When Galatea cares about her Reputation: How having Faith in your Workers reduces their Motivation to shine
AbstractWe 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 InfoPaper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 10-123/1.
Date of creation: 07 Dec 2010
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reputation; worker motivation; task choice; principle-agent; Giffen goods;
Other versions of this item:
- Kamphorst, Jurjen J.A. & Swank, Otto H., 2013. "When Galatea cares about her reputation: How having faith in your workers reduces their motivation to shine," European Economic Review, Elsevier, vol. 60(C), pages 91-104.
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- M59 - Business Administration and Business Economics; Marketing; Accounting - - Personnel Economics - - - Other
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-12-18 (All new papers)
- NEP-LAB-2010-12-18 (Labour Economics)
- NEP-SOC-2010-12-18 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Yeon-Koo Che & Navin Kartik, 2009.
"Opinions as Incentives,"
Journal of Political Economy,
University of Chicago Press, vol. 117(5), pages 815-860, October.
- Van den Steen, Eric, 2003.
"Organizational Beliefs and Managerial Vision,"
4224-01, Massachusetts Institute of Technology (MIT), Sloan School of Management.
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