F. David Schoorman

A Model of Relational Leadership: The Integration of Trust and Leader-Member Exchange

Abstract This article presents a model of relational leadership based on a review of leader-member exchange (LMX) and interpersonal trust. This model asserts that the LMX relationship is built through interpersonal exchanges in which parties to the relationship evaluate the ability, benevolence, and integrity of each other. These perceptions, in turn, influence the behaviors predicted by LMX researchers. This integrated model of relational leadership provides insights into the dynamics of leader-subordinate relationships and resolves some of the inconsistencies in the LMX research without losing the richness and uniqueness of the exchange theory. A number of propositions for future research in relational leadership are also suggested.

The trusted general manager and business unit performance: empirical evidence of a competitive advantage

Employee trust for the general manager is proposed as an internal organizational characteristic that provides a competitive advantage for the firm. This paper empirically examines the relationship between trust for a business units general manager and organizational performance. Trust was found to be significantly related to sales, profits and employee turnover in the restaurant industry. Managers who were either more or less trusted differed significantly in perceptions of their ability, benevolence and integrity. Copyright

Differentiating antecedents of organizational commitment: a test of March and Simon's model

Recent theory regarding the nature of organizational commitment suggests that viewing it as comprised of two dimensions, value commitment and continuance commitment, is of theoretical and practical value. This field study found the differential antecedents of these two commitment dimensions to be consistent with the March and Simon (1958) framework using the two-dimensional organizational commitment questionnaire from Mayer and Schoorman (1992). Organizational tenure, retirement benefits, education, and age were more highly correlated with continuance commitment, while felt participation, perceived prestige, job involvement, and role ambiguity were more highly correlated with value commitment. Analysis using LISREL 7 supported the pattern of relationships between the antecedents and the two commitment dimensions.

Reinvestment decisions by entrepreneurs: Rational decision-making or escalation of commitment?

Abstract Among the most important decisions made by entrepreneurs are those relating to whether to expand, maintain, or contract their businesses. We would expect these major commitments to be based upon expectations about future performance; these expectations, in turn, would be heavily influenced by performance to date. Thus, we might presume that businesses that have been receiving favorable feedback from the marketplace would be more likely to expand, and those receiving negative feedback would be more likely to contract. Ongoing research in decision-making suggests that psychological processes may play a role in influencing these decisions. Under certain conditions entrepreneurs may be influenced by a phenomenon termed “escalation of commitment.” This may lead entrepreneurs to decide to expand the asset bases of their firms, regardless of feedback from the marketplace. The literature on escalation of commitment suggests that, under certain conditions, decision-makers who make an initial decision become overly committed to the original choice and then subsequently make decisions biased by psychological commitment. Previous research (most of which has been conducted in laboratory settings) suggests that escalation bias is more likely to occur (1) if entrepreneurs have started their firms (rather than purchased them): (2) if entrepreneurs have partners; (3) if entrepreneurs expect to use their skills in the new business; and (4) if entrepreneurs are overconfident (that is, expected to do substantially better than others in the same kinds of business). It is also expected that these “escalation predictors” will have a relatively greater influence when feedback is negative than when it is positive: the negative feedback seems to invoke a self-justification process. It is also hypothesized that the influence of these predictors will be less in the third year of a business than in the second year. Finally, it is expected that these psychological influences will help to provide systematic explanation of reinvestment decisions over and beyond what one could predict based upon financial feedback. The hypotheses were tested using data from a longitudinal study involving 1112 firms. It was found that entrepreneurs who had started their firms and those who had expressed substantial over-confidence were significantly more likely to make the decision to expand. The hypotheses that those who had partners and those who expected to apply their skills would be more likely to expand were not supported. Furthermore, and consistent with previous research, these psychological escalation predictors seemed to exert a greater influence when feedback from the marketplace was negative. As expected, there was a declining influence in the third year as compared with the second. Consistent with the prior literature and the hypotheses, these psychological predictors did show a small, but systematic influence upon reinvestment decisions. Decisions to expand or contract a business are not necessarily good or bad; however, it is important that entrepreneurs be aware of the factors influencing their decisions. Entrepreneurs should recognize that the escalation bias tendency is likely to occur. Seeking independent opinions from advisors who do not feel as much personal responsibility for the original decision to start may lead to more objective evaluation of alternatives. Advisors should also realize that the inclination to escalate exists and is natural; they may thereby be able to guard against the tendency to be swept along by the entrepreneurs enthusiasm and propensity to escalate. Entrepreneurs and their advisors (as well as researchers) should recognize that important entrepreneurial decisions are often influenced by psychological as well as economic factors. This awareness should enable entrepreneurs to make more rational decisions.

Performance Evaluation in a Dynamic Context: A Laboratory Study of the Impact of a Prior Commitment to the Ratee

A dynamic view of performance evaluation is proposed that argues that raterswho are provided with negative performance data on a previously promotedemployee will subsequently evaluate the employee more positively if they, ratherthan their predecessors, made the earlier promotion decision. A total of 298business majors participated in the study. The experimental group made a pro-motion decision by choosing among three candidates, whereas the control groupwas told that the decision had been made by someone else. Both groups evaluatedthe promoted employees performance after reviewing 2 years of data. The hy-pothesized escalation of commitment effect was observed in that the experimentalgroup consistently evaluated the employee more favorably, provided larger re-wards, and made more optimistic projections of future performance than did thecontrol group.After a long history of attempting to identifyoptimal performance appraisal instruments andtechniques (cf. Landy & Farr, 1980), recent re-search has moved towards studies that describethe processes involved in making a judgmentabout performance (Borman, 1975; Feldman,1981; Schneier, 1977; Zedeck & Kafry, 1977).This article represents this latter paradigm andspecifically addresses the dynamic processes thatoccur within a rater across multiple judgments ofthe same ratee. It is concerned with a longitudinalview of the rating process in order to focus onjudgmental demands associated with rating thesame ratee at multiple points in time. This articlepresents: (a) a brief review of the trend towardsunderstanding rating processes, (b) presentationof a longitudinal viewpoint, (c) development ofa set of hypotheses from this new viewpoint, and(d) discussion of the results of the empirical testof these hypotheses.The traditional view of performance evaluationassumes that a rater has both a complete set ofinformation about the behavior of the ratee andan organizationally provided performance ap-praisal instrument. The instrument provides the

The Value of Common Perspectives in Self-Reported Appraisals You Get What You Ask For

This article uses the work of Smircich and Chesser on direct and meta-perspectives (i.e., points of view) to test the correspondence between self-reported and supervisory ratings of performance. Results from two field studies indicate a higher level of self-supervisor rating correlation when using a common perspective. Similar results were obtained using an alternative measure of rating correspondence. The results provide evidence that researchers using self-reports of performance as surrogates for archival performance data should ask respondents for their supervisors assessment of their performance rather than for their own assessment. The practical implications of these results for field research are discussed.

Unpackaging the multiple aspects of time in polychronicity

Research on polychronicity generally treats time use preference, context, and time tangibility as isomorphic variables that can be represented on a single continuum. An alternative model of temporality that treats these variables as independent dimensions is presented. This model is tested in a sample of 258 middle and senior level executives representing more than 200 organizations and 25 countries. Correlations among the variables and confirmatory factor analyses provide support for the multidimensional view of polychronicity. Further classification provided evidence that all eight possible configurations of the three variables can and do exist. The most frequent “type” reflected a polyphasic time use preference, low context, and high time tangible profile. This profile fits the description of Type A behavior pattern adding support for the multidimensional view.

Trust as a Moderator of the Relationship Between Mentoring and Knowledge Transfer

To be effective, organizations must facilitate knowledge transfer between employees. Mentoring has long been viewed as a vehicle for effective knowledge transfer. The authors break new ground in examining the role of trust as a moderator of the relationship between mentoring and knowledge transfer. Results of a study conducted among employees of a hospital who indicated they had mentors show main effects for both mentoring and trust as well as a significant interaction effect. Implications of these findings for knowledge transfer are discussed.

Empowerment in veterinary clinics: the role of trust in delegation

ABSTRACT Several authors have suggested that trust is important to empowerment. This research develops the theoretical relationship between empowerment and trust. Trust, defined as a willingness to be vulnerable, was found to contribute to managers’ taking greater risks in their relationships with their employees through increased delegation of authority. Results show strong support that trust for an employee is a function of the employee’s perceived ability, benevolence, and integrity, as well as the manager’s propensity to trust.

Perspective: Empowerment in veterinary clinics: the role of trust in delegation

The introduction and discussion of this paper reflect the state of the field two decades ago when the paper was presented. Some of the issues raised in the paper have seen considerable research sin...