If you keep on criticising someone, however talented and capable they are their performance levels will go down. This is because of the fact that they are demotivated by repeated criticism.
This is called Pygmy effect. The word Pygmy metaphorises the reduction in motivation. This is observed in animals also. Keep on beating your pet dog, you will see its activity level going down.
When someone is criticised always, there are two possibilities for the individual. He can either feel that he is not doing the job properly and consider himself a misfit for that job or he can loose all his interest on the job. Either way, it is a reduction in performance.
Alternatively, it is better to appreciate individuals when they do the job correctly sometimes. This will prepare them to take up the criticisms when they don’t do the job properly.
The effect of Pygmy effect can be reversed by focussing on the occasions when an individual does a good job. More such occasions amidst few necessary criticisms, will keep up the interest towards the job. The opposite effect of Pygmy effect is called Pygmalion effect.
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