Michel Foucault's essay "Panopticism" discusses the Panopticon prison structure designed by Jeremy Bentham. The Panopticon allows a guard in a central tower to observe all prisoners in peripheral cells without the prisoners knowing if they are being watched. Foucault argues this creates self-discipline as prisoners internalize this constant surveillance. He asserts modern institutions like schools, hospitals and factories also function as Panopticons, using observation to monitor and control individuals.