In: Economics
2. Often a round of applause can be seen to begin with isolated initial clappers before building to general and sustained clapping (and sometimes not!). What kind of effect is this an example of, and how does it work?
Behavioural economics
Often a round of applause can be seen to begin with isolated
initial clappers before building to general and sustained clapping
or even sometimes not. This is an example of behavioral
organizations structure. The interpretation of organizational
culture develops by initial hardworking employees. This statement
states that to enhance the working, certain habits, skills,
knowledge and talents are required to improve.
This concept is mainly followed in behavioral economics which
refers to a study of psychology as it relates to the economic
decision making process of employees and organization. This
includes two main objectives: profit maximization and personal
needs achievement. To fulfill both of the objectives, first there
should be potential workers which adds to the productivity and
profitability of the firm. Then the whole organization works to
achieve a common goal. It’s obvious that if the organizational
goals get fulfilled, then the personal goals also get
achieved.
This concepts works in the behavioral organization by exploring the
decisions and contribution of the individual employees. The growth
of the organization is initially depends on some employees. Slowly
and gradually, the sustained growth of company started. Also, the
employees have different behavior and acts differently in the
organization. Therefore, it’s not necessary that any employee
adapts himself according to the changes in the company. Some also
resist the changes. This statement clearly shows that the working
is affected by initial working and contribution of some
employees.