This document provides an overview of different theories of wages. It discusses subsistence theory, which states that wages will tend toward the minimum needed to keep workers alive. Wages fund theory argues wages are paid from a predetermined fund. Surplus value theory says workers are paid less than the value they create, with the surplus going to expenses. Residual claimant theory views labor as the residual claimant to the value created after other factors are paid. Marginal productivity theory holds that wages are determined by how much value workers add at the margin.

1. 34
11.324
©
Copy
Right:
Rai
University
COMPENSATION MANAGEMENT
Learning Objectives
•
To further understand the concept of wages
•
To understand different Theory of wages
•
To know the relation between Labour and Wages
Wages
Wages in the widest sense mean any economic compensation
paid by the employer under some contrast to his workers for
the services rendered by them. Wages, therefore, include family
allowance, relief pay, fi
nancial support and other benefits.
But, in the narrower Sense wages are the price paid for the
services of labor in the process of production and include only
the performance wages or wages proper. They are composed of
two parts - the basic wage and other allowances.
The basic wage is the remuneration, by way of basic salary and
allowances, which is paid or payable to an employee in terms of
his contract of employment for the work done by him.
Allowances, on the other hand, are paid in addition to the basic
wage to maintain the value of basic wages over a period of
time.
Such allowances include holiday pay, overtime pay, bonus and
social security benefits. These are usually not included in the
definition of wages.
However, in India, different Acts include different items under
wages, though all the Acts include basic wage and dearness
allow come under the term wages. For example, under the

2. Workmen’s Compensation Act, 1923, Section 2 (m), “wages for
leave period, holiday pay, overtime pay, bonus, attendance
bonus, and good conduct bonus” form part of wages.
Under the payment of wages act, 1936 section 2 (VI) “any
award of settlement and production bonus, if paid, constitutes
wages.”
But under the Payment of Wages Act, 1948, “retrenchment
compensation, payment in lieu of notice and gratuity payable
on discharge constitute wages.”
The following type of remuneration, if paid, do not amount to
wages under any of the Acts:
(i) Bonus or other payments under a profit-sharing scheme
which do not form a part of the contract of employment.
(ii)Value of any house accommodation, supply of light, water,
medical attendance, traveling allowance; or -payment in lieu
thereof or any other concession.
(iii) Any sum paid to defray special expenses entailed by the
nature of the employment of a workman.
(iv) Any contribution to pension, provident fund, or a scheme
of social security and social insurance benefits.
(v) Any other amenity or service excluded from the
computation of wages by a general or special order of an
appropriate governmental authority.
A wage level is an average of the rates paid for the jobs of an
organization, an establishment, a labour market, an industry, a
region or a nation. A wage structure is a hierarchy of jobs to
which wage rates have been attached.
Labor and Wages
The type of job one does and the financial compensation he or
she receives are very important in our society. Job type is linked
to status as is wealth. While the type of job one performs is
arguably more important status wise then wealth, both are
important to Americans.
In the past we used to use other descriptions to classify
workers. The terms blue collar or white collar employees were
used to describe the type of vocation.
Blue Collar - Manual laborers
White Collar - Officer workers
Pink Collar - Jobs associated with women like nursing,
secretarial, etc. This being a rather sexist term, is no longer used.

3. Today we classify our work roles into three categories called
labor grades. The se labor grades are described below:
Skilled
Labor
These are workers who have received specialized training to do
their jobs. They have developed and honed a special skill and
may or may not need to be licensed of certified by the state.
Some examples of skilled labor are: carpenters, plumbers,
electricians, business executives and managers, artisans,
accountants, engineers, police, mechanics, etc. These may be blue
or white collar workers.
Unskilled
Labor
These are workers who have received no special training and
have few specific skills. As our society has grown into an
increasingly technological one, the members of this group have
developed more and more skills. A mechanic, for example, used
to be considered unskilled labor.
Today that is no longer the case. Mechanics require a great deal
of skill and training to work with today’s modern engines.
Examples of unskilled laborers are construction workers,
sanitation and custodial workers, painters, factory assembly line
workers, etc. These are blue collar workers.
Professionals
Arguably the elite of the labor grades, these are those workers
who need an advanced degree to do their jobs. The three
primary groups of professional are doctors, lawyers and
teachers. These are white collar workers.
LESSON 8:
INTRODUCTION TO THE THEORY
OF WAGES
©
Copy
Right:
Rai
University
11.324
35
COMPENSATION MANAGEMENT
These labor grades are often said to be non competing labor

4. grades because workers rarely move from one grade to another
and do not compete salary wise with each other. There are
reasons why they do not compete with each other.
The cost of education and training may be a significant obstacle.
They might lack the opportunity to make such a move and they
might also have a lack of initiative.
Theory of wages
There are two key theories that explain why salaries are the way
they are in a particular field. These two theories are:
1.Traditional Theory of Wage Determination
In this theory the law of supply and demand dictates salary.
These days programmers are in short supply and are in great
demand thus they will command a higher salary.
Likewise doctors and lawyers whose specialized skills people
need command a high wage. If you looked at the bill my
electrician gave me you would know he is in demand!
2.Theory of Negotiated Wages
Those employees who work in unions where the union
negotiates salary on behalf of all workers fit into this theory.
Since I am a teacher my salary is set by collective bargaining with
my union. I may be the best teacher in the world sought after
by many students and parents but it wouldn’t matter.
However, different methods of wage payment are prevalent in
different industries and in various countries. There may be
payment by time or payment by results, including payment at
piece rates.
Wages are fixed mainly as a result of individual bargaining,
collective bargaining or by public or State regulation. How wages
are determined has been the subject of several theories of
wages. The main elements in these theories may be summed up
as follows:
Below is mentioned the theory of Wages:
(1) Subsistence theory
(2) Wages fund theory
(3) The surplus value theory of wages
(4) Residual claimant theory
(5) Marginal productivity theory
(6) The bargaining theory of wages
(7) Behavioural theories
Now let us discuss the theory of Wages in detail:

5. (1)
Subsistence
theory
This theory, also known as ‘Iron Law of Wages,” was
propounded by David Ricardo (1772-1823). This theory (1817)
states that: “The laborers are paid to enable them to subsist and
perpetuate the race without increase or diminution.”
The theory was based on the assumption that if the workers
were paid more than subsistence wage, their numbers would
increase as they would procreate more; and this would bring
down the rate of wages.
If the wages fall below the subsistence level, the number of
workers would decrease - as many would die of hunger,
malnutrition, disease, cold, etc. and many would not marry,
when that happened the wage rates would go up.
In economics, the subsistence theory of wages states that wages
in the long run will tend to the minimum value needed to keep
workers alive. The justification for the theory is that when wages
are higher, more workers will be produced, and when wages are
lower, some workers will die, in each case bringing supply back
to a subistence-level equilibrium.
The subsistence theory of wages is generally attributed to David
Ricardo, and plays a large role in Marxist economics. Most
modern economists dismiss the theory,
arguing instead that
wages in a market economy are determined by marginal
productivity
2. Wages fund Theory
This theory was developed by Adam Smith (1723-1790). His
basic assumption was that wages are paid out of a pre-
determined fund of wealth which lay surplus with wealthy
persons - as a result of savings.
This fund could be utilized for employing laborers for work. If
the fund was large, wages would be high; if it was small, wages
would be reduced to the subsistence level. The demand for
labour and the wages that could be paid them were determined
by the size of the fund.
3.The Surplus value theory of Wages
This theory owes its development to Karl Marx (1818-1883).
According to this theory, the labour was an article of commerce,

6. which could be purchased on payment of ‘subsistence. price.’
The price of any product was determined by the labour time
needed for producing it. The labourer was not paid in
proportion to the time spent on work, but much less, and the
surplus went over, to be utilized for paying other expenses.
Marx himself considered his theory of surplus-value his most
important contribution to the progress of economic analysis
(Marx, letter to Engels of 24 August 1867).
It is through this theory that the wide scope of his sociological
and historical thought enables him simultaneously to place the
capitalist mode of production in his historical context, and to
find the root of its inner economic contradictions and its laws
of motion in the specific relations of production on which it is
based.
4.Residual
claimant
Theory
Francis A. Walker (1840-1897) propounded this theory.
According to him, there were four factors of production/
business activity, viz., land, la
bour, capital and entrepreneurship.
Wages represent the amount of value created in the production,
which remains after payment has been made for all these factors
of production. In other words, labour is the residual claimant.
5.Marginal productivity Theory
This theory was developed by Phillips Henry Wicksteed
(England) and John Bates Clark (USA). According to this
theory, wages are based upon an entrepreneur’s estimate of the
value that will probably be produced by the last or marginal
36
11.324
©
Copy
Right:
Rai
University
COMPENSATION MANAGEMENT
worker. In
other words, it assumes that wages depend upon
the demand for, and supply of, labour.
Consequently, workers are paid what they are economically

7. worth. The result is that the employer has a larger share in profit
as has not to pay to the non-marginal workers. As long as each
additional worker contributes more to the total value than the
cost in wages, it pays the employer to continue hiring; where
this becomes uneconomic, the employer may resort to superior
technology.
6.The bargaining theory of wages
John Davidson propounded this theory. Under this theory,
wages are determined by the relative bargaining power of
workers or trade unions and of employers. When a trade union
is involved, basic wages, fringe benefits, job differentials and
individual differences tend to be determined by the relative
strength of the organization and the trade union.
7.Behavioural
theories
Many behavioral scientists - notably industrial psychologists and
sociologists like Marsh and Simon, Robert Dubin, Eliot Jacques
have presented their views or wages and salaries, on the basis of
research studies and action programmes conducted by them.
Briefly such theories are:
The Employee’s Acceptance of a Wage Level
This type of thinking takes into consideration the factors, which
may induce an employee to stay on with a company. The size
and prestige of the company, the power of the union, the
wages and benefits that the employee receives in proportion to
the contribution made by him - all have their impact.
The Internal Wage Structure
Social norms, traditions, customs prevalent in the organization
and psychological pressures on the management, the prestige
attached to certain jobs in terms of social status, the need to
maintain internal consistency in wages at the higher levels, the
ratio of the maximum and minimum wage differentials, and
the norms of span of control, and demand for specialized
labour all affect the internal wage structure of an organization.
Wage and Salaries and Motivators
Money often is looked upon as means of fulfilling the most
basic needs of man. Food, clothing, shelter, transportation,
insurance, pension plans, education and other physical
maintenance and security factors are made available through the
purchasing power provided by monetary income - wages and

8. salaries.
Merit increases, bonuses based on performance, and other
forms of monetary recognition for achievement are genuine
motivators. However, basic pay, cost of living increases, and
other wage increases unrelated to an individual’s own
productivity typically may fall into maintenance category.
Assignments
1. Explain the importance of the theory of wages.
2. State the difference between blue collar, white collar and pink-
collar employees.
3. What are the different types of theory of wages? Explain in
detail.
Case Study
Breaking The Bargaining Pattern
Gilson steel is a local fabricating and supply firm. Situated in
open country, far from the large steel making centers. The firm
has been in business many years.
About the third of employees have worked in the organization
for more than ten years.Top management would like to get
away from the current practice in which negotiations on wage
matters and fringes follow the pattern.
The firms president feels that industry – wide bargaining tends
to divorce employees from the firm . He thinks they feel that
their employer is a combination of U.S steel and bethlem
steel instead of Gilson . he argues that the local firm which
has prospered , can do better by employees than is possible
in national pattern . he says that the local conditions should
be taken into account . his basic objection to current practice ,
however , is his conviction that it tends to divorce its
employees from local employer. The labour relations manager
has been urged to try negotiating terms at variance with the
national pattern .
Answer the following questions:
•
What theory and policy do you read into the presidents
suggestion?
•
How will his ideas fit into the existing pattern of public
union policy?
•

9. Can you suggest a promising innovative approach

10. http://www.hetsa.org.au/pdf/36-A-04.pdf
Hicks’s
The Theory Of Wages:
Its Place in the History of
Neoclassical Distribution Theory
Paul Flatau*
Abstract:
Argues that J.R. Hicks’s 1932 book,
The Theory of Wages
,
foreshadows a number of important later developments in Hicks’s theory,
including
some significant contributions to neoclassical distribution theory. These
developments include a reformulation of marginal productivity theory; the
introduction of the elasticity of substitution as an analytical tool;
contributions to
the product exhaustion theorem; an economic analysis of strikes; and a
macroeconomic theory of relative fact
or shares. Concludes that Hicks’s own
subsequent rejection of the book was unduly self-critical.
1 Introduction
Hicks’s
The Theory of Wages
was published some 70 years ago now, in 1932. At
the time of publication, Hicks believed that there had been little
development, over
the preceding thirty years, in neoclassical
distribution theory. He was also clear in
his view of the place of
The Theory of Wages
in the history of wages theory: ‘The

11. task which is attempted in this book is a restatement of the theory of
wages’ (Hicks
1932a, p. v). He goes on to suggest that
the ‘most recent comprehensive statements
of a positive theory of wages in English

of anything more than an elementary
character

are now thirty or forty years old’ (Hicks 1932a, p. v). He cites
Marshall’s
Principles
of Economics
(1890 [1961]) and Clark’s
The Distribution of
Wealth
(1899) as his key reference points
.
1
In contrast with this bullish contemporaneous assessment of
The Theory of
Wages
, Hicks turned against his work, first in his paper ‘Wages and interest: the
dynamic problem’ (Hicks 1935b), and then again some thirty years later in
his
commentary on his book (Hicks 1963). As he suggested in the 1963
reprinting of
The Theory of Wages
: ‘I let it go out of print because my own views upon its
subject had changed so much that I no longer desired to be represented by
it’ (Hicks
1963, p. v). He refers to the book as a ‘juvenile work, which (almost at
once) I felt
myself to have outgrown’ (Hicks 1963, pp. 310-11). In his 1963
commentary, he

12. dates his own revolution in thinking about wages and distributional
questions (and
more besides) to 1933, the year after
The Theory of Wages
was published, marking
off the work as one that could safely be left to one side. His revolution
relates to his
movement to a dynamic framework structured around the ‘Monday week’
model.
As Samuels (1993) points out, however, Hicks consistently displayed
considerable
modesty about his past contributions and was continually reassessing his
past work
in line with his current beliefs and interests. Unfortunately, too many
commentators
have taken Hicks at his word and tend to pass too quickly over the Hicks of
The
Theory of Wages.
In this paper we return
once again to Hicks’s
The Theory of Wages
. Its aim
is to provide an assessment of its importance to the development of
neoclassical
wages and distribution theory. We pose two sets of questions. First, did
The Theory
of Wages
add significantly to extant neoclassical distribution theory? Did
The
Hicks’s Theory of Wages 45
_____________________________________________________________________
__________
Theory of Wages
provide an important restatement of wages theory as claimed by
Hicks at the time of its publication in 1932, or did it represent a minor
work? How

13. important was
The Theory of Wages
to the subsequent trajectory of neoclassical
distribution theory? Second, what was the importance of
The Theory of Wages
to
the future development of Hicks as an economic theorist, and, in particular,
to the
later development of
Value and Capital
? Can we largely ignore it, accepting a
conclusion that the revolution in Hicks’s thinking occurred in 1933?
This paper argues that Hicks’s
The Theory of Wages
provides important
precursors for developments in Hicksian theory, which were soon to follow
in
Value and Capital
(Hicks 1939a), and developed a number of significant
contributions to neoclassical distribution theory. These contributions
included a
resetting of marginal productivity theory, the introduction of the elasticity
of
substitution tool, contributions to the product exhaustion theorem, the
development
of a theory of wages in the context of strike action, and the provision of a
macroeconomic determination of relative factor shares. Mention should
also be
made of his study of the workings of the labour market, which were, sadly,
largely
ignored (both by Hicks himself and other neoclassical theorists) in the
continued
push to formalism and abstraction until
the New Keynesian developments in the
1980s. These contributions need to be highlighted so as to balance the
ledger, given

14. Hicks’s own largely negative assessment of
the work; a view, as suggested, that is
too often accepted uncritically by modern readers.
2
Section 2 of the paper considers Hicks’
s treatment of marginal productivity
theory in
The Theory of Wages
. There is, perhaps, as much interest in what Hicks
brings to neoclassical distribution theory as in what he did not in the early
chapters
of the book. Hicks, perhaps more than any
other theorist within a broad neoclassical
tradition, emphasised the role of the substitution between methods of
production
(and thus between factors of production) and the distinction between scale
of output
and variations in proportions of factor use for a given scale. This led to the
design
of the elasticity of substitution tool. Hamouda (1993), Kennedy (1994) and
Rothschild (1994) all provide excellent reviews of this development, and
we shall
have less to say than otherwise as a result. What Hicks left out was a
presentation
of the marginal productivity doctrine in a generalised form, one which
allowed for
imperfect competition. It was Shove ([1933] 1989) who took Hicks to task
for not
presenting a general marginal productivity theory of distribution, but it is
the
subtext of Shove’s critique which interests us as much as anything else.
Was
imperfect competition theory all there in Marshall? What exactly was Joan
Robinson’s contribution to imperfect competition theory?
Section 3 considers Hicks’s contributions to labour supply theory, while

15. his analysis of the workings of the labour market is discussed in section 4.
There
are three crucial features of Hicks on
the workings of the labour market in
The
Theory of Wages
. First, his emphasis on the role of adjustment processes, time and
foresight, which provides an early precursor to the dynamic analysis that
followed
in arguably Hicks’s most
famous work, the 1939
Value and Capital
. Second, the
importance Hicks attaches to the social na
ture of the labour market, a theme Hicks
returned to but much later in his life. Third, the role Hicks assigns, in the
determination of wage outcomes, to organisational and legal structures in
the labour
market. The linkages between Hicks’s early work on themes and
subsequent
developments in New Keynesian theory are given some attention in these
two
sections.

16. http://arxiv.org/ftp/arxiv/papers/1112/1112.2127.pdf
Efficiency Theory
:
a
Unif
ying
Theory
for
Information
,
Computation
and Intelligence
Roman V. Yampolskiy
Computer Engineering and Computer Science
University of Louisville, USA
roman.yampolskiy@louisvil
le.edu

17. Abstract
The paper serves as the first contribution towards
the
development of the theory of efficiency
:
a
unifying
framework for the currently disjoint theories of information,
complexity,
communication and computation. Realizing
the
defining nat
ure of the brute force approach in the
fundamental concepts in all of the above mentioned fields
,
the paper suggests using efficiency or
improvement
over the brute force algorithm
as a common unifying factor
necessary for the
creation of a unified theory
o
f
information manipulation
. By defining such
diverse terms as
randomness, knowledge, intelligence
and
computability in terms of a common denominator we
are able to bring together contributions from Shannon,
Levin,

18. Kolmogorov, Solomon
o
ff, Chaitin,
Yao
and m
any others
under
a
common umbrella of the
e
fficiency
t
heory.
Keywords:
Brute Force,
Computability, Computation, Information, Intelligence,
Knowledge.
Introduction
The quest for a Unified Theory of Everything
(UTE)
is well known to be a central goal in
natural
sciences. In recent years a similar aspiration
to find a Unified Theory of Information (UTI)
has
been observed in computational sciences
[
1
-
13
]

19. .
Despite
numerous attempts
,
no
such theory has
been discovered and the quest to unify Shannon’s
Information Theory
[
14
]
, Ko
l
mogoro
v
-
Chaitin
Complexity theory
[
15
,
16
]
,
Solomonoff
’s Algorithmic Information Theory
[
17
]
and
Yao’s

20. Communication complexity
[
18
]
,
as well as concepts of
intelligence
and
knowledge
continues. In
this paper we present
a
novel set of definitions for
information and computation related concepts
and theories which is based on a common concept of
efficiency. We show that a common threa
d
exists and that future
efforts
could succeed in formalizing our intuitive notions.
We further show
some examples of ho
w the proposed theory could be used to develop
interesting variations on the
current algorithms in communication
and data
compression
.
Efficiency Theory
The proposed Efficiency Theory
(EF)

21. is derived with respect to the universal algorithm know
n
as
the “
brute force” approach.
Brute Force
(BF)
is
an approach to solving difficult computational
problems by considering every possible answer.
BF is a
n extremely inefficient way of solving
problems
and
is usually considered inapplicable in practice to instances
of difficult problems of
non
-
trivial size.
It is a
n amazing and underappreciated fact that th
is
simplest to discover,
understand and implement algorithm also produces the
most accurate (not approximate)
solutions to the set of all difficult computational p
roblems (NP
-
Hard,
NP
-

22. Complete,
etc.).
In this
paper we
consider
BF
in
an even broader
context
, namely, BF could be
inefficient in other ways,
for example
representing otherwise compressible text strings by
specifying every symbol
.
Efficiency
in general de
scribes the extent to which
resources such as
time
, space, energy, etc. are
well used for the intended task or purpose.
In complexity theory
it is
a property of algorithms for
solving
problems which require
at most
a number of steps (or memory location
s
) b

23. ounded from
above by some polynomial function to be solved.
The size of the problem instance is
considered
in determining the bounding function.
Typically efficiency of an algorithm could be
improved
at
the
cost of solution quality
. This often happens
in c
ases
w
here approximate solutions are
acceptable.
We also interpret efficiency to mean shorter
representations of
redundant
data
string
.
Essentially
,
EF measures how far can we get away from the BF in
terms of finding quick
algorithms for difficult problems
studied in Complexity Theory (Levin
[
19
]

24. , Cook
[
20
]
, Karp
[
21
]
, etc.) as well as towards discovering succinct string
encodings (Shannon
[
14
]
, Kolmogorov
[
15
]
, S
olomonoff
[
17
]
, C
haitin
[
17
]
). Man
y fundamental notions related to information and
computation could be naturally formalized in terms of their
relevance to BF or efficiency.

25. Information and Knowledge
I
nformation
is a poorly understood concept and can be
analyzed
by different researchers
from
very different
domain specific
points of view
[
2
]
. Pervez assembled the follow
ing collection of
definitions for the concept of information from over 20
different
studies
[
22
]
:
•
data
that
can be understood as a commodity or
physical resource
•
s
ignal, code,
symbol

26. ,
message
or
medium
•
formal or recovered knowledge
•
subjective or
personal knowledge
•
thinking, cognition,
and memory
•
technology
•
text
•
uncertainty
reduction
•
linkage betwee
n living organisms and their
environment
•
product of
social interaction that has a structure capable of changing
the image
structure
of a recipient
•

27. as
a stimulus
,
information facilitates learning and acts as means for
regulation and control
in society
Hof
kirchner
[
1
]
believes that the concept of informatio
n overlaps a number of concepts
including: structure, data, signal, message, signification,
meaning, sense, sign, sign process,
semiosis, psyche, intelligence, perception, thought,
language, knowledge, consciousness, mind,
and
wisdom.
Ever since Shannon
presented his information theory
,
different approaches to measuring
information have been suggested: Langefors’ infological
equation
[
23
]
, Brookes’ fundamental
equation
[

28. 24
]
, Semantic Information Theory
[
25
]
, and many others
.
In t
he proposed
Efficiency
T
heory,
i
nformation
(Shannon
[
14
]
,
Hartley
[
26
]
,
Kelly
[
27
]
)
measures how

29. inefficiently
knowledge
(or specified information)
is represented
.
(
A special ty
pe of information sharing
known as
C
ommunication
C
omplexity
[
28
]
deals with
the
efficiency of communicat
ion
between
multiple computational processes
and could be a subject to similar analysis
)
.
Shannon himself
defined the fundamental problem of communication as
that of “... reproducing at one point

30. http://en.wikipedia.org/wiki/Social_learning_theory
Social learning theory (Albert Bandura) posits that learning is a cognitive process that takes
place in a social context and can occur purely through observation or direct instruction, even in
the absence of motor reproduction or direct reinforcement.[1]
In addition to the observation of
behavior, learning also occurs through the observation of rewards and punishments, a process
known as vicarious reinforcement. The theory expands on traditional behavioral theories, in
which behavior is governed solely by reinforcements, by placing emphasis on the important roles
of various internal processes in the learning individual.[2]
Contents
• 1 History
• 2 Theory
• 3 Social learning in neuroscience
• 4 Applications
o 4.1 Criminology
o 4.2 Developmental psychology
o 4.3 Management
o 4.4 Media violence
o 4.5 Creating Social Change With Media
 4.5.1 Why this type of social modeling helps with social change
o 4.6 Psychotherapy
o 4.7 School psychology
• 5 References
History
Prior to 1960, published theories of learning were heavily influenced by theories of classic
conditioning, operant conditioning, and the psychoanalytic concept of drives.[3]
In 1959, Noam
Chomsky published his criticism[4]
of B.F. Skinner's book Verbal Behavior.[5]
In his review,
Chomsky stated that pure stimulus-response theories of behavior could not account for the
process of language acquisition, an argument that contributed significantly to psychology's
cognitive revolution.
Within this context, Albert Bandura studied learning processes that occurred in interpersonal
contexts and were not adequately explained by theories of operant conditioning or existing

31. models of social learning, such as the work of Julian Rotter.[1]
Specifically, Bandura argued that
"the weaknesses of learning approaches that discount the influence of social variables are
nowhere more clearly revealed than in their treatment of the acquisition of novel responses."[1]
Skinner's explanation of the acquisition of new responses relied on the process of successive
approximation, which required multiple trials, reinforcement for components of behavior, and
gradual change.[6]
Rotter's theory proposed that the likelihood of a behavior occurring was a
function of the subjective expectancy and value of the reinforcement.[7]
This model assumed a
hierarchy of existing responses and thus did not (according to Bandura[1]
) account for a response
that had not yet been learned. Bandura began to conduct studies of the rapid acquisition of novel
behaviors via social observation, the most famous of which were the Bobo doll experiments.
Theory
Social learning theory integrated behavioral and cognitive theories of learning in order to provide
a comprehensive model that could account for the wide range of learning experiences that occur
in the real world. As initially outlined by Bandura and Walters in 1963[1]
and further detailed in
1977,[8]
key tenets of social learning theory are as follows:[9]
1. Learning is not purely behavioral; rather, it is a cognitive process that takes place in a
social context.
2. Learning can occur by observing a behavior and by observing the consequences of the
behavior (vicarious reinforcement).
3. Learning involves observation, extraction of information from those observations, and
making decisions about the performance of the behavior (observational learning or
modeling). Thus, learning can occur without an observable change in behavior.
4. Reinforcement plays a role in learning but is not entirely responsible for learning.
5. The learner is not a passive recipient of information. Cognition, environment, and
behavior all mutually influence each other (reciprocal determinism).
Social learning theory draws heavily on the concept of modeling, or learning by observing a
behavior. Bandura outlined three types of modeling stimuli:
• Live model
in which an actual person is demonstrating the desired behavior
• Verbal instruction
in which an individual describes the desired behavior in detail and instructs the
participant in how to engage in the behavior
• Symbolic
in which modeling occurs by means of the media, including movies, television, Internet,
literature, and radio. Stimuli can be either real or fictional characters.

32. Exactly what information is gleaned from observation is influenced by the type of model, as well
as a series of cognitive and behavioral processes, including:[3]
• Attention
In order to learn, observers must attend to the modeled behavior. Attention is impacted by
characteristics of the observer (e.g., perceptual abilities, cognitive abilities, arousal, past
performance) and characteristics of the behavior or event (e.g., relevance, novelty,
affective valence, and functional value).
• Retention
In order to reproduce an observed behavior, observers must be able to remember features
of the behavior. Again, this process is influenced by observer characteristics (cognitive
capabilities, cognitive rehearsal) and event characteristics (complexity).
• Reproduction
To reproduce a behavior, the observer must organize responses in accordance with the
model. Observer characteristics affecting reproduction include physical and cognitive
capabilities and previous performance.
• Motivation
The decision to reproduce (or refrain from reproducing) an observed behavior is
dependent on the motivations and expectations of the observer, including anticipated
consequences and internal standards.
An important factor in social learning theory is the concept of reciprocal determinism. This
notion states that just as an individual’s behavior is influenced by the environment, the
environment is also influenced by the individual’s behavior.[8]
In other words, a person’s
behavior, environment, and personal qualities all reciprocally influence each other. For example,
a child who plays violent video games will likely influence their peers to play as well, which
then encourages the child to play more often. This could lead to the child becoming desensitized
to violence, which in turn will likely affect the child’s real life behaviors.
Social learning in neuroscience
Recent research in neuroscience has implicated mirror neurons as a neurophysiological basis for
social learning, observational learning, motor cognition and social cognition.[10]
Mirror Neurons
have been heavily linked to social learning in humans. Mirror neurons were first discovered in
primates in studies which involved teaching the monkey motor activity tasks. One such study,
focused on teaching primates to crack nuts with a hammer. When the primate witnessed another
individual cracking nuts with a hammer, the mirror neuron systems became activated as the
primate learned to use the hammer to crack nuts. However, when the primate was not presented
with a social learning opportunity, the mirror neuron systems did not activate and learning did
not occur.[11]
Similar studies with humans also show similar evidence to the human mirror neuron
system activating when observing another person perform a physical task. The activation of the
mirror neuron system is thought to be critical for the understanding of goal directed behaviors

33. and understanding their intention. Although still controversial, this provides a direct neurological
link to understanding social cognition.[12]
Applications
Criminology
Social learning theory has been used to explain the emergence and maintenance of deviant
behavior, especially aggression. Criminologists Ronald Akers and Robert Burgess integrated the
principles of social learning theory and operant conditioning with Edwin Sutherland's
Differential Association Theory to create a comprehensive theory of criminal behavior.[13][14]
Burgess and Akers emphasized that criminal behavior is learned in both social and nonsocial
situations through combinations of direct reinforcement, vicarious reinforcement, explicit
instruction, and observation. Both the probability of being exposed to certain behaviors and the
nature of the reinforcement are dependent on group norms.
Developmental psychology
In her book Theories of Developmental Psychology, Patricia H. Miller lists both moral
development and gender-role development as important areas of research within social learning
theory.[15]
Social learning theorists emphasize observable behavior regarding the acquisition of
these two skills. For gender-role development, the same-sex parent provides only one of many
models from which the individual learns gender-roles. Social learning theory also emphasizes the
variable nature of moral development due to the changing social circumstances of each decision:
"The particular factors the child thinks are important vary from situation to situation, depending
on variables such as which situational factors are operating, which causes are most salient, and
what the child processes cognitively. Moral judgments involve a complex process of considering
and weighing various criteria in a given social situation." [15]
For social learning theory, gender development has to do with the interactions of numerous
social factors, involving all the interactions the individual encounters. For social learning theory,
biological factors are important but take a back seat to the importance of learned, observable
behavior. Because of the highly gendered society in which an individual might develop,
individuals begin to distinguish people by gender even as infants. Bandura's account of gender
allows for more than cognitive factors in predicting gendered behavior: for Bandura,
motivational factors and a broad network of social influences determine if, when, and where
gender knowledge is expressed.[15]
Management
Social Learning theory proposes that rewards aren't the sole force behind creating motivation.
Thoughts, beliefs, morals, and feedback all help to motivate us. Three other ways in which we
learn are vicarious experience, verbal persuasion, and physiological states. Modeling, or the
scenario in which we see someone's behaviors and adopt them as our own, aide the learning
process as well as mental states and the cognitive process.(citation? more description)

34. Media violence
Main article: Media violence research
Principles of social learning theory have been applied extensively to the study of media violence.
Akers and Burgess hypothesized that observed or experienced positive rewards and lack of
punishment for aggressive behaviors reinforces aggression. Many research studies have
discovered significant correlations between viewing violent television and aggression later in
life, as well as playing violent video games and aggressive behaviors.[16][17]
The role of
observational learning has also been cited as an important factor in the rise of rating systems for
TV, movies, and video games.
Creating Social Change With Media
Entertainment-education in the form of a telenovela or soap opera can help viewers learn socially
desired behaviors in a positive way from models portrayed in these programs.[18]
The telenovela
format allows the creators to incorporate elements that can bring a desired response.[19]
These
elements may include music, actors, melodrama, props or costumes.[19]
Entertainment education
is symbolic modeling and has a formula with three sets of characters with the cultural value that
is to be examined is determined ahead of time: 1. Characters that support a value (positive role
models); 2. Characters who reject the value (negative role models); 3. Characters who have
doubts about the value (undecided) [19]
Within this formula there are at least three doubters that represent the demographic group within
the target population.[19]
One of these doubters will accept the value less than halfway through,
the second will accept the value two-thirds of the way through and the third doubter does not
accept the value and is seriously punished. This doubter is usually killed.[19]
Positive social
behaviors are reinforced with rewards and negative social behaviors are reinforced with
punishment. At the end of the episode a short epilog done by a recognizable figure summarizes
the educational content and within the program viewers are given resources in their community.
[18]
Why this type of social modeling helps with social change
Through observational learning a model can bring forth new ways of thinking and behaving.[20]
With a modeled emotional experience, the observer shows an affinity towards people, places and
objects.[18]
They dislike what the models do not like and like what the models care about.[20]
Television helps contribute to how viewers see their social reality.[18]
“Media representations gain
influence because people’s social constructions of reality depend heavily on what they see, hear
and read rather than what they experience directly”.[18]
Any effort to change beliefs must be
directed towards the sociocultural norms and practices at the social system level.[18]
Before a
drama is developed, extensive research is done through focus groups that represent the different
sectors within a culture. Participants are asked what problems in society concern them most and
what obstacles they face, giving creators of the drama culturally relevant information to
incorporate into the show.[18]

35. The pioneer of entertainment-education is Miguel Sabido a creative writer,-producer director in
the 70’s at the Mexican national television system Televisa. Sabido spent 8 years working on a
method that would create social change and is known as the Sabido Method.[19]
He credits Albert
Bandura’s social learning theory, the drama theory of Eric Bentley, Carl Jung’s theory of
archetypes, MacLean’s triune brain theory and Sabido’s own soap opera theory for influences his
method.[21]
Sabido’s method has been used worldwide to address social issues such as national
literacy, population growth and health concerns such as HIV.[18]
Psychotherapy
Another important application of social learning theory has been in the treatment and
conceptualization of anxiety disorders. The classical conditioning approach to anxiety disorders,
which spurred the development of behavioral therapy and is considered by some to be the first
modern theory of anxiety,[22]
began to lose steam in the late 1970s as researchers began to
question its underlying assumptions. For example, the classical conditioning approach holds that
pathological fear and anxiety are developed through direct learning; however, many people with
anxiety disorders cannot recall a traumatic conditioning event, in which the feared stimulus was
experienced in close temporal and spatial contiguity with an intrinsically aversive stimulus.[23][24]
Social learning theory helped salvage learning approaches to anxiety disorders by providing
additional mechanisms beyond classical conditioning that could account for the acquisition of
fear. For example, social learning theory suggests that a child could acquire a fear of snakes by
observing a family member express fear in response to snakes. Alternatively, the child could
learn the associations between snakes and unpleasant bites through direct experience, without
developing excessive fear, but could later learn from others that snakes can have deadly venom,
leading to a re-evaluation of the dangerousness of snake bites, and accordingly, a more
exaggerated fear response to snakes.[25]
School psychology
Many classroom and teaching strategies draw on principles of social learning to enhance
students' knowledge acquisition and retention. For example, using the technique of guided
participation, a teacher says a phrase and asks the class to repeat the phrase. Thus, students both
imitate and reproduce the teacher's action, aiding retention. An extension of guided participation
is reciprocal learning, in which both student and teacher share responsibility in leading
discussions.[26]
Additionally, teachers can shape the classroom behavior of students by modelling
appropriate behavior and visibly rewarding students for good behavior. By emphasizing the
teacher's role as model and encouraging the students to adopt the position of observer, the
teacher can make knowledge and practices explicit to students, enhancing their learning
outcomes. [27]
References
1.
 Bandura, Albert (1963). Social learning and personality development. New York: Holt,
Rinehart, and Winston.

36.   Albert Bandura (1971). "Social Learning Theory" (PDF). General Learning Corporation.
Retrieved 25 December 2013.
  Bandura, A. (1972). Parke, R.D., ed. Recent trends in social learning theory. New York:
Academic Press, Inc.
  Chomsky, Noam (1959). "A review of B. F. Skinner's Verbal Behavior". Language 35 (1):
26–58. doi:10.2307/411334.
  Skinner, B. F. (1957). Verbal behavior. New York: Appleton-Century-Crofts.
  Skinner, B. F. (1963). Science and human behavior. New York: Appleton.
  Rotter, Julian (1954). Social learning and clinical psychology. Englewood Cliffs, New
Jersey: Prentice-Hall.
  Bandura, Albert (1977). Social Learning Theory. Oxford, England: Prentice-Hall.
  Grusec, Joan (1992). "Social learning theory and developmental psychology: The legacies
of Robert Sears and Albert Bandura". Developmental Psychology 28 (5).
  Uddin, L. Q., Iacoboni, M., Lange, C., & Keenan, J. P. (2007). The self and social
cognition: the role of cortical midline structures and mirror neurons. Trends in cognitive
sciences, 11(4), 153-157.
  Reardon, S. (2014). Monkey brains wired to share. Nature, 506(7489), 416–417.
doi:10.1038/506416a
  Fuhrmann, D., Ravignani, A., Marshall-Pescini, S., & Whiten, A. (2014). Synchrony and
motor mimicking in chimpanzee observational learning. Scientific Reports, 4.
doi:10.1038/srep05283
  Pfohl, S. J. Images of deviance and social control: A sociological history, New York:
McGraw-Hill 1994, pp. 1-16,301-303
  Burgess, R., & Akers, R. A Differential Association-Reinforcement Theory of Criminal
Behavior. Social Problems, Vol. 14, No. 2 (Autumn, 1966), pp. 128-147
  Miller, Patricia H. (2011). Theories of developmental psychology. New York: Worth
Publishers.
  Anderson, C.A.; Bushman, B.J. (2001). "Effects of violent video games on aggressive
behavior, aggressive cognition, aggressive affect, physiological arousal, and pro-social behavior:
A meta-analytic review of the scientific literature". Psychological Science 12 (5): 353–359.
doi:10.1111/1467-9280.00366. PMID 11554666.
  Paik, H.; Comstock, G. (1994). "The effects of television violence on antisocial behavior:
A meta-analysis.". Communication Research 21 (4): 516–546.
doi:10.1177/009365094021004004.
  Bandura, A. (2004). Social cognitive theory for personal and social change by enabling
media. Retrieved from
http://web.stanford.edu/dept/psychology/bandura/pajares/Bandura2004Media.pdf
  Singhal, A., Rogers2, E. M., & Brown3, W. J. (1993). Harnessing the potential of
entertainment-education telenovelas [Journal article]. Gazene, 51, 1-18. Retrieved from
http://utminers.utep.edu/asinghal/technical%20reports/harnessing%20ee.pdf
  Bandura, A. (2002, March). Growing primacy of human agency in adaptation and change
in the electronic era [Journal article]. European Psychologist, 7(1), 2-16. Retrieved from
http://utminers.utep.edu/asinghal/technical%20reports/harnessing%20ee.pdf
  Singhal, A., & Obregon, R. (1999). Social uses of commercial soap operas: A
conversation with Miguel Sabido [Journal article]. Journal of Development Communication,
10(1), 68-77. Retrieved from http://www.media-diversity.org/en/additional-files/documents/D

37. %20Miscellaneous/Social%20Uses%20of%20Commercial%20Soap%20Operas;%20Miguel
%20Sabido%20[EN].pdf
  Rachman, S. (1991). Neo-conditioning and the classical theory of fear acquisition. Clinical
Psychology Review, 11, 155–173.
  Mathews, A., Gelder, M. & Johnston, D. (1981). Agoraphobia: Xature L3 Treatment. New
York: Guilford Press.
  Ost, L.G., & Hugdahl, K. (1981). Acquisition of phobias and anxiety response patterns in
clinical patients. Behavior Research and Therapy, 19, 439-447.
  Mineka, S., & Zinbarg, R. (2006). A contemporary learning theory perspective on the
etiology of anxiety disorders: It's not what you thought it was. American Psychologist, 61, 10-26.
  Kumpulainen, K., Wray, D. (2002). Classroom Interaction and Social Learning: From
Theory to Practice. New York, NY: RoutledgeFalmer.
 There are some limitations to the social learning theory that make it more complicated than it
is made out to be. Some of the limitations are that a changes in the environment does not
automatically mean that a person changes too. The theory also seems to ignore biological and
hormonal dispositions of people. You can read more about this by clicking on this link.
http://sphweb.bumc.bu.edu/otlt/MPH-Modules/SB/SB721-Models/SB721-Models5.html

38. http://psychology.about.com/od/developmentalpsychology/a/sociallearning.htm
Social Learning Theory
How People Learn By Observation
By Kendra Cherry
Psychology Expert
Share this
Tara Moore / Getty Images
What is Social Learning Theory?
The social learning theory proposed by Albert Bandura has become perhaps the most influential
theory of learning and development. While rooted in many of the basic concepts of traditional
learning theory, Bandura believed that direct reinforcement could not account for all types of
learning.
While the behavioral theories of learning suggested that all learning was the result of
associations formed by conditioning, reinforcement, and punishment, Bandura's social learning
theory proposed that learning can also occur simply by observing the actions of others.

39. His theory added a social element, arguing that people can learn new information and behaviors
by watching other people. Known as observational learning (or modeling), this type of learning
can be used to explain a wide variety of behaviors.
Bandura explained:
"Learning would be exceedingly laborious, not to mention hazardous, if people had to rely solely
on the effects of their own actions to inform them what to do. Fortunately, most human behavior
is learned observationally through modeling: from observing others one forms an idea of how
new behaviors are performed, and on later occasions this coded information serves as a guide
for action."
-Albert Bandura, Social Learning Theory, 1977
Basic Social Learning Concepts
There are three core concepts at the heart of social learning theory. First is the idea that people
can learn through observation. Next is the notion that internal mental states are an essential part
of this process. Finally, this theory recognizes that just because something has been learned, it
does not mean that it will result in a change in behavior.
Let's explore each of these concepts in greater depth.
1. People can learn through observation.
Observational Learning
In his famous Bobo doll experiment, Bandura demonstrated that children learn and imitate
behaviors they have observed in other people. The children in Bandura’s studies observed an
adult acting violently toward a Bobo doll. When the children were later allowed to play in a
room with the Bobo doll, they began to imitate the aggressive actions they had previously
observed.
Bandura identified three basic models of observational learning:
1. A live model, which involves an actual individual demonstrating or acting out a behavior.
2. A verbal instructional model, which involves descriptions and explanations of a behavior.
3. A symbolic model, which involves real or fictional characters displaying behaviors in books, films,
television programs, or online media.
2. Mental states are important to learning.
Intrinsic Reinforcement
Bandura noted that external, environmental reinforcement was not the only factor to influence
learning and behavior. He described intrinsic reinforcement as a form of internal reward, such as

40. pride, satisfaction, and a sense of accomplishment. This emphasis on internal thoughts and
cognitions helps connect learning theories to cognitive developmental theories. While many
textbooks place social learning theory with behavioral theories, Bandura himself describes his
approach as a 'social cognitive theory.'
3. Learning does not necessarily lead to a change in behavior.
While behaviorists believed that learning led to a permanent change in behavior, observational
learning demonstrates that people can learn new information without demonstrating new
behaviors.
The Modeling Process
Not all observed behaviors are effectively learned. Factors involving both the model and the
learner can play a role in whether social learning is successful. Certain requirements and steps
must also be followed. The following steps are involved in the observational learning and
modeling process:
• Attention:
In order to learn, you need to be paying attention. Anything that distracts your attention is going
to have a negative effect on observational learning. If the model interesting or there is a novel
aspect to the situation, you are far more likely to dedicate your full attention to learning.
• Retention:
The ability to store information is also an important part of the learning process. Retention can
be affected by a number of factors, but the ability to pull up information later and act on it is
vital to observational learning.
• Reproduction:
Once you have paid attention to the model and retained the information, it is time to actually
perform the behavior you observed. Further practice of the learned behavior leads to
improvement and skill advancement.
• Motivation:
Finally, in order for observational learning to be successful, you have to be motivated to imitate
the behavior that has been modeled. Reinforcement and punishment play an important role in
motivation. While experiencing these motivators can be highly effective, so can observing other
experience some type of reinforcement or punishment. For example, if you see another student
rewarded with extra credit for being to class on time, you might start to show up a few minutes
early each day.
Final Thoughts
In addition to influencing other psychologists, Bandura's social learning theory has had important
implication in the field of eduction. Today, both teachers and parents recognize the importance
of modeling appropriate behaviors. Other classroom strategies such as encouraging children and
building self-efficacy are also rooted in social learning theory.

41. References
Bandura, A. (1965). Influence of models' reinforcement contingencies on the acquisition of imitative responses. Journal of Personality and Social Psychology, 1, 589-
595.
Bandura, A., Ross, D. & Ross, S.A. (1961). Transmission of aggression through imitation of aggressive models. Journal of Abnormal and Social Psychology, 63, 575-
82.
Bandura, A. (1977). Social Learning Theory. Englewood Cliffs, NJ: Prentice Hall.