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The Cost of Status Enhancement: Performance Effects of Individuals' Status Mobility in Task Groups

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  • Corinne Bendersky

    (Anderson School of Management, University of California, Los Angeles, Los Angeles, California 90095)

  • Neha Parikh Shah

    (Anderson School of Management, University of California, Los Angeles, Los Angeles, California 90095; and Rutgers Business School, Newark, New Jersey 07102)

Abstract

Although we know that considerable benefits accrue to individuals with high social status, we do not know the performance effects of gaining or losing status in one's group over time. In two longitudinal studies, we measure the status positions of middle managers currently enrolled in a part-time MBA program at the beginning and end of their study group's life. In both samples, we compare the individual performance (course grades) of the students who gained or lost status to those who maintained high and low stable status positions in their groups. We find that higher status at the end of the group's life is associated with higher performance. We also find, however, that the performance of individuals who gain or lose status over time does not correspond to their final status positions. Instead, those who gain status—including those who eventually attain high status—perform worse than those who maintain high-status positions for the whole quarter. They perform no better than those in stable low-status positions throughout. Those who lose status over time actually perform as well as those who maintain high status. We interpret these results to suggest that people might trade off resources they could apply to individual performance for opportunities to enhance their status. After replicating this effect in our second sample, we identify overinvestment in increasing assertive communication and generosity as behavioral mechanisms through which individuals successfully gain status to the detriment of their own performance.

Suggested Citation

  • Corinne Bendersky & Neha Parikh Shah, 2012. "The Cost of Status Enhancement: Performance Effects of Individuals' Status Mobility in Task Groups," Organization Science, INFORMS, vol. 23(2), pages 308-322, April.
    • Handle: RePEc:inm:ororsc:v:23:y:2012:i:2:p:308-322
    DOI: 10.1287/orsc.1100.0543
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    References listed on IDEAS

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    Cited by:

    1. Jauernig, Johanna & Uhl, Matthias & Luetge, Christoph, 2016. "Competition-induced punishment of winners and losers: Who is the target?," Journal of Economic Psychology, Elsevier, vol. 57(C), pages 13-25.
    2. Tsedal B. Neeley, 2013. "Language Matters: Status Loss and Achieved Status Distinctions in Global Organizations," Organization Science, INFORMS, vol. 24(2), pages 476-497, April.
    3. Jeroen Nieboer, 2022. "Positional enhancement in effort-based social comparisons," Discussion Papers 2022-02, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    4. Youchung Kwon & Bo Kyung Kim, 2024. "When we unite, not divide: status homophily, group average status, and group performance in the Korean film industry," Asian Business & Management, Palgrave Macmillan, vol. 23(1), pages 9-31, February.
    5. D. Scott DeRue & Jennifer D. Nahrgang & Susan J. Ashford, 2015. "Interpersonal Perceptions and the Emergence of Leadership Structures in Groups: A Network Perspective," Organization Science, INFORMS, vol. 26(4), pages 1192-1209, August.
    6. Meichen Dong & Jie Jiao & Jun Xia, 2022. "Consequences of homophily: does social status similarity enhance project performance?," Asian Business & Management, Palgrave Macmillan, vol. 21(1), pages 58-81, February.
    7. J. Stuart Bunderson & Gerben S. Van der Vegt & Raymond T. Sparrowe, 2014. "Status Inertia and Member Replacement in Role-Differentiated Teams," Organization Science, INFORMS, vol. 25(1), pages 57-72, February.
    8. Ya-Ru Chen & Randall S. Peterson & Damon J. Phillips & Joel M. Podolny & Cecilia L. Ridgeway, 2012. "Introduction to the Special Issue: Bringing Status to the Table—Attaining, Maintaining, and Experiencing Status in Organizations and Markets," Organization Science, INFORMS, vol. 23(2), pages 299-307, April.
    9. Zhi Huang & Marvin Washington, 2015. "Assimilation or Contrast? Status Inequality, Judgment of Product Quality, and Product Choices in Markets," Organization Science, INFORMS, vol. 26(6), pages 1752-1768, December.
    10. Junghyun Lee & Se-Hyung Oh & Sanghee Park, 2022. "Effects of Organizational Embeddedness on Unethical Pro-organizational Behavior: Roles of Perceived Status and Ethical Leadership," Journal of Business Ethics, Springer, vol. 176(1), pages 111-125, February.
    11. Wayne E. Baker & Nathaniel Bulkley, 2014. "Paying It Forward vs. Rewarding Reputation: Mechanisms of Generalized Reciprocity," Organization Science, INFORMS, vol. 25(5), pages 1493-1510, October.
    12. Yan Liu & Long Lam & Raymond Loi, 2014. "Examining professionals’ identification in the workplace: The roles of organizational prestige, work-unit prestige, and professional status," Asia Pacific Journal of Management, Springer, vol. 31(3), pages 789-810, September.

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