Pygmalion effect
Perception is the process of receiving internal or external information about the environment through the senses and the mind; human kind have the ability to remember events from the past and use them in order to decide about which way should be follow in a new situation. And when this new situation has relation with some elements of the past, the perceiver tends to analyze the situation with the information that brought from the past; this is call preconceptions.
Those preconceptions are extremely important to understand, because they are the base of the human knowledge, when a subject is expose to a certain situation the natural reaction is to bring elements from the past the objective to complete the information that is perceiving, this happens because they are unable to complete the missing part of the situation, like it’s origin and implications without bias of previous knowledge. This knowledge is the reality for the perceiver and he feels secure about that knowledge because, it is the one that he has experience through his own senses, that at the same time are being influence by the subjects background such as education, family, religion, profession, language, gender, age and nationality among others; then each human been has different preconceptions to analyze and understand the new situations. In consequence each human been has, lives and perceives different realities.
In the next graph the information process can be appreciated since the objective reality and how it is transformed by perception through the point of becoming knowledge
This understanding is important because the authors of the text aims to put in the table the key elements of the managerial behavior that can influence on the organizational performance Adler and Gundersen (2007) explain:’’ manager’s values, beliefs, and attributes would influence both the manager’s behavior and that of subordinates’. If the idea of the process is applied to aid project setting, aid worker’s expectations could negatively work on local colleagues due to the influence of simplified and biased perception.’’ As clear as that the perception is a key concept use in the development of the organizational strategy; but who to do that?
The first step is to evaluate the real influence of perception within an organizational structure and then with the help and resources of the Spanish knowledge Society Research Center where they develop a whole research where they state as variables the different elements that can influence on the employees perception, such as they personal background, the way they felt at the work place, their self image, meta-image, and self-conception about their working relations among others, their motivational level to conclude how all this elements would affect the final performance at the working time regarding an specific aspect that have strong effects on the final performance of the employees; the preconception from two opposite perspectives; a positive or negative preconception of a subordinate would encourage the final performance, due to the Pygmalion effect theory.
The Pygmalion effect was described by J. Sterling Livingston in 1988 on it’s article on Harvard Business Review as "The way managers treat their subordinates is subtly influenced by what they expect of them," the research done by Gregorio Martín-de-Castro, José Emilio Navas-López, Pedro López-Sáenz and Elsa Alama found that within in a managerial status the way that managers perceive their subordinates has strong influence on the goals achieving.
The study states that when a manager have a positive image of an employee, the attitude showed to him is going to be more empathetic and the type of tasks assigned to him are going to be more challenging and important motivating the employee to take his efforts to the best of his abilities, due to the extra motivational attitudes of the boss; in the other hand if a boss has a negative image of a particular employee, his body language and gestures will project a different message to the other party, generating different expectations in a lower direction disvaluing the subordinate assigning him low importance tasks, that makes him feel bad producing as well the same kind of results. Because of that many motivating strategies have been developed in order to design a good organizational environment that encourage personnel to give their best, building a good working environment to improve the generated value at the end of the period.
Organizational Capital as competitive advantage of the firm
‘’The elements that constitute the organizational capital or capital of the firm, namely its culture, structure, organizational learning, can be a source of competitive advantage´´ this texts is based in a research study as well, there the main topic developed is the competitive advantage as the best way to differentiate from the competence and establish the business in the market as an strong competitor loking for differential elements to set an strategy; the whole theory is base on two main axioms. ‘’ the first one argues that reduce endowments are heterogeneously distributed among firms, and this explains difference in firm performance.´´
‘’ the second axion states that owing or controlling superior resources and capabilities allows the firm to sustain the competitive advantage.’’
This tow axioms wants aims to define which resources the company controls and how to build entrance barriers for competitors in the specific market. Resources and capabilities are those production factors available for the company in order to developed the current activities while capabilities are those activities that a company is able to do and for doing those activities it needs to use some resources, so the management of them is a critical activity inside the company so the capability management aims to optimize for balancing the resources in order to set strategies to innovate and differentiate.
The difference between both of them is that capabilities are complex, collective and dynamic while resources are independent, simple and static.
The intellectual capital what strongly diferenciate one company from other one, and is this factor what creates added value and get to the target market depending on how useful and well managed is it, the most sell shares at the new York stock excahge market are those with high levels of innovation and technology, that have manage efficiently their intellectual property, that mixed with the culture, structure and organizational learning creates a very good organizational environment enhancing for value creation by taking advantage of the organizational culture.
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