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CEOWORLD magazine - Latest - CEO Advisory - Unlock Your Team’s Hidden Potential: The Psychology Tool Leaders Can Use to Increase Productivity

CEO Advisory

Unlock Your Team’s Hidden Potential: The Psychology Tool Leaders Can Use to Increase Productivity

Business Meeting

Cognitive biases are a fascinating area of study that should be explored by all business leaders to enhance decision-making, foster a positive work environment, boost productivity, and drive team success. A cognitive bias refers to a judgement or prejudice that may not necessarily align with evidence. It stems from the interpretation of available information, even if not logically or semantically connected, leading to sometimes significant evaluation errors or a lack of objectivity in judgement. 

In essence, a cognitive bias is a systematic error that influences our judgement and decisions. Therefore, investing in training and raising awareness about cognitive biases can yield significant returns in terms of individual and collective performance, improving corporate culture and reputation.  

From Greece to The Present Day: The Pygmalion Effect 

Pygmalion, a mythological figure, and king of Cyprus sculpted a statue embodying his ideal of femininity. The sculptor was so enamoured with his creation that he fell in love with it and implored Aphrodite, the goddess of beauty and love, to transform the statue into a living woman so he could marry her. 

In psychology, the ‘Pygmalion effect’ (also known as the ‘Rosenthal effect’ or ‘self-fulfilling prophecy’) refers to the tendency of individuals to behave in accordance with the expectations others have of them. In this scenario, the ‘Pygmalion’ is the one who shapes the other based on their expectations. 

The Pygmalion effect originated from a 1965 experiment conducted by American psychologist Robert Rosenthal. He administered an IQ test to students in 18 classes at a California public elementary school. Subsequently, he selected 20% of these students and informed their teachers that this group had shown great promise and would “blossom” academically within the following year. In reality, the children had been chosen entirely at random, but the teachers were unaware of this. 

A year later, Rosenthal retested the students, finding a significant increase in IQ in the selected group, regardless of their initial score, while the remaining students had performed significantly worse. 

Rosenthal concluded that student performance had been influenced by the different attitudes adopted by the teachers towards the two groups: when teachers believed they were dealing with more gifted students, they made an effort to encourage them, ensuring they understood the lessons. As a result, Rosenthal argued that teachers’ expectations influenced daily interactions with children as a “self-fulfilling prophecy,” meaning the way they were treated had impacted their academic performance.  

The Pygmalion Effect in Businesses: The Crucial Role of Leaders 

In the workplace, the Pygmalion effect can significantly impact employee motivation, productivity, and creativity. 

The key aspects of the Pygmalion effect in the business world are: 

  • Self-fulfilling prophecies
    When a leader has high expectations for an employee, they are more likely to provide positive feedback, greater opportunities, and resources. This, in turn, can boost the employee’s self-confidence and motivate them to achieve more. 

    Business leaders should, therefore, provide regular feedback, set ambitious goals, and offer development opportunities. 

  • Selective focus
    Leaders with high expectations for an employee tend to pay more attention to their successes and minimize their failures. This can help the employee focus on their strengths and improve their performance. 

    To leverage this aspect, leaders should provide their employees with the support and encouragement they need to achieve their goals, including mentoring, coaching, and providing adequate resources. 

  • Intrinsic motivation
    When an employee feels that their leader believes in them, they are more likely to be intrinsically motivated to do their best. This is because they want to prove themselves worthy of the leader’s expectations. 

    In addition, if leaders celebrate their employees’ successes, both big and small, they help them build self-confidence and motivate them to continue doing their best. 

Final Thoughts 

The Pygmalion effect is a powerful tool that leaders can use to enhance employee performance and create a more productive and positive workplace. However, it is crucial to remember that the Pygmalion effect only works if expectations are realistic and based on the employee’s capabilities. If a leader has excessively high expectations, it can negatively impact the employee’s motivation and self-confidence. 

The Pygmalion effect is not a magic wand, but it is a valuable tool that can be used to create a work environment where everyone can thrive. 


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CEOWORLD magazine - Latest - CEO Advisory - Unlock Your Team’s Hidden Potential: The Psychology Tool Leaders Can Use to Increase Productivity
Riccardo Pandini
Riccardo Pandini is an Academic Tutor at the University of Milano-Bicocca and a writer at the State of Mind, an online journal of psychology, psychotherapy, neuroscience, psychiatry, and various current affairs.


Riccardo Pandini is an opinion columnist for the CEOWORLD magazine. Connect with him through LinkedIn.