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Showing posts from July, 2021

Hawthorne Effect

 Hawthorne effect refers to a type of human reactivity in which individuals modify an aspect of their behavior in response to their awareness of being observed. Descriptions of this well-known and remarkable effect, which was discovered in the context of a research conducted at the Hawthorne Western Electric plant, some scholars feel turned out to be fictional. The original research involved workers who made electrical relays at the Hawthorne Works, a Western Electric plant in Cicero, Illinois. Between 1924 and 1927, the famous lighting study was conducted. Workers experienced a series of lighting changes in which productivity was said to increase with almost any change in the lighting. This turned out not to be true. In the study that was associated with Elton Mayo, which ran from 1928 to 1932, a series of changes in work structure were implemented (e.g., changes in rest periods) in a group of five women. However, this was methodologically poor uncontrolled study that did not perm...

Classical Economics

 Classical economics is a school of thought in economics that flourished, primarily in Britain, in the late 18th and early-to-mid 19th century. Its main thinkers are held to be Adam Smith, Jean Baptiste Say, David Ricardo, Thomas Robert Malthus, and John Stuart Mill. These economists produced a theory of  market economies as largely self-regulating systems governed by natural laws of production and exchange (famously captured by Adam Smith's metaphor of the invisible hand ). Adam Smith's The Wealth of Nations in 1776 is usually considered to mark the beginning of classical economics. The fundamental message in Smith's book was that the wealth of any nation was determined not by the gold of the monarch's coffers, but by its national income. This income was in turn based on the labor of its inhabitants, organized efficiently by the division of labor and the use of accumulated capital, which became one classical economics' central concepts. In terms of economic policy...