Management of influence. Neoclassical tools – contemporary problems

Journal Title: International Journal of Contemporary Management - Year 2012, Vol 11, Issue 3

Abstract

The task of this paper is a sociological analysis of influence based on the theory of Tal-cott Parsons. A thesis that his theory continues to be a valuable research tool is put forward. Influence forms one of the means of control for human economic behavior. Moreover, it may improve the effectiveness of management in many areas. Influence belongs to the “soft” techniques affecting human action and when putting it into practice one may encounter difficul¬ties. To maintain the effectiveness of influence a state of equilibrium is needed. In this paper some conditions of balance between influence and confidence are discussed. For example, in the state of equilibrium consumers receive full information verified by experts. Lack of bal¬ance may cause the inflation or deflation of influence. In the state of inflation in question, information is insufficiently verified or even manipulated. The deflation of influence means a deficit of information. Furthermore, the main condition of balance between the influence of experts and the confi¬dence of investors is shown. In the state of equilibrium, proxy signs provided by experts should reflect the real state of affairs. Positive ratings given by Standard@Poor’s, Moody’s and Fitch agencies during the collapse of the Lehman Brothers bank is treated as an example of the inflation of influence. On the other hand, the bankruptcy of the last National Bank in 1932, called by R.Merton “self-fulfilling prophecy”, shows the deflation of expert influence.

Authors and Affiliations

Przemysław Wechta

Keywords

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  • EP ID EP58126
  • DOI -
  • Views 118
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How To Cite

Przemysław Wechta (2012). Management of influence. Neoclassical tools – contemporary problems. International Journal of Contemporary Management, 11(3), 25-30. https://www.europub.co.uk/articles/-A-58126