Leadership with individual rewards and punishments

Gürerk, Özgür; Lauer, Thomas; Scheuermann, Martin

doi:10.1016/j.socec.2018.03.007

Cited by 17 publications

(6 citation statements)

References 37 publications

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“…Instead, leaders who choose automatic reporting refrain from punishing workers who rather choose self-reporting: they seem willing to take advantage of workers' fraudulent behavior to gain profits while keeping their hands clean. To our knowledge, this relationship has not been revealed before, although it fits with findings from other settings in which ethical leaders willingly keep their hands clean while maximizing profits through ethical free-riding (Gross et al, 2018;Parsons et al, 2020), convenient leniency (Di Tella et al, 2015;Hoogervorst et al, 2010), and anti-social punishment (Gürerk et al, 2018).…”

Section: Theoretical and Practical Implicationssupporting

confidence: 85%

“…Second, we explore the role of leaders' instruments to influence workers' behavior. In many organizations, the most common of such instruments consists in having the power to administer rewards or punishments (D'Adda et al, 2017;Gürerk et al, 2018), which we refer to here as "incentive power." So, we analyze whether workers' reporting choices are influenced by the mere possibility for the leader to assign rewards and punishments.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

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How Leaders Influence (un)Ethical Behaviors Within Organizations: A Laboratory Experiment on Reporting Choices

2022

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We use a lab experiment to examine whether and how leaders influence workers’ (un)ethical behavior through financial reporting choices. We randomly assign the role of leaders or workers to subjects, who can choose to report an outcome via automatic or self-reporting. Self-reporting allows for profitable and undetectable earnings manipulation. We vary the leaders’ ability to choose the reporting method and to punish workers. We show that workers are more likely to choose automatic reporting when their leader voluntarily does so and can assign punishment. Even workers who choose self-reporting tend to cheat less when their leader chooses automatic reporting. Nonetheless, most leaders do not opt for automatic reporting in the first place: they often choose self-reporting and punish workers who rather choose automatic reporting. Collectively, our results reveal a dual effect of leadership on ethical behaviors in organizations: workers behave more ethically if their leader makes ethical choices, but often leaders do not make ethical choices in the first place. Hence, leading by example can backfire.

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Section: Theoretical and Practical Implicationssupporting

confidence: 85%

Section: Theoretical Backgroundmentioning

confidence: 99%

How Leaders Influence (un)Ethical Behaviors Within Organizations: A Laboratory Experiment on Reporting Choices

2022

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“…That is, leaders must act as role models, motivating employees, providing a roadmap and creating positive supportive environments [81]. Under the AMO approach, leaders are expected to engage and serve as role models [82]; creating motivating and participatory environments where employees can exploit their capabilities.…”

Section: Leadership By Example-hrmmentioning

confidence: 99%

“…Focusing on this, it has been shown that groups can function best when they are led by people who are willing to sacrifice personal gain for the greater good [87]. That is, groups respond effectively to the example set by a leader [82,88]. As a result of these relationships, a role model (benchmark power) has been shown to be critical in building commitment and performance [89].…”

Section: Leadership By Example-performancementioning

confidence: 99%

The Influence of Management on Teacher Well-Being and the Development of Sustainable Schools

et al. 2021

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Teaching is one of the professions with the highest levels of stress and disquiet at work, having a negative impact on teachers’ well-being and performance. Thus, well-being is one of the priorities in human resource management (HRM) in schools. In this regard, this paper studies the relationship between HRM, well-being and performance, observing the incidence of leadership and innovation in these relationships. The objective is to measure the extent to which it is necessary to encourage sustainable environments that promote the well-being of teachers and, by extension, students. The study used the methodology of structural equations and a sample of 315 secondary school teachers. The work validates the influence of leadership by example and information management on HRM and performance. In addition, we confirm the significant effect of human resource management on educational performance. The relationship is observed both directly and through the mediating effect on the improvement of well-being. On the other hand, the positive influence of innovation on performance, both in schools and in the classrooms, is reaffirmed. These results suggest the need to zero in on the human resources policies in schools linked to the improvement of teacher well-being and educational performance. They also highlight the role of school and classroom innovation as a key element in maintaining educational quality.

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“…Many existing experimental results indicate that leading by example leads to higher levels of contributions (Dannenberg, 2015;Güth et al, 2007;Moxnes & van der Heijden, 2003;Pogrebna et al, 2011;Rivas & Sutter, 2011). However, there are also several studies reporting weak and nonsignificant leadership effect (Gächter & Renner, 2018;Gürerk et al, 2018;Haigner & Wakolbinger, 2010;Jack & Recalde, 2015;Potters et al, 2007;Sahin et al, 2015). 1 Even if not finding an average increase in cooperation levels, almost all studies show that there is a positive correlation between leaders' and followers' contributions.…”

Section: Introductionmentioning

confidence: 99%

Leading by Example in a Public Goods Experiment with Benefit Heterogeneity

Kocher¹

2020

SSRN Journal

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Social dilemmas such as greenhouse gas emission reduction are often characterized by heterogeneity in benefits from solving the dilemma. How should leadership of group members be organized in such a setting? We implement a laboratory public goods experiment with heterogeneous marginal per capita returns from the public good and leading by example that is either implemented exogenously or by self-selection. Our results suggest that both exogenous and selfselected leadership only have a small effect on contributions to the public good. We do not find significant differences in contributions for exogenous and self-selected leadership. Leaders seem to need additional instruments to be more effective when benefits are heterogeneous.

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Leadership with individual rewards and punishments

Cited by 17 publications

References 37 publications

How Leaders Influence (un)Ethical Behaviors Within Organizations: A Laboratory Experiment on Reporting Choices

How Leaders Influence (un)Ethical Behaviors Within Organizations: A Laboratory Experiment on Reporting Choices

The Influence of Management on Teacher Well-Being and the Development of Sustainable Schools

Leading by Example in a Public Goods Experiment with Benefit Heterogeneity

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