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When Should Leaders Share Information with Their Subordinates?

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Author Info
Jordi Blanes I Vidal
Marc Möller

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Abstract

"We show that when leaders share some of their information with subordinates, decision making is subject to a motivational bias; leaders make the decisions their subordinates want to see. As this bias increases with the quality of the shared information, an improvement of an organization's information might even decrease its efficiency. As a consequence, information sharing is not always optimal. We show however that self-confidence can help the leader to overcome his motivational bias, thus making information sharing more attractive. Conversely, we find that information sharing can help to curb the autocratic tendencies of a self-confident leadership. We conclude that a policy of information sharing and the appointment of a self-confident leadership are most effective when they go hand in hand." Copyright 2007, The Author(s) Journal Compilation (c) 2007 Blackwell Publishing.

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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Economics & Management Strategy.

Volume (Year): 16 (2007)
Issue (Month): 2 (06)
Pages: 251-283
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Handle: RePEc:bla:jemstr:v:16:y:2007:i:2:p:251-283

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Cited by:
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  1. Patrick Bolton & Markus K. Brunnermeier & Laura Veldkamp, 2008. "Leadership, Coordination and Mission-Driven Management," NBER Working Papers 14339, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-22.


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