IT'S WHAT YOU SAY,NOT WHAT YOU PAY: AN EXPERIMENTAL STUDY OF MANAGER‐EMPLOYEE RELATIONSHIPS IN OVERCOMING COORDINATION FAILURE

We study manager‐employee interactions in experiments set in a corporate environment where payoffs depend on employees coordinating at high effort levels; the underlying game being played repeatedly by employees is a weak‐link game. In the absence of managerial intervention subjects invariably slip into coordination failure. To overcome a history of coordination failure, managers have two instruments at their disposal: increasing employees' financial incentives to coordinate and communication with employees. Synthesizing methods drawn from psychology and economics, we quantify the impact of specific types of communication on workers' effort levels and manager's profits. This methodology allows us to rigorously compare the efficacy of communication and direct incentives in an environment where both are available. We find that communication is a more effective tool than incentive changes for leading organizations out of performance traps. Examining the content of managers' communication, the most effective communication strategy is quite simple: specifically request a high effort, point out the mutual benefits of high effort, and imply that employees are being paid well. (JEL: C92, D23, J31, L23, M52)     

DRIVE AND TALENT

We analyze ways in which heterogeneity in responsiveness to incentives (“drive”) affects employees' incentives and firms' incentive systems in a career concerns model. On the one hand, because more driven agents work harder in response to existing incentives than less driven ones—and therefore pay is increasing in perceived drive—there is a motive to increase effort to signal high drive. These “drive‐signaling incentives” are strongest with intermediate levels of existing incentives. On the other hand, because past output of a more driven agent will seem to the principal to reflect lower ability, there is an incentive to decrease effort to signal low drive. The former effect dominates early in the career, and the latter effect dominates towards the end. To maximize incentives, the principal wants to observe a noisy measure of the agent's effort—such as the number of hours he works—early but not late in his career. (JEL: C70, D82, D23)     

Do emotionally perceptive leaders motivate higher employee performance? The moderating role of task interdependence and power distance

Extant emotional intelligence research has examined the relationship between employees' emotional intelligence and their job performance. We developed theory to extend this line of research to the domain of leader–employee relationships. Integrating emotional intelligence research with social exchange theory, we contended that leaders' emotion perceptions enhance employees' job performance. Drawing from social impact theory, we further argued that the strength of this relationship depends upon two contextual variables: within-group task interdependence and power distance. We tested our hypotheses using a sample of 350 employee nested in 74 workgroups. Hierarchical linear modeling results supported the hypothesized relationships between leaders' emotion perceptions and employees' job performance, and revealed that this relationship was strengthened by task interdependence and attenuated by power distance.     

Overcoming the dark side of task conflict: Buffering roles of transformational leadership,tenacity, and passion for work

Drawing from the job demands–resources model, this study considers how task conflict reduces employees' job satisfaction, as well as how the negative task conflict–job satisfaction relationship might be buffered by supervisors' transformational leadership and employees' personal resources. Using data from a large organization, the authors show that task conflict reduces job satisfaction, but this effect is weaker at higher levels of transformational leadership, tenacity, and passion for work. The buffering roles of the two personal resources (tenacity and passion for work) are particularly salient when transformational leadership is low. These findings indicate that organizations marked by task-related clashes can counter the accompanying stress by developing adequate leadership and employee resources within their ranks.     

The effect of task conflict and cooperation on performance of teams: Are the results similar for different task types?

There is ample agreement in the literature that task conflict is an important predictor of team performance. Nevertheless, the question of “how and why” specifically task conflict affects performance still remains open and existing studies found positive, negative, as well as insignificant results when testing the relationship. Researchers argue that intra-team cooperation is a crucial process through which a team can improve its performance. Using team-conflict theory we argue that the effect of task conflict on performance is mediated by team member cooperation. In this paper, we thus intend to test this relationship using a sample of 92 team-task observations. We further split the sample into decision-choice and creative-generating tasks in order to see if the outcome of this mediating chain is the same for different task types. The results contribute to the understanding of the “black box” of team processes and are of relevance for practitioners as they provide evidence of a potential trigger to improve team performance     

Diabolical dictators or capable commanders? An investigation of the differential effects of autocratic leadership on team performance

Autocratic leader behavior is often seen as negative for team morale and performance. However, theories on social hierarchy suggest that autocratic leadership may also positively affect morale and performance through the creation of a psychologically appealing, hierarchically-ordered environment of predictability and security. We propose that autocratic leadership can foster team psychological safety when team members accept the hierarchy within the team. In contrast, when members challenge the hierarchy and engage in intrateam power struggles, autocratic leaders' centralizing power behaviors will clash with team members' competition for power and frustrate members, impairing psychological safety and performance. We find support for these ideas in a study of 60 retail outlets (225 employees and their managers) in the financial services industry. As expected, when team power struggles were low, autocratic leadership was positively related to team psychological safety, and thereby indirectly positively related to team performance. When team power struggles were high, autocratic leadership was negatively related to team psychological safety and thereby indirectly negatively related to team performance. These effects were also found when controlling for leader consideration.     

Using tri-reference point theory to evaluate risk attitude and the effects of financial incentives in a gamified crowdsourcing task

Crowdsourcing has rapidly developed as a mechanism to accomplish tasks that are easy for humans to accomplish but are challenging for machines. However, unlike machines, humans need to be cajoled to perform tasks, usually through some type of incentive. Since participants from the crowd are typically anonymous and have no expectation of an ongoing work relationship with a task requester, the types of incentives offered to workers are usually short-term monetary bonuses, which have had an inconclusive impact on crowdsourcing worker quality. In this paper, we explore the notion that the risk attitude of crowdsourcing workers may play an important role in the effectiveness of incentives on task accuracy. Traditional utility theories, such as prospect theory, depend on decisions made relative to a singular reference point, whereas the tri-reference point (TRP) theory (Wang and Johnson, J Exp Psychol Gen 141:743–756, 2012) holds that three reference points impact decision making. Using the TRP theory as a guide, we develop a game that provides workers with three reference points and subsequently explores the role of multiple reference points on worker risk aversion and task accuracy.     

Employee-of-the-Month Programs: Do They Really Work?

This article investigates Employee-of-the-Month as a technique for sustaining improved performance on a data entry task in two experiments. In both experiments, participants competed as members of a fabricated team for a “Check Processor of the Week” incentive. The first experiment assessed the impact of receiving this incentive. In the second experiment, the incentive was enhanced to include a $50 bonus for the winner. Participants always placed between 2nd and 5th place in order to assess the impact of being an unrewarded runner-up. Overall, results suggest that Employee-of-the-Month programs do not sustain improved performance and may even have detrimental effects.     

Group leadership and shared task representations in decision making groups

The development of adequate shared understanding of the task is of critical importance to group functioning. Group leaders play an important role in this respect, as a key function of leadership is to shape group members' understanding of their job. In the present study we focus on decision making groups with distributed information and examine how group leaders shape members' mental representations of the group decision task through leadership behavior rooted in their own representations of the task. We propose that the extent to which the group leader has task representations that emphasize information exchange and integration affects group members' task representations, group information elaboration, and decision quality. We tested these hypotheses in an experiment (N = 94 three-person groups) in which we manipulated whether a group leader was present and whether this leader held representations emphasizing information elaboration. Results supported the hypotheses, and suggest that team leaders may play an important role in creating a socially shared understanding of team tasks.     

The influence of follower mood on leader mood and task performance: An affective,follower-centric perspective of leadership

Based on the notion that leadership involves affective exchange (Dasborough, Ashkanasy, Tee & Tse, 2009), we hypothesize that a leader's mood and task performance can be determined in part by follower mood displays. In two laboratory experiments, leaders supervised teams where the team members were confederates instructed to display positive or negative moods. Results were that followers' mood influenced leader mood and task performance. Moreover, leaders of positive mood followers were judged to have performed more effectively and expediently than leaders of followers who expressed negative mood states. We replicated these findings in Study 2 and found further that leaders high on neuroticism performed less effectively than their low neuroticism counterparts when interacting with negative-mood followers. Collectively, by demonstrating that follower moods influence leader affect and behaviors, our studies provide support for a core element of the Dasborough et al. (2009) reciprocal affect theory of leadership.     

Team Dispersion,Information Technology,and Project Performance

The impact of information technology (IT) on the performance of distributed projects is not well understood. Although prior research has documented that dispersion among project teams has an adverse effect on project performance, the role of IT as an enabler of communication to bridge the spatial distance among team members in distributed networks has not been empirically studied. We focus on the role of IT as a moderator of the relationship between team dispersion and project performance using projects as the unit of analysis. We find that IT mitigates the negative effect of team dispersion on project performance, especially in high information volume projects. Our central contribution is the development of an empirically tested model to improve the understanding of the operational impact of IT as a vehicle to bridge spatial dispersion among distributed teams that are engaged in knowledge‐intensive work.     

The shared leadership of teams: A meta-analysis of proximal,distal, and moderating relationships

The current meta-analysis examines the relationship between shared leadership and team performance. It also assesses the role of team confidence (i.e., collective efficacy and team potency) in this relationship. Mediation analyses supported the hypothesis that team confidence partially mediates the effects of shared leadership on team performance. We also found support for the notion that shared leadership explains unique variance in team performance, over and above that of vertical leadership. Furthermore, a variety of substantive continuous and categorical variables were investigated as moderators of the shared leadership–team performance relationship. Specifically, the relationship between shared leadership and team performance was moderated by task interdependence, team tenure, and whether performance was objectively versus subjectively measured. Finally, results suggest that the approach used when measuring shared leadership can also play a role in the observed validity. Theoretical and practical implications of these findings are discussed.     

The Effects of Individual Monetary Incentives With and Without Feedback

Abstract

This study examined the effects of an individual monetary incentive system with and without feedback to determine if feedback would supplement the effects of incentives. Participants were seven college students who performed a computerized task called SYNWORK. SYNWORK presented four sub-tasks concurrently: memory, arithmetic, visual monitoring and auditory monitoring. Participants earned points for correct responses. The dependent variable was the number of points earned. An ABAC design was used with A = individual monetary incentives without feedback, B = individual monetary incentives with feedback, and C = hourly pay with feedback. Sessions were 90 minutes, and there were 5 to 10 sessions per phase. The point scores of six of the seven participants increased when feedback was added to the incentive system but stabilized or continued to increase when feedback was removed. The feedback intervention was staggered in time across participants, and performance increased when feedback was added, hence the data suggest that feedback enhanced the effects of the incentives. One possible reason for the reversal failure is that feedback evoked higher levels of performance that were then maintained by the additional incentives. Because performance did not reverse, however, the results must be viewed cautiously.     

MONITORING IN TEAMS: USING LABORATORY EXPERIMENTS TO STUDY A THEORY OF THE FIRM

Alchian and Demsetz’s influential explanation of the classical business firm (The American Economic Review, 1972, 62, 777–795) argues that there is need for a concentrated residual claim in the hands of a central agent, to motivate the monitoring of workers. We model monitoring as a way to transform team production from a collective action dilemma with strong free riding incentives to a productivity‐enhancing opportunity with strong private marginal incentives to contribute effort. In an experiment, we have subjects experience team production without monitoring, team production with a central monitor, and team production with peer monitoring. Then subjects vote on whether to employ the central monitor, who gets to keep a fixed share of the team output, or to rely on peer monitoring, which entails a coordination or free riding problem. Our subjects usually prefer peer monitoring but they switch to the specialist when unable to successfully self‐monitor. We provide evidence for situations in which team members resist the appointing of a central monitor and succeed in overcoming coordination and free riding problems as well as for a situation in which an Alchian–Demsetz‐like firm grows in the laboratory.     

A Supervisory System for Accomplishing Long-Range Projects

This article describes a supervisory system designed to help people maintain a steady rate of work, toward the accomplishment of long-range goals. The main features of the system are: (a) written task specification, b) weekly subgoals or deadlines, (c) weekly monitoring, (d) weekly feedback, and (e) added incentives. We applied this system to the supervision of MA thesis research, using a BAB reversal design, to investigate the effects of an incentive system consisting of performance-based points toward a letter of recommendation combined with weekly feedback. This incentive system produced a high and steady rate of completion of the weekly research tasks when it was present, while the rate of completion was considerably lower during the baseline phase, when the incentive system was absent. Twelve of the 15 individual subjects and five of the seven research tasks showed these results. In a subjective evaluation, the participants approved of this type of supervising system. This system may be applicable to the supervision of many long-term projects.     

Transformational leadership,job satisfaction,and team performance: A multilevel mediation model of trust

In spite of calls for deliberate differentiation between individual and team levels of analysis, leadership research based on well-grounded theory referring to multiple levels is scarce. We seek to fill this gap by analyzing the relations between transformational leadership, trust in supervisor and team, job satisfaction, and team performance via multilevel analysis. Results are based on a sample of 360 employees from 39 academic teams. Transformational leadership was positively related to followers' job satisfaction at individual as well as team levels of analysis and to objective team performance. The relation between individual perceptions of supervisors' transformational leadership and job satisfaction was mediated by trust in the supervisor as well as trust in the team. Yet, trust in the team did not mediate the relationship between team perceptions of supervisors' transformational leadership and team performance. Implications for theory and research of leadership at multiple levels as well as for practice are discussed.     

Unpacking Team Familiarity: The Effects of Geographic Location and Hierarchical Role

Examination of team productivity finds that team familiarity, i.e., individuals' prior shared work experience, can positively impact the efficiency and quality of team output. Despite the attention given to team familiarity and its contingencies, prior work has focused on whether team members have worked together, not on which team members have worked together, and under what conditions. In this paper, I parse overall team familiarity to consider effects of geographic location and the hierarchical roles of team members. Using data on all software‐development projects completed over 3 years at a large Indian firm in the global outsourced software services industry, I find that team familiarity gained when team members work together in the same location has a significantly more positive effect on team performance compared with team familiarity gained while members were collaborating in different locations. Additionally, I find that hierarchical team familiarity (a manager's experience with front‐line team members) and horizontal team familiarity (front‐line team members' experience gained with one another) have differential effects on project team performance. These findings provide insight into the relationship between team experience and team performance.     

Foreign language skill,anxiety, cultural intelligence and individual task performance in global virtual teams: A cognitive perspective

Global virtual teams (GVTs) operate in a globally dispersed work environment, principally relying on communication and information technologies to achieve work tasks. In this work context, using language effectively is crucial. We utilize the cognitive perspective to explain how foreign language use in a GVT influences individual task performance. This study employs (a) cognitive neuroscience of foreign language processing perspective to explain the relationship between foreign language skills and individual task performance; (b) the theory of cognitive load to explain foreign language anxiety as a pathway that further explains how low-level foreign language skill negatively influences individual task performance; and (c) the theory of intelligence to examine the conditional role of cultural intelligence in the mediation process. Utilizing 294 data pairs (collected from GVT members and their respective supervisors) in a multinational offshoring firm, we found support for the mediation process and the conditional influence of the dimensions of cultural intelligence in reducing the negative effect of foreign language anxiety on individual task performance in GVT.     

An economic theory of leadership styles

This paper studies the role of leadership style in providing incentives to subordinates. A leadership style is characterized by its degree of decentralization of tasks and its degree of empathy towards subordinates’ interests. I analyze the optimal leadership style in an incomplete contract framework in which the agent as well as the principal jointly have to solve decision problems and implement their solutions. I show that the optimal leadership style crucially depends on the environment (structure of decision problems and associated payoffs) as well as on the agent’s personality (incentive alignment and competence). Moreover, I examine how monetary incentives influence the optimal leadership style.     

工程质量优化的承包商群体激励效率演化分析

针对业主与多标段承包商群体的一对多结构,考虑业主如何通过单价合同与收益共享合同所组成的菜单合同模式对承包商群体进行激励以优化工程质量。本文构建了单阶段群体激励模型以及考虑承包商个体存在公平感知的多阶段群体激励模型,通过计算实验方法探讨不同报酬结构下的激励效率及其演化。研究表明:业主实行同一报酬结构在多阶段工程建设中难以维持高效率;单阶段激励中较好的报酬结构并不适用于多阶段激励过程;个体的公平感知对激励绩效会产生负面影响;报酬结构中针对不同质量标准的激励力度均会对激励效率产生影响,仅针对单一激励力度进行调整或忽视激励力度间的协同均不能实现较好的激励效果。