming food, “pulling” on the bigger fish to maintain their motion.

Business executives created the phrase “catfish effect” to characterize a dynamic that serves as a key indicator of strong leadership and motivates staff members.

Two approaches are used to convey it:

• Businesses could recruit younger workers and encourage more experienced workers by creating a competitive environment that forces the “sardines” to compete and rely on their innate survival instincts.
• Businesses should continue implementing new procedures, technology, equipment, and cutting-edge management ideas to stay afloat in the market and boost their competitiveness.

FAQs

Is the catfish effect real?

Yes, the catfish effect is real. It involves introducing a competitive element to keep employees and companies motivated.

What is the meaning of catfish in business?

In business, catfishing means motivating employees by introducing a competitor. For example, if one employee is ideal and devotes much time to work, the other employees will be encouraged to work.