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When Galatea cares about her Reputation: How having Faith in your Workers reduces their Motivation to shine

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  • Jurjen J.A. Kamphorst

    (Erasmus University Rotterdam)

  • Otto H. Swank

    (Erasmus University Rotterdam)

Abstract

We develop a theory of leadership that focuses on the role managersplay in motivating employees through their attitude towards employees. We modela manager's attitude as her perception about employees' abilities of successfullycompleting challenging tasks. We show that a positive attitude motivates employeeswho are driven by monetary rewards. A negative attitude may motivate employeeswho are driven by concerns about their reputation for being able. When employeesare driven by monetary rewards and care about their reputations, an increase inthe reward for successfully completing challenging tasks may lead employees to shyaway from these tasks.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-123/1.

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Date of creation: 07 Dec 2010
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Handle: RePEc:dgr:uvatin:20100123

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Web page: http://www.tinbergen.nl

Related research

Keywords: reputation; worker motivation; task choice; principle-agent; Giffen goods;

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  9. Bauke Visser, 2007. "Motivating Through Delegating Tasks or Giving Attention," Journal of Law, Economics and Organization, Oxford University Press, vol. 23(3), pages 731-742, October.
  10. Julio J. Rotemberg & Garth Saloner, 1993. "Leadership Style and Incentives," Management Science, INFORMS, vol. 39(11), pages 1299-1318, November.
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  12. Klar, Yechiel & Medding, Aviva & Sarel, Dan, 1996. "Nonunique Invulnerability: Singular versus Distributional Probabilities and Unrealistic Optimism in Comparative Risk Judgments," Organizational Behavior and Human Decision Processes, Elsevier, vol. 67(2), pages 229-245, August.
  13. Dixit, Avinash & Weibull, Jörgen, 2006. "Political Polarization," Working Paper Series in Economics and Finance 655, Stockholm School of Economics, revised 12 Apr 2007.
  14. Junichiro Ishida, 2006. "Optimal Promotion Policies with the Looking-Glass Effect," Journal of Labor Economics, University of Chicago Press, vol. 24(4), pages 857-878, October.
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