Pygmalion in Management

Pygmalion effect is a phenomenon which works on the principle that higher expectation is directly proportional to higher performance thereby playing a crucial role in increasing the productivity of an organization. It has long been recognized that productivity has a close nexus with the treatment of employees in an organization by their superiors. Functioning as a self-fulfilling prophecy, Pygmalion effect has the ability to increase employee efficiency considerably and help an organization grow. It can very well form the core of management. The purpose of the present paper is to review the existing literature, and through an empirical study findthe answers as to how the Pygmalion effect would work in small scale establishments. The research will presents conclusions as well as recommendations that will better help to implement the concept of Pygmalion in businesses. The sources of data include primary and secondary sources, Primary sources includes field study collected from corporate establishments and shops from the city of Pune, India. Secondary sources include journals and books. Expectation and motivation play a major role in the growth of an industry, it is important that an organization effectively implement the concept of Pygmalion to make it more sustainable and productive.