In a world that never stands still, the morning alarm clock is our faithful companion (and often our worst enemy), opening the round of small and large goals that need to be achieved, usually at a fast pace. During working hours, it’s easy to get lost in the daily commitments and deadlines to be met. In these moments, practical skills and experience in the field seem to be the most important thing, with the importance of theory in risk of being forgotten. However, the balance between theory and practice is crucial to the long-term success of any organisation. In a series of articles, we will explore the importance of theory in businesses and how it can be effectively integrated into practice to optimise results.

The role of the theory

Theory, which can branch out into many different concepts, has one goal: it should form the basis for decisions and measures. It is the principle on which practical skills are built. A bit like the saying: a good writer is always a good reader. Within an organisation, theory provides a conceptual framework that guides business decisions and strategies and should by no means be seen as something rigid and unchangeable. Theoretical concepts evolve over time in response to changes in the social, technological and economic environment, while practical application acquires skills and refines experiences.

But how can the bridge between theory and practice be built in a business context? One possibility could be to improve a company’s business results. This is, for example, the idea behind the Pygmalion effect, also known as the Rosenthal effect. In the practice (or theory) of this concept in the corporate world, it is the behaviour of managers that can improve or worsen the performance of employees, and thus influence the overall performance of the company. Based on a theoretical concept, it is possible to determine a useful behaviour that can be used to achieve certain results. So let’s try to show the synergy between theory and practice at company level through the principle of the Pygmalion effect.

The Pygmalion Effect

The Pygmalion effect, also known as the “Rosenthal effect”, refers to the psychological phenomenon that a person’s expectations of another person can influence their behaviour and make them comply with these expectations. This concept is important both in psychological theory and in business practice.

To open a little etymological parenthesis: The name of the effect comes from the myth of Pygmalion, a king and sculptor from Cyprus who fell madly in love with his statue “Galatea”, which he had created with incredible skill and beauty. Pygmalion, disappointed by the indifference of the royal women and inspired by the perfection of his work of art, asks Aphrodite, the goddess of love, to breathe life into his statue. The goddess, moved by his devotion and the beauty of the statue, fulfils Pygmalion’s wish and transforms her into a real woman.

In marketing, this concept can be used as a way to convey a positive message, e.g. through marketing campaigns that can lead to the customer identifying with the product and the brand itself.

But what impact can this have in companies?

Theory of the Pygmalion effect in companies

It is no coincidence that someone wanted to test this theory. That someone was Robert Rosenthal, an American researcher who died at the beginning of 2024. In the 1960s, he carried out an interesting experiment in an American primary school to investigate the Pygmalion effect, i.e. he subjected children to an intelligence test without taking the results into account. He randomly drew a sample of students from the results and then arbitrarily selected those who (allegedly) proved to be particularly intelligent. The result was that the children he categorised as “intelligent” significantly improved their school grades after one year, which was partly due to the help of teachers who provided special support for the “intelligent” children.

A similar effect could be achieved in organisations without the use of fake exams. The idea is that trust and positive expectations can boost employee performance and improve the overall working environment.

Just as teachers have encouraged their students to perform better, managers’ expectations of their employees can also strongly influence their performance. If a manager has positive expectations and confidence in their employees’ abilities, they are more likely to work hard to meet those expectations. Conversely, a negative attitude and uninteresting tasks for employees can lead to only simple and routine tasks being performed, resulting in boredom.

Of course, the overall organisational climate, including the collective vision of managers and colleagues, can also have a significant impact on individual and group performance. A climate that fosters high expectations and trust in collective and personal growth can lead to better results.

For this to happen, effective communication and positive feedback play a key role, as they can help to raise employees’ expectations of success and also encourage them to overcome challenges and pursue company goals.

Conclusion

We’ve explored the theory behind these fundamental concepts, but how do these principles translate into business practice? In the next article, we will look at concrete examples and applicable strategies to put these theories into action and achieve tangible results. We will look at how the Pygmalion Effect can positively and effectively influence organisational performance and what attitude leaders should adopt to set the right example for their employees and colleagues.

Hoping to have contributed positively to your coffee break or wherever you are right now, see you for the next part.