The decline in employee morale has even taken place because practitioners are putting in more effort and the rewards for their hard work are not equal to their efforts. The duty of the managers of the industry is to provide incentives to employees in accordance with the effort invested by employees. The academic disciplines of psychology and sociology are of utmost importance to a manager of the 21st century. This is because the managers do not only have to understand the psychology of the employees working under him; he/she even has to give importance to the psychology of the patients of the healthcare institute. Sociological factors such as culture have a major impact on what an employee is all about.
Understanding of this discipline will help the manager manage employees according to employee’s cultural background. Hawthorne effect refers to an increase in the level of the productivity of an individual when he is being studied on an individual basis (Kazandjian, 1999). This effect is still operational in the health care settings when employees of the health care settings, especially the nurses are praised for helping out patients even when they are not being paid well, employees feel that their efforts are being recognized and they feel motivated to put in more efforts.