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I think the need to believe we are better than our peers on-the-job is something most workers have been conditioned to do. We've built an entire culture around rewards and incentives for those who are considered 'the best.' The people I've seen who are delusional about their abilities are usually quite obsessed with making sure they are liked and respected. To them, it's not about the quality of their work, but whether or not people are impressed by it.
I'm in the middle of developing a start-up company that involves the team recognizing and leveraging the strengths of their peers as a way to divide up the work. From the get go, we've established that no one is better than another. The result has been some amazing collaboration and a fun environment that we all love to be a part of. I have to say, an 'ego free' environment is a joy to work in.