Individual and collateral effects of power in organizations

  1. Lina María Restrepo Plaza 1
  2. Enrique Fatas 2
  1. 1 Universidad del Valle (Colombia)
    info

    Universidad del Valle (Colombia)

    Santiago de Cali, Colombia

    ROR https://ror.org/00jb9vg53

  2. 2 Loughborough University
    info

    Loughborough University

    Loughborough, Reino Unido

    ROR https://ror.org/04vg4w365

Journal:
Economía industrial

ISSN: 0422-2784

Year of publication: 2019

Issue Title: Economía conductual

Issue: 413

Pages: 43-50

Type: Article

DIALNET GOOGLE SCHOLAR lock_openOpen access editor

More publications in: Economía industrial

Abstract

The behavioral effects of being endowed with power have been understudied in the mainstream Economics literature. In this paper, we survey recent behavioral research exploring how the experience of power may change the behavioral pattern of individuals in organizations and firms, with first order consequences for their performance. While in some settings power may boost the confidence, optimism and creativity of empowered individuals, it may also create a significant and substantial willingness to keep it at a high personal cost, taking delegation of tasks to suboptimal levels. The value of power for individuals critically depends on a combination of individual characteristics and institutional factors, like the status and legitimacy attached to it

Bibliographic References

  • Anderson, C., & Berdahl, J. L. (2002). «The experience of power: Examining the effects of power on approach and inhibition tendencies». Journal of Personality and Social Psychology, 83(6), 1362.
  • Anderson, C., & Galinsky, A. D. (2006). «Power, optimism, and risk-taking». European journal of social psychology, 36(4), 511536.
  • Anicich, E., Fast, N., Halevy, N., and Galinsky A (2016). «When the Bases of Social Hierarchy Collide: Power Without Status Drives Interpersonal Conflict». Organization Science 27(1):123-140
  • Baldassarri, D. and G. Grossman (2013): «The Effect of Group Attachment and Social Position on Prosocial Behavior. Evidence from Lab-in-the-field Experiments», PLoS One 8 (3), e58750.
  • Bartling, B., Fehr, E., & Herz, H. (2014). «The intrinsic value of decision rights». Econometrica, 82(6), 2005-2039.
  • Bendahan, S., Zehnder, C., Pralong, F. P., & Antonakis, J. (2015). «Leader corruption depends on power and testosterone». The Leadership Quarterly, 26(2), 101-122.
  • Bobadilla-Suarez, S., Sunstein, C. R., & Sharot, T. (2017). «The intrinsic value of choice: The propensity to under-delegate in the face of potential gains and losses». Journal of risk and uncertainty, 54(3), 187-202.
  • Burdín, G., Halliday, S., & Landini, F. (2015). «Third-Party vs. Second-Party Control: Disentangling the role of autonomy and reciprocity», IZA Discussion Papers, No. 9251.
  • Charness, G., Cobo-Reyes, R., Jiménez, N., Lacomba, J. A., & Lagos, F. (2012). «The hidden advantage of delegation: Pareto improvements in a gift exchange game». American Economic Review, 102(5), 2358-79.
  • Coats, J. C., & Rankin, F. W. (2016). «The delegation of decision rights: An experimental investigation». In Advances in Management Accounting (pp. 39-71). Emerald Group Publishing Limited.
  • Dahl, R. A. (1957). «The concept of power». Behavioral science, 2(3), 201-215.
  • Dominguez-Martinez, S., Sloof, R., & von Siemens, F. A. (2014). «Monitored by your friends, not your foes: Strategic ignorance and the delegation of real authority». Games and Economic Behavior, 85, 289-305.
  • Eckel, C., Fatas, E. and R. Wilson (2010): «Status and Cooperation in Organizations», Journal of Public Economic Theory 12(4), 737-762.
  • Falk, A., & Kosfeld, M. (2006). «The hidden costs of control». American Economic Review, 96(5), 1611-1630.
  • Fast NJ, Halevy N, Galinsky AD (2012) «The destructive nature of power without status». Journal of Experimental Social Psychology 48(1):391–394.
  • Fatas, E., Meléndez-Jiménez, M.A. and H. Solaz (2010): «An Experimental Analysis of Team Production in Networks», Experimental Economics 13, 399-411
  • Fatas, E., Meléndez-Jiménez, M.A. and H. Solaz (2019): «Social hierarchies: An Experiment on Coopertion and Punishment across Networks», Economic Inquiry, forthcoming.
  • Fehr, E., Herz, H., & Wilkening, T. (2013). «The lure of authority: Motivation and incentive effects of power». American Economic Review, 103(4), 1325-59.
  • Galinsky, A. D., Magee, J. C., Gruenfeld, D. H., Whitson, J. A., & Liljenquist, K. A. (2008). «Power reduces the press of the situation: implications for creativity, conformity, and dissonance». Journal of Personality and Social Psychology, 95(6), 1450.
  • Goldstein, N. J., & Hays, N. A. (2011). «Illusory power transference: The vicarious experience of power». Administrative Science Quarterly, 56(4), 593-621.
  • Grossman, G. and D. Baldassarri (2012): «The Impact of Elections on Cooperation: Evidence from a Lab-in-the-field Experiment in Uganda», American Journal of Political Science 56(4), 964-985.
  • Guinote, A. (2007). «Behaviour variability and the situated focus theory of power». European Review of Social Psychology, 18(1), 256-295.
  • Habyarimana, J., Humphreys, M., Posner, D.N. and J.N. Weinstein (2007): «Why Does Ethnic Diversity Undermine Public Goods Provision?», American Political Science Review 101(4), 709-725.
  • Haselhuhn, M. P., Wong, E. M., & Ormiston, M. E. (2017). «With great power comes shared responsibility: Psychological power and the delegation of authority». Personality and Individual Differences, 108, 1-4.
  • Hogeveen, J., Inzlicht, M., & Obhi, S. S. (2014). «Power changes how the brain responds to others». Journal of Experimental Psychology: General, 143(2), 755.
  • Inesi, M. E. (2010). «Power and loss aversion». Organizational Behaviour and Human Decision Processes, 112(1), 58-69.
  • Kipnis, D. (1972). «Does power corrupt?». Journal of Personality and Social Psychology, 24(1), 33.
  • Magee, J. C., & Galinsky, A. D. (2008). «8 social hierarchy: The self-reinforcing nature of power and status». Academy of Management Annals, 2(1), 351-398.
  • Magee, J. C., Galinsky, A. D., & Gruenfeld, D. H. (2007). «Power, propensity to negotiate, and moving first in competitive interactions». Personality and Social Psychology Bulletin, 33(2), 200-212.
  • Neri, C., & Rommeswinkel, H. (2017). «Decision rights: freedom, power, and interference, mimeo», University of Zurich
  • Owens, D., Grossman, Z., & Fackler, R. (2014). «The control premium: A preference for payoff autonomy». American Economic Journal: Microeconomics, 6(4), 138-61.
  • Parsons, T. (1963). «On the concept of political power». Proceedings of the American Philosophical Society, 107(3), 232-262.
  • See, K. E., Morrison, E. W., Rothman, N. B., & Soll, J. B. (2011). «The detrimental effects of power on confidence, advice taking, and accuracy». Organizational Behavior and Human Decision Processes, 116(2), 272-285.
  • Semler, R. (1993). «Maverick: The success story behind the world’s most unusual workplace». New York: Warner Books.
  • Sloof, R., & von Siemens, F. A. (2015). «Decision initiation, decision implementation, and the allocation of decision rights». CESIFO Working Paper NO. 5509
  • Sloof, R., & von Siemens, F. A. (2017). «Illusion of Control and the Pursuit of Authority». Experimental Economics, 20(3), 556-573.
  • Weber, M. (1978). «Economy and society: An outline of interpretive sociology (Vol. 1)». University of California Press.
Data source: Dialnet