Contingent Reward, Regulatory Focus, and Trust
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Transcript of Contingent Reward, Regulatory Focus, and Trust
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Contingent Reward, Regulatory Focus, and Trust
Ronald F. PiccoloRollins College
Tomek A. KosalkaUniversity of Central Florida
Craig CrossleyUniversity of Nebraska
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The Full Range of Leadership•Transactional Leadership (TA)
▫Refers to the exchange relationship b/w leader and follower to meet their own self interests.
•Transformational Leadership (TF)▫Refers to the leader moving the follower beyond
immediate self interests.•Scholars tend to suggest that mechanisms underlying
TF and TA are in conflict (Jung & Avolio, 2000),▫TA (Contingent Reward) leaders activate extrinsic, short-
term, task- and self-oriented psychological mechanisms▫TF leaders rely on emotional arousal, trust, shared values,
and selfless effort
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Contingent Reward• An active dimension of the Transactional Leadership model (TA) • Multi-Factor Leadership Questionnaire (Bass & Avolio, 1995)
My leader…▫ Provides me with assistance in exchange for my efforts. ▫ Discusses in specific terms who is responsible for achieving performance targets.▫ Makes clear what one can expect to receive when performance goals are
achieved. ▫ Expresses satisfaction when I meet expectations.
• Bass (1985) – Transformational leadership builds on and augments transactional leadership (although not vice versa).
• Bass and Avolio (1993) assert that the augmentation effect is a "fundamental" aspect of TF-TA leadership theory.
• Countless studies support the notion that TF adds beyond the TA dimensions – including contingent reward (CR)
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Source: ISI Web of Science; * 51 articles YTD 2009.
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Keyword = Transactional Leadership, 2005 - 2009
•Measurement of the Concept: 13•Motivation: 22; Goals: 23•Justice/Fairness: 20•Creativity/Innovation: 20•Moderators: 43•Mediators (process): 59
ISI Web of Science
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The Current Study• Leaders influence the motivational self-regulatory focus of their
followers, which will mediate different follower outcomes at the individual (and group) level (Kark & van Dijk, 2007).
• We propose…not only are TF and CR highly related, not only share validities across outcomes, but are ultimately realized through similar processes – self regulatory focus (promotion).
• We seek to extend the model proposed by Kark & van Dijk: leaders who exhibit CR behaviors (providing assistance, defining performance standards, demonstrating how work behaviors translate into rewards) prime the focus of followers for achievement (i.e., promotion).
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Model of Relationships
Promotion Focus
Trust
Contingent Reward
Performance
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Method•Participants: 87 sales professionals from a food
distribution company participated in a 3-day training and strategic planning session.
•At the end of the first day, participants completed a battery of assessments, including measures of contingent reward, regulatory focus, and trust.
•After four weeks, general managers of the sales divisions provided weekly performance data (# of buyers; $$ sold, performance-to-goal).
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Measures• Contingent Reward (Bass & Avolio, 1995)• Regulatory Focus (promotion; Wallace & Chen, 2006), = .77
“Right now, I am concerned with…” Accomplishing a lot of work Getting my work done no matter what Getting a lot of work finished in a short amount of time Work activities that allow me to get ahead My work accomplishments How many tasks can I complete
• Trust (ad hoc items), = .90 I Feel I can trust my LGM I sometimes hold back from trusting my LGM I have complete trust in my LGM I know I can Trust my LGM
• Performance = # of New Buyers (weekly), 4 weeks
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Correlations
1 2 3 4 5 61. Contingent Reward (.84)
2. Promotion Focus .27* (.77)
3. Trust .74* .22* (.90)
4. Performance 1 .31* .27* .19† --
5. Performance 2 .33* .08 .23* .73* --
6. Performance 3 .23* .14 .18 .80* .72* --
7. Performance 4 .21* .08 .09 .70* .81 .82*
Note. n = 75 – 81. * p < .05.
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Regression ResultsPromotion Focus Performance R2 R2 R2 R2
1. Contingent Reward
.23* .07* .07*
Trust .05
2. CR x Trust 2.23* .15* .08*
1. Contingent Reward
.31* .09* .09*
2. Contingent Reward
.25* .13* .04*
Promotion Focus .20†
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CR x Trust → Promotion
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Summary• CR related to performance outcomes in all four weeks• CR primed promotion focus (extension of Kark & van Dijk)
▫Effect was moderated by Trust in supervisor• Promotion focus related to performance in week one only
▫Are the effects associated with primed regulatory focus temporal?
• Mediating Effects of Promotion Focus were modest▫n~80; low power
• Effects of Promotion on Goal Setting and $$ Sales were weak
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Conclusions•Original theorizing on augmentation effect of TF:
▫Transformational adds to (but does not substitute for) the effectiveness of transactional leadership.
•Recent empirical results▫Validities are similar across criteria.▫In many cases, transactional adds to the effectiveness
of transformational (e.g., Follower Satisfaction).•Effects of TF & CR are realized through similar
mechanisms (e.g., self regulatory focus)•Relationship between CR and Promotion Focus
depends on Trust (see also, LMX)
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Why does TA augment TF?• CR comprises leader activity that is not adequately
captured in Transformational behaviors. CR leaders… ▫Make clear expectations of outcomes & rewards▫Actively monitor progress towards objectives
•CR satisfies self-interested, individual needs (i.e., CR taps individual need systems that are not fully engaged by TF leader behaviors)▫ “Whenever there is a conflict between universal principles
and self interest, self interest is likely to prevail” Open Society: Reforming Global Capitalism
▫ “Never appeal to a man’s ‘better nature’; He may not have one. Invoking his self-interest provides much more leverage.” Lazarus Long (by Richard A. Heinlein)
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Future Studies•Additional Power•More sophisticated examination of effects over time•Alternative outcomes (affective, behavioral)•Examination of CR vs. TF
▫To what extent does context play a role?
•We look to Ronit Kark for guidance
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Thank You.