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In general, the Pygmalion effect in management is the idea that workers are more productive when being watched by members of management. Workers are eager to please bosses, or appear competent, so productivity and rule following increases when a member of management is present.

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Q: What is Pygmalion effect in management?
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What is the difference between the halo effect and the Pygmalion effect?

The halo effect is a cognitive bias where our overall impression of a person influences our perceptions of their specific traits. The Pygmalion effect, on the other hand, is a self-fulfilling prophecy where higher expectations lead to an increase in performance. In essence, the halo effect is about perceptions influencing judgments, while the Pygmalion effect is about expectations influencing outcomes.


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In mythology, Pygmalion was a sculptor who fell in love with one of his statues. In the play "Pygmalion" by George Bernard Shaw (later the basis for "My Fair Lady"), Professor Henry Higgins makes a bet with another linguist that he can pass a flower seller (Eliza Doolittle) off as an upper class lady. He teaches her how to speak proper English, and act the part. He treats her as an object, a means to proving his skills as a linguist and teacher, and once she wins his bet for him she rebels and leaves, even though she is in love with him. After finding her at his mother's house, he learns that she intends to work for herself and possibly marry an upper class twit she met there previously. He leaves upset, and she comes back to him because she realizes that even though he doesn't show his emotions, he does care for her.


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