Posts Tagged ‘economics’

The phenomenon of Micro-finance in the developing world provides valuable insights into people’s attitudes to risk, in particular why seemingly irrational behaviour is in fact perfectly rational once seen within an individual context.

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What Is Social Capital?

Social Capital is a concept that comes from economics. It can be defined as a combination of the number of relationships some one has, the economic usefulness to them of those relationships and the quality of them: effectively, how well known someone is, in what circles, and with what degree of affection. It is the social capital in an organisation that means that we care about the effect our work will have on the next part of the production chain, rather than slinging substandard work over the functional line saying, ‘done my bit, their problem now’.

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In any organisation there is always a variety of tools available to managers to influence staff towards desired behaviour. This has traditionally been seen as a choice between two general approaches: incentives and coercion, or, the carrot or stick approach.

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