The Pygmalion Effect and the Galatea Effect are two psychological phenomena that are often compared and contrasted in the business world. Both of these effects have the potential to impact management and purchasing decisions, but the exact way in which each of these effects can affect the business can vary. The Pygmalion Effect refers to the idea that expectations placed on an individual employee can have a powerful effect on their performance. On the other hand, the Galatea Effect refers to a situation where an individual's performance is improved by their own self-fulfilling expectations. Exploring the differences between these two effects can help business owners and managers better understand when and how to apply them to their business operations.
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