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Perceived Legitimacy and Motivation Effects of Authority

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  • Holger Herz
  • Christian Zihlmann

Abstract

Organizational structures are an important determinant of individual incentives and thus individual motivation in organizations. We study whether their effects on individual motivation go beyond incentives and how they relate to the perceived legitimacy of organizational structure. To this end, we design a laboratory experiment in which we exogenously manipulate the organizational structure in a way that leaves the incentives of all individuals unaffected, but changes the perceived legitimacy of the organizational structure. Our data show that organizational structure indeed affects behavior beyond monetary incentive effects and that the observed changes are significantly associated with changes in perceived legitimacy.

Suggested Citation

  • Holger Herz & Christian Zihlmann, 2024. "Perceived Legitimacy and Motivation Effects of Authority," CESifo Working Paper Series 10946, CESifo.
    • Handle: RePEc:ces:ceswps:_10946
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    References listed on IDEAS

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    1. Boyd D. Cohen & Thomas J. Dean, 2005. "Information asymmetry and investor valuation of IPOs: top management team legitimacy as a capital market signal," Strategic Management Journal, Wiley Blackwell, vol. 26(7), pages 683-690, July.
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    Keywords

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    JEL classification:

    • D01 - Microeconomics - - General - - - Microeconomic Behavior: Underlying Principles
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • M50 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - General

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