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An economy consists of the economic system of a country or other area, the labor, capital and land resources, and the economic agents that socially participate in the production, exchange, distribution, and consumption of goods and services of that area.

Markowitz Model

  By admin | August 1, 2011 - 1:37 am | Economy 1 Comment

A model for selecting an optimum investment portfolio,devised by H. M. markowitz. It uses a discrete-time, continuous-outcome approach for modeling investment problems, often called the mean-variance paradigm. See Efficient frontier.

Harry Max Markowitz (born August 24, 1927) is an American economist and a recipient of the John von Neumann Theory Prize and the Nobel Memorial Prize in Economic Sciences.

Modern Portfolio Theory

A theory on how risk-averse investors can construct portfolios to optimize or maximize expected return based on a given level of market risk, emphasizing that risk is an inherent part of higher reward.

Portfolio theory deals with the value and risk of portfolios rather than individual securities. It is often called modern portfolio theory or Markowitz portfolio theory.

The key result in portfolio theory is that the volatility of a portfolio is less than the weighted average of the volatilities of the securities it contains. The standard deviation of the expected return on a portfolio is:

√(ΣWi2σi2 + ΣΣWiWjCovij)

where the sums are over all the securities in the portfolio,
Wi is the proportion of the portfolio in security i,
σi is the standard deviation of expected returns of security i, and,
Covij is the covariance of expected returns of securities of i and j.

Two Kinds of Risk
Modern portfolio theory states that the risk for individual stock returns has two components:

Systematic Risk – These are market risks that cannot be diversified away. Interest rates, recessions and wars are examples of systematic risks.

Unsystematic Risk – Also known as “specific risk”, this risk is specific to individual stocks and can be diversified away as you increase the number of stocks in your portfolio (see Figure 1). It represents the component of a stock’s return that is not correlated with general market moves.

For a well-diversified portfolio, the risk – or average deviation from the mean – of each stock contributes little to portfolio risk. Instead, it is the difference – or covariance – between individual stock’s levels of risk that determines overall portfolio risk. As a result, investors benefit from holding diversified portfolios instead of individual stocks.


Figure 1

 

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Adam Smith Wealth Of Nations

  By admin | February 10, 2011 - 11:47 am | Economy Leave a comment

An Inquiry into the Nature and Causes of the Wealth of Nations (generally referred to by the short title The Wealth of Nations) is the Magnum Opus of the Scottish economist and moral philosopher Adam Smith. First published in 1776, it is a reflection on economics at the beginning of the Industrial Revolution and argues that free market economies are more productive and beneficial to their societies. The book, written for the educated, is considered to be the foundation of modern economic theory.

TABLE OF CONTENTS
Cover
Table of Contents
Preface, by Edwin Cannan
Editor’s Introduction, by Edwin Cannan
Volume I
Introduction and Plan of the Work
Book I: Of the Causes of Improvement…
I.1. Of the Division of Labor
I.2. Of the Principle which gives Occasion to the Division of Labour
I.3. That the Division of Labour is Limited by the Extent of the Market
I.4. Of the Origin and Use of Money
I.5. Of the Real and Nominal Price of Commodities, or of their Price in Labour, and their Price in Money
I.6. Of the Component Parts of the Price of Commodities
I.7. Of the Natural and Market Price of Commodities
I.8. Of the Wages of Labour
I.9. Of the Profits of Stock
I.10. Of Wages and Profit in the Different Employments of Labour and Stock
I.11. Of the Rent of Land
Tables for I.11.
Book II: Of the Nature, Accumulation, and Employment of Stock
II. Introduction
II.1. Of the Division of Stock
II.2. Of Money Considered as a particular Branch of the General Stock of the Society…
II.3. Of the Accumulation of Capital, or of Productive and Unproductive Labour
II.4. Of Stock Lent at Interest
II.5. Of the Different Employment of Capitals
Book III: Of the different Progress of Opulence in different Nations
III.1. Of the Natural Progress of Opulence
III.2. Of the Discouragement of Agriculture in the Ancient State of Europe after the Fall of the Roman Empire
III.3. Of the Rise and Progress of Cities and Towns, after the Fall of the Roman Empire
III.4. How the Commerce of the Towns Contributed to the Improvement of the Country
Book IV: Of Systems of political Œconomy
IV. Introduction
IV.1. Of the Principle of the Commercial or Mercantile System
IV.2. Of Restraints upon the Importation from Foreign Countries of such Goods as can be Produced at Home
IV.3. Of the extraordinary Restraints upon the Importation of Goods of almost all Kinds, from those Countries with which the Balance is supposed to be Disadvantageous
Volume II
IV.4. Of Drawbacks
IV.5. Of Bounties
IV.6. Of Treaties of Commerce
IV.7. Of Colonies
IV.8. Conclusion of the Mercantile System
IV.9. Of the Agricultural Systems, or of those Systems of Political Œconomy, which Represent the Produce of Land, as either the Sole or the Principal, Source of the Revenue and Wealth of Every Country
Book V: Of the Revenue of the Sovereign or Commonwealth
V.1. Of the Expences of the Sovereign or Commonwealth
V.2. Of the Sources of the General or Public Revenue of the Society
V.3. Of Public Debts
Appendix
Footnotes (Book I, Ch. I-IX)
Footnotes (Book I, Ch. X-XI)
Footnotes (Books II-III)
Footnotes (Book IV)
Footnotes (Book V)
About the Book and Author

Wealth Of Nations Books on Amazon.com

Book Name: Wealth of Nations (Great Minds Series)

Political economy had been studied long before Adam Smith. But “Wealth of Nations” (1776) established it for the first time as a separate science. Smith based his arguments on vast historical knowledge, and developed his principles with remarkable clarity. What set this work apart was its statement of the doctrine of natural liberty. Smith believed that ‘man’s self-interest is God’s providence’ – that if government abstained from interfering with free competition, the invisible hand of capitalism would emerge from the competing claims of individual self-interest. Industrial problems would be resolved and maximum efficiency reached. After more than two centuries, Smith’s work still stands as the best statement and defence of the fundamental principles of capitalism.

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Attribution Model

  By admin | February 9, 2011 - 2:53 pm | Economy Leave a comment

Outline of Attribution Model
We when consciousness person’s behavior, always attempts to

carry on the inference and the explanation. So-called turns over

to because of (attribution), refers to the viewer to forecast and

appraise people’s behavior and to the environment and the

behavior controls, but or own behavior process carries on to

other people causes and effects explanation and deduction. The

people behavior’s reason proposes including the internal reason

and the external reason two kinds. The internal reason is refers

to, causes its behavior performance which the individual own has

the quality and the characteristic, including individual personality,

mood, mood, motive, desire, ability, diligently and so on. The

external reason is refers to individual own outside, to cause its

behavior performance the condition and the influence, including

environmental condition, situation characteristic, other people’s

influence and so on. US psychologist Hyde (F.Helder) proposed

most early in 1958 turns over to because of the question, but only

then brings to the social psychology educational world attention

until the mid-60s and becomes a popular research area. in 1965,

Jones (E.A.Jones) and Davies (K.E.Davis) proposed the

corresponding inference theory, infers its behavior intention from

doer’s concrete behavior. 　　in 1967, American society

psychologist Kelly (H.H.Kelley) published “Social psychology

AttributionTheory”, after corresponding inference theory

proposed that three dimensional turned over to because of the

theory, was also called three degrees theories, because turned

over to the theory to Hyde to carry on expands once again and

develops. Because Kelly will turn over to the phenomenon

discrimination will be two kinds: Because one kind is can observe

the similar behavior or in event’s situation many times turns over

to, because is called the multithreading to turn over to; Another

kind rests on an observation makes turns over to because of the

situation, because is called the single clue to turn over. Kelly

believed that because the people turn over to the behavior always

to involve three aspects the factors (1) the objective stimulant; (2)

mover; (3) locates the relations or the situation; And, because

mover’s factor is belongs to the interior to turn over to, the

objective stimulant and locates because exterior the relations or

the situation belong turn over.
Turns over to because to above three factor’s any factor to be

decided by the following three behavior information: 　　1st,

difference (distinctiveness): Refers to the mover whether to make

the same response to the similar other stimulations, he is displays

this behavior under the numerous situations only to display this

behavior under some specific situation. For example, is late today

whether the staff does display slackly frequently, violates the rules

and regulations discipline. If the behavior discrimination is low,

because then the viewer will possibly make the interior to the

behavior to turn over to; If the behavior discrimination is high,

then exterior the active reason will possibly be belonged. 　　

2nd, consistency (consistency): Refers to the mover whether and

makes the same response at any time in any situation to the

identical stimulant, namely mover’s behavior to be whether stable

and be lasting. For example, if a staff not always goes to work is

late, she has 7 months to be never late, then indicated that this is

an exceptional case, the behavior consistency is low; But if she is

late every week 2-3 times, then the showing behavior’s

consistency is high. The behavior consistency is higher, because

the viewer more favors in makes the interior to turn over. 　　

3rd, uniformity (consensus): Refers to other people to the

identical stimulant whether also to make with the doer same way

response. If each person has the same response facing the similar

situation, we said that this behavior displays the uniformity. For

instance, all lost one’s original appearance goes the same way the

staffs who the line went to work to be late, was late the behavior

uniformity to be high. , because from turns over to the viewpoint

to look, if the uniformity is high, because exterior we to are late

the behavior to carry on turn over. If lost one’s original

appearance goes the same way line other staffs punctually to

arrive, should think that this staff was late the behavior reason

from.
Kelly thought that these three aspect information constitutes a

covariant three-dimensional frame, according to the above three

aspect’s information and the covariant, may attribute person’s

behavior the mover, the objective stimulant or the situation. 　　

If a staff completes present work the level, is the same with other

similar work, namely the low discrimination, but other staff’s level

is very always different in this work with his level (either low or

high), namely low uniformity, and his this work achievements

whenever is stable, namely high consistency, then his

superintendent or other anybody when judges his work, can think

that he has the primary responsibility to this achievements (interior

to turn over to because of). 　　Because Kelly also studied has

turned over to the mistake or the prejudice. For instance,

although we when appraises other people’s behavior has the

ample evidence support, we always favor in underestimated that

the external factor the influence overestimates the internal or

individual factor influence. Because this is called turns over to

wrongly (Fundamental attribution error) basically. Under it may

explain this kind of situation: When sells representative’s

achievement is not good, sales manager favors in it attributes the

subordinate lazy and is not the objective ambient condition

influence. The individual also has one kind of tendency therefore

to attribute own success internal factor like ability or diligently,

but attributes to the defeat the external factor like luck, this is

called the self-service prejudice (self-serving bias). From this

indicated that will possibly receive to staff’s achievements

appraisal turns over to because of the prejudice influence.
Because Kelly to turns over to the theory contribution to lie, he

proposed turns over to because of the process strict logic

analysis pattern, because turned over to the process to the

people to make quite careful, the reasonable analysis and the

explanation. But, his three degrees theories have also

encountered people’s criticism. These criticisms are mainly refers

to him to overemphasize turns over to because of the logics,

causes it to become an idealized the pattern, was separated from

the average person to turn over to the reality which, because

moved. The people in fact often cannot obtain the information

which this model requests, did not know somebody in before

similar situation behavior, also difficult to know that other

person’s in similar situation behavior, the experience indicated

that in many situations, the people regarding the event which

occurred, because was not observes, the collection enough

information then to carry on every way turns over to, but often

was the use certain fixed relations which formed in the experience

of life, according to own need, the expectation, relied on the

limited information, because to the behavior result economy,

made rapidly turns over to, but did not look like the statistician

such to carry on the tedious analysis to the information paper.

Because this is also the single clue which Kelly said turns over.

Therefore, Kelly afterward had performed the supplement and

the consummation to his theory. He proposed the causes and

effects scheme said that makes up three degrees theories the

insufficiencies. The so-called causes and effects scheme, is the

people forms in the daily life about each kind of phenomenon

between causal relation basic cognitive structure, because in

concrete turns over to the process, because this kind of cognitive

structure will be awakened by the special event participation

turns over to the behavior. Afterward, because Kelly turned over

to the theory for him to supplement several principles, namely

sold at a discount the principle, the enhancement principle and the

compensation principle. Because sells at a discount the principle

is refers to the people to turn over to regarding other people

behavior, possibly has several kind of suppositions beforehand, if

other as if possible reason also to appear, then supposes at the

first reason might not the entire letter, need to sell at a discount.

The enhancement principle is refers to, if the behavior occurs in

has continuously suppresses the reason to appear, then a

possibility’s promotive reason’s intensity will be understood high.

The compensation principle refers to the internal reason, the

external reason, the suppressant reason and the promotive reason

is compensates mutually regarding the result.
Function
Because turned over to the theory to propose the people, in

carried on some rules which to other people’s behavior in the

judgment and the interpreting followed, because in the

management process, the superintendent and the staff turned over

to the behavior also inevitably to receive these rules the influence.

The superintendent wants to realize that to the staff is according

to them to the thing subjective consciousness, but is not only the

objective reality makes the response. Because the staff regarding

the wage, higher authority’s appraisal, the work degree of

satisfaction, in aspect and so on organization’s position and

achievement consciousness with turns over to correctly or not,

has the material effect regarding its potential’s display and

organization’s good operation; Also at the same time, because the

superintendent when carries on the judgment and the explanation

to staff’s behavior should avoid turning over to the prejudice and

the error as far as possible.

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Expectancy Theory

  By admin | February 9, 2011 - 2:44 pm | Economy Leave a comment

Expectancy Theory, is called as “the titre – method – expectancy

theory”, North America renowned psychologist and behavior

scientist Victor · Froom (Victor H.Vroom) in 1964 the drive

theory which raised in “Work And Drive”. 　　The drive

(motivation) is decided by the motion result value appraisal (i.e.

“titre” valence) and its corresponding expected value

(expectancy) product: M = V * E
Expectancy theory premise
Froom’s expectancy theory is launches by the following two

premises: 　　
(1) people will decide subjectively each kind of motion expected

result value, therefore, each person will have respectively to the

result expectation by chance; 　　
(2) any to behavior drive explanation, not only need consider the

people must complete goal, must consider the people to obtain

the motion which result by chance adopts. Froom said that when

a person, in the result expected with difficulty when in many

feasible plans carries on the choice, his behavior not only receives

it to desired effects influence by chance, also receives him to

think these results possibly realize degree influence.
Expectancy theory basic content 　　Expectancy theory’s basic

content is mainly Froom’s expectation formula and the

expectation pattern: Expects the formula 　　Froom believed

that the human always earnestly seeks meets certain needs and

tries to achieve certain goal. This goal when not yet realizes, the

performance is one kind of expectation, by now the goal in turn

to individual motive was also one kind of stimulation strength, but

this stimulation strength’s size, is decided by the goal value (titre)

and the expectation probability (expected value) product. With

the formula expressed that is: M expresses the stimulation

strength, is refers to arouses a person’s enthusiasm, stimulates the

person interior potential the intensity. V expression goal value

(titre), this is a psychology concept, is refers to the achieve object

regarding the value which satisfies him to need. Same end,

because each person locates the environment is different, the

demand is different, its need’s goal value is also different. The

identical goal possibly has three kind of titres to each person: ,

Zero, negative. The titre is higher, the drive strength is bigger.

Some object like money, status, automobile and so on, if the

individual does not like, not being willing to gain, the goal titre

lowers, is small to person’s behavior’s drawing strength. Cites a

simple example, the baby must be bigger than to the candy goal

titre to the money goal titre. E is an expected value, is the people

according to experiences judges itself to achieve some kind of

goal the possibility is big or is small, namely can the achieve

object probability. The goal value size reflected directly person’s

need motive strong and the weak, expected the probability

reflected the human realizes needs with the motive confidence

strong and the weak. If the individual believed that through

definitely will make the outstanding progress diligently, the

expected value is high. 　　This formula showed: If a person

looks at very much in a big way some kind of goal’s value,

estimated can realize the probability is also very high, then this

goal stimulation motive’s strength is more intense. 　　After

development, the expectation formula expression is: Motive =

titre * expected value * utilizable. And: Utilizable is the non-

individual factor which refers to can help to realize personally,

like environment, quick way, duty tool and so on. For example:

Under the war conditions, the titre and the expected value are

again high, is also unable to enhance person’s motive normally;

Again for example: The Foreign-funded enterprise good work

environment, the equipment, the cultural system, attracts talented

person’s important attribute. [edition] expects the pattern 　　

How to enable the stimulation strength to achieve the best value,

Froom proposed person’s expectation pattern: 　　Individual -

-> individual performance (achievements) – -> the organization

rewards (reward) diligently – -> individual need 　　In this

expectation pattern’s four factors, need to give dual attention to

several aspects the relations. 　　
①Diligently with achievements relations. This both’s relations are

decided by the individual to the goal expected value. Whether is

the expected value decided by individuality tendency and so on

goal appropriate individual understanding, manner, belief, and

individual social position, others to his social factors and so on

expectation. Namely and individual subjective and objective

condition decided by the goal itself. 　　
②Achievements and reward relations. The people always

expected after achieving the anticipated result, can obtain the

suitable reasonable reward, like the bonus, the promotion,

promote, the praise and so on. Organization’s goal, if does not

have corresponding effective material and the spiritual reward

strengthens, as soon as the time is long, the enthusiasm will

vanish.
③The reward and individual needs to relate. Rewards anything

to suit each kind of person’s different need, must consider the

titre. Must adopt many kinds of forms the rewards, meets each

kind of needs, excavation person’s potential maximum limit, most

effective enhancement working efficiency. 　　
④Needs satisfying with new behavior power between relations.

After a person disappears can buy satisfies, he will produce

newly needs with to pursue the new expectation date sign. Needs

to obtain the satisfied psychology to urge him to produce the new

behavior power, and to achieves the new expectation goal to

have a higher enthusiasm.
expectancy theory practice significance 　　
The Buddha prosperous expectancy theory, regarding arouses

person’s enthusiasm effectively, mediates the ideology political

works, have certain inspiration and profit from the significance.

Because the expectancy theory is in the goal not yet realizes in

situation research aim to person’s motive influence. A good

superintendent, must study in any situation causes the expectation

to be bigger than the reality, causes the expectation in any

situation to be equal to the reality, by arouses person’s

enthusiasm well. 　　
In the ideology political works, should fully the research aim

establishment, the titre and the expectation probability to

stimulates the strength the influence. Because the different person

has the different goal, the identical goal, will also have the

different value to the different person. Only the concrete question

concrete study, can arouse each staff’s enthusiasm truly.
(1) goal establishment 　　
According to Buddha prosperous expectancy theory, to enable

the stimulation strength to achieve the desired effect, must first

pay attention to the goal the establishment. The psychology

believed that the appropriate goal can give the human to expect,

causes the human to produce the psychological power, thus

stimulates to have the positive behavior warmly. Therefore, when

establishes the goal, must consider the following two principles:

　　
First, the goal must relates with staff’s material want and the

spiritual needs, enables them to see from organization’s goal own

benefit, such titre is big. 　　
Second, must let the staff see the goal realizes the possibility is

very big, like this expected that the probability is high. 　　
In addition, when goal establishment, but should also consider the

following several points: 　　
1. must consider the organization goal and the staff individual goal

uniformity. Goal both organized goal, and has the goal which a

person pursues. Fundamentally speaking, the organization benefit

with the personal interest is consistent. But, because the staff

needs the individual differences, individual will often have own

specific objectives, therefore the organization goal and staff

individual goal both will have the uniformity, and will have the

difference. The superintendent wants to be good at causing staff’s

individual goal and the organization goal unifies, enables the

organization goal to contain staff more common demands,

enables more staffs to see own vital interest in the organization

goal, thus achieves the organization goal regards as is the matter

which is bound by a common cause with. 　　
2. must consider the goal the scientific nature. Generally

speaking, the goal should have the challenging, is higher than

individual ability suitably. But must pay attention, cuts cannot

cause the goal to be excessively high, in order to avoid creates in

psychological the setback, loses the win the confidence; Also

cannot cause the goal to be excessively low, in order to avoid

cannot blow up the working zeal, loses the internal power. 　　
3. must consider the goal gradualness. Organization’s general

objective, often makes the staff to feel that “remote”, should

divide into the general objective certain gradual small goal. At the

same time, the small goal easy to realize, thus raises staff’s

expectation probability; On the other hand, the small goal is

advantageous through the information feedback inspection carries

out, thus implements the effective orientation control, guides

gradually the staff the general goals which decides. 　　
4. must consider the goal the variability. After the goal sets up, on

the one hand must carry out earnestly, on the other hand must act

according to the situation the change, makes the suitable revision

or the adjustment to the goal, causes it even more tallied changed

subjective and objective condition, drove people’s positive

enterprising spirit well. Certainly, should also pay attention do not

adjust the goal frequently easily. Because of the too frequent

change, easy to reduce the goal in the people mind titre and the

expected value. Therefore, generally, should maintain the goal the

solemnity. 　　(two) titre function 　　
Front already pointed out that the similar goal, in the different

person’s mind, will often have the different titre, this will mainly be

by various people’s ideal, the faith, the values creates differently,

simultaneously also with person’s cultural level, the morality,

knowledge ability, the interest hobby as well as the individuality

characteristic will concern. Must understand “the titre”

comprehensively function and significance. The enterprise and the

staff cannot only look purely the goal the value “does have the

advantage to oneself” or “does have the advantage to the

enterprise”, but should also see the goal the value has how many

contributions to the society. If to the titre the understanding, limits

merely in “has the advantage to oneself”, very easy to cause the

human to step onto pursues individual fame and fortune the evil

ways, if the understanding is only “has the advantage to the titre

to the enterprise itself”, will course the enterprise the wrong road.

　　
Even if in capitalism world, enterprise’s goal titre, also cannot

embark purely from enterprise’s benefit, but does not consider

national the benefit. For example, Japan “Sumitomo” bank, in

one time recruits in the new staff member’s test, President the

cave group set a test question: “when the Sumitomo Bank and

the national both sides benefit has the conflict, you thought how

to manage is only then appropriate?”Many people reply: “should

consider from Sumitomo’s benefit.”The cave group to these

person’s evaluation is: “cannot enroll.”And many people reply:

“should take the national benefit as heavy.”The cave group

thought that this answer passes an examination, but is insufficient

to hire. Only the minority several person’s reply is: “the matter

which cannot both sides give dual attention regarding the national

interest and the Sumitomo benefit, Sumitomo does not bribe.”The

cave group thought that these person Zhuo You the experience,

hired them. A capitalist country financial group in consideration

titre time, in addition could the paramount consideration country

benefit, in the socialist countries enterprise, be supposed as to be

heavy take the national interest. 　　
(three) expected value estimate 　　
The expected value estimate, namely to realizes the goal possible

size estimate. Should appropriately to the expected value

estimate. Will overestimate blindly optimistic, could not realize,

easy to receive the psychological setback; Underestimates easily

to be discouraged pessimistically, will affect the confidence, will

relax diligently. 　　
To the expected value estimate, between the human and the

human also has the very big difference, this mainly with factors

and so on person’s interest, desire, knowledge, ability and

experience of life concerns. Generally speaking if the goal

conforms to the law of development of society, does not

divorced from the current reality, achieves the possibility is big, in

this case, must try to enhance the staff “the expected value”,

raises the morale, the enhancement confidence. On the contrary,

if the goal violates the law of development of society, must

persuade and guides the staff lower “the expected value”, until

gives up this goal finally. 　　
In order to achieve the organization goal, takes the

superintendent or the leader, both must try to enhance the goal in

the staff mind titre, and must try to enhance the staff to the goal

expected value, in addition, but should also take the practical and

feasible measure, establishes the effective guarantee system, only

then like this, can enhance as a whole realizes the goal biggest

possibility.
The value of Expectancy theory application
 　　Froom proposed the expectancy theory is as follows in

personnel management’s actual value: 　　
①The superintendent should simultaneously pay attention to the

enhancement expectation probability and the titre. Takes

seriously to drive that merely is one-sided, should pay attention to

the enhancement staff’s quality, including improves their thought

quality and professional ability, through enhances them to raise

the drive level to own expectation probability, the creation high

achievements goal. 　　
②The superintendent should enhance to the achievements and

the reward relatedness understanding, unifies closely the

achievements and the reward. The achievements and the reward

relation is closer, plans the goal which realizes to be able to

satisfy the degree relative enhancement which needs the

stimulator, the goal to receives stimulator’s attraction also

relatively to enlarge, the level which drove also relatively

enhances. 　　
③The superintendent should unifies the material reward and the

spiritual reward. The expectancy theory indicated that the goal

attraction with individual needs to concern. The value differences

will have the difference which will need. Therefore, the

superintendent should understand that own management object,

in the possible situation, to adopt multiplex target-oriented the

reward form, causes organization’s reward to tally to a certain

extent with staff’s desire.
Expectancy theory in Secretary in work drive application
　The expectancy theory takes one kind of very influential drive

theory, has the very strong practice significance, it is not only

suitable for the business management is suitable Secretary Yu the

work drive. In the work drive applies the expectancy theory in

secretary, must pay attention to the following several questions:

　　First, the goal can drive will of the people. 　　In the work

drive applies the expectancy theory in secretary, first should

determine the appropriate goal. “the appropriate goal will give the

human to expect that will cause the human to produce the

psychological power, the stimulation enthusiasm, the guidance

behavior, therefore the goal determination will be an important

link”. According to drive theory, in the establishment drive must

achieve when goal, should consider two spots specially. First, the

goal must personnel’s material want and the spiritual needs relates

with secretary, enables them to see own benefit from the

organization goal, will thus organize to expect that the goal unifies

with individual pursue goal; Second, must let secretary the

personnel think that the goal is possibly realizes. Causes them to

think that the goal is an ideal, but non-fantasy, thus goal

possibility and reality hope unification. The goal has achieved

these two unifications, can be exciting, transfers secretary

personnel’s enthusiasm, to achieve the goal to try hard. 　　

Second, titre proper attention to both organization and individual.

　　The goal is the same, but in people mind titre possible

different,” may be just, zero value, the negative value, will also

have the size, the height leaving of”. These different, is each

person’s values, needs with the motive as well as the cultural

level, the morality, knowledge ability; The individuality

characteristic decides. Must appraise the titre comprehensively.

Must unify the social meaning with individual significance. In

works to secretary in drive, some goal value size, namely titre

high low, the appraisal standard already should be to society’s

contribution and to secretary personnel’s benefit, the two proper

attention to both or the unification harmonious titre are high,

otherwise, the titre lowers. 　　
Third, the expected value estimate is appropriate. 　　
To secretary in personnel’s drive, wants the height to the

expected value estimate to be appropriate, this is only then

advantageous to the drive normal development, and makes the

good drive progress. Expected value Gao Huo has been

excessively low, does not favor drive the normal development,

also difficult to have the drive function. To expects overestimates,

difficulty with realizes, the psychological setback, underestimates

easily to the expectation, because of pessimistic will be

discouraged, affects the confidence. Two kind of situations both

do not favor arouse people’s enthusiasm, cannot achieve the

drive effect.

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Placebo Effect

  By admin | February 6, 2011 - 9:53 am | Economy Leave a comment

The Placebo Effect is the measurable, observable, or felt improvement in health or behavior not attributable to a medication or invasive treatment that has been administered.

Placebo effects can arise not only from a conscious belief in a drug but also from subconscious associations between recovery and the experience of being treated—from the pinch of a shot to a doctor’s white coat. Such subliminal conditioning can control bodily processes of which we are unaware, such as immune responses and the release of hormones.

When a treatment is based on a known inactive substance like a sugar pill, distilled water, or saline solution rather than having real medical value, a patient may still improve merely because their expectation to do so is so strong. To eliminate the effect of positive thinking on clinical trials, researchers often run double-blind, placebo-controlled studies.

A placebo (Latin: I shall please)[2] is a sham or simulated medical intervention that can produce a (perceived or actual) improvement, called a placebo effect.

In medical research, placebos depend on the use of controlled and measured deception. Common placebos are inert tablets, sham surgery,[3] and other procedures based on false information. However, placebo can surprisingly also have a positive effect on a patient who knows very well that their treatment is without any active drug, as compared with a control group who knowingly did not get a placebo

Fast Facts About the Placebo Effect:

  • The word placebo literally means “I will please” in Latin.
  • The first known double-blind placebo-controlled trial was done in 1907.
  • The FDA doesn’t require that a drug study include a placebo control group, however, the placebo-controlled trial has long been the standard.
  • The NIH is funding several studies related to the placebo effect.

Sources: Placebo Effect, Robert Todd Carroll, The Skeptic’s Dictionary, Skepdic.com, The Mysterious Placebo Effect, by Carol Hart, American Chemical Society, Modern Drug Discovery, July/August 1999: The Healing Power of Placebos, by Tamar Nordenberg, FDA Consumer magazine

How to Use Placebo Effect

If you’re in medicine or any of the healing arts, you certainly know the placebo effect. You’ve may have even used it — treating an imagined condition with sugar pills, or a dose of Alan Greenspan-speak that the patient can’t really follow except the part where you say, “…it will be better in a few days.” And, miraculously, it is. Some might call this placebo effect a deception — and it is. Others may say it’s mind-over-matter — and it is. It’s a conundrum called the placebo paradox meaning: it’s unethical to use a placebo, but it also unethical not to use something that heals.

Since most of us are not in the healing business, the opportunity to test this paradox doesn’t often pop up. So when Jerry Weintraub show us an effective use of a placebo in business and relationships — it’s worth noting.

If you live outside of Southern California, are not in the entertainment business and don’t read movie credits, you’ve probably never heard of Jerry Weintraub. But you’ve seen movies he’s produced: Nashville, Diner, Oh God(s), The Karate Kid(s) and Oceans 11, 12 and 13 — he likes sequels. And, if you’ve ever seen Elvis, Sinatra, Led Zeppelin, The Carpenters or Neil Diamond in concert, Weintraub was there. Jerry is the guy behind the guy who sings the songs. When you deal with so many high profile artists, many of whom tip the scale towards abundant narcissism, Weintraub’s masterful use of the placebo is instructive.

In his very engaging memoir, When I Stop Talking, You’ll Know I’m Dead: Useful Stories from a Persuasive Man, Weintraub tells about his former client, John Denver, the singer-song writer with a pre-Beiber hairstyle. Denver was an unknown performer getting $70 a show in Greenwich Village. Weintraub signs him and turns him into a mega-watt star. One time, while Denver is on a European concert tour, word gets back that John is not happy and is threatening to fire Weintraub. The L.A. agent drops everything, flies over to Europe to find out why his star is grumpy.

“It’s the tour,” grumps Denver, “The hotel stinks, the food is no good, the venues are just awful and the sound system is terrible. I think I have to let you go.” A calm Weintraub asks for four hours to fix the problem.

Four hours later, the agent returns and announces the problem is solved, “I fired Fergusun.”

“Who’s Fergusun?” asks Denver?

“You had hotel, food, venue and sound problems? Fergusun was in charge of all of that. I fired him.”

The singer, who didn’t know Fergusun, was filed with guilt that he got the poor guy fired and right before Christmas.

Weintraub thought about it and suggested that instead of firing Fergusun, maybe he should just move him to another part of the business, away from people. “Hide him,” says the agent.

“Yeah, I feel a lot better about that,” sighs the relieved artist.

The next night Weintraub asks how the sound and the show went. “Oh much better,” says a happy Denver, “I could tell the difference right away. I’m glad we could fix it without firing Fergusun.” Of course, there was no Fergusun.

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