These are the prison and crisis management systems. Both are places where it makes sense to have a strict structure for the benefit of everyone involved. However aspects of society such as work and education are not places where the Panopticon model would be acceptable. The structure of the Panopticon would be very useful in the criminal justice system. I think that it is totally accurate that prisoners might be influenced to act in a better manner if they were under constant surveillance rather than left alone in a dark cell.
People change their behavior when they know they are being watched.
An example of this phenomenon is how people act when they are out in public as opposed to how they act when they are home alone and no one is around. People will be on their best behavior when they are being observed and will act however they want when they are alone. Foucault makes the assumption however that people care about what others think of them. This is implied because if people did not care that they were being watched they would not have any incentive to ameliorate their behavior and the entire system of the Panopticon would not function. In the case Foucault gave about the plague the Panopticon model was very useful.